EID spending another $60 million it doesn’t have

By September 14, 2012

On Sept. 26, at 6 p.m., EID is holding a public meeting at its Mosquito Road headquarters to propose tens of millions of dollars of new capital spending. Ratepayers concerned about their 102 percent of water rate hikes for 2010-2015, and sewer bills double those of Folsom, should let their voices be heard.

With more than 120 projects being proposed, EID plans to charge more than one-fourth of the proposed new capital spending to more extra capacity for new home development. Yet EID’s existing extra capacity has been valued by EID’s Finance Director at $137 million … more than one-third of EID’s $380 million debt. Extra capacity already costs ratepayers $8 million in interest and debt service annually … adding 21 percent to current customer rates.

Rate-hike weary ratepayers further should note that from 2009-2011 EID annually sold an average of just 29,000 of their 65,000 acre feet of water … far more than 50 percent extra. Similarly, EID has wastewater treatment capacity for 31,000 homes but currently has just 21,000 sewer customers … 50 percent extra.

With 35 percent of rates already going for interest and debt service, sane minds wonder why EID is planning to raise $60 million more debt and continue its $15 million annual deficit spending … on more capital spending than is needed or affordable by EID’s current 38,000 regular ratepayers.

Cameron Park

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