It is clear from the comments on the blog that there remains some misunderstandings on the issue of our Cleco rebates. I will attempt to explain them according to my understanding of them.First, the City's own experts have estimated that Cleco defrauded us out of about $60 million. (Listen to the audio clip at "DAVID CRUTCHFIELD ON THE CLECO CASE").
That $60 million consisted of money that Cleco allegedly defrauded the City of Alexandria (out of Cleco billings directly to the City), businesses, and then us individuals.
Some of us felt that we should go on to court and try to recover the entire $60 million. That is why we were pleased that C.U.R.E. and the City rejected, for whatever reason, the initial Cleco offer which had the $29 million payment in it.
The City had claims, in the lawsuit, for attorney fees. To get the $60 million, the City entered into contracts with lawyers and experts, such as E.M.S. The City gave its word, thus we citizens did to, that they would be paid for working on that case. The only lawsuit against Cleco was brought by the City of Alexandria. There was no lawsuit by us citizens.
After the City itself and the business customers get their rebates, that leaves the smallest amount to be rebated to us individuals.
The percentages to be given as rebates to us individuals were a high of 28% reported in the Town Talk and given to the City Council by David Crutchfield and City Attorney Chuck Johnson to a lesser range of between $5 and 15% of whatever money we got back from Cleco. (See: "ALEXANDRIA CITY COUNCIL MEETING OF JUNE 29, 2010" and "IS 4% TO 15% OF $9.5 MILLION AS GOOD AS 4% TO 15% OF OVER $50 MILLION?").
So the reasons that we individuals are getting little to no rebates from Cleco is because the City and the business customers get the lions share of the rebates and because Jacques Roy's settlement and which Jacques convinced the City Council to accept. (See: "THE ALEXANDRIA CITY COUNCIL SELLS US OUT TO CLECO ON 2-23-2010").
Well I'm not happy. With a $29 million up front cash payment, it seems to me that there would have been a substantial amount for use, either as refunds or for a reduction in rates and the EMS' and lawyers of the world get paid too. I understand that we would get less than the larger business customers. They paid more and therefore were cheated out of more. That's reasonable. Trading $29 million for $3 million ain't reasonable and neither are our electricity rates. How about getting us some info about how our electricity rates are determined? What are all the costs that are included? We should be entitled to an explanation of that. I want to know where my money is going. Thank you!
ReplyDeleteIf $60 million was the maximum the City could have recovered on its best day in court, what was terrible about $29 million up front and $30+ million in savings over 10 years? Does DG Hunter have value? To whom? How many times has it run in the last decade to provide power and for how long? Ever wonder why it doesn't run? So "leasing" the possibility of power produced by DG Hunter for $29 million up front is a bad deal?
ReplyDeleteI read somewhere, I believe here, about a "transmission donut". Is that like a jelly donut? Anyway, there are two ways in and out of Alex and Cleco controls those. Yep, you can make them allow you a transmission path per FERC. But yep, they can make you do transmission studies costing big bucks and charge you millions and millions in upgrades and charges.
You can build your own transmission lines for about $100 million dollars. You may even recoup that investment in savings in 30 years or so. Or, you can spend about a couple hundred million and upgrade DG Hunter, and sell your excess power to whom? How long would it take to recoup that investment? Or, do you partner with someone? Whom? Cleco? Maybe the city leases DG Hunter to Cleco at some point in the future? Hmmm.