March 19, 2007
IT IS TIME FOR A THOROUGH HOUSECLEANING AT THE MLGW AND ALSO CITY HALL
In yesterday’s commercial appeal in an article by Michael Erskine, Mr. Dana Jeanes and Mr. John McCullough tried to put the best face on the pile of cash that the MLGW is sitting on. What Mr. Jeanes and Mr. McCullough are not telling you is that in addition to the $150 million in unrestricted cash and cash equivalents, the MLGW had on December 31, 2005, they also had an additional $248 million in accounts receivable (less allowances for doubtful accounts, apparently they were not counting on the Edmund Ford account being paid) and unbilled revenue. All of this will turn over in 30 to 45 days in time to pay their bills. Also by the end of November 2006, the above figure had increased by $27 million and would have increased by an additional $24 million if they had not lost $18 million instead of making the $6 million in the gas division as they did in 2005.
By comparison, Nashville Electric at the end of their 2006 year had current assets minus current liabilities of $188M less $119M = $69M. This compares to the $161 million for MLGW’s Electric Division. Nashville Electric is of similar size and billing as the MLGW Electric Division at $903 million per year.
AGL Resources (Chattanooga Gas is part of AGL) at the end of 2005 had 2.032 billion in current assets and $1.939 billion in current liabilities with only $30 million in cash and cash equivalents.
Laclede Gas, St. Louis, for the year 2006 had total current assets $331 million, total current liabilities, $367 million, total cash and cash equivalents, $2.3 million.
MLGW does not want to talk about the account receivable and unbilled revenue as being quickly converted to cash. They just want to hold onto your cash and earn interest on it rather than returning it to the ratepayers in rate reductions.
Now we have the MLGW sorry state of affairs reported in the New York Times. It is time for a house cleaning at MLGW and also at City Hall.
Click here to read about the MLGW and Joe Lee from the NY Times
Click here to read the financial data from a well run electric company, Nashville Electric and see how much cash they keep on hand as compared to the MLGW
Click here to see the Chattanooga Gas parent company handles their cash as compared to the MLGW
Click here to see how Laclede handles their cash as compared to the MLGW
IT IS TIME FOR A THOROUGH HOUSECLEANING AT THE MLGW AND ALSO CITY HALL
In yesterday’s commercial appeal in an article by Michael Erskine, Mr. Dana Jeanes and Mr. John McCullough tried to put the best face on the pile of cash that the MLGW is sitting on. What Mr. Jeanes and Mr. McCullough are not telling you is that in addition to the $150 million in unrestricted cash and cash equivalents, the MLGW had on December 31, 2005, they also had an additional $248 million in accounts receivable (less allowances for doubtful accounts, apparently they were not counting on the Edmund Ford account being paid) and unbilled revenue. All of this will turn over in 30 to 45 days in time to pay their bills. Also by the end of November 2006, the above figure had increased by $27 million and would have increased by an additional $24 million if they had not lost $18 million instead of making the $6 million in the gas division as they did in 2005.
By comparison, Nashville Electric at the end of their 2006 year had current assets minus current liabilities of $188M less $119M = $69M. This compares to the $161 million for MLGW’s Electric Division. Nashville Electric is of similar size and billing as the MLGW Electric Division at $903 million per year.
AGL Resources (Chattanooga Gas is part of AGL) at the end of 2005 had 2.032 billion in current assets and $1.939 billion in current liabilities with only $30 million in cash and cash equivalents.
Laclede Gas, St. Louis, for the year 2006 had total current assets $331 million, total current liabilities, $367 million, total cash and cash equivalents, $2.3 million.
MLGW does not want to talk about the account receivable and unbilled revenue as being quickly converted to cash. They just want to hold onto your cash and earn interest on it rather than returning it to the ratepayers in rate reductions.
Now we have the MLGW sorry state of affairs reported in the New York Times. It is time for a house cleaning at MLGW and also at City Hall.
Click here to read about the MLGW and Joe Lee from the NY Times
Click here to read the financial data from a well run electric company, Nashville Electric and see how much cash they keep on hand as compared to the MLGW
Click here to see the Chattanooga Gas parent company handles their cash as compared to the MLGW
Click here to see how Laclede handles their cash as compared to the MLGW
posted by watchdog at
9:48 AM
1 Comments:
Are they breaking any law?
If so, who is the authority that should enforce that law and why are they waiting?
By
Anonymous, at 10:59 AM
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