PSB 2011 Budget |
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Questions Regarding the 2011-2012 Budget and PSB Commitment to Fort Bliss and Economic Development
December 8, 2010
The 2010-2011 budget will set rates for all utility services.1 "The rates and charges to each customer should be related to the cost of service and to the benefits received." 2 "The Rules and Regulations of the Public Service Board have been promulgated to fairly and equitably distribute to each customer the cost to operate, maintain and construct the water and sewage systems of the City of El Paso based on the actual service received and the cost of providing the service."3
You have instructed your President/CEO to honor your "commitment to Fort Bliss and economic development."4 The cost of providing service to "Fort Bliss and economic development" is not a cost to operate, maintain and construct the water and sewage systems of the City of El Paso and it is not a cost of providing service.
- The average price of water has increased by 90%5 and the average price of wastewater treatment has increased by 49%.6 What portions of the price increases are related to your "commitment to Fort Bliss and economic development?"
- The utility has acquired assets worth $846 Million7 but water production has decreased by 6%8 and wastewater treatment has decreased by 4%9. How much of the $846 Million was spent for your "commitment to Fort Bliss and economic development?"
- The utility has increased collections from citizens by $60 Million10 annually but citizens receive less water and less wastewater treatment. How much of the $60 Million per year is being spent for your "commitment to Fort Bliss and economic development?"
- The utility has increased the total debt per customer11 by 112% while delaying capital expenditures for the benefit of existing customers. How much of the increase in customer debt was used to fulfill your "commitment to Fort Bliss and economic development?"
- The utility is a nonprofit government owned monopoly that has recorded income of $102 Million12 for itself and $76 Million8 for the city of El Paso. Such income is clearly not "related to the cost of service and the benefits received" by customers. How much of the profits are used to fulfill your "commitment to Fort Bliss and economic development?"
- EPWU has contracted to sell 483,720 AF of water to Fort Bliss at a total Price of $341 Million. The water otherwise would have gone to your customers. EPWU will replace the water at a cost of $885 Million.13 Will the $544 Million difference be billed to Fort Bliss or to your customers? Is this $544 Million a part of your "commitment to Fort Bliss and economic development?"
Jimmy W. Janacek
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1 Attachment to item 8 of PSB Agenda for December 8, 2010
2 PSB Rules and Regulations No. 11, Sec. II(A)(1)(a)
3 PSB Rules and Regulations No. 8, Sec. I
4 Performance plan for Edmund G. Archuleta, President/CEO July 1, 2007 - June 30, 2011.
5 2010 CAFR, Statistical Section, page B-4 (Water Revenue/Total Water Billed in 2010) / (Water Revenue/Total Water Billed in 2001)
6 Ibid page B-4, (WW Revenue/Treated w/w billed in 2010) / (Wastewater Revenue/Treated WW billed in 2010)
7 Ibid page A-5
8 Ibid Page B-4 Total water billed in 2010/Total water billed in 2001
9 Ibid Page B-4 Total wastewater billed in 2010/ Total wastewater billed in 2001
10 Ibid page B-4, (Water Revenue in 2010 - Water Revenue in 2001) + (WW revenue in 2010 - WW revenue in 2001)
11 Ibid, page C-2 ($1,344 in 2010/$634 in 2001)
12 2009 Annual report, page 18 + 2010 CAFR Page 36
13 Exhibit A
