Lafayette Utilities System's proposed 15 percent rate hike, which the utility says is necessary for upgrades and reliability, is scheduled to be formally introduced to the council this afternoon. If it survives today's introduction by the Durel administration, the increase will be voted on Dec. 15.
Yesterday the proposal won the support of the Greater Lafayette Chamber of Commerce, but the Lafayette Parish Democratic Executive Committee issued a statement of opposition.
In taking the action in support of the increase, the chamber noted:
- That LUS is a robust and successful entity is a result of visionary leadership that is a century old. That leadership has always prepared for the future by anticipating growth and what it would take to remain successful. That successful leadership has always made prudent decisions, beneficial recommendations and fruitful investments.
- That the bond covenants stipulate that the rates would be set at such a level that the system is ensured the financial investment that the citizens of Lafayette deserve.
- That failure to adequately maintain this citizen-owned utility system would eventually cost more in the long run to retrofit. This modest increase would keep future rate increases at bay.
- That failure to maintain this utility system at optimum levels would negatively impact the quality of life for which Lafayette is recognized.
- That the rate increase combined with the current cost of fuel will amount to a standstill bill to customers in 2010. An increase of four to five dollars per month is anticipated for 2011.
- That the rate increase would provide a financial match for the much needed $11 million federal stimulus Smart Grid initiative grant.
- That Lafayette Utilities System is held in the highest regard in the business community in that it returns the people’s investment in it with profits that fund essential citizen needs.
- That Lafayette seeks to perpetuate its tradition as a Community of Innovators and this system is worthy of its recognition as an innovative and forward looking enterprise. The community cannot sit still while progressive cities take pro-active measures to compete in a global economy.
According to today's Advocate, the Democratic commmittee's position is in line with most council members who fear an increase at this time will burden small business and families (though the impact of the increase won't likely be felt till 2011). The committee also argues that LUS should be able to keep some of the $18 million it pays annually to parish government. This in lieu of tax payment is what a private utility would pay if it served Lafayette Parish.
... written by Keemosabi , December 01, 2009 - 05:59 pm
Sell the Fiber and use the proceeds for electricity.
... written by Council of Dunces! , December 01, 2009 - 06:59 pm
I moved my small business to Lafayette in part because of the reliability of the utility system. If I am out of electricity for days, I lose much more money than a minimum rate increase. Are these councilmen as stupid as they sound? My patients will also be put at risk (elderly mostly) if they lose electricity their equipment requires.
... written by realitychecks , December 01, 2009 - 07:21 pm
Trying to cover the fiber losses? smoke and mirrors.....
... written by LAFAYETTE DEMOCRAT , December 01, 2009 - 10:31 pm
Everyone wants a reliable utility system. The issue is about costs (money) and a policy decision about who needs it most in the current economy. Older citizens on social security and other fixed income, as well as the disabled, and the working poor (people with jobs who are barely making ends meet) cannot handle an increased utility rate. Also, many people in the oil field have lost their jobs; others have not lost their jobs, but are working on reduced income due to the loss of overtime pay or due to not being called out to work as frequently.
... written by realitychecks , December 01, 2009 - 11:41 pm
Keemosabi , December 01, 2009 Sell the Fiber and use the proceeds for electricity.
*************** they can't sell the fiber; literally!! that's the problem! LUS is doig fine! This is to bring in money for the fiber fiasco!
... written by northsidian , December 02, 2009 - 12:20 am
The Lafayette Chamber of Commerce has never met a rate increase or tax increase they didn't fall in love with!!
... written by northsidian , December 02, 2009 - 01:05 am
I was wrong on my statement on rate increases and taxes . The Chamber was against any increase in the minimum wage. How would you like to pay your utility bill increase making minimum wage??
... written by NORTHSIDIAN SHOTGUN , December 02, 2009 - 03:10 am
LAF. DEMO. *They know people are losing their jobs and some taking paycuts to continue employment, and providing whatever the necessities for their families with a shrinking paycheck. Government Paychecks never experience paycuts, never experience layoffs, never are terminated unless 4 judges, vote for termination ,then the ACLU, comes in to the fray like gangbusters!!!!
OLD FOLKS, RETIREES with ( USE, TA BE FIXED INCOMES ) a SS check will not see any cost of living increase this new year, possibly for the next two years, """HELL, SOMEONE HAS TO PAY FOR THE BULLETS $ BOMBS""" YOU THINK POBET JOEY OR TERRY WILL SEE A PAYCUT, THATS AH JOKE,....... MAN..... "NAW, DAS TWO JOKES"
THESE TWO BIG TIME POLITICO COUILLIONS BE LAK DA TANGYPA-HOA'S J. P., same Inbred Mental Impaired, LIL EMPEROR'S, WID DA FRIZZIES VINO BOTTLE in der hip pocket. dey done graduated from ah load ah gravel fo da COUZANS driveway ta da 4-Lane landscaped road ta the front their houses!
... written by Plumpy , December 02, 2009 - 09:52 pm
LCG should sell electric utility portion of LUS ! Then, take those monies to subsidize fiber, water and sewage departments.
... written by Morrow , December 03, 2009 - 01:50 pm
I agree that city/parish employees enjoy a pretty darned good income and benefit package. They're not leaving & payroll is only increasing day to day, year to year. Raises are handed out like candy & the council wanted to give more than was called for!!! Figure that! But LUS is STILL the best utility system around, and the best run. I consider it THE BEST department in city government. The magnitude of growth in and around Lafayette in past few years has been enormous & yet all Laf. utilities are provided smoothly. I'd take LUS over Slemco, Entergy, the sewerage & garbage system I pay now! I'd be on LUS cable & internet service in a minute if I could. LUS is a bargain!
... written by Jason D. Faulk , December 04, 2009 - 12:52 am
I'd like to see the LPUA/City direct LUS to invest in greater energy efficiency. I'm sure all those folks are trying their best, but there may be opportunities not yet taken advantage of.
In the 1980's, this community was faced with the closure of it's municipal landfill. The costs to us all to pay to haul our waste 50 miles away to a landfill run by others, at considerable costs, led our citizens and leaders to find solutions to these problems which resulted in significant savings: yard waste became a resource when we started composting it. This created new jobs here in Lafayette, saved us far more money than disposal, and I've been told, we're even able to sell some of the waste for burning in a power plant to generate electricity. Lafayette also became a leader in the state to divert the "trash that is not trash", i.e. your recyclable materials. That recycling company now serves multiple communities. I don't have all the hard number percentages, but it's easy to find out if you call LCG's Environmental Quality division. It's in the neighborhood of 35-45% of municipal waste.
All these efforts now seem to be out of sight and mind in this community.
If we take the same approach to this problem with respect to power consumption, power generation, power transmission, and power conservation, we might find ourselves a way out of this hole.
Could the city/LUS install LED (Light Emitting Diode) streetlights?
Shouldn't the city adopt a LEED certified energy-efficiency building standard for new city buildings and retrofits and a tax incentive for private developers to build to this commonly accepted standard?
Shouldn't the city see to it that rate increases are offset by home weatherization of low income/fixed income residents by taking advantage of LIHEAP grant programs to replace windows, and insulation in homes? (these are monies waiting to be used per the federal stimulus act.)
The city/LUS could also explore a loan program through the Lafayette Public Trust Authority, not to build new homes, but to install new energy efficient windows in our old homes, at historically, extreme low interest rates, allowing residents to improve the value of their homes, saving electricity, offsetting the unavoidable increases in future fuel costs to LUS, (which irrespective of this rate-base increase failure, are going to go up on the market.) This will add jobs here to do the construction work.
If anyone has looked around, the costs for bidding projects RIGHT NOW, are probably as good as they've been in 10 years. This is the time to make our investments.
It just seems to me, that we are blessed with resources, and opportunities here in Louisiana and Lafayette, while we aren't suffering the worst of the national economic downturn, and yet we're acting as if our hands are tied.
If we invest in energy efficiency, much of these consumption growth demands could be averted. Energy saved "the nega-watt" can be just as fiscally equitable as producing and sending new watts.
This community also should be taxing those activities we want to discourage...and subsidizing those we wish to encourage. Keep that in mind with discussion of taxing citizens through In Lieu of Tax and Sales Taxes on Food, yet we don't tax low-density sprawling land use for new developments (we encourage it), we don't (and aren't allowed to) tax gasoline usage, etc.
... written by northsidian , December 04, 2009 - 09:11 pm
Morrow, how can your comments count when you have no skin in the game? If you love LUS so much, move to Lafayette!
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