Martinsville Bulletin, Inc.
P. O. Box 3711
204 Broad Street
Martinsville, Virginia 24115
276-638-8801
Toll Free: 800-234-6575
|
|
 |
|
|
| Lower power rates needed |
|
Sunday, April 20, 2008
By MICKEY POWELL - Bulletin Staff Writer
Martinsville City Council candidates say the city should look for ways to reduce electricity rates, whether it is through studying available options or considering new energy sources when possible.
In an attempt to lower electric rates, Martinsville City Council voted Feb. 26 to enter into 40-year contracts to buy wholesale power generated by three American Municipal Power-Ohio power plant projects — two in Ohio and one in Illinois.
The city will resell the electricity to city customers at retail rates. The difference in the wholeale and retail rates becomes city revenue.
Officials have said the city agreed to take part in the three projects to get a grip on volatile wholesale electricity prices. But it was a controversial move, in part because of the city’s 40-year commitment to spend millions of dollars a year on the projects and power.
The projects will only supply about 57 percent of the city’s power. The rest still will have to be bought on the market, with AMP-Ohio’s assistance.
The idea of Martinsville studying its electric needs and possibly selling its electric system to an outside utility has been raised but not seriously discussed. American Electric Power customers in Henry County pay less for electricity than city residents and businesses.
The Martinsville Bulletin asked candidates for city council in the May 6 election, “How should the city handle its future needs for wholesale electricity? Should the electric department be sold and, if so, under what conditions?”
Here are their responses:
JAMES CLARK
Clark, the city’s vice mayor, voted against Martinsville participating in the AMP-Ohio projects. But the city’s agreements to participate in the projects are a done deal now, he said, and residents “must look at it in a positive way ... that it will stabilize our rates” — both the wholesale rates the city pays for power and the retail rates that homes and businesses pay.
Clark said the city must keep in close contract with officials with AMP-Ohio and the Blue Ridge Power Agency to make sure they continue “helping us to get the cheapest prices on the wholesale market.”
He said if an opportunity becomes available, the city could support anyone who wants to start a business in Martinsville generating electricity through alternative types of energy, such as burning garbage.
Clark added that selling the city’s electric operations eventually may be “an option ... if somebody offers us a good price,” but there may be a drawback.
“We’d have to create enough income from the sale to make up for the revenue we’d lose” by no longer selling electricity, he said.
JAMES CRIGGER SR.
Crigger said he hopes the city can acquire the remaining 43 percent of its power needs from excess power that other AMP-Ohio member cities do not need, at the same prices it will pay for the other 57 percent.
He said the city also can look at any new sources of energy that become available in the future.
He added that future energy sources are “all speculative” right now.
The main thing, Crigger said, is for the city to buy power as cheaply as possible to make rates charged to city homes and businesses as low as possible.
KIMBLE REYNOLDS JR.
The city must examine its electric system and aggressively evaluate its options for obtaining electricity in the future, according to Reynolds, who is the city’s mayor.
“It will require a lot of thorough and specific evaluation,” and the city must do some type of study, whether it is done in house or by hired consultants, he said.
Determining whether to sell the electric system will involve determining if the current method of providing power is the least expensive way for both the city and its customers, Reynolds said. In the process, he said, the city must anticipate its future costs for maintaining the electric system.
“Something must be done,” he added, to ultimately lower electric rates for city customers. Many people have told him they are concerned about the rates — particularly people on fixed incomes, he said.
Reynolds voted against the AMP-Ohio deal.
MARK STROUD
“I don’t know what the magic cure is” for Martinsville as far as finding the most affordable source for wholesale power, Stroud said. However, he said city officials should “make sure they look at every available option to gain the best price and the most reliable source” of electricity.
A committee should be formed to look at the issue, he said.
Stroud said selling the city electric operations would be a “disassembling of the city” government structure.
“I don’t want to sell any assets vital to the city” unless residents concur in a referendum, he said, emphasizing he feels strongly about that.
DANNY TURNER
Through its contracts with AMP-Ohio, the city has legally “bound itself and made it a slave” to the organization, said Turner.
He said the city should try to find a way to be “relieved of our commitment” to AMP-Ohio and form a committee to “figure out what’s in our best interest” in the long run for acquiring electricity.
Also, the city should “study the pluses and minuses of getting out of the electric business,” Turner said.
He added that the city should consider selling its electric system if “we can get the fair market value for our assets” and it is determined that an outside entity can provide power to Martinsville for less cost. In terms of residential and commercial electric rates influencing economic development, “we don’t want to be at a competitive disadvantage to our neighbors,” he said, referring to nearby localities. |
| |
|
|
.jpg)
