The Citizens’ Utility Ratepayer Board does not oppose the development of wind energy in Kansas. Nor is it accusing Gov. Kathleen Sebelius of wrongdoing.
But it is correct in wanting to make sure that utility regulators are independent after obtaining an e-mail in which a former Westar executive said that Sebelius told utilities that they would be “fully compensated†if they developed wind power.
Sebelius spokeswoman Nicole Corcoran denies that the governor issued any promise other than to generally agree that “electric utilities need to be compensated for costs of energy they develop.†And the governor’s office said in a statement that Sebelius never advised the KCC on how it should set rates or what rates should be.
But CURB wants assurances that the KCC will be independent on Westar’s rate hike request, which CURB doesn’t think is justified.
Posted by Randy Scholfield
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9 Comments
First step should be to determine where to build the electric power transmission lines in some kind of logical pattern.
I was all over this yesterday on two different threads. No one commented. Looks like the same today.
And the sheeple sleep…
Why should utility companies be “fully compensated”? All business have an amount of risk. How they operate the business has a tremendous impact on whether the business is profitable.
The price needs to be regulated to ALLOW them to be fully compensated, not to GUARRENTEE they will be FULLY compensated. They need to be businesses that stand on their own merits, not another “utility tax” surcharge.
This is where CURB falls down:
Utilities DO have a right to be compensated for their investments in production and transmission.
Utilities are protected monopolies. As such, they get taxed on their property at a much higher rate than residential, agricultural or commercial property.
In return, utilities must request rate hikes, based on actual expenses and actual costs.
The government has a right to expect that the utility will provide for future energy needs. Therefore, competition is, to a degree, kept in check. In return, the utility can develop future production with a bit less risk than the average private company, knowing that the utility will be able to recover their costs.
The problem that Westar has is this: What if “alternative” energy is judged to be a bad investment or too costly?
Greens should OPPOSE the CURB busy bodies on this one.
Westar deserves to know that cost-benefit analysis bean counters will not compensate them based on coal or nuclear production costs, if their wind or solar costs are higher than the traditional production costs.
Instead of spending tax money on things like arenas, Wichita and SG county should put up windmills and give (that’s right I said give) clean power to green industry. This would attract modern manufacturers to the area while diversifying the economic base. And there would be a huge PR benefit for the area. Win/Win/Win. Or we could argue that global warming is a conspiracy put forth by people who hate America and that we should all stop whining and burn more coal.
kfg, I truly enjoy your posts about our serious water problems and learn each time I read one. I don’t often comment because I don’t know enough to have an opinion of my own. I don’t ever want you to feel the lack of posts is due to disinterest – not on my part anyway. With your help I’ll get enough info to form opinions. Thank you for your help and your knowledge!
Back on the thread topic — I know that this good ole boy network and behind the scene deals are all part of the corruption that you see clearly and wish would be investigated and made public. I trust you completely and know your concerns are valid. I just can’t add anything because I’m too ignorant. Some good investigative reporting would help, huh!? DO NOT feel your cause unworthy or that you can’t make a difference. YOU CAN and you do!
I have a favorite topic nobody seems interested in too. I know how you feel when there is no one to discuss with. Give me some time and some tutoring sessions, please. I promise to learn! ;-)
I was all over this yesterday on two different threads. No one commented. Looks like the same today.
And the sheeple sleep…
Posted by: ksfarmgrrl | November 28, 2007 at 08:49 AM
I’m pretty much with lindainks55 on this one kfg.
I’m about as ignorant on the water topic as the average citizen.
The only way we get educated is through people like yourself who knows what they are talking about and have the inside look on the matter.
I could write something about it, but it would probably be irrelevant, wrong and might possibility lead people to the wrong conclusion.
Lead us KFG, we need your help.
If they required a rate increase initially to get the project built, then I would expect that after re-couping those expenditures plus a profit margin, the cost of providing electricity would later decrease as there would be no expense for fuel. Then there should be a rate cut.
PhantomNo argument there.