Government can operate a utility more efficiently and cost effectively than private industry? I hope Commissioners Mackey and Skillern paid attention to the message from Commissioner Cassavant.
Dr. Cassavant pointed out that costs are costs and ownership would not affect the relationship between costs and volume of product consumed; meaning that the city or the county could probably not operate the system any cheaper than its private owners.
The main difference would be that when revenues need to be generated, instead of being accountable to the Tennessee Regulatory Authority, money-grubbing politicians will have no real accountability at least until the next election. Municipal ownership means revenues will be generated through tax increases when rates aren’t enough.
Inaction on the part of politicians will lead to a low-quality product due to poor investment in the water system. Before moving forward, Hamilton County Commissioners should consult their colleagues in Jefferson County Alabama and see how public ownership of the water and sewer systems has worked out for them. They are trying to decide on whether or not to declare bankruptcy or raise taxes to get out from under $3.2 billion of debt associated with their system.
Finally, someone is going after the root of the utility problem. Memphis Light, Gas and Water is asking TVA to delay its proposed rate increase citing that the recently announced increases would be “just too much” for customers in Memphis.
While there is not a lot of logic associated with the “it’s just too much” argument, it is interesting that the states largest publicly owned utility is feeling the same cost pressures as Tennessee American Water. I was under the impression that government ownership of utility systems would somehow immunize them from current economic realities.
The reality is that TVA can raise their rates at whatever interval their board of directors feels appropriate without the benefit of governmental oversight or regulation and without comment and input by those who are affected by the increase – customers. The decisions made be the three member board of directors have a trickle down effect on all other utilities operating in the region and their customers.
Tennessee American has been asked to try and make up some of the cost increases through added efficiencies and is being scrutinized by the state regulators, the local and county governments, the Fight the Hike group and many others. I think it is time for all the organizations involved in attacking this private company to start focusing their resources and efforts on the root cause for everyone’s increased costs – TVA.
We as a community should join Memphis Light, Gas and Water to try an bring pressure upon TVA to see if they can find any efficiencies where they could reduce their costs rather that arbitrarily raising rates every time they spend all their money.
Assuming Mr. Rhea is probably making minimum wage working for Food Lion, he currently has to work nearly a 20-hour week to pay an average monthly EPB bill. And when the recent TVA rate increases are passed through to the consumer Mr. Rhea will have to an additional five hour shift to cover the added expense.
Private utilities in our community seem to be able to keep costs lower. Government-run and sanctioned utilities just call it a tax or an assessment instead of a rate increase. Maybe if there was a little more oversight on these government run utilities, they would be able to keep their costs down and provide more affordable rates to the people they are sworn to serve.
Why is the city appealing an issue that has been settled? All they are doing is muddying the water (no pun intended) on a complicated issue.
Really the issue is not that complicated. The Tennessee Regulatory Authority decides how much private utilities can charge for services, usually after a review process that is tantamount to spending six months at your proctologist office.
Public utilities have no such review process, i.e. TVA, EPB and the City’s Wastewater Services. All these utilities can raise rates without so much as a hint of how or why it is happening; and all of them have, several times, over the last few years.
This is all just an attempt by Mayor Littlesuccess to get the public whipped up over the possibility of forcibly taking the water company. That’s a road he shouldn’t be thinking about and the City cannot afford. Look what happened to the last Mayor who tried to takeover the water company. The City spent $750,000 before they abandoned the ill-fated attempt.
Now, it’s a $40 million in bond issues to pay for a firehouse and a welcome center? The city seems to be in a spending mood and that’s dangerous for all of us.
Tennessee: Water rate hike opponents address County Commission
Government can operate a utility more efficiently and cost effectively than private industry? I hope Commissioners Mackey and Skillern paid attention to the message from Commissioner Cassavant.
Dr. Cassavant pointed out that costs are costs and ownership would not affect the relationship between costs and volume of product consumed; meaning that the city or the county could probably not operate the system any cheaper than its private owners.
The main difference would be that when revenues need to be generated, instead of being accountable to the Tennessee Regulatory Authority, money-grubbing politicians will have no real accountability at least until the next election. Municipal ownership means revenues will be generated through tax increases when rates aren’t enough.
Inaction on the part of politicians will lead to a low-quality product due to poor investment in the water system. Before moving forward, Hamilton County Commissioners should consult their colleagues in Jefferson County Alabama and see how public ownership of the water and sewer systems has worked out for them. They are trying to decide on whether or not to declare bankruptcy or raise taxes to get out from under $3.2 billion of debt associated with their system.
Tennessee Valley: Memphis distributor asks TVA for rate delay
Finally, someone is going after the root of the utility problem. Memphis Light, Gas and Water is asking TVA to delay its proposed rate increase citing that the recently announced increases would be “just too much” for customers in Memphis.
While there is not a lot of logic associated with the “it’s just too much” argument, it is interesting that the states largest publicly owned utility is feeling the same cost pressures as Tennessee American Water. I was under the impression that government ownership of utility systems would somehow immunize them from current economic realities.
The reality is that TVA can raise their rates at whatever interval their board of directors feels appropriate without the benefit of governmental oversight or regulation and without comment and input by those who are affected by the increase – customers. The decisions made be the three member board of directors have a trickle down effect on all other utilities operating in the region and their customers.
Tennessee American has been asked to try and make up some of the cost increases through added efficiencies and is being scrutinized by the state regulators, the local and county governments, the Fight the Hike group and many others. I think it is time for all the organizations involved in attacking this private company to start focusing their resources and efforts on the root cause for everyone’s increased costs – TVA.
We as a community should join Memphis Light, Gas and Water to try an bring pressure upon TVA to see if they can find any efficiencies where they could reduce their costs rather that arbitrarily raising rates every time they spend all their money.
Chattanooga: Seniors getting squeezed
Assuming Mr. Rhea is probably making minimum wage working for Food Lion, he currently has to work nearly a 20-hour week to pay an average monthly EPB bill. And when the recent TVA rate increases are passed through to the consumer Mr. Rhea will have to an additional five hour shift to cover the added expense.
Private utilities in our community seem to be able to keep costs lower. Government-run and sanctioned utilities just call it a tax or an assessment instead of a rate increase. Maybe if there was a little more oversight on these government run utilities, they would be able to keep their costs down and provide more affordable rates to the people they are sworn to serve.
Chattanooga: City appeals water rate hike approval
Why is the city appealing an issue that has been settled? All they are doing is muddying the water (no pun intended) on a complicated issue.
Really the issue is not that complicated. The Tennessee Regulatory Authority decides how much private utilities can charge for services, usually after a review process that is tantamount to spending six months at your proctologist office.
Public utilities have no such review process, i.e. TVA, EPB and the City’s Wastewater Services. All these utilities can raise rates without so much as a hint of how or why it is happening; and all of them have, several times, over the last few years.
This is all just an attempt by Mayor Littlesuccess to get the public whipped up over the possibility of forcibly taking the water company. That’s a road he shouldn’t be thinking about and the City cannot afford. Look what happened to the last Mayor who tried to takeover the water company. The City spent $750,000 before they abandoned the ill-fated attempt.
Now, it’s a $40 million in bond issues to pay for a firehouse and a welcome center? The city seems to be in a spending mood and that’s dangerous for all of us.