KCEC Cops to Overcharging Residents: Denies Screwing Local Businesses

By: Bill Whaley
22 January, 2017

n-snake-lightBlames Software? Or maybe it was Virgil’s Fault?

Copy of Letter From Bill Whaley

To Town and County: Mayor Dan Barrone, Councilors Fritz Hahn, Judi Cantu, Darien Fernandez, Mgr. Rick Bellis; Count y Commissioner Gabe Romero, Tom Blankenhorn, and Manager Leandro Cordova

To Whom it May Concern:

Below I attach Cuddy-McCarthy’s Jan. 19 responses to Interveners’ motions for rehearing, filed Jan. 6. Regardless of the merits of the motion, the arguments and case studies cited represent various opportunities for legal insight and remedy or redress. (We Interveners also have a lot of information.)

Despite our best efforts at this late date on behalf of government and non-residential rate-payers (businesses), I assume we will lose the case on Wednesday in front of the PRC on January 25. But toward the end of the document, KCEC acknowledges their “error” re: 6500 residential rate “retroactive billings.” Now they say they will credit the over-charged members as soon as they can figure it out!

[This Intervener alleges that KCEC has appeared to have acted in a premeditated and predatory manner by “retroactively” billing all 28,000 metered members.]

Though I tried to present myself as having “standing” as a town and county taxpayer, KCEC’s arguments appear to give the PRC a “way” to find against us. Course you never know. The Staff and the PRC know now that KCEC basically misrepresents the so-called facts, repeatedly, due to their application for a rate increase.

Even though we pro se Interveners did our best we don’t ultimately have the resources or experience to take on a process that is basically fixed by regulators to support the regulated.

What personally chagrins me, and I know all of you more or less well, is that you did not stand up to protect either your own budgets or taxpayers despite the “Coop’s” repeated attempts to “con” you: see E911 shenanigans. You could have represented yourselves and the non-residential rate-payers to advantage if you had joined us instead of playing “footsie” with the Coop con artists. The business class was intimidated and did not protest at all. It’s pathetic.

During the process of discovery, though much of the information didn’t count legally, due to arcane focus on “the test year of 2014” for the hearing, we Interveners have come to the conclusion that the Coop has lost millions in so-called “economic development” schemes. As well the Coop has bungled the Broadband project despite spending $70 million, which project still needs $8 to “finish.”

As for the Guzman deal, it’s a nightmare. Some Interveners speculate that the “fuel pass through” an unregulated monthly charge will be used to pay off the $37 million buy-out of Tri-State. All the stuff about “solar,” which current operations are allegedly out of compliance with regs, according to PRC Staff, amounts to a PR campaign, like diversification.

All these projects are conducted at the expense of the members, including the Town and County for the sake of what? ego? trustee travel? good ideas run amok? who knows.

The Coop is literally drowning in debt and borrows repeatedly to pay interest but not principle. Case in point: the Coop still owes $5 million on the Plains Electric/Tri-State buy-in, buy-out of 16 years ago.

The Coop is full of non-performing assets being paid for by members.

The Coop uses electricity revenues to shore up losses in diversification but can’t compete outside the monopoly structure that protects electricity operations and revenues. We are all supposed to be members of the Coop, not patsies for pick-pockets.

Thanks if you read this far.


[P.S. I will be filing a response to KCEC’s rebuttal. According to KCEC’s most recent filing, the Coop has apparently admitted to what appears to be a ‘fraudulent” scheme but blames the problem on what? poor billing procedures? Software? Virgil? Any reader who wants to can contact me at bwhaley@newmex.com for a copy of any filing.]

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