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: Letters for Sunday, April 20, 2014 Power forum hopes to answer questions Do you pay electric bills? Then you are invited to learn how Public Power can often lower electric rates. Logansport's coal firing plant must be shut down within two years, and our contract with Duke expires in f

    April 20, 2014

  • PUBLIC FORUM: The people are losing control of its government The people are losing control of government President Obama and progressive Democrats and Republicans are changing the landscape of our country by bypassing our Constitution and what our forefathers fought and gave their lives for. Their philosophy c

    April 16, 2014

  • PUBLIC FORUM: Letters for Tuesday, April 15, 2014 Thankful to community for its care, prayers Thank you to Kyle Rans, Harrison-Metzger-Rans, Guardian Angels Hospice, Royal Center first responders and ambulance drivers for the gentle care and comforting words extended to our family. Thank you to the

    April 15, 2014

  • PUBLIC FORUM: Letters for Sunday, April 13, 2014 Housing repair grant is not welfare While it is a consistent Republican trait to criticize welfare, and I can recognize his desire to score cheap political points at the sake of our community's less fortunate; it is an unavoidable truth that Bob Bish

    April 13, 2014

  • PUBLIC FORUM: Letters for Sunday, April 6, 2014 Helping those who help those with mental illness Tom Sheetz wrote a letter earlier in the year discussing mental health and how the help is distributed. We have a very nice building for mental health clients to spend time. They do laundry, they cook,

    April 6, 2014

  • PUBLIC FORUM: Letters for Sunday, March 30, 2014 Where the blame really should go Why is gas so high? Why are groceries so expensive? Why are taxes higher and tax returns lower? Why does your paycheck not stretch as far as it used to? Much of our problems are caused by laws. Laws are made by Legisl

    March 30, 2014

  • PUBLIC FORUM: Psi Otes thanks Pulaski residents Psi Otes thank Pulaski residents A big thank you to our community members for their flexibility for this year's "Haps Chicken Bash." Iota Xi, Winamac's chapter of Psi Iota Xi wishes to express our sincere thanks to everyone who rescheduled their appe

    March 26, 2014

  • PUBLIC FORUM: Bowling for Kids Sake a big success Bowling for Kids Sake proves to be big success Another successful event for Big Brothers Big Sisters Annual Bowl for Kids' Sake! There were 118 teams this year and we are thankful for each and every one of you! Each year this event raises money to en

    March 25, 2014

  • State’s local leaders fear business tax cut signals more to come INDIANAPOLIS - Local officials who opposed Republican Gov. Mike Pence's proposal to get rid of a tax on business are gearing up for another round in the fight. They're fearful that a partial measure to reduce the tax - passed by the Legislature in t

    March 24, 2014

  • PUBLIC FORUM: Sunday, March 23, 2014 Utility board should request cost proposals I read with interest the open letter from Jim Brugh, local attorney, to the Utilities Service Board (USB) explaining that a local ordinance gives that board responsibility for running the utility. The board

    March 23, 2014

Hyperlocal Search
Premier Guide
Find a business

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

Should mushroom hunters be allowed to forage off-trail in Indiana state parks?

Yes
No
Undecided
     View Results
Featured Ads
AP Video
Raw: More Than 100,000 Gather for Easter Sunday Raw: Greeks Celebrate Easter With "Rocket War" Police Question Captain, Crew on Ferry Disaster Raw: Orthodox Christians Observe Easter Rite Ceremony Marks 19th Anniversary of OKC Bombing Raw: Four French Journalists Freed From Syria Raw: Massive 7.2 Earthquake Rocks Mexico Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Deadly Avalanche Sweeps Slopes of Mount Everest
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.