Guest Blogger on the Lake Worth Electric Utility - He says "sell it"

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Anonymous Guest Blogger

What is the difference in the end cost to the ratepayers under the new purchased power contract with OUC?  If the new costs under the contract with Orlando Utilities Commission are integrated into the cost the ratepayers are now getting as of October 1, 2013, what is the cost difference between what LW is/was and the fully loaded cost to purchase a megawatt of power from FMPA and the new cost to purchase that same megawatt of power from OUC? That question has never been fully explored or explained.

Under the contract with FMPA, the city received capacity credits of 3.5 to 4 million dollars a year from the generation availability of LW for the FMPA power pool.  Also under the same contract, FMPA paid the 60k monthly charge for the gas transmission line that was installed for the failed Enron project, another LW boondoggle. Lake Worth failed to have a performance bond clause. Since we elected to exit FMPA, we  had to pay for the gas transmission line until that dispute was settled. The capacity revenue streams will end on January 1 and it is factored into the new contract.

How do we, the ratepayers, know if we are receiving a cost savings with the transition to OUC. With the blending of the two suppliers into the 4.5 % rate reduction, it is not transparent as required.  One can't say LW Utilities has a very good track record with providing facts and trust, so to provide us with public information isn't exactly transparent.

Also under item F of the PCA calculation it stipulates a contribution to the city that is improper. Under rules set forth by the Florida Public Service Commission, that is not to be imposed on any utility ratepayers but we do not have to go before a Public Service Commission. The PCA is to be a "pass through" charge only and not intended to be an additional revenue stream for the Utility.  Again when has LW played by the same rules as say FPL or any trustworthy entity.

There has been failed direction to make LW a viable Utility that is for the benefit of the customers and not the employees.  A municipal electric utility is predicated on the premise stated previously.  LW lost sight of that many years ago and the Utility is in the condition it is because of that failure and continues to elect not to challenge the status quo.

SELL THE UTILITY.

Note:  The opinions expressed are those of the guest blogger and do not necessarily reflect those of Lynn's Little Bit of Trivia.  The electric utility board is presently exploring all options on whether to maintain/retain what we have or sell. I have always wanted to see the numbers and the pros and cons of both options.