Letters to the Editor
Rate increases aren’t fair to customers
Editor:
Socorro Electric Cooperative is asking the Public Regulatory Commission for a rate increase. Truly, SEC needs more income due to poor management and overspending. Our debts are large and getting bigger.
The biggest problem with this rate increase is the way it is assigned. Check the Notice to Ratepayers on the back page of your “Enchantment” magazine. That is the official notice to members. The largest users, Load Management Services and Large Commercial Services, are seeing relatively no increase. These members monthly charge is high ($35 to $500), but it stays the same under this proposal, while others increase $40. They already get a volume discount (7.7 to 8.5 cents per kilowatt hour), yet under this rate change their kWh charge is actually lowered.
Now check the Residential rates. These households use approximately 40 percent of the power SEC sells. Their kWh charge will go up by a half cent. The system charge (base rate) will go up by $6.00 to $15.00 per month. Among SEC members, the average customer uses about 500 kWh. This makes their proposed system charge $77.50 per month (up from 69.19) and $2.50 more for purchased power. For this average user the minimum increase will be $10.81 per month, or an increase of $129.12 per year.
As bad as this is, now let us consider the affect on the lowest users. Some may be very carefully spending their fixed incomes, some may have lost a job and be forced into extreme frugality. Some may live in a tiny RV, and some for environmental or social reasons may choose to use the most minimal amounts. For these customers the additional $6.00 combined with the existing $9.00 gives a whooping 66 percent increase to their base charge. Before they use any power at all their bill has increased $72 annually.
Remember, Social Security recipients saw no Cost of Living Increase this year and food costs have risen. Averaging the system charge with the kilowatt charge, they end up paying the MOST per kwh of anyone in the SEC service area.
To force this kind of bill on the poorest while the largest users see little change is immoral. It may also be counterproductive. Will we see more customers default on bills? Will the SEC have to spend more employee time trying to collect accounts? Will some customers go to solar sooner?
So how did we get into this mess? The co-op has borrowed millions of dollars for expansion and maintenance. While these loans are called mortgages, they are more like LARGE home improvement loans. It is very easy to get into financial trouble with this plan.
This year, our interest charges on the existing loans are projected to be about $2.6 million with another $1 million paid on principal. In March 2010 the SEC long-term debt was about $46 million and the Board of Trustees approved another loan for $24 million more. As this is spent, our P&I debt charges will rise and our bills will spiral higher.
We need not just new faces on the Board of Trustees, but people who will take a serious look at our co-op’s future needs. We need good equipment to protect the employees and a good maintenance schedule to ensure service to all members. Everything else should be on the chopping block to pay down our debts.
There will be a meeting Friday, Jan. 21, at 5:30 p.m. at Finley Gym to discuss this issue. Protests may be filed with the PRC after the filing date of Feb. 3, 2011.
Marie Watkins, San Antonio
Thank you for your support
Editor:
On behalf of all the clients and volunteers of Puerto Seguro (Safe Harbor Socorro). I want to thank everyone in the community for all the wonderful support for our recent holiday “feed the kettle” fundraiser. A special thanks to all the dedicated bell ringers that caught the attention of all the shoppers to give us the cash support we so vitally need.
Clearly, Socorro is a special place. We all were overwhelmed by the generosity and cheerfulness of everyone. I’m happy to report that thanks to all, you, Socorro have contributed $7,500 to help those in need.
Bill Bottorf
Board Member, Puerto Seguro