Following are e-mails between Coleen Balzarini (red) and Mary Jolley (blue) concerning the blended rate discussion from the past two ECP board meetings. These e-mails were also sent to the other commissioners, the ECP board members, Greg Doyon and Cheryl Patton:
From Coleen:
Subject: Proposal to modify rate structure from Southern to ECP
From Coleen:
Subject: Proposal to modify rate structure from Southern to ECP
Date: Fri, 7 Nov 2008 12:20:53
(Th)e attached information regarding change in rate structure has been discussed at the last two ECP Board meetings. Cheryl indicated the chart was helpful to her and suggested I distribute to the City Commission. Please let me know if I can provide additional information. If you have problems opening or reading the documents let me know and I will get a hard copy to you. Coleen
From Mary Jolley:
Sent: Friday, November 07, 2008 2:25 PM
Subject: RE: Proposal to modify rate structure from Southern to ECP
Coleen
Re: ECP Energy expense and revenue comparisons
"The Southern board has already taken action approving the blended rate concept"
Please provide the documentation showing what the Southern Board approved. Did you vote Coleen? How did you vote?
From Mary Jolley:
Sent: Friday, November 07, 2008 2:25 PM
Subject: RE: Proposal to modify rate structure from Southern to ECP
Coleen
Re: ECP Energy expense and revenue comparisons
"The Southern board has already taken action approving the blended rate concept"
Please provide the documentation showing what the Southern Board approved. Did you vote Coleen? How did you vote?
Comparing the past rates paid is not a good comparison. We have never gotten the "cheap" power. You have said that our rates are cheaper now than SME's or Southern if that is what Company name we are using. In your rate comparison how have you accounted for the water credits.
Please provide the other commissioners and the ECP Board with the documents in the "Trade Secret Box' that make reference to this blended rate issue.
Thanks
Mary Jolley
From Coleen, one week later:
Subject: RE: Proposal to modify rate structure from Southern to ECP
Please provide the other commissioners and the ECP Board with the documents in the "Trade Secret Box' that make reference to this blended rate issue.
Thanks
Mary Jolley
From Coleen, one week later:
Subject: RE: Proposal to modify rate structure from Southern to ECP
Date: Fri, 14 Nov 2008 11:46:59 -0700
Commissioner Jolley,
Greg has asked me to reply to certain portions of your email of November 7, in regards to comparisons, water credits, and cheap power.
Rate comparisons
The comparisons between pass through, blended, NWE, and ECP customer rates that I distributed were prepared in response to a request of the ECP Board members at the October meeting. I indicated that using past consumption data, energy payments and receipts would allow me to provide the Board with a comparison that uses past consumption data applied to one estimated but still unknown variable (blended rate, yet to be established at a time when the Commission accepts the offer) against three known variables (payments to Southern, revenues from ECP customers, NWE tariffed rates),
I forwarded the comparison on to the City Commission at the suggestion of the Assistant City Manager. That is not to say that other comparisons cannot be made. In order to make other comparisons I will need to know what factors to use as the alternatives.
Water Credits
The accounting transaction related to water credits recognizes energy expense in the period it is consumed and the obligation to compensate Southern for that use in a future period in the form of raw water provided from City water sources to operate the plant. In my comparisons, expense related to the water credit is included in the amounts billed by SME.
Cheap Power
I am not sure if you are asking a question in regards to your statement on cheap power. If so, please be more specific on what you are asking.
Note: Coleen never did respond to Commissioner Jolley about her requests regarding what SME approved, whether or not she (Coleen) voted and how she voted.
Commissioner Jolley's response:
Subject: RE: Proposal to modify rate structure from Southern to ECP
Commissioner Jolley,
Greg has asked me to reply to certain portions of your email of November 7, in regards to comparisons, water credits, and cheap power.
Rate comparisons
The comparisons between pass through, blended, NWE, and ECP customer rates that I distributed were prepared in response to a request of the ECP Board members at the October meeting. I indicated that using past consumption data, energy payments and receipts would allow me to provide the Board with a comparison that uses past consumption data applied to one estimated but still unknown variable (blended rate, yet to be established at a time when the Commission accepts the offer) against three known variables (payments to Southern, revenues from ECP customers, NWE tariffed rates),
I forwarded the comparison on to the City Commission at the suggestion of the Assistant City Manager. That is not to say that other comparisons cannot be made. In order to make other comparisons I will need to know what factors to use as the alternatives.
Water Credits
The accounting transaction related to water credits recognizes energy expense in the period it is consumed and the obligation to compensate Southern for that use in a future period in the form of raw water provided from City water sources to operate the plant. In my comparisons, expense related to the water credit is included in the amounts billed by SME.
Cheap Power
I am not sure if you are asking a question in regards to your statement on cheap power. If so, please be more specific on what you are asking.
Note: Coleen never did respond to Commissioner Jolley about her requests regarding what SME approved, whether or not she (Coleen) voted and how she voted.
Commissioner Jolley's response:
Subject: RE: Proposal to modify rate structure from Southern to ECP
Date: Fri, 14 Nov 2008 22:38:11 +0000
Coleen
Coleen
Thanks for the response. I was not asking a question about cheap rates. Mr. Doyon mentioned something about the 1.4 million dollar deposit in reference to blended rates. I do not think you said anything about the deposit when you reported to the Board. He also said something about the inbalance payments. Do the imbalance payments have anything to do with the blended rates?
Is there information you are uncomfortable sharing with the Commissioners or Board because of "Trade Secrets"?
I know there is background information in the secret box about blended rates. I think the rate comparisons are not at all predictive of the future. I do agree with you on that.
From the October 2008 minutes .....
Ms. Balzarini provided background information when ECP first started receiving energy, wholesale rate plus imbalance charges, versus the other coop members’ blended rates. She explained the blended rate as a flat rate based on historical information and is more consistent. However, the potential of making more money exists if ECP keeps its own contracts. She believed the plusses of a blended rate outweighed the minuses of potential higher returns on imbalance sales. ECP now has the option of going to the blended rate, or continuing the status quo through 2011. Mr. Pancich inquired if the Board needed to make a decision now. Ms. Balzarini responded that the Board can wait until the contracts expire, but then customers will see a significant increase in 2011. The Board directed Ms. Balzarini to obtain a copy of the blended contract for review. An addendum would need to be added to the existing contract and a recommendation made to the City Commission to approve the amendment.
Is there information you are uncomfortable sharing with the Commissioners or Board because of "Trade Secrets"?
I know there is background information in the secret box about blended rates. I think the rate comparisons are not at all predictive of the future. I do agree with you on that.
From the October 2008 minutes .....
Ms. Balzarini provided background information when ECP first started receiving energy, wholesale rate plus imbalance charges, versus the other coop members’ blended rates. She explained the blended rate as a flat rate based on historical information and is more consistent. However, the potential of making more money exists if ECP keeps its own contracts. She believed the plusses of a blended rate outweighed the minuses of potential higher returns on imbalance sales. ECP now has the option of going to the blended rate, or continuing the status quo through 2011. Mr. Pancich inquired if the Board needed to make a decision now. Ms. Balzarini responded that the Board can wait until the contracts expire, but then customers will see a significant increase in 2011. The Board directed Ms. Balzarini to obtain a copy of the blended contract for review. An addendum would need to be added to the existing contract and a recommendation made to the City Commission to approve the amendment.
Blended Rate.
In order to explore the feasibility of going to a blended rate versus the status quo, John Gilbert moved, seconded by Bob Pancich, and approved by roll vote, that this Board review the blended rate contract and perform a review of additional numbers. Mr. Ebeling requested a graph of two different scenarios. Ms. Balzarini responded that she would provide six months for comparison with the existing customer base. Motion carried 4-0.
Public Comment.
Mary Jolley (address deleted) thanked the new Board members for serving. Commissioner Jolley suggested that the Board read the SME meeting minutes regarding the blended rates to help with their recommendations to the City Commission. From the minutes above you mention, "but then customers will see a significant increase in 2011." Would you be able to share with us how you have arrived at thye above projection, or is there a "trade secret" problem? I am glad the board will be able to look at the blended rate contract and provide some advice to the Commission.
Thanks again
Mary Jolley
Public Comment.
Mary Jolley (address deleted) thanked the new Board members for serving. Commissioner Jolley suggested that the Board read the SME meeting minutes regarding the blended rates to help with their recommendations to the City Commission. From the minutes above you mention, "but then customers will see a significant increase in 2011." Would you be able to share with us how you have arrived at thye above projection, or is there a "trade secret" problem? I am glad the board will be able to look at the blended rate contract and provide some advice to the Commission.
Thanks again
Mary Jolley
2 comments:
Somehow this comes to mind every time Coleen Balzarini says something to Commissioner Jolley:
http://www.youtube.com/watch?v=sShMA85pv8M
Anon, you hit the mark with this link - "who's on first". I could laugh if the realty at city hall with Ms. Blazarini and the involvement with Tim Gregori was not so true......
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