Opinion> Deficit spending lives at EID
As noted in his self-ingratiating “don’t practice what you preach” InEDC article of yesterday, former EID Director Harry Norris doesn’t like me criticizing EID for running up more than $350 million of new debt and unfunded liabilities while he and three other current directors were on the EID board.
Norris and his loyal disciple Paul Raveling effectively say debt doesn’t count and that the $60 million more debt EID now wants to raise won’t create more deficits.
Well the reality is that half of EID’s $350 million increased debt since 2002 went to pay for currently unused excess capacity for the developers and/or unfunded pensions and retiree benefits. And half of the next $60 million planned new debt is targeted for more capacity expansion.
One sixth of current EID rates pay for $137 million of excess capacity and EID’s $60 million planned new debt accounts for 7 points of EID’s planned 11 percent rate hike in January 2014.
Isn’t it time that EID’s board and management stop deficit spending so that the 11 percent rate hike for January 2014 can be cut by one-half or more?
And while they are at it, why not save another 1 percent of rates by eliminating the EID department that issues all those communications telling ratepayers what a great job EID does?
Candidate, EID Director, Division 2