Monday, October 10, 2011

Water Rates, the 4-Rs of Nontrepreneurism

Water Rates, the 4-Rs of Nontrepreneurism

Community Impact writes about the 4-Rs: Water Rate Raise Rankles Residents as Monarch Utilities - which operates Windermere Utilities a subsidiary of Southwest Water Company files for a (huge, and poorly designed) rate increase for Pflugerville.
"Monarch’s response 
 "Hayes said the reason for the rate increase is the nearly $70 million in investments Monarch has made over the past five years to tap new water sources, replace meters and replace aging water and wastewater treatment plants. “Our sizable investment across the state means our costs are significantly higher and can no longer be sustained by the current rates,” Hayes said.  
She said Monarch has made several improvements specifically to Pflugerville’s water services, including a new, elevated storage tank and improvements to an ultraviolet disinfection system at the Windermere wastewater plant. “Monarch has invested millions of dollars on improvements throughout our combined systems to address enforcement actions against the company by the Texas Commission on Environmental Quality (TCEQ),” Hayes wrote in a statement." 
So, a government agency (TCEQ) enforces the rules against Monarch. Monarch then "invests" in improvements to get into compliance, and the residents get the bill. 

Monarch should have applied for rate increases before their "investments", so that the community would have time to review their plans. 

Bottom Line: 

Let them (Monarch) eat cake. Don't spend money that you don't have then demand to be bailed out - that is Nontrepreneurism at its' worst.

It smells like raw sewage to me.

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