Letters to the Editor
Palm Beach Post
May 26, 2013
Utility funnels revenue to city
People from every facet of Lake Worth’s politics agree that customers deserve better from their electrical utility. I’m glad I can vote for the people who work in my interest, and I encourage the commission to continue its progress.
The advantage of local control will prove to be important as time goes by. Today Florida Power & Light offers better rates, but I don’t trust such a big corporation, nor the state politics that manifest in setting future rates, to be responsive to the needs of our small city.
The Lake Worth utility is salable because it is an asset that is profitable. Lake Worth is addicted to its profit in a bad way, because of poor management, and the revenue decline following the 2008 global financial crisis. But I wonder what would have happened without the utility revenue during the past five years?
SAM GOODSTEIN
Lake Worth
16 comments:
Well Sam, our commission regulated us into the highest rates in the state. Just who do you trust?
Our residential rate is right in the middle of all utility residential rates in the State. Commercial rates are the highest. Soon we will be out of F<PA and have a new provider. We have reduced our rates on top of that. They are coming down. Let the process work and stop all the bitching ab out selling our elec company.
If you have a small house and a small utility bill you don't care about the fact that the utility is raping the rest of us. You don't care that our business community is being killed by these rates. You tell us to wait and see how the rates will come down and how lucky we are to have full control over this company. Well I don't believe that rates will come down as long as we are unable to pay for the basic needs of this city. We will always need those high rates. God forbid we have a hurricane that does millions in damages to our systems. Those of your who want control can explain how we pay to rebuild the system. The days of one small city owning a utility are over. It makes no sense. Our elected officials have no idea how to oversee the manger of the system and have no business being in charge of the system. Sell the monster and learn to live within your means. If you can't do that we don't deserve to be a city.
Our electric utility has been around for 100 years. I have no doubt that with the right management, anything can be achieved. It has allowed this city to grow. There are many cities that own their own utility. Commercial rates need to be adjusted and I think that is part of the plan. Hurricanes come and go and we have survived all of them.
PS. 31 homes in Atlantis were without power just a few days ago. They have FPL.
The fact that the utility has been around for 100 years is the problem. It's old and does not produce energy. We can't afford to replace the old equipment and the building is in bad shape. The City has failed to get good management of the utility for years with the prime factor being that neither the City Manager or Commissioners know anything about the management of a utility. The fact that other cities own their utility company is meaningless. The reality is that most ofthe country gets their power from utility companies regulated by the government.
Finally, saying that we have survived past hurricanes does not address the fact that we do not have the money to repair anything should we get hit with a major storm. You can't address this issue with old arguments Lynn. Tell us how owning the utility that produces no energy is good for me the citizen of this city. It's just a way of taxing me for the cost of running the city. There are no limits on the amount the city can tax us and we are at the mercy of the city each month. That was not what the founders of this city intended it to do.
We were not allowed to produce our own generation because of the FMPA contract. We have the ability to do so. Your argument is based on a hypothetical that may or may never happen--a severe storm that will knock us out of business forever. We have all sorts of insurance coverage for catastrophies. Talk about fear mongering. There are definitely limits on how much the city can tax you--it is 10 mils. Taxes on utilities have come down.
You miss the point. The City is using utility revenue like a tax. Rates are increased to cover the cost of running the city. There is no limit on how high the city can increase utility rates. There is a limit on real estate taxes. So owning a utility is a great way for a city to tax us with no limit. I am not paying for the cost of providing electric. Instead I'm paying for the cost overruns at the beach and the mismanagement that has occurred for years. I'm not using fear but any good business needs a plan if we are hit by a hurricane. This city has no money in the bank to even repair our roads and buildings. You have to consider all of these factors when you weigh the benefits of owning a utility company. You can't dismiss that argument given what has been happening to our weather. Asking us to wait for things to get better is unfair given what we know about the state of the city's finances.
Rates are NOT being increased.
What in the hell is FPL offering under the table to these couple of loud mouth cheerleaders yelling for the sale of our utility?
Is there anything that limits or stops the city from raising rates next year if we need the money? Answer: no there is not.
Is there anything that limits FPL from raising rates next year?
Answer: you bet there is. They need governmental approval for every rate increase and if they cheat their customers they are ordered to refund the money.
Who do you want deciding your electric rates?
Lake Worth would need city commission approval, your buddies. Speak to them about it.
9:53a.m. Lynn you are going to eat those words. When OUC got the contract in Vero it was not long before their rate was up 38% higher than FPL. We will most probably follow that track. Remember municipal utilities are not regulated as FPL is. Your commenters should do some homework before mindlessly spouting off.
Why do you think that we will be just like Vero? What makes you think so? Won't we have a contract as far as price? Are you saying that we won't protect ourselves in the contract?
we will never be like Vero, Lake Worth does not have that class of people.
Did you know that our contract with OUC is word for word the same as Vero. Price is set for a year then goes to market. We own the entitlements until we can sell them, only to another municipality. Costly penalties are involved.
No one can predict where the price of oil will go. The penalty
is great, $13 mil as I recall, but the penalty was millions less than what FPL wanted to charge us. FPL should have been a little more consumer friendly perhaps.
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