Friday, December 7, 2012

Crowsnest Pass Electrical System

Basically, half the Electrical Distribution System (The lines that deliver power to homes and businesses in our Municipality) are owned by us the taxpayers of the Crowsnest Pass.
You can see which lines are owned by the Municipality on their web site at the following address the rest are owned by Fortis.

There is lots of noise being made around the Pass right now that the municipality is looking at the merits of selling the assets, who knows for sure if there is any truth to that.
However, for what its worth I am going to add my two bits, if they do sell it, they had better get some substantial dollars in return. Unbelievably the electrical system actually contributes net revenue to the municipality every year. From 2011-2014 the municipality in their own figures show a surplus of $1,752,860 from the electrical system that’s an average of $438,215 surplus to offset that lose of revenue the Municipality would have to increase taxes by minimum of 6% a year or find additional revenue sources from other areas.
The number of $10,000,000 is being floated around look at the average surplus number above $438,215 that would mean any potential buyer would not get their money back for at least 25 years. Would anybody pay that kind of money for a businesses that will take 25 years to pay for itself? I doubt it.
What does that mean in layman terms? If somebody is going to buy the system, they are not going to buy it unless they can pay for it in a maximum of 5-10 years, which based on the average projected earning means $2-4 million unless of course a potential buyer comes in with the intention of driving up those revenue numbers. (We all know what that means).
We all need to keep in mind that if our leaders are even contemplating getting rid of this asset we better be getting a lot in return. Because once it is gone the taxpayers we be expected to make up that short fall, and we will all probably be paying a little more in our power bills. 


Jose said...

Fortis has been consolidating in BC, and the next logical step out is the Crowsnest Pass "wire" purchase. They will then head east to gobble up all of the locally owned systems. Fort McLeod would be next what with their debt load from the cancelled RCMP Centre.

Premium price would be offered by Fortis, and our negotiators will be outclassed and hungry for dollars. Lets hope that the Crowsnest Pass citizens put the stop to this if the rumor is indeed correct.

By the way, with the new smart meters, it is but a few steps away from the electric company ang governments controlling what amount and when power will be used in the home, and what they charge for different times, appliances etc.

The new AltaMont line connecting Alberta and Montana, the proposed north Burmis/Chimmey Rock line, and other lines in the planning stages are there for one reason -- to move our power SOUTH.



Anonymous said...

This could be just a rumor. Debating something as important as this should never happen behind closed doors. Thankfully Edmonton is sending an experienced CAO to advise (support) our council. They seem quite confused as to what should be secret and what should be debated in public. They think making announcements is the same as communication.

Anonymous said...

First off, I hope they do not sell it.But if they do the price tag of ten mil is to low.I always think along the lines of what % return would you need to get in order to break even. Assuming a return of 3%, you would need to sell for about 15 million.Of course if council goes out and spends all of this money, your taxes go way up.
There is NO WAY we can allow this council to make this decision.

Anonymous said...

The real interesting question is, how fast can this council piss away 10 mil?

Anonymous said...

I feel very confident with The PC's overseeing our finances. If anybody thinks that is great, all they have to do is look every day at a new scandal. Just spending money on top of money to get a review from someone who probably doesn't know any better. It never ends does it.

Anonymous said...

This council does not have a popular mandate to do sell our electrical franchise. Not too many communities in Alberta operate under the provincial supervision, as we soon will. Hopefully this is only a rumor,

Anonymous said...

I heard the story about employees with up to 35 years with the town, not even getting a Thank You when they left. So SAD

Anonymous said...

Re the no thanks after 35 years. You know I don't think that is unique to CNP. I think that happens everywhere now. That is our new lifestyle. I don't think people will ever last that long anymore.

Anonymous said...

Is this the much promised 21st Century? Thanks, but no thanks.

Anonymous said...

It's time to hold a plebiscite. The sale of our electical system is too important to be handled by our 7 clowns. They are probably rubbing their hands together in contemplation of the many millions of dollars that will be at their disposal. We have to hear what the community has to say. Isn't this the democratic way?