Poncho was hired to get rid of the Electrode. He had a system to dig the holes under the city and get Electrode to the nearby island where they can live freely and in peace. Team Rocket offered a better deal to the mayor and made the Electrode explode to get Electrode for themselves. Poncho was disgusted and sent Dugtrio, who dug the tunnel to make them fall in. He had the Diglett dig the tunnels and soon the Electrode were moved. Due to this deed, Poncho received the key of the city.
Poncho had a lot of Diglett, who were used to dig tunnels to transport Electrode.