Pharos-Tribune

Letters

April 28, 2013

PUBLIC FORUM: 95 percent an inflated estimate

Who is going to protect us from higher electric rates in the future? The service board spent $50,000 for an electric system master plan by the Lutz engineering firm which recommended that we switch from burning coal to natural gas. Last November the city threw away that master plan and began spending money on the mayor’s many consultants for a “waste-to-energy” proposal.

The springboard for rejection of the Lutz plan was a rate analysis by John Skomp, an associate of Hartman. Skomp said that all four Lutz proposals would raise rates by 95 percent or more. We have been mislead.

The touchstone of rate analysis is that adjustments or rate increases are founded and justified only upon “fixed, known, and measurable” details; or “fixed, known, and certain” details. Rate studies only permit adjustments to the test year if that certainty is documented. Speculation or “what if” is not acceptable. The utility seeks authority to collect a certain rate, based upon identifiable expenses, not for what might happen.

The Lutz study recommended a rate increase to finance a $14.25 million upgrade of the transmission system. Skomp’s huge rate increase is based, in part, on his use of a construction cost of $35.25 million, instead of the documented $14.25 million number. He had no “fixed, known, and certain” basis; it was just the mayor’s consultants guessing the cost to tear down the old generation plant. This huge speculated construction cost contributes to Skomp’s scary “95 percent” rate increase.

A second speculative number is Skomp’s estimate of the cost of purchased power at $55,216,392. He picked that number from the estimated cost to purchase power in 2019. There is no professional reason to pick that speculative number so many years away when the baseline purchase power expense in the present (for 71 percent from Duke) is known to be, in fact, $23.5 million. As much as it would cost to purchase the additional 29 percent of power at this time is around $9.4 million; so the best statement of the cost at this time is around $33,000,000, which is a universe away from Skomp’s $55 million-plus.

The reference to a 95 percent rate increase has been repeatedly used to promote the “waste-to-energy” proposal. Just as there is reason to reexamine the hasty start, there is reason to question this unusual power plant.

Jim Brugh

Logansport

 

1
Text Only | Photo Reprints
Letters
  • PUBLIC FORUM: Addressing the morality of an issueAs superintendent for the Logansport Community School Corp., I feel it appropriate to respond to the July 17 article in the Pharos-Tribune regarding the dismissal of child seduction charges against former Logansport

    July 20, 2014

  • PUBLIC FORUM: Letters for Sunday, July 13, 2014 Learn about ‘fair share’in property taxesWhen the Legislature’s Blue Ribbon Commission begins its look at the state’s taxes this summer, invariably there will be talk of business needing to pay its “fair share.” That’s certainly true, but what is fai

    July 13, 2014

  • PUBLIC FORUM: A church response to same-sex marriage A church responseto same-sex marriageThe dignity of the human person, rooted in his or her creation in the image and likeness of God, is a fundamental principle of Catholic social teaching. The Church upholds the dignity of every human person, includ

    July 8, 2014

  • PUBLIC FORUM: Letters for Sunday, July 6, 2014 Man is a husbandas well as a heroI met my husband, Ron Smith, through mutual friends in March 1995. We married in August of the same year and have been inseparable since. Together we have three sons, Jimmy 24, Brock, 13, and Tayt, 7. I am so proud of

    July 6, 2014

  • PUBLIC FORUM: Democracy is not an easy process Democracy is notan easy processGenerally speaking, I think Americans love themselves far more than they love their country. I see the stars and stripes displayed more often than I used to, but that’s only because the rules have changed. It was too mu

    July 3, 2014

  • PUBLIC FORUM: Thanks for helping with open house Thanks for helpingwith open houseWe would like to thank the Logansport community and surrounding communities for attending our Logansport Airport Open House. The day started out looking like a complete wipe-out and in the end, it was the most success

    July 2, 2014

  • PUBLIC FORUM: Option of transfer not open to county Option of transfernot open to countyMemorial Home was built during the Civil War by a New York banker. He had the home constructed as a copy of one on the Hudson River, called “the Castle.” The home was built to please his wife who was reluctant to c

    July 1, 2014

  • PUBLIC FORUM: Letters from Sunday, June 22, 2014 City officials needto put it out on the tableThe city council issued a Request For Proposals to generate electricity with trash as fuel: it awarded the contract to Pyrolyzer LLC. Pyrolyzer executive Canterbury recently told the Utility Services Board

    June 22, 2014

  • PUBLIC FORUM: An unnecessary debate about e-cigs An unnecessarydebate about e-cigsHere comes the sound of anti-smokers talking about the harms of e-cigarettes, you know the ones that burn no tobacco, only heat up a solution containing nicotine. No harms are known either to the smoker or anyone clos

    June 19, 2014

  • PUBLIC FORUM: Community supports worthy organization Community supports worthy organization The Paddle for Paws Canoe Race is indebted to the Logansport community for helping to raise over $5,000 for A Cause for Paws animal rescue of Cass County. Without generous sponsors and individuals, our event wo

    June 17, 2014

Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

The Pence administration continues to cut Indiana agency budgets despite a state surplus of $2 billion. Is this wise management of state funds?

Yes
No
Not sure
     View Results
Featured Ads
AP Video
Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kerry: No Deal Yet on 7-Day Gaza Truce Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Gaza Residents Mourn Dead Amid Airstrikes Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp Cumberbatch Brings 'Penguins' to Comic-Con Raw: Air Algerie Crash Site in Mali Power to Be Restored After Wash. Wildfire Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive In Case of Fire, Oxygen Masks for Pets Mobile App Gives Tour of Battle of Atlanta Sites
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.