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Featured Listener Comments Section: Contents List |
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Listener: Pratt on Texas
Category: General
Date: 09 Nov 2009
Time: 12:32:19 -0700
Remote Name: 70.242.183.106
It is true that Xcel Energy was looking to sell and approached LP&L. And it is true that from LP&L’s perspective, no longer having to compete in the heavy-load commercial power market, a war they’ve long lost to Xcel, and becoming a monopoly would be good. But is it good from the perspective of LP&L’s customer-owners, the citizens of Lubbock?
The excitement from City Hall is motivated by dollar signs. But we know that in the long-term, taxes will not go down equally to the amount LP&L can put into City budgets. No promises made now have any bind on future councils and we’ve recently experienced how out-of-control spending can get in just a year’s time. Spending always rises to the level of available income.
And it’s all our money anyway, whether or not it’s passed through a utility or paid directly in taxes. All the revenue comes from residents’ pockets and any excess in funds derived by a government-owned monopoly utility can honestly be called a tax. Why launder the funds through the utility only to have it turned over to government for a second washing?
If the muckety-muck elites are going to push forward with Leftist-Pelosi-Obama style politics of doing it no matter what is good for the citizens and no matter what we poor voters think, then we must attempt to mitigate the long-term damage we common folk will suffer.
A few ideas simmering at the moment include: Demanding an elected board of directors for LP&L – all seats on the utility, not just a few which allows the council to hold indirect control over the monopoly and thus a big pool of our money.
And more importantly, placing an item in the City Charter that forces LP&L to put all funds earned, beyond a reasonable amount for capital reserves, operations, and an amount equal to Xcel and LP&L’s would-be franchise taxes, directly back into the pockets of its customer owners – not into the City’s coffers for politicians to spend. This should be done through either extremely low rates or major semi-annual rebates to rate payers.
Super low electric rates would be a boon to authentic market-driven economic development, enough to even possibly, and I only say “possibly”, mitigate the damage done by the loss of a competitive market. Whatever we do we must prevent the oppressive growth of local government, inevitable if utility earnings go through the city’s politically-driven budget, by acting now before it is too late.
Robert Pratt is host of the top rated Pratt on Texas radio program which can be heard at www.PrattonTexas.com.
Hear an edited version of this commentary here.
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