Tuesday, May 4, 2010

LG&E RATE INCREASE: NECESSARY OR MORE OF THE SAME OLD BULL

Last night there was an open meeting for residents at Male High School to discuss the LG&E proposed rate hike, or as many call it the E.ON rate scam to drive up sale price.

Why would anyone say that? Because it may be true.

LG&E is a privately owned company and as such they have obligations. One of these obligations is to carry liability insurance. With storm damage costing millions of dollars does LG&E get reimbursed? You bet. If not then we have to ask why not.

With simple auto insurance in Kentucky if your window gets broken by a flying rock off the road it gets replaced through insurance without any cost to you. Even a deductible is not charged. SO what makes LG&E so different?

Is it not prudent to raise the value of your assets to inflate the price of your business when selling?


Anytime you are trying to sell a business you want it to appear as profitable as possible to a potential buyer. E.ON has been trying to sell LG&E for some time and finally got a buyer at over $7 Billion. How do you repay the loans it will take for this purchase?

You raise rates. What is the real value for LG&E? Well the Mayor offered somewhere around $4 Billion. That is a huge swing from the final offer accepted.

Check this article out from WFPL:
89.3 WFPL LG&E Customers Weigh In On Rate Hike Proposal

The utilities say they’re needed to pay for infrastructure improvements and for damage caused by recent weather disasters.

LG&E is asking for an increase of about 12-percent for residential electricity. It’s also proposing a monthly natural gas rate increase of about $4.65, plus a hike in its monthly gas meter fee.


The rate case is not affected by the companies’ pending sale to PPL Corporation.

Many tend to disagree and I am one of them.

There will be the same old arguments from some who claim "we have the lowest rates in the country blah blah blah" I just don't buy the argument.

If we use this mindset then go ahead and raise the cost of energy to whatever level you want why bother with a pretense of resident involvement? Why regulate at all? After all MSD and Louisville Water Co are unregulated and used as illegal taxes so why not LG&E?

Because we citizens have had enough of this game.


LG&E says they need the increase to pay for storm damage? Then someone dropped the ball on insurance that is their fault.

They say they need it for infrastruture improvement? Then someone dropped the ball on future planning.

Looks like any excuse for them will do.

Using utilities to get in our pockets even deeper is nothing new. Remember STOP I.T.?

This organization led the way to exposing the myths of unregulated MSD who tried to force HB 221 through this year which would give them even more unregulated control and power. They "stopped it." How did they do this?

Because each and every citizen got involved and revealed what a scam it would be. MSD raises rates about 6.5% each year the last couple of years AFTER being called out on their astronomical rate increase of 32% a few years ago.

The Louisville Water Co solely owned by Louisville Metro raises rates an average of 6.5%. Louisville News and Politics: ILLEGAL TAXES:LOUISVILLE WATER CO

Why would MSD or Louisville Water Co only raise rates at 6.5% these days? Because at 7% they must get Council approval. Yep that's right. Keep it below 7% and you can raise it at will. How does this happen?

Because neither are regulated by the Public Service Commission (PSC).

At least LG&E is regulated by the PSC so do not be fooled by this play to get in our pockets once again. Contact every legislator and tell them you do not approve of this rate increase..

Force LG&E to answer why they do not have the resources to pay for the damages or build new infrastructure.

Don't we pay enough right now for Corporate welfare?

Your thoughts?

4 comments:

  1. Ed, you forgot the important fact E.ON needs these rate increases to pay for their Churchill suite...

    ReplyDelete
  2. Thanks for pointing that out I am only one man lol.

    Seriously thanks for writing.

    ReplyDelete
  3. they do not need any rate increase because its the poor people like us who suffer for it and worst of all KY attorny general Jack Conway needs to be out of office just like jim bunning hes just a crooked as jim was wanting to cut help off of KY unemployed so he needs to be out of office and the next 3yrs after LG&E tries to get another hike price that KY attorny general needs to denie any hike increase until the economy gets better

    ReplyDelete

Thank you for reading LNP. Open and honest discussions of local politics and relevant issues is important to voter understanding. Please listen to the "Ed Springston Show". We broadcast Monday through Thursday evenings at 7 PM on local media outlets. Please check for the links.
Yours truly,
Ed Springston

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