July 3, 2007
THE REAL COST OF INEXPERIENCE AND CRONYISM
Reading the Commercial Appeal article this morning about the loss in the gas Division, I wonder again at the competence of the City Administration, the City Council, the MLGW board and the top executives at the MLGW. I do not criticize the rank and file of the MLGW as they continue to do a good job in their day to day work of keeping the lights on and delivering the gas and water.
What really irks me is the barefaced lies to the media during the past year! If you recall, several times, they blamed the entire situation on "volume issues". Watchdog and friends have reiterated to you, and everybody on God's green earth, that the problems in the Gas Division are due to a lack of expertise in purchasing and a lack of integrity, and professionalism, in the financial area. We lay the blame on Jeanes & McCullough almost as much as purchasing ... because of their reluctance, or inability, to decipher and honestly report on what was actually happening. Watchdog and friends knew ... and, we were "outsiders"! Their Board didn't know as much as we did, about the gas problem!
Even, using MLGW's questionable internal "11 month numbers" in 2005 & 2006, and a monthly comparison to the Henry Hub prices vs what was billed to ratepayers ... we came to the conclusion, lonnnnnnng ago, they made some very bad decisions regarding gas futures and were paying well in excess of any spot market prices - costing the ratepayers & the MLGW bottom line mega $$millions$$. They finally admitted this today in the article and it is shown in the audited financial report.
Oh and another thing!! The statement by Jeanes that they saved rate payers $30 million in 2005 is baloney. Look at the attached figures and you will see that saying they "saved" $30MM is stupid! That was what they were supposed to do. They are saying, during the period immediately following Katrina they would have spent $30MM more if they hadn't hedged. Well, they were supposed to react and do what they did ... That's not saving anyone anything. That is their job. But then they went long on gas prices and really cost the rate payers in 2006/2007.
What will happen next is this. During the upcoming winter season (AFTER THE ELECTION), they will raise gas rates to recoup the $36 million that they lost on the futures contracts. Hold on to your hats for your upcoming winter gas bills.
Click here to read the read the real facts about the mess at the MLGW in the gas division
THE REAL COST OF INEXPERIENCE AND CRONYISM
Reading the Commercial Appeal article this morning about the loss in the gas Division, I wonder again at the competence of the City Administration, the City Council, the MLGW board and the top executives at the MLGW. I do not criticize the rank and file of the MLGW as they continue to do a good job in their day to day work of keeping the lights on and delivering the gas and water.
What really irks me is the barefaced lies to the media during the past year! If you recall, several times, they blamed the entire situation on "volume issues". Watchdog and friends have reiterated to you, and everybody on God's green earth, that the problems in the Gas Division are due to a lack of expertise in purchasing and a lack of integrity, and professionalism, in the financial area. We lay the blame on Jeanes & McCullough almost as much as purchasing ... because of their reluctance, or inability, to decipher and honestly report on what was actually happening. Watchdog and friends knew ... and, we were "outsiders"! Their Board didn't know as much as we did, about the gas problem!
Even, using MLGW's questionable internal "11 month numbers" in 2005 & 2006, and a monthly comparison to the Henry Hub prices vs what was billed to ratepayers ... we came to the conclusion, lonnnnnnng ago, they made some very bad decisions regarding gas futures and were paying well in excess of any spot market prices - costing the ratepayers & the MLGW bottom line mega $$millions$$. They finally admitted this today in the article and it is shown in the audited financial report.
Oh and another thing!! The statement by Jeanes that they saved rate payers $30 million in 2005 is baloney. Look at the attached figures and you will see that saying they "saved" $30MM is stupid! That was what they were supposed to do. They are saying, during the period immediately following Katrina they would have spent $30MM more if they hadn't hedged. Well, they were supposed to react and do what they did ... That's not saving anyone anything. That is their job. But then they went long on gas prices and really cost the rate payers in 2006/2007.
What will happen next is this. During the upcoming winter season (AFTER THE ELECTION), they will raise gas rates to recoup the $36 million that they lost on the futures contracts. Hold on to your hats for your upcoming winter gas bills.
Click here to read the read the real facts about the mess at the MLGW in the gas division
posted by watchdog at
8:56 AM
1 Comments:
top [url=http://www.c-online-casino.co.uk/]uk bonus casino[/url] brake the latest [url=http://www.realcazinoz.com/]casino games[/url] free no consign perk at the best [url=http://www.baywatchcasino.com/]charitable casino games
[/url].
By
Anonymous, at 6:22 AM
Post a Comment
<< Home