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My name is Jimmy Janacek. I am a retired CPA/Rancher. I moved to El Paso to retire about ten years ago.
Having owned farm and ranch land in rural communities I am somewhat familiar with the value of undeveloped land. Land that has municipal water and sewer service is much more valuable than land that does not. A farmer or rancher can become rich over night if the local utility extends water and sewer service to his property. Therefore the utility normally makes the land owner pay the cost because the land owner receives the benefit.
The El Paso Water Utilities Public Service Board (PSB) will spend $1.17 Billion to extend service to local land owners. The PSB is forcing water customers to pay the cost. The PSB has raised our rates by 93% to recover $200 Million that they have already spent. We can expect more rate increases as they spend the balance of the $1.17 Billion. We are paying the cost and land owners are reaping the benefit.
The PSB can produce 320 million gallons a day but the most that they have sold in one day is around 167 million gallons. They have plenty of water but they raised prices by 93% so that we would pay more money and use less water. They use the money to pay $1.17 Billion to extend service to new housing developments and they will use the water to supply those developments.
As a CPA, I am also concerned with accountability. It appears that the President of our water utility holds himself accountable to the "city fathers" rather than the customers that pay his salary. He defines the "city fathers" as "The PSB along with elected City officials, the Chamber of Commerce, El Paso Regional Economic Development Corporation, Ft. Bliss and many others that have worked hard to assure Congress and military officials that El Paso has an adequate water supply for the future and for growth."
Growth should be paid for by the land owners who receive the benefit. The city fathers force unsuspecting water customers to pay for growth.
The PSB rewarded their President with a compensation package worth $508,000 a year because he built a $100 Million desalination plant on Fort Bliss property to entice the BRAC Commission to expand Fort Bliss. The PSB rewarded their president because he delayed improvements to his own water system to support the Fort Bliss water system. The plant was built on Ft. Bliss property for the benefit of Ft. Bliss but El Paso water customers were forced to pay for the plant and for $508,000 yearly compensation to the PSB President. The president of the United States makes only $400,000 plus benefits.
The American Water Works Association (AWWA) says that rates should be designed to "promote equity among customers by charging each customer in such a way that a customer is neither subsidized by nor subsidizes other customers." In other words, the PSB should not collect money from water customers so that they can extend service to local land owners or build a desalination plant for the Department of the Army. The PSB is not responsible for economic development and water customers should not be forced to pay for it.
It appears that the PSB has been less than honest. They have withheld information that might be damaging and they have published information that is false and misleading. Please click on the buttons to the left to learn more.
El Paso water customers expect the PSB to play by AWWA rules. We deserve to be treated like water customers in other cities throughout the country. I believe that we have to speak up. I hope that you will join me in this effort.
Please fill out the form below and we will contact you as soon as possible. Thank you.
