 |
| ||||||
Text Size 
• Email • Printer Friendly
|
Tuesday, July 22, 2008 10:38 AM City Council should challenge NCEMPA's claims, rates I urge City Council to raise serious questions on behalf of the people of Wilson about issues at ElectriCities. We, the people who pay the bills, have a right to know the answers to these questions. There is a serious problem with places that hide and refuse to answer. Why did it take so long for the people to learn of this electric rate increase and why the very short notice? After months of denying a rate increase, then denying the rate increase is due to anything other than fuel costs, ElectriCities finally admitted one of its costly debacles. Jesse Tilton, CEO, converted a portion of the debt from fixed-rate loans to variable-interest loans in 2004. The move was expected to save around $10.5 million a year in interest payments, but instead the collapse of the subprime mortgage markets increased interest rates. Now the debt services in an additional $12 million. That's a swing of $22.5 million, which is more than the $12 million for coal cost and $9 million for nuclear fuel. The CEO knew in fall 2007 that a bad decision had been made. It was six months later when he told his board. Why? The question should have been asked. We still have not heard of the bad deal just cover up in a 14 percent increase. In April the Fitch rating agency issued a press release saying ElectriCities anticipated a 7-9 percent rate increase later this year. What changed after they said that in April to June when it is now 14 percent, a difference of at least $30 million? Why? This is just a few of the many questions that need to be asked. The WDT reported the cost for transmission at $6 million, and ElectriCities press release said $3 million. Which is it? Why does it change? Mismanagement has gone on too long in that agency. New management is needed. The CEO contract is up next month. Ask your mayor to vote no on renewal of this contract. If you have family in other cities under this agency tell them the same. And in 2010 the contract with ElectriCities is up for renewal; tell City Council to vote no on this. There is a way out, but we have to let the people we voted for, the people we trusted to look after our best interest, know what we want. Who is watching ElectriCities? Ricardo Dew Eagle Chase Drive |
| Add Comment: | |  | | (All comments must be approved) |
| View Comments: | | | | (0 comments) |
Most Popular
 |
 |
 |
