$4 million here, $4 million there - Lake Worth Utilities

Comment Up

The Electric Utility put a Capital Improvement program into effect in 2001. Garrison Electric was hired to do a feasibility study that concluded that a standard voltage of 13.2kv was best. The Study was agreed to by two Professional Engineers who signed off on a standard upgrade path. They said that a standard should be used that was compatible with FPL as well as to all the surrounding utility companies and those throughout the country. And if the City of Lake Worth ever wanted to entertain the idea of selling the Utility, it had better be standard.

A few years passed and a City Commission approved of a new 26kv Plan (led by Mark Drautz), against standard, that was submitted by an "engineer" who was later exposed as a fraud. We then proceeded to spend our Bond money on a non-standard voltage against the previous expert advice and feasibility study.

The horrendous thing was that Lake Worth taxpayers had invested approximately $4- 5 million into a 26kv upgrade that was NOT standard thanks to a bad decision by that Commission, made against all expert reports and testimony. A Black and Veatch Study confirmed the findings of the Garrison Report that recommended a standard distribution voltage of 13.2kv for Lake Worth. We spent $4 million on a non-standard system and Lake Worth taxpayers got left holding the bag. We developed a $4 million shortfall for a strange, inept, corrupt and BAD decision.

We are pleased that the Lake Worth Utility has finally seen the light and has abandoned the 26kv upgrade to go with a standard voltage as all experts say that 26.kv would bankrupt the City. Concerns still exist. Spending $4 million to finally admit you are wrong is a tremendous price to pay. As we do NOT want the Utility to spend millions foolishly now or in the future, we bring up the 138kv tie-line.

Tomorrow at 9am the Commission meets in a workshop. One of the discussion items beginning around 9:30 is the authorization of the city commission to spend $4 million on another 138kv tie-line. Another tie-line would be advantageous to Lake Worth but it's not as if we have the money. However, without the proper permits for rights-of-way or acquisition as well as FPL's interest, we have to wonder about this $4 million request.

The question to ask is, will these millions really be used for another tie-line or is it simply a ruse to make up for the wasted $4 million already spent on a non-standard voltage that was literally blown into the wind and that they now are finally admitting was folly? Do they have all the necessary ducks in a row and/or proof of communication with FPL and its involvement?

"At the moment, this is pure folly; plain and simple......especially if the Utility Director, Becky Mattey is continuing to speak of a tie location other than Hypoluxo," said someone in the field. He further stated, "The utility is either getting the cart a long way in front of the horse, or they have entirely given up on producing energy at your power plant......I would want to know which."

What the back-up says:

• "138 kV Tie Line Construction

• Project will include land acquisition, design by consultant and construction by contractor
  

• Funds are included for land acquisition in FY 2013 with construction budgeted for FY 2004
  

• This schedule is subject to change based on negotiations which may take place pursuant to a new power supply contract.

• Land Acquisition $1,500,000

• Construction $2,500,000

• TOTAL $4,000,000"

End of Back-up bullet points.
.................
The three possible locations for a 138kv tie-line are: (there is trouble in downloading the full back-up documents ((another conspiracy by the City)) so we have no idea what Plan the Utility Director has for this)

1. Hypoluxo at the same location of our existing tie-line. This would not serve our reliability goal.

2. Somewhere along Military Trail which would require a new agreement with FPL and the purchase of 2 to 3 acres and rights-of-ways. Estimated costs around $5 million over 5 years and more for the property. We question the dollar estimates above submitted by Lake Worth Utility, It could be much more.

3. A new 138kv tie-line north of the Main Yard on on Federal & Wilder St. An expert says, this cost could easily be upwards of $100's of thousands of dollars per year for every year the line is in existence for rental of Railroad Right-Of-Way.