Business Community
Peninsula Light ousts elected board member who served 26 years
Peninsula Light Company directors voted Thursday to remove long-time board member Paul Alvestad.
The member-owned cooperative utility company said in a news release that Alvestad violated confidentiality and “created a hostile environment for PenLight staff and fellow Board members.”
“The Board based its unanimous decision on the results of an independent investigation conducted by Miller Nash, a law firm with no previous relationship to PenLight,” it read.
The company declined to elaborate on its allegation against Alvestad.
“While we can’t discuss the specific details of the confidential information, we can share that it was related to a potential new headquarters facility,” board president Debra Ross said in an email.
Other PenLight board members include Vice President Marc Jorgenson, Treasurer Scott Junge, Secretary Erin Gatherum, Nick Markovich, Roger Spadoni and Signo Uddenberg.
L. Paul Alvestad
Alvestad previously sued PenLight
Alvestad has criticized PenLight in lawsuits, on social media and in comments to reporters during the past year. He depicted CEO Jafar Taghavi and other board members as pursuing a new headquarters building that PenMet doesn’t need and is “overpriced by millions.”
While serving as a director, Alvestad urged the utility to put the question of a new headquarters building to a member vote. He said his goal was to prevent the company from unveiling plans for the new HQ only as a done deal that the board already approved.
Alvestad, a lawyer with the Gig Harbor firm Gordon & Alvestad PLLC, sued Taghavi last May, calling on him to disclose plans for the new HQ along with its projected cost.
PenLight criticized this lawsuit in its news release. The action “has driven up PenLight’s legal costs, made it difficult for Board members to communicate openly in meetings, and taken Board members’ time and attention that should be devoted to improving PenLight service.”
“Even though PenLight provided Mr. Alvestad with all of the records that he demanded, he has still refused to dismiss his lawsuit,” it said.
New lawsuit
Alvestad launched a second lawsuit three days ago. It seeks a temporary restraining order to block the hearing on March 19 that resulted in his ouster.
“This hearing is the culmination of an improper ‘freezeout’ campaign designed to punish the plaintiff for exercising his fiduciary duties by opposing a substantial expenditure for headquarters building,” the case argued.
“Unless the (restraining order) is granted, the ratepayers/members of the Company will lose their most vocal (and perhaps only) advocate for low rates, transparency, board accountability, and separation of functions between the board and executive branch.”
Alvestad has stated that he disclosed only very general information about PenLight’s studies for a new headquarters. The second lawsuit argues this information is not confidential because the company has already shared it. As examples, the suit points to meetings at which PenLight’s CEO, staff, directors and officials of other utility companies discussed the plans.
Alvestad said in an interview that his bid for a restraining order “was denied because I’ve got other remedies” to a dismissal, such as suing for reinstatement. He said he learned of his dismissal Friday morning (March 20) and is considering his options.
Barred from running for seat
An election of board members is scheduled for this spring, but the deadline to file a candidacy was Dec. 31, 2025. And in any case, “Mr. Alvestad is barred from running for a seat on the PenLight Board of Directors in future elections,” Debra Ross said in an email.
The decision to dismiss Alvestad — whose father and grandfather also served as PenLight directors — “was not made lightly,” the news release quoted her as saying.
“The Board members recognize that Mr. Alvestad contributed in many important ways during his 26 years on the Board, and we appreciate his contributions and service. Unfortunately, Mr. Alvestad’s recent conduct does not reflect PenLight’s values. This action will not keep us from continuing our work in service to our 35,000 members.”
PenLight makes case for new HQ
A PenLight webpage offers details about the possible new headquarters building. The website says the current HQ, built in the 1980s, “no longer meets modern safety, seismic, or operational standards – putting employees, members and power reliability at risk.”
“This facility houses key systems for outage response, dispatch, member communication, and infrastructure management … In the event of a major emergency (earthquake, fire, etc.), the building is at risk of complete loss — jeopardizing our ability to restore power to our entire service area.”
The utility in 2022 began a “formal facilities assessment was conducted as part of the organization’s long-term planning efforts.”
The assessment is still in the preliminary draft design phase and staff “are working with consultants to evaluate needs and ensure safety, functionality, and cost-effectiveness. The Board has not approved any project yet.”
“At this stage, it is premature to comment on a finalized plan or cost,” the webpage reads.