UPDATED: Puzzling
The Burns & McDonnell report on Electric City Power, among other claims, asserts on page 19 (pdf) that NorthWestern’s energy rates between June 2008 and June 2009 have fluctuated between $70 and $80 per MWH.
I think this claim will come as some surprise to NorthWestern Energy itself, since we’ve got a fairly credible voice saying (see the update below) that the Burns & McDonnell numbers just don’t line up. I will let you know when I get the official numbers for that period but, FWIW, NorthWestern retails energy for $50 and $60 per MWH (See here) and charges another $5.50 for transmission to residential homes. There might be other surcharges/taxes I’m not aware of.
Not to be overdramatic or anything, but the question of how much “our” power costs relative to NWE’s is the pivot on which the whole question of ECP’s viability turns.
Update: Greg Jergeson, our area’s representative on the Public Service Commission, observes:
I do not believe the reader can rely on their calculations about the benefits to customers from ECP power as compared to NWE. Table 2.2 makes absolutely no sense, leading me to discount the accuracy of their other tables and calculations. I can find no basis for the calculation of NWE rates as presented in the table. The NWE rates cited in the table to do not comport with the NWE supply default rate for any of the months presented, nor do they comport with the total NWE rate, including transmission and distribution. Because Table 2.2 is so demonstrably inaccurate, I can attach no credibility to the balance of their report. [emphasis added]
Ouch.
Thanks Travis. I suggested the Tribune follow-up and inquire with the PSC
to research the B & M assertions and also ask the ECP customers what they think
of the 10% rate increase proposal. The report is riddled with errors, incomplete (Mr. Doyon’s statement) and in the end, we’ll still be losing money, plundered
from other city accounts and eventually from the treasuries of the ECP customers, including ourselves, as the city IS an ECP customer.
NWE has many different rates, Travis. Have you double checked to ensure you’re comparing apples to apples?
Ed McKnight has been trying to explain these facts to the ECP Board and City Commission for years. We have only one leader who gets it-thanks Mary Jolley for being there for the people.
This report should be sent back for correction and rvision or demand our money back. It is worthless as it currently stands….
Edited to allow room for doubt — thanks GeeGuy, and Happy Thanksgiving.
Nonetheless, pretty clear that there’s a problem with these numbers when you’ve got the chairman of the board that approves the rates saying “these are not the right rates”…
Sounds like the fictional rates came right from Ms. Balzarini.
There’s a great deal in the report that looks like it came from ’staff.’ More later.
Like I said in another post; a consultant is someone who steals your watch then charges you to tell what time it is.