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April 27, 2005
Beatty VEA members in full force
By RICHARD STEPHENS During the question and answer period, the board of directors was challenged on two controversial issues. The first was the recent 200 percent increase in the facility charge, which went from $5 to $15 a few years ago. The main complaint was that this represented a significant percentage increase in their total electric bills for senior citizens on fixed incomes who use little power. The audience was told that the facility charge covers the cost of equipment and maintenance - expenses the co-op incurs whether electricity is used or not. To cover the actual expense, the charge should have been raised to $25, but the directors reached a compromise and picked up the rest of the money needed through a rate increase to avoid "political suicide." The other item the board was challenged on was the co-op's purchase and holding of land in Pahrump, specifically a five-acre parcel adjacent to its main facility and another 40 acres purchased for a substation. Bob Hartman, the director from Fish Lake Valley, assured members the co-op was not going into the real estate business. "We're not trying to be land barons," he quipped. Amargosa Valley Director Sheila Rau was among those who explained that several things had changed since the land was originally purchased. An access problem to one of the properties had been resolved with the widening of a street. Also, the co-op bought the 40-acre parcel at a bargain price, and its value has been increasing rapidly. The co-op has identified the portion of land that is actually needed for the co-op's own use and would sell the rest. But they are holding onto it for the time being because if they were to sell it now and apply the money from the sale to their debt - they would actually lose money for the co-op because the land is appreciating in value at a much higher rate than the interest on loans. The directors also see the land as an asset that could provide a cushion in case ongoing litigation between Valley Electric and Enron should turn out badly. In answering the complaint that the membership had not been told of the reason for holding onto the land, Rau responded that the decision to do so had been made at a strategic meeting that took place since the last general membership meeting. The directors also explained the impact of the closing of the Barrick Bullfrog Mine. Hartman said that Barrick had been "very, very good" to the co-op. "We lost the free money Barrick paid beyond what they owed," said Hartman, referring to the mine's closure a few years ago. He said that Barrick covered a large portion of the expense of putting in a large transmission line that would have been needed eventually even without their power demands, and that while the mine was in operation they picked up $15 off every customer's monthly bill. |
