No Gas Company Surplus
I had the opportunity to talk with Hester Ann White and then hear Rudy Garcia at the City meeting Tuesday night concerning the Gas Board’s budget for the next fiscal year. The bottom line is that there is no surplus of funds that that will be distributed to the cities of Alpine & Marfa.
This is another blow to Marfa’s funding problems for the next year. Flo cranked in a distribution from the Gas Company. Interestingly, Alpine did not.
There is bad news for the consumer as well. Over $400,000 of infrastructure repairs were approved for the next fiscal year by the Gas Company, almost all of it in Alpine. They must repair dangerous leaks and reroute poorly conceived lines throughout Alpine. “We are buying more gas than we are selling” commented Rudy Garcia referring to gas leaking out of the pipelines.
Marfa and Fort Davis consumers should understand that they are going to be paying for these repairs with higher rates along with the Alpine customer even though the City of Alpine owns these lines. I don’t mean the rates are going up more than they are, Hester Ann told me they would stay the same, but that they are too high now in order to pay for Alpine’s problems. Is it too far fetched to suggest the Alpine consumers pay the extra premium to fix their own infrastructure?
Clearly, gas rates are not coming down and those incredible gas bills are only a month or two away. Hester Ann also told me that it could take 10 years before the gas infrastructure system is brought up to spec. Think about that.
I am joining with those who think the Gas Company should be sold and the cities split the proceeds 50/50. It couldn’t be any worse.
This is another blow to Marfa’s funding problems for the next year. Flo cranked in a distribution from the Gas Company. Interestingly, Alpine did not.
There is bad news for the consumer as well. Over $400,000 of infrastructure repairs were approved for the next fiscal year by the Gas Company, almost all of it in Alpine. They must repair dangerous leaks and reroute poorly conceived lines throughout Alpine. “We are buying more gas than we are selling” commented Rudy Garcia referring to gas leaking out of the pipelines.
Marfa and Fort Davis consumers should understand that they are going to be paying for these repairs with higher rates along with the Alpine customer even though the City of Alpine owns these lines. I don’t mean the rates are going up more than they are, Hester Ann told me they would stay the same, but that they are too high now in order to pay for Alpine’s problems. Is it too far fetched to suggest the Alpine consumers pay the extra premium to fix their own infrastructure?
Clearly, gas rates are not coming down and those incredible gas bills are only a month or two away. Hester Ann also told me that it could take 10 years before the gas infrastructure system is brought up to spec. Think about that.
I am joining with those who think the Gas Company should be sold and the cities split the proceeds 50/50. It couldn’t be any worse.
posted by DanD at 10:06 AM
4 Comments:
The City of Alpine owns the lines? Or is it just that the lines are in Alpine? I am not in favor of the gas co being used as a golden egg for the cities.
Under the assumption that the lines are not owned by the City of Alpine as a Marfa gas customer repairing the lines even with the higher rate doesn't bother me that much. If Marfa's lines were in such a state I would expect for the GasCo to fix them. If there were a horrid event wouldn't the cities as owners of the Gas Co share in the liability? If the Gas Co is buying more gas than it is selling (how much?) it stands to reason that it is losing money. Heating is going to be expensive this winter at $14 or $16cfm.
What does bother me are that these needed repairs don't seem to be a new circumstance. Before discussion of selling the gas co I'd like to know if the gas co is adding customers, has an unchanging customer base, or is losing customers. What is being charged to customers from other area companies? Are the customers benefitting from a non-profit? And if it is put up for sale what would it be worth? With the infrastructure as it is would the cities have to pay someone to take it?
The city of Alpine owns all the infrastructure within their city limits, Marfa owns the infrastructure in its city limits and the two towns share all the other infrastructure including that which is in Fort Davis 50/50. When the Gas company is sold this infrastructure will be taxable property to the respective towns. This $400K upgrade going into Alpine is being shared by all gas company consumers to the future benefit of Alpine alone.
Furthermore, surplus distribution goes 60% to Alpine and 40% to Marfa, not 50/50 like expenses do. Starting to get it?
Somebody dropped the ball on this deal and when those gas bills come in just think where its going.
Also, while the price of gas drops and our price remains at $16.60 the Gas Company profit margin grows larger. I used to believe all this was ok as long as it was being put back into infrastructure. Not now.
Well, so much for that assumption. I guess that Alpine can no more afford to pay for fixing it's lines than Marfa could.
The liability probably isn't worth keeping it then. I'm on board, sell the gas company.
Rudy Garcia spoke to the council and citizens during the "citizens comments" portion of the disastrous city council meeting last night. He stated that he was making the report about the gas company because good ole' king david never seemes to bother to let the citizens know what is transpiring at gas board meetings. I believe that Rudy also stated that good ole' kd had not even been at the last several meetings.
WHAT? Is he too important to bother to see how his "cash cow" is doing?
Just hide and watch. I'll bet that part of Oscaramus's pay-off for voting for his old nemesis, Glorious, will be his elevation to the gas board in place of either Ken Whitley or Hester Ann White. What a shame! Those two present members have the best interests of the gas company, as well as the citizens of Marfa, at heart. To replace either of them with Oscaramus would be just as stupid as selecting Gloroius over Carl Robinson.
One way to stop some of kd's idiocy is to sell the gas company. I agree with the previous posts calling for just that.
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