W.U.C. 2010 Proposed Rate Increase
Today we are faced with the real threat of a “WATER” Rate increase. This is only three years after a massive 88% increase that was to satisfy a “Consultant’s Report” indicating $430 million had to be spent on “Aging Infrastructure” over 30 years.
Thus late in 2007 the average “WATER BILL” increased by $15.41 from $17.49 to $32.90 per month. At that time it was said the increase was needed to solve the problem with “Aging Infrastructure” requiring the $15 Million annually.
A year had not passed before the W.U.C. indicated the $430 Million figure had risen to $750 Million. Suddenly the “Aging Infrastructure” skyrocketed from $15 Million to $25 Million annually.
Today, we are again being told a “Rate Increase” is not only needed for “Aging Infrastructure” but also to reduce “Bank Debt” incurred by spending more than received. This current situation the W.U.C. finds itself in gives rise to some pertinent questions.
First, why must a 30 year time frame for the replacement of “Aging Infrastructure” be mandatory? Why not 40 years or even 50 years? Someone, in their political wisdom, decided many years ago to ignore the severity of the situation. A 50 year time frame would require no increased funding for “Aging Infrastructure.”
Second, this proposal as it pertains to the “Aging Infrastructure” is only a temporary fix. The “Proposed Rate” increase is designed to generate $19.6 Million annually until 2012. Does this mean that in 2013 the W.U.C. will be demanding further huge increased “Rate?” Now there is the other little thorn, the W.U.C. indebtedness to the Bank. It would appear that paying down a portion of the bank debt has taken priority over “Aging Infrastructure.” This is a prime example of “Robbing Peter to Pay Paul.”
The W.U.C. has been spending more money over the past several years than it has been collecting. We are now told that without this average 10% “WATER BILL” increase the W.U.C. will have a Bank debt of $5.5 Million by the end of 2010.
We are being told that the proposed increase will only be 10% raising the average “WATER BILL” from the present $32.90 to $36.45 per month. Is such a double digit increase on a basic utility justified under the current economic conditions?
To date there has been no mention of “Consumption” going down but just a demand for an increase of rates despite the 88% increase inflicted on the general public in 2007. In addition, one would expect with a reduced demand for treated water the cost of administration should have been reduced accordingly. In this context, we are told that general and administrative charges have been held to extremely modest increases. This begs the question, why any increases at all?
I agree, because of past and current “Political” interference, the W.U.C. does need an increase in “Rates,” but not of this magnitude. The politicians and the bureaucrats have to apply basic business principals. Any monthly and/or annual increase must be equally shared between revenue and expenses. The days of double digit increases went with the Enron’s, WorldCom’s, General Motors Corporation and Chrysler Corporation.
A troublesome question concerns the involvement of Enwin Utilities Ltd. in the business of the W.U.C.
Over the past six (6) years, 2004 to 2009, Enwin Utilities Ltd. has transferred the sum of $11 million dollars to the general fund of The City of Windsor. If this total amount has not come from the W.U.C. then the citizens of Windsor have been over-charged for the price of “HYDRO.” I have no doubt that, regardless, it has come from the stressed out citizen’s pocket in lieu of direct municipal taxation.
It is time for the citizens of Windsor to start asking some pointed questions of the W.U.C. Board and their elected representatives. Where is the upfront communication? Where is transparency? Where is discussion? Where is open and honest government? Where is the two-way street?
