PUB DOUBLE TALKS ON RATES: TRIPLES BILLS LAST 3 MONTHS

Special to El Rrun-Rrun

Despite the volumes of double-talk and the reams of financial gobbledygook presented by Brownsville Public Utility Board administration in the person of John Bruciak and his board's push for "rate rollback adjustment" to electric and water service, they are of no comfort for Juanita Rodriguez (not her real name) when she got her September bill.

"It's tripled from three months ago," she said. "I was paying $137 average every month, and this month's PUB bill is over $300. I thought PUB and the city commission said they were going to lower the rates after Tenaska."

Across town, Berta Rivera (also not her real name) was surprised to see her bill increase some $200 over the same period.

"Think of the people on Social Security," she said. "They have to decide whether to eat or pay their bills. This is not just."

The $500 million dollar gorilla lurking in the background was the PUB's (and Bruciak's) advocacy of the Tenaska electric generating plant that saw electric rates increase by 36 percent from 2013 to 2016 and increases in water and sewage rates.

As a result of that boondoggle, ratepayers saw fees increases over the five years, but got no plant in return. The Memorandum Of Understanding allowed Tenaska to unilaterally pull out of the project if they could not sell 600 MW of the 800 MW projected in production. They pulled out in 2017 and the ratepayers were left with higher bills and no plant.

During the April 19 meeting, commissioner Roy de los Santos said he could not vote for the so-called "rollback" and an end to the fuel surcharge "subsidy" until the long-awaited Tenaska audit was completed. That, he was told, has also been delayed so far. It is worth noting that De los Santos was the lone vote against the so-called" rollback" and end of the fuel-charge "subsidy."

But then came the February 2021 freeze and the $120 million in profits generated from sales on the open market while the residents in Brownsville froze. Bruciak said that ERCOT prevented PUB from using it locally and were forced to place the electricity for sale instead of providing it to local residents. But that, too, is gone.

The skinny from the PUB is that although the base rates will be "rolled back" from the 36 percent by 22 percent, the reduction will be eaten up by the increased fuel charges which PUB says they have subsidized for ratepayers. The other 18 percent was used to address "growth rate," another Bruciak favorite justification to keep rates high.

Another gimmick passed April 19 was a "resaca" rate fee which will be paid by ratepayers, too. That will be reflected in your bills as well.

So here's the shell game:  The Tenaska money raised by the higher rates, about $150 million – except for $29 million – is gone. The 36 percent increase in electric rates will be "rolled back" by 22 percent, while 18 percent of which will be kept for "growth."  

The fuel surcharge will no longer be "subsidized" by PUB for ratepayers, and the "rollback" will be eaten up by the full fuel surcharge now unloaded on the average PUB customer. Bruciak said PUB was paying $16 million of that surcharge with Tanaska money, but that the higher natural gas costs increased by an additional $13 million. With teh doing away of the fuel surcharge "subsidy," the entire 29 million will now be borne by PUB ratepayers, and the majority of the city commission, except for De los Santos, agreed.

And so Juanita and Berta will see their bills continue to increase while PUB will continue to reap the profits of the higher rates and the annual cash "transfer" from the PUB to the city will be paid on the backs of the city's residents. 

Bruciak will continue to draw his $300,000-plus salary while he lives in his South Padre Island condominium and his wife – a retired city employee – and will continue living the high life thanks to the lowly PUB ratepayers.