Utility Status to Jolt Chamber Retreat > How Are We Doing?

How Are We Doing?

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Forums > How Are We Doing > Opinions, Concerns, Kudos, And Suggestions

Subject: Utility Status to Jolt Chamber Retreat

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Melanie
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09/12/2007 12:26 AM	Alert
Regarding the article that appeared in the 9/11/07 Ledger Article -Business group wants outside consultant to review governance of Lakeland Electric. I would just like to say great job. With the developing and changing energy markets, now is the time to investigate the best goverance of Lakeland Electric. The energy markets are so volatile making the risks extremely high in running a utility company. One bad decision as we have all found out can be very costly to the ratepayers. It is not uncommon to make such a request. Other organizations have made similiar requests to cities in order to protect ratepayers within the community. Please see the attached example that I have found when researching the subject. http://www.munileague.org/issues/2002/citylightstudy.htm I would also like to mention that the cost of the study would ne minimal compared to losses of the FMPA contract and the fuel hedging program. It would be interesting to hear from an outside consultant on what when wrong with the past hedging strategies, and what could go wrong with the future strategies. If the City is getting a discount on natural gas, it is most certainly being paid by ratepayers in the form of fees paid upfront i.e. "there is no such thing as a free lunch". There is always a premium to pay for such insurance. The question to explore then "Is the premium higher than the discount received?" I have yet to hear a answer to this question. Thanks again for representing public and business concerns.

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Forums > How Are We Doing > Opinions, Concerns, Kudos, And Suggestions > Utility Status to Jolt Chamber Retreat

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