In a presentation to the City-Parish Council Tuesday afternoon, LUS Director Terry Huval spelled out what the grim consequences would be if the council denies a proposed rate increase for the public utility. This morning, Huval tells The INDsider that Lafayette has never had to experience the type of cutbacks LUS is now being forced to consider should the council not approve rate increase. "I don't know of any other time in LUS history," Huval says, "where the rate changes weren't ultimately approved by the council and that we had to take these kind of actions. Certainly in no one's memory here and I've got people here who've been working with LUS for almost 30 years and they've not seen that kind of situation occur. So this would be I think, unprecedented."
Should the rate increase not go through, LUS faces a $7.3 million shortfall in its current 2009-2010 fiscal year budget. The immediate impact will be decreased water pressure, a drastic cutback to tree trimming along power lines, and more frequent sewage backups. Over time, the lack of a maintenance budget will lead to greater transmission problems, power outages and possible fines for the sewage facility falling out of regulatory compliance. Huval made the case that these are not luxuries, but important infrastructure needs that our economy and quality of life depend on. LUS teamed up with an economist from LEDA to show the economic impact of lost power in the city. The report shows one extra day of a citywide power outage following a major storm has an economic impact of $21 million.
The council has asked that LUS re-introduce the rate increase ordinance at its Dec. 1 meeting, with a vote for final adoption falling on Dec. 15. The council will hear public comment on the issue at each of those meetings. "At this point," Huval says, "I expect more dialogue with council members at the meetings and outside the meetings to help them understand what we're dealing with here. But I know that a number of council members are struggling to indicate support for this simply because they feel their constituents don't want a rate increase."
... written by Plumpy , November 19, 2009 - 01:18 pm
Huval painting a gloom and doom scenario to get his rate increase...I don't believe him...
... written by Wow... , November 19, 2009 - 01:21 pm
Really? Are we down to scare tactics now?
I have a question. What happened to the $17 million in "extra" money that LUS gives to LCG every year?
Is it possible that isn't actually "extra" money, but is actually money that should be saved up for maintenance and upgrades?
This sounds like a fairly serious case of mismanagement in which necessary funds have been diverted from LUS to LCG -- and now, they want ratepayers to take the brunt of the impact.
So what about it? What's the deal with the $17 million "extra" and why isn't THAT money being used to avoid "unprecedented" service interruptions?
... written by Plumpy , November 19, 2009 - 01:22 pm
If the situation at LUS is this bad...Then I recommended LUS sell the electric utility to private sector . Consolidated Government would probably collect a easy Billion for sure from that sale..
... written by NORTHSIDIAN SHOTGUN , November 19, 2009 - 02:04 pm
TERRY: HOVERIN, Like a buzzard round da city!!!!!!! How de hell ya institute ah budget for 2009-2010- wid ah $$$$$$$ amount, when ya know you have to cut services to the area, " BECAUSE " the LCG REVENUE FOR THE PERIOD DOESN't "EQUATE" WID DA COST OF YAH, "OPERATIONS" and das widout ah RAINY DAY!!!!!!!!
POOYIE, HIPPY TA YO, HOW YA FIGAH!!!!!!! THIS HOSTAGE SITUATION HAS BEEN BREWING IN TERRY'S HAID EVERRY NIGHT, GET SUM XANAX , MAN!!! The councilmen betta get there act together, even a DA, knows what the area is experiencing, a loss of jobs, salarys being lopped, FOLKS LOSING HOMES"!!!!!!!!!!! Wake up DUREL, HELL!!!! THERE IS NO REASON TO INCREASE RATES, HELL AN IDIOT KNOWS YA DON"T PLAN YOUR BUDGET ON AH """""""GIMME"""""""!
When you COUILLIONS, CEASE YOUR WASTEFUL PARIS FORAYS $ THE FREE MEALS AND THE MARDI GRAS GRIS-GRIS PAHTYS, YA CAN GET IN LINE AND TAKE AH NUMBER LAK AT DA "SOCIAL SECURITY OFFICE", like the rest of us, cause we don't have enough in "OUR BUDGET", ta make da year!!!!!
You can take dis ta da bank!!!! DEREs gonna be some TAKIN NAMES AT DEM MEETINGS!!!!!!!!!! The councilmen can bite the hand that feeds them, AND PREPARE THEIR "RESUMES" AND FACE THEIR CONSTITUENCY, AT THE VOTING BOOTH!!!!!
... written by Solutions? , November 19, 2009 - 02:37 pm
Plumpy, you have once again shown you ignorance. Look at Opelousas after the last hurricane and tell me how well you think SLEMCO maintains their equipment.
People: NOT EVERYTHING IS A CONSPIRACY TO ROB YOU!!!!
LUS' books are open to the public. Go and look at it for yourself, and then come online and call everyone a liar. The increase will equate to a buck or two a month.
We have one of the greatest cities in the United States because of good leadership. Let these people do their jobs. You guys are a bunch of conspiracy theorists.
... written by bf , November 19, 2009 - 03:12 pm
This sort of thing always brings out the "something for nothings", as I like to call them, in droves. That's a group of people that believe local governments are not subject to the same cost increases as any other business entity and that they can continue to operate on the same budget year after year while providing the same services. I imagine these are the same people who believe in perpetual motion machines and engines that burn water for fuel.
... written by Wow... , November 19, 2009 - 04:07 pm
No conspiracy theory here. Just a simple question (or two).
Why is LUS paying LCG $17 million in "extra" money every year if those funds are needed for maintenance and upgrades?
Why didn't LUS know they would need money for maintenance and upgrades until now, when they are suddenly pushing for an 'emergency' rate increase?
Not a conspiracy. Just basic basic policy questions.
... written by NORTHSIDIAN SHOTGUN , November 19, 2009 - 04:13 pm
SOLUTIONS N NOVEMBER, you two are so eatin up wid da D.A., and yo's pappys wait in line fo da LCNG, ALPO BITS !!!!!!! "Something For Nothings" as you call them! you D. A. no-one cares what you call anyone!!!!!!! Do something productive !!!!! GO pick up trash on the "BAYOU TECHE" ! JESUS, WHAT THE HELL WOULD YOU KNOW ABOUT PROPULSION ! YA EGG BEATER BEARING "BURRO"!
I can tell you one surefire thing, EVERY BODY HAS AH BOOK/BOOKS, das why we have an "IRS"!! Ay, you may be privy ta da books at LUS/LCNG DAT tells me ya not ah GOVERNMENT AUDITOR. You proply TERRY HOVERIN,S CHUE-FFAH or GO-FFAH !!! GET AH LIFE, DUDE !!!!! DAS AH GIMME, SOLUTIONS AH LUSER, YA PROPLY ONE OH DEM LUSER'S TOO!!!
... written by Voodoo Science , November 19, 2009 - 05:12 pm
Metamucil Huval is doing it again. The 'white collar' electricals recently got huge raises and now all of a sudden they want the citizens to suffer, however they didn't bear any of the brunt. I agree, sell the thing before the fiber "we're going door to door begging" bites the dust. Remember Metamucil's fiber ring to connect all Lafayette was to tie in to the Old Superstore and make millions. Yeah right. Call their bluff. If they can't make it fly, bring in another electrical Slemco, Cleco etc.
... written by Nathan Stubbs , November 19, 2009 - 05:12 pm
With regards to the 'extra' money that LUS pays into the LCG general fund each year. This is "In Lieu Of Tax" money LUS is required by city ordinance to pay. Because LUS is a public entity, it is not subject to franchise fees or property tax. Instead, it pays the ILOT, which is based on a percentage of its revenue. It's about 9 percent right now. It would take council action to lower the rate. It's also important to realize that lowering the rate would cut general fund revenue, and other city services would likely suffer.
... written by northsidian , November 19, 2009 - 08:01 pm
Do any of you remember the weapons of mass destruction bull****! Huval is one smart operator who is willing to fall on the sword for Joe Du!! Listen folks he comes from Entergy, they are the best at rate increases and PUTTING TO THE CUSTOMERS!! He is doing what comes natural to him. He needs to go live in Eunice!!
... written by Ed Viguerie , November 19, 2009 - 08:29 pm
@Voodoo Science - Bring in Slemco or Cleco? Are you freaking kidding me? Look, I have no problem with putting Huval's request under the microscope. It's our duty as citizens to make sure that our government is acting responsibly. And if they're being morons, we need to call them on it. But spare me the "private enterprise always does it better" crapola. Anyone that's worked in the private sector knows that's a joke. And I remember the days when my parents house was powered by Slemco. If it rained for longer than 10 minutes the power went out. When my parents were able to switch to LUS, the power almost never went out.
Move your rhetoric out of the 80s and get some new material, would ya?
... written by Disgusted , November 19, 2009 - 09:45 pm
Its pretty disgusting to see the armchair quarterbacks weigh in on a subject that they know very lkittle about. It would seem to me that if we have world class utility (as we do) being run by an industry recognized engineer (as Huval is) , we'd do what we have to in order to keep things going in the right direction. Seems the real problem is the Council is playing politics when it should be supporting the administration on this.
... written by Morrow , November 20, 2009 - 08:36 am
Instead of raising rates, why not just use the money collected to fund utilities. Am I mistaken in thinking a lot of money LUS generates goes into a general fund? If this is still the case, maybe the REAL issue is using the money collected for LUS operations.
... written by Solutions? , November 20, 2009 - 08:52 am
Northsidian shotgun, please address the questions that I raised, specifically the part about how we faired during the last major hurricane vs. how Opelousas faired. Leave the name calling out and use logic please. And no I don't work for Terry. I have never even met Terry.
You run your mouth about Lafayette losing jobs and people losing their houses, yet you conveniently forget to mention that Lafayette is number eight in the country right now for job availability. Our property prices aren't slipping, which is great for home owners. Companies are moving here to establish new offices (Bedford Plastics etc.) Try making a point without complaining or claiming that every councilman is out to screw you!
By the way, I have picked up trash on the Bayou Teche and the Atchafalaya Basin. Check out the Bodacious Brothers.
... written by Keemosabi , November 20, 2009 - 09:53 am
Boy, I am glad we have fiber under the Huval and Durel management team.
... written by northsidian , November 20, 2009 - 01:39 pm
Solutions: The real reason our state and local economy is still decent is because of the oil industry, medical professionals and last and not lease KATRINA MONEY FROM THE FEDERAL GOV'T!! It is not because of Joey Durel or Bobby Jindal!! Now go pick up more trash!! (p.s. I am not the northsian shotgun) just from the same side of the tracks.
... written by northsidian , November 20, 2009 - 03:25 pm
least not lease, sorry! also solutions you genius, Slemco does not serve Opelousas my man!! Get your facts straight before you go afta my bro from the 'side!!
... written by NORTHSIDIAN SHOTGUN , November 21, 2009 - 04:38 pm
Solutions: hopefully the indy will post my answer comment!!!!!!!!!!! Specifically regarding dat "TUPPERWARE LLC,BLOW-UP RUBBER DOLLYs, fabricator BEDFORD PLASTICS!!!! Ay, das not da same COUILLION wha owned dat, PLASTIC PLANT in his backyard by da GIRARD PARK, the PLANT, YA,................... "TONTE AUTOMAN" da "DEAN OH DOOZIES", waz gonna trade fo da HORSE FARM ? EH!
... written by NORTHSIDIAN SHOTGUN , November 22, 2009 - 06:45 pm
Terry's wide spread, acclaimed accreditation, don'nt go farther than da LAFAYETTE PARISH perimeters !!!!!!!!!!!
... written by NORTHSIDIAN SHOTGUN , November 23, 2009 - 09:30 pm
Ay, SOLUTIONS, go to the SS office on KALISTE SALOOM AND TELL EM i send ya to apply for ah slow-learnt check!!! BRING ya guardian ta sign fo ya. OK?
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