Friday, November 15, 2013

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

Comment Up

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.

5 comments:

  1. I think there is still a baby in the bath water here.

    Why has there been NO Outside or Independent Forensic Audit done?
    (and Arrests made for THEFT?)

    Why not ELECT a Utility Commission accountable to LW Residents? Same for the CRA! Both use our money for their needs (Grant $ w/Strings attached)! We should be the deciders of who sits in those seats, no?

    I've heard LW STEALS 6M - 9M a
    year from the utility to run the city. Please show me the math!

    How can these big spending reps even pay the sheriff w/out that Stolen Utility Cash??? (Stop STEALING that $$$ and our RATES WILL DROP like a lead balloon, no?)

    I see the choice as support LW budget or pay the same to FPL
    OBSCENELY OVER PAID FPL Executives?

    If Energy CONSERVATION is so important why is there no solar
    on every gov building? If Sustainability is so important,
    why does the word SELF Sustaining
    never enter into the scenario?

    Green Boondoggles are BLEEDING US DRY and still we pretend we are moving forward - forward to where?

    FPL DEPENDENCE or Self Sustaining Independence. Do not tell me about the FAILED PACE program! Cali already tried it and when the mortgage companies caught up, it wasn't pretty.

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  2. We can't afford to sell it but I still think they are ripping off the city somehow. What is high is the water charge.

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  3. is the city ever going to audit the utility? this was supposed to have been done a few years ago. maxwell ended that.

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