Wednesday, April 16, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

EID spending another $60 million it doesn’t have

By
September 14, 2012 | 14 Comments

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.

GREG PRADA
Cameron Park

Letters to the Editor

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Discussion | 14 comments

  • Phillip VeerkampSeptember 14, 2012 - 6:23 pm

    Get a new hobby, Greg.

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  • fedup localSeptember 18, 2012 - 1:49 pm

    P Veerkamp, what is your issue with Greg Prada's letter? I say thank goodness someone is paying attention. Rate increases being passed on to Placerville residents are cutting deep. Tell us where Mr. Prada is wrong.

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  • Phillip VeerkampSeptember 18, 2012 - 3:53 pm

    fedup local - I'll Credit Greg with this - Greg at least has the courage to pursue his focused campaign against EID under his own name. Some of Greg’s information may be useful. But termination is hurtful. Greg, I feel your pain. Get another hobby.

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  • fedup localSeptember 18, 2012 - 5:31 pm

    Mr V, I still don't know where you find fault with Mr Prada's take on EID. As for courage, many share your position that commenters always should correctly identify themselves. You do and I commend you for it. However, I allow a bit of liberty in this arena. COURAGE is in telling the truth, expressing a fair opinion, or asking a legitimate question. But in a forum such as this, to use the cloak of anonymity to malign, insult or lie is COWARDICE. I trust you do not believe I did any of those things in asking you for clarification.

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  • Phillip VeerkampSeptember 18, 2012 - 7:58 pm

    From Mr. Prada’s latest screed I will expand on just one “grievance”. . .(Prada asserts) “Ratepayers concerned about their 102 percent of water rate hikes for 2010-2015, and sewer bills double those of Folsom . . . “ Correct me if I am mistaken, but Folsom’s customer base is larger than EID’s. It is compressed in less than ¼ the area(probably less) than EID’s service area. Folsom has a small fraction of the miles of water and sewer lines. The hydraulic grade of Folsom is simple compared to EID’s. It is a credit to EID that the cost to the customer is only twice that of such a simple model as Folsom. LINK. . . I cannot pretend to understand Mr. Prada's agenda except that to say he is abusing his service on the Cost of Services Committee . . . LINK

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  • Greg PradaSeptember 18, 2012 - 9:46 pm

    To clarify some of Mr.Veerkamp's above-commented misconceptions: 1) Both Folsom and EID have 21,000 wastewater customers, 2)32% of EID's rates are for bloated overhead which has increased $10 million annually since 2002 (and which has nothing to do with hilly terrain), 3) another 17% of EID's rates are debt costs on EID's 50% overexpanded excess capacity, 4)another 30% of EID's rates are for EID's most generous annual $46,000 per employee benefits 5) EID Agriculture water rates are one-seventeenth those of 38,000 regular water customers 6) As EID General Counsel Tom Cumpston once advised me, don't believe everything you read in the Mountain Democrat (at least not one of Editor Michael Raffety's columns).

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  • Phillip VeerkampSeptember 18, 2012 - 11:24 pm

    Mr. Prada, Thank you for correcting my assertion that Folsom’s customer base is larger than EID’s. (Prada: “Both Folsom and EID have 21,000 wastewater customers”) But you ignore the relative size. Folsom’s revenue per square mile of service area far surpasses that of EID's. Folsom's revenue per mile of distributions and collections pipeline far surpasses that of EID. Secondly, Mr. Prada, on what basis/understanding do you make the assertion in your point, “3) another 17% of EID's rates are debt costs on EID's 50% overexpanded excess capacity”? Mr. Prada, I am writing in the capacity of EID’s Sr. Distribution Operator, Retired 2009. Here is my definition of “capacity”. EID’s capacity is in the answer to the question, “How much can you deliver?” The transmission lines that convey water from Camino and Pollock Pines to points west are EDM I, EDM II the POM, the DSM and the GHI. Of these 5 transmission lines only EDM I has any excess capacity, and that is questionable because of its age. In the summer time the GHI is presently being operated beyond its design capacity through creative pressure management that I developed and demonstrated to engineering to be safe. The DSM and EDM II are both running at full capacity. So it does not matter, Mr. Prada whether or not EID has rights to 90,000 acre feet or 90,000,000 acre feet. EID has zero excess capacity And I stand by my assertion that Folsom’s model is simple. EID's three thousand feet of hydraulic grade is challenging. It’s more than “hilly”. EID’s distribution system is the most complex and challenging in the state, or point me to one more challenging and deserving of top talent. Michael Raffety has no bearing on this conclusion.

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  • Greg PradaSeptember 19, 2012 - 6:14 am

    Mr. Veerkamp, You have moved far afield from the headline fact "EID spending another $60 million it doesn't have". Visit www.FixEID.org to get even more agitated.

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  • Phillip VeerkampSeptember 19, 2012 - 6:55 am

    Mr. Prada, one cannot fix ANYTHING with faulty information and a misinterpretation of good information. You seem to be working with a dangerously flawed tool box. You are either ignorant, or a deliberate purveyor of disinformation, or an operative, or a shill - I don't pretend to know. But I do know this. You do not possess the tools required to "fix EID" - Or perhaps, depending on the definition of "fix", you do. Your service on the Cost of Services Committee is a net disservice to EID and the community.

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  • fedup localSeptember 19, 2012 - 7:40 am

    Mr Prada, I will have a look at FixEID.org. Didn't know about it.

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  • Phillip VeerkampSeptember 19, 2012 - 8:20 am

    fedup local: - - - LINK. . . fedup local: While you are checking fixeid check this link also, please . . . LINK

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  • huh???September 19, 2012 - 3:44 pm

    Interesting response. To have a different understanding means Mr. Prada may be an "operative" - as in a secret agent??? Where I come from, labeling people is no substitute for analysis.

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  • JethroMcSwiftSeptember 19, 2012 - 4:29 pm

    huh???: RE:"labeling people is no substitute for analysis" - Looks like adequate analysis of Prada's "different understanding " appears 5 up from yours by Mr. V.

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  • OutsiderSeptember 19, 2012 - 6:00 pm

    You need to thank God that you have people like Mr. Prada. He keeps the public aware of issues that affect the rate payers. Most of them don’t pay attention, but they were warned. When the reality of what is happening at EID sets in he can proudly say, Told You So. You don’t need to agree with him but he is trying to get the information out from a different point of view. Keeping you thinking about how your money is not spent responsibility is a valid point which we all should think about. Look at the State, they don’t spend responsibility nor does the Feds. Mr. Prada also does use his name and that in itself is a sign of honor, think of it someone who actually stands behind with he says.

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