Public Power Report Due Soon

The Advocate reported on the prelimnary findings from the Public Power Committee which seem to run counter to what every implementation of municipally owned utility services have actually incurred:

William Sawicky and R. Douglas Marsh of the New Haven office of UHY International told the Public Power Committee last night that in a few years there will be little price difference between the Connecticut Municipal Electrical Energy Cooperative – through which the city’s taxing districts purchase power – and Connecticut Light & Power.

That means that the cooperative in coming years will not save as much money for Norwalk taxpayers. That had city officials Thursday night questioning whether Norwalk should move forward with the idea of forming a quasi-independent power authority or new city department.

“I think the risk would be enormous – catastrophic honestly,” Director of Finance Tom Hamilton said.

Such a move could create a great deal of debt for Norwalk, Hamilton said.

The Common Council created the Public Power Committee to see whether the city could find a way to cut electricity costs. The committee was scheduled to end its work today, but its term was extended two months because UHY needs more time to finish its report.

No cost estimates have been provided. The report must be finished by the end of the year.

Committee Chairwoman Kelly Straniti said she wants to see the final report, but her concern is that it will be too expensive and risky for the city to consider starting its own power system.

I’m not sure what the consultants were charged with looking at, but there’s a distinct difference between being on the distribution side only, and being on the generation side of the business. Forecasting electricity costs is notoriously unreliable. This 1996 repor,t for example, predicted lower electricity costs. The opposite happened. The generation side is getting mighty interesting as municipalities are suddenly discovering the amazing fuel that is garbage. Even in Connecticut.

source: Advocate, Norwalk officials rethink power plan after experts’ report, By Frank MacEachern, 10/31/2008

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  • Diane C: kicking things off

    I’ll be back later with my commentary on the preliminary PPA feasibility study. For now:

    From TG’s blog notes on 2007 BET budget hearing:
    “Michael Geak: 39 elmwood ave. yes we are rebuilding our powerplant. Will be run 100% on renewable energy. I want to you to fully find the feasibility study. A municipal electrical authority is like what Mike Coffey spoke of at the begging, a creative way to solve out city problems. The second district power is price 30% below what CL &P charges. The city doesn’t have to cut the rates 30%, they could cut the rates 10%, and use the additional 20% to fund things like storm drains. Its sad that we don’t have that today, but if we had that but you could a power authority really quickly that could general funds. MOCCIA, how about $12.5k? Geake: missed total”

    Does anyone have the estimated numbers that former Mayor Bill Collins had presented regarding the potential income for city with a public power authority? I cannot find them anywhere on line, but seem to recall he was talking millions per year.

  • Anonymous

    The whole concept as presented by the democrats for a take over of the electric utility’s by the city of norwalk is another Collins farce. Please spare us this crap. The second & third districts have been in existince since the late 1800′s and have kept the lights on at a reasonable cost WITHOUT the interference of city hall.