At the same time that the members of the Public Utility Board and the City Commission passed the rate hikes last December, no one was told that both these entities were simultaneously committing the people of Brownsville to foot a major portion of the bill of the newly-announced deal to build a multimillion (several hundreds) dollar power plant.
Typical of Mayor Tony Martinez's style of leadership by deceit (he is an ex-officio member of the PUB), the increase in rates was passed with nary a peep from the rest of the commission or without any input from the public. Oh, sure, there was the perfunctory public hearings that no one attends. But do you remember hearing from any pubic official (Martinez included) that by passing the rate hikes the citizenry was being committed to paying $100s of millions (more then $200 million, to be exact) to help a private energy firm build a power plant that will make them millions in profits in the future?
There is no denying that Brownsville will need more electric energy in coming years based on population-growth projections. Now that we are apparently committed financially to build this 800-megawatt natural-gas electric generating plant, just what will we be getting?
If the plant that Tenaska already has in operation in Enterprise, Texas, is any guide, we can expect that it will be as the Internet description on its website states:"The (plant is a ) 845-megawatt natural gas-fueled, combined-cycle electric generating station...The $200-million-plus facility provides Rusk County (insert Brownsville?) with significant financial benefits. The plant provides 25 to 30 well-paid, permanent jobs and generates an annual payroll, including subcontractor services and vendors, of more than $6.3 million. The plant will pay millions of dollars of property tax revenue over its operating life, providing revenue that can be used for roads, law enforcement, and services. However, the plant does not require a large number of permanent workers who would increase demands for schools, roads, fire protection or other services.
"Generating equipment includes three General Electric Frame 7FA gas turbines, three heat recovery steam generators and one General Electric steam turbine. Natural gas to fuel the plant is provided by Shell.
Tenaska developed the project and formed Tenaska Gateway Partners, Ltd., a Texas limited partnership, to build and own the facility. Tenaska affiliates serve as the managing partner and the operator."
Since Brownsville (a public entity) is going to be one-quarter owner of the 800-megawatt plant, will that mean that Tanaska will only pay three-quarters of property-tax revenues also? Or is there a deal for the company not to pay?
(We'll be asking for a copy of the Tenaska-PUB-City of Brownsville agreement to see what tax-breaks were included in the deal.)
BPUB CEO and General Manager John Bruciak said that PUB will pay for its 200 megawatts through a series of small rate increases over the next five years. He said a portion of that additional money will go for maintenance, repair and replacement of the utility’s existing infrastructure.
Those "small" increases (which by the way the Herald never reported) were approved in December during a special meeting. They adopted upwards rate hikes that will see city residents pay a 36 percent increase in electric rates over the next three years, a 20 percent increase in water rates over the same period, and a 6 percent hike in waste water costs over two years.
Under the plan approved by both bodies, electric rates alone will go up by 14 percent by October 2013 and another 22 percent by October 2016.
Bruciak said. PUB ratepayers will not foot the bill for construction of the water and gas pipelines.
Gee, thanks, John.
And no matter that Hizzoner Da Mayor keeps repeating the same shibboleth about Brownsville residents paying lower rates than anyone in Texas (except San Marcos), we know this isn't true.
"We’re also competing with — I think it’s San Marcos — for the lowest rates in the state of Texas. That’s a great quality to have when you go out there and do what I do and go sell the community. It makes it real easy,” Martinez intoned.
The residents of this city have footed (and continue to foot) the bill for all of what PUB and the City of Brownsville have and do. The least the city commission and the PUB can do is to let them know what they are doing with their money and ask them if they agree rather than presenting their actions as a fait accompli to be taken or left after the fact.
12 comments:
juan sounds like more chorizo san manuel to me and all my brothers and city folks here in brownsville nothing else, Period
Lets compare rates between Brownsville PUB and Mcallen (open market) rates.....
Rene Oliveria and Lucio alone are the reason PUB is protected by legislation.... no competition
No electric competition for PUB none ever while Oliveria and Lucio stay in office......
No electric competition for PUB none ever while Oliveria and Lucio stay in office . . .
Please someone call Gov Perry and ask him to save us here in Brownsville from non - competition
ordered by Oliveria and Lucio......
Ask Oliveria and ask Lucio when you
see him at a meeting . . .
ask either of them......
sleeze ball Jim Solis tried to change this but Oliveria and Lucio
put him in his place .....
No PUB competition ever thanks to Oliveria and Lucio legislation.....
No other Texas city has this madness ordered by special legislation . . .
This natural gas plant has been in the works for several years....and a well kept PUB secret. This plant is a major reason the PUB was opposed to a wind farm near the Port of Brownsville. PUB went to their buddy Eduardo Campriano at the Port and discouraged him from supporting the wind far, which would have leased port lands. I am really surprised that Port lands weren't used for this natural gas plant, but like the Titan plant, this means other elements are in play (as CPL was in the Titan deal). And yes, this is symbolic of Tony Martinez's autocratic management style, but the failure to discuss this with the public (only increase PUB rates) is inconsistent with the idea of "United Brownsville". We must, therefore realize that "United" doesn't include the citizens of Brownsville....it is merely a front for autocracy and self-promotion. Why should we be surprized with any form of deceit by our leaders and public managers.
Outrageous rate hikes.
"A series of rate increases over the next five years"....is the reason "Hissoner" the Mayor and the PUB Board made this decision without public debate. There is public debate when the local authorities need help from the public, but there is "taxation without representation" when they have the power to increase rates without public input. What will happen to local citizens when their PUB service costs exceed their property taxes???? Have our city officials let us down again????
The state legislation to allow municipally owned utilities (Electric) to opt out of competition with investor owned utilities(AEP, CPL, etc) was not passed just for Brownsville, it was for any municipality in Texas that wanted to protect their investment. I believe that you can find many cities in the state that have opted out of competition and you will find that their rates are lower than the investor owned utilities. The legislation also includes the ability for Co-0p owned electric companies (Magic Valley) to opt out of competition. Again I believe that you will find that Co-op entities have lower rates than the investor owned companies who have to make enough money to keep their investors happy as opposed to providing free electric service to cities which in turn help keep your taxes down.
PUB rates are competetive with Magic Valley rates and are among the lowest in the state. much less than any of these deregulated areas like mcallen that people on this forum are touting. many other cities own their own utilities. san antonio, lubbock, denton, etc. everybody stop being so negative. is that your default for every development that come our way? negativity?
To the 6:12 commenter, but we will now have an investor owned power plant. In other words,
BULLSHIT.
some years ago there was a group that approached the city of brownsville and PUB about doing a waste to energy project at the city's landfill which would use trash and burn it to create electircity at a ridiculus price to PUB and it was a modern facility that would not emitt pollution either but one ever call that consulting firm back, looks like everyone in line want some money (greed) grease the palms, lana, mula, clams, etc etc etc to get it done. reminds me of that new law firm in town??? whats the new law firms name????, oh yes its called Dowe, Cheatum & Howe, LLLP. thanks brownsville all we ever get is the old chorizo san manuel again. Yikes
"some years ago there was a group that approached the city of brownsville and PUB about doing a waste to energy project at the city's landfill which would use trash and burn it to create electircity at a ridiculus price to PUB and it was a modern facility that would not emitt pollution either but one ever call that consulting firm back"...sounds like a BEDC boondoggle that thankfully never happened. If trash was a reliable source of elecricity, every landfill would be producing it. Since they are not, I imagine it was a con...good for the city and pub for not falling for that one. Now if they could avoid falling for others...like the GBIC business park with no tenants off paredes line road. appropriatley located next to titan.
Someone needs to revisit this:
Power plants are located according to available resources. PUB does not have to build it in Borwnsville to serve the citizens of Brownsville. That is what transmission is for. This will be a cookie cut project or in other words the engineering is too a large extent complete. So if the Enterprise site was $200 million for an 800 MW+ plant why is Brownsville getting only 200 MW? Part of the answere is that the gas line from Edinburg is going to traverse a whole lot of property on the way to Brownsville and commissioners and Board members alike have lined themselves up to pluck up the real estate along the way. They know not what they do. Why do you think they are all gung-ho on the project. Why do you think the PUB is so secretive about the project, to the point that the appointed Board even violates the open meetings law. Protect the route and "keep it to ourselves". PUB pays through the nose on cross valley infrastructure to make Tenaska's dominance in the area come true (There is much more on this) while PUB pays 75% more for a plant in could easily have built for themselves. The consequences of thier greed will paid by the citizens of Brownsville. Look at what Tenaska's predeccesors did to California. How well do you think little Brownsville will fair. The sweater is unraveling. Pull the damn string!
Brownsville PUB and the City needs to be more honest with the citizens of Brownsville- stop lying to us! We are stuck with you, most of us would like to have a choice but the only choice we have is to pack up and move out of city limits. Brownsville PUB seems to think that they are doing the citizens of Brownsville of favor, you don't give us free service so do us a favor with all the money you're charging us at least hire more customer service personnel to handle our calls both over the phone and at the local office, it is unfair for the citizens to have to wait well over half an hour before we speak to someone and forget about going in person to the local office you might get the cops called on you if you raise your voice over concern. And all the money you spend for this lobbyist you pay to keep deregulation from happening and your Weir Project expenditure to the Austin Law Firm (a report had PUB spending at least $200,000 and perhaps up to $5 Million on Austin based law firm Baker Botts) where does all this money come from? Is this why the citizens of Brownsville are having to suffer increases? You think since they have a website they would make public all this information to us .. HELL NO, they never will. They want the citizens of Brownsville to be uniformed so they can continue to take advantage of us.
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