Using the only stats for the 2009 year.
Lets compare the average rates of the 12 municipal utilities in Oregon.
So everyone can verify this this study can be found here.
http://www.oregon.gov/PUC/commission/statbook.pdf?ga=t
So let's compare them, found on pages 33 and 34.
City of Ashland-$617
City of Bandon-$933
Canby Utility-$785
City of Cascade Locks-$1,477
City of Drain-$1,086
Eugene Water and Electric-$1,042
City of Forest Grove-$848
Hermiston Energy-$866
City of McMinnville-$738
Milton-Freewater-$1007
City of Monmouth-$962
Springfield Utility-$793
So what do you think?
Cody
14 comments:
I think it must be way more expensive to serve customers in such a small geographical area.........?
Not in this case.
We pay the same rates to buy.
http://www.bpa.gov/corporate/ratecase/TRM_Supplemental/docs/TRM-12S-A-02.pdf
Telephone poles, transformers, wire and everything else costs the same.
The only difference is upper managment and the decisions they make.
Compared to Ashland, X's 500 customers, the difference adds up to $430,000.00 per year.
What do you call money that government takes from its citizens and spends as it sees fit?
Maybe a tax?
Is it right for the city to use our utility to collect more taxes than what is allowed by the Oregon Constitution?
I guess all those pennies really do add up. I have wondered for years how a town of 1000 people could afford have so many employees.
If you think it's okay because "The money the city gets benefits the entire city", please point out 1 of those benefits.
Drain has a population of about 1100 and they have lower rates than CL. So its not about size, its about efficient management and a sense of customer service. Our city cares little for either one.
Ironic that we start the discussion with the city's failure to follow ORS requirements such as the board setting rates annually based on actual expenses and finish it with how we are paying way too much for power. How can this surprise anybody? I'm just guessing, but I think the law is there because of past problems at other municipal utilities, problems like we are experiencing now.
How many other illegal actions does it take before people start getting concerned?
Mccoy property debacle, ethical violations, acting contrary to city ordinances, pillaging the electrical department, attempting to influence elections, rewarding elected officials with city purchases, on and on and on.
Who supports this type of behavior? People who are interested in lining their pockets regardless of the expense to their "fellow" citizens.
Simply electing a new council isn't going to solve all the problems. Our city government exists for only one purpose, to provide SERVICES to the people who created it and pay for it to exist. The current attitude of "the less we can do the better off we our" will change or we will decide we will be better off without a city.
U elected 'em
U deserve 'em
On electrical rates;
I'm sure there is a formula that factors average customer density into the cost of providing electrical service. I'm certain that none of the other municipal electrical districts in Oregon have a higher average density than the City of Cascade Locks, our local geography dictates this.
Distance to the customer is the biggest expense in providing service.
We should be, if not the least expensive provider, very close to it.
So where does all the rest of the money go?
If your not that concerned, just pretend for a moment that the extra $400-800 per year you are now wasting on "electricity taxes" was actually your money.
What first jumps out to my eye is that on page 29 of the report, our transmission costs are $125,662 and theirs is zero. Also, they have close to the same purchase costs (you're right about that Cody) but their distribution costs are comparable to about half!
They are smart enough to stay within their city and not pay the Forestry service to go way out of town.
I also notice if you add our "Customer service and Information" costs in with "Administrative and General", we have costs of $31,000 more. That's a lot for only 127 fewer accounts. Feeling informed and serviced?
Don't forget that these stats include S. Bank, which is much more expensive to provide service because of the distance between customers.
The citizens of Cascade Locks own this utility, not those living outside the city limits. Are we paying extra to provide services outside the city?
This seems to be the status quo here, us paying for services that our hired help are more that happy to give away for free. Funny thing though, every time I need anything from our city, there is an extra fee.
Don't forget the Fire Dept. also responds out of town more often than in. Haven't you heard the story about the young child having a seizure while our Fire Chief who did NOT respond sat there using his OT to catch on billing (which was 5 months behind?)
One other thing about employee numbers
Drain 11(total)
10 (f/t)
1 (p/t) 3(admin)
Cascade Locks 21(total)
14 (f/t)
7 (p/t) 6 (admin)
from a survey done 2 years ago
In order to get a full understanding of why our rates are so high we need to see a line item budget, which, as I understand, is not even presented to the budget committee.
The line item budget will show just how much of the CA's annual salary is charged off to the City Light (around 1/2 or almost $30,000). Then there are all the other staff members, the attorney, the planner and so on, all charging a portion of their salaries or costs to City Light.
All of that in addition to the City Light Superintendent's salary.
Add them all up and you would have the true cost of the personnel "overhead" that we pay for a 4 man department.
Then of course there is the 5% fee and who knows what else.
Without a line item budget there is no way to tell how our rate money is being spent.
That's probably why the budget committee doesn't get to see a line item budget and why the committee reviews and passes the budget in just 2 meetings.
This is no way to run an electric utility nor a city.
I hope this helped understand a few things.
I see many of you found certain items which you found to be suspect.
Let me give you a few more.
Go to page 33 of this report and look at interdepartmental sales.
Do you see that 0 there?
What this means is that this utility is paying for all the electrical for every department of this city.
These costs should be separated and budgeted from each department.
All other uses of city hall like rec night, bingo, garage sale, etc... also need to be accounted for from some other budget or charge.
Otherwise these are included in our rates.
Also on this page notice street light accounts stating 1.
I would assume this is our street lights.
Now look at the kwh sold under street lights.
20.18 kwh sold now compare this with cities larger than ours.
As a matter of fact compare this with everyone.
Concerning line items I totally agree.
As a matter of fact it is a law that every utility must separate the cost of the rate from all other costs and document them as separate line items on the billing.
So is it legal for our city to bundle all these costs into the fee?
My next post will explore just what rights does a city have under home rule and where a city can conflict with state law.
Cody
Take another look at the street lights. That's average revenue per kwh sold, or what was charged per kwh. Since this charge is added to your utility bill, I would bet the $ amount is inflated like every other charge in this city.
At least they are consistent.
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