PUD general manager testifies in Michael Kelly bribery trial

David Plotz remembers the moment his stomach "got the big pit in it."

The Lewis County Public Utilities District (PUD) general manager and Michael Jay Kelly had met for drinks on Nov. 7, 2024, to discuss Plotz's compensation going into the next year.

Such meetings were customary, Plotz indicated as he took the stand Tuesday to testify in the state of Washington's criminal case against Kelly in Lewis County Superior Court.

The former PUD commissioner is charged with bribery and requesting unlawful compensation.

According to Plotz, Kelly quickly turned the barroom conversation into a discussion about whether Plotz could create a position for Kelly at the PUD.

Kelly was anticipating the loss of his job at TransAlta following the company's longstanding agreement to shut down coal-fired production at its Centralia power plant. He was also "short on money" from his recent divorce, according to Plotz.

The positions Kelly was interested in - assistant general manager and asset manager - didn't exist.

Plotz said Tuesday that those positions had been discussed in previous conversations within the PUD, and added that the conversations may have included Kelly.

Plotz said he was "pretty opposed" to the idea of hiring Kelly, though, "for many reasons," one of which was that it would not look right from the public's perspective.

"We don't hire friends," Plotz said Tuesday.

Plotz said he and Kelly left to go to a second bar after local resident Debbie Aust entered with her husband. Plotz described being uncomfortable, given Aust's opposition to "a number of initiatives" with the PUD.

When they arrived at The Limit Bar & Grill, Plotz said, the "friendly argument" about whether Plotz would create a position for Kelly abruptly turned to Plotz's compensation.

"It shocked me a little bit," Plotz said.

According to Plotz, Kelly "lowballed" him, suggesting a 4% raise and eight years of service credit.

"I told him that I was expecting 8% like the prior year and eight years of service credit," Plotz said.

Plotz said Kelly then agreed to advocate and push the other commissioners for the 8% raise. A simple majority of the commissioners - two out of the three - was needed for it to pass.

"And all I needed to do was promise to hire him," Plotz said.

The "big pit" had set in.

"It didn't feel right for how we operated the PUD," Plotz said.

Still, Plotz said he told Kelly as they were leaving, "Don't worry, I'll help you."

Plotz went home and, "still feeling overwhelmed a bit," made some notes on his phone about the conversations that had occurred. The next day, he met with the PUD's attorney, Allen Unzelman, and others within the PUD. Later that day, Plotz and Unzelman went to the Centralia Police Department to report the conversation.

On Nov. 14, Plotz participated in a judicially-authorized wiretapped phone conversation with Kelly, the goal of which was to try to get Kelly to repeat the alleged bribery attempt.

On Tuesday, that conversation was played to the 12-person jury and its two alternates.

The bulk of the phone call consists of unrelated discussion about agenda items for an upcoming commissioners' meeting - until Plotz brings up the conversation at the bars.

"I would like to be clear," Plotz says in the recorded call, before telling Kelly that he wants to know what he's supposed to do.

"I just want to make sure you don't leave before you create a position for me," Kelly says.

A short time later, Kelly says he knows how to talk to fellow commissioner Michael Hadaller, and adds that Commissioner Ed Rothlin is "not going to be hard."

"We're just taking care of each other as best we can," Kelly says near the end of the call.

When questioned by Senior Deputy Prosecutor Scott Jackson, Plotz said he didn't bring up the "obstacles" regarding the position in order to get Kelly to repeat his statement.

Asked if he thought the job was tied to his raise, Plotz said, "No question in my mind."

During the cross examination, Kelly's defense attorney, Ryan English, asked Plotz about the number of steps needed to actually create and hire a position at the PUD. These steps would have included an open application window, a vetting of applicants and interviews.

English noted in his questioning that Kelly did not have the "sole ability" to secure Plotz's raise.

"It was by no means a promise or a guarantee, true?" English asked.

Plotz agreed.

English then questioned the "quid pro quo" element of the alleged bribery, reminding Plotz that he had already testified to saying he could not make any promise to Kelly.

"So, this for that actually means, in this particular case, I'll try my best and you'll try your best," English said.

"Correct," Plotz said.

Plotz further testified that he never told Kelly the alleged discussion had made him uncomfortable and confirmed that Kelly had never asked him to keep it a secret.

During the redirect examination, Jackson returned to the "quid pro quo," asking Plotz, "Did you believe Mr. Kelly was requesting something for you if he did something for you?"

"Yes," Plotz said.

The general manager is one of four state's witnesses to testify since the trial began Monday. Detective Mitch King and Detective Sgt. Chad Withrow of the Centralia Police Department both spoke under oath about their involvement in the investigation.

King led the wiretapped conversations of Plotz and Lynette Hoffman, the editor of Lewis County News and Kelly's former political consultant.

Hoffman was on the stand Tuesday when Judge Paul Strophy recessed the trial until Wednesday afternoon. She had yet to be cross-examined.

PUD Commissioner Michael Hadaller and Unzelman are also expected to testify.

In January, English made a motion requesting that Unzelman submit to a deposition, arguing that the PUD's invoking of attorney-client privilege affected his right as an attorney to "question witnesses prior to trial and failure to do so can be considered deficient representation."

"PUD/Mr. Unzelman waived the assertion of any privilege when a criminal report was made to law enforcement," the written motion said.

One question English sought an answer to: "Did Mr. Kelly ever ask you about whether it would be permissible to approach David Plotz regarding the creation of these various positions?"

The court ultimately denied the motion.

Strophy upheld the decision this week, saying the constitutional right to present a defense did not, in this case, trump attorney-client privilege.

On Tuesday, Strophy told English in a conference without jurors that the attorney-client privilege did not prohibit Kelly from testifying about conversations he might've had with Unzelman.

Kelly faces up to 10 years in prison and $20,000 in fines for the bribery charge, and up to five years in prison and $10,000 in fines for the charge of requesting unlawful compensation.

He was arrested on Nov. 27, 2024, and has been out of custody since posting $10,000 in bail on Nov. 29, 2024.

Kelly pleaded not guilty to both counts during a preliminary appearance and arraignment on Dec. 2, 2024, and again pleaded not guilty to an amended information on June 4.

Kelly was first elected in 2020 and began serving in January 2021. In March 2025, his position was vacated after he failed to attend PUD Board of Commissioners meetings for 60 days.

PUD commissioners Mike Hadaller and Dave Fenn appointed Dave Muller to the vacant position on May 6, 2025.

The trial is expected to continue through the week.

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