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Old 06-11-2015, 03:11 AM
 
Location: Colorado Springs
4,334 posts, read 4,366,361 times
Reputation: 15317

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This is an unusually wet year.

From the Gazette: So much rain creates paradox for Colorado Springs Utilities


"Utilities expects most of its reservoirs this year will be at "operating capacity" - as high as reservoirs can be kept without overflowing - yet another rare occurrence for the system."

"Record-breaking spring rains in Colorado Springs lessened city water usage and has cost Utilities about $17 million in revenue since the start of the year, said Steve Berry, a Utilities spokesman. That number could change - for better or worse - during the summer, but it could also mean internal cuts for the company or possible rate hikes for customers."



So now Utilities is not meeting revenue needs.

The problem is that most of their costs are fixed, so when customers conserve, they need to increase rates. It's why I've always called them "Futility bills".
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Old 06-11-2015, 08:57 AM
 
177 posts, read 218,942 times
Reputation: 169
Just like electricity, the more you save the higher the bills need to be (to maintain the utilities profit margin that is guaranteed by the states).

USA USA USA!!!!

Last edited by huffdiver; 06-11-2015 at 09:52 AM..
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Old 06-11-2015, 09:37 AM
 
20,315 posts, read 37,826,095 times
Reputation: 18105
Beware the term "American Exceptionalism" as some of the definitions can be a real trip....like the one mentioned below where utilities have a profit factor built in and defended by one or more layers of government.

If you can't beat them, join them, and practice your own form of American Exceptionalism and invest in utility stocks, ETFs, CEFs, etc and milk those 6% dividends at a time when CDs are paying 0.25% or worse. Exceptional indeed.
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Old 06-11-2015, 11:47 AM
 
Location: Colorado Springs
3,847 posts, read 1,476,481 times
Reputation: 2930
Quote:
Originally Posted by Mike from back east View Post
Beware the term "American Exceptionalism" as some of the definitions can be a real trip....like the one mentioned below where utilities have a profit factor built in and defended by one or more layers of government.

If you can't beat them, join them, and practice your own form of American Exceptionalism and invest in utility stocks, ETFs, CEFs, etc and milk those 6% dividends at a time when CDs are paying 0.25% or worse. Exceptional indeed.
I like real estate and gold more than etfs. I feel like I actually am in control of my assets.
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Old 06-11-2015, 12:11 PM
 
Location: Denver, Colorado U.S.A.
14,174 posts, read 22,518,252 times
Reputation: 10428
Quote:
Originally Posted by Vision67 View Post
This is an unusually wet year.

From the Gazette: So much rain creates paradox for Colorado Springs Utilities


"Utilities expects most of its reservoirs this year will be at "operating capacity" - as high as reservoirs can be kept without overflowing - yet another rare occurrence for the system."

"Record-breaking spring rains in Colorado Springs lessened city water usage and has cost Utilities about $17 million in revenue since the start of the year, said Steve Berry, a Utilities spokesman. That number could change - for better or worse - during the summer, but it could also mean internal cuts for the company or possible rate hikes for customers."



So now Utilities is not meeting revenue needs.

The problem is that most of their costs are fixed, so when customers conserve, they need to increase rates. It's why I've always called them "Futility bills".
lol! I remember something similar in California, when people conserved electricity so much during the fake "electricity crisis" of 2000. They raised rates because they weren't making enough money.

Maybe everyone in the Springs could pledge to take hour long showers every day to "help out".
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Old 06-13-2015, 08:54 AM
 
3,493 posts, read 4,709,785 times
Reputation: 5358
Denverian, you might want to check out "the smartest guys in the room".

The utility companies (unregulated) were making windfall profits by creating "shortages" when they turned off capacity to the sole sake of creating shortages and jacking up prices because consumers could not see the price at the time they were being charged. It is the reason we have so much regulation on utility companies now. It is a shame we didn't send more people to sit in jail cells. Instead, we reserve jail cells for poor people that can't afford bail.
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Old 06-14-2015, 12:36 PM
 
154 posts, read 116,489 times
Reputation: 154
Quote:
Originally Posted by Vision67 View Post
but it could also mean internal cuts for the company or possible rate hikes for customers."
In other words, we are going to be penalized for conserving our energy usage. I love how they say, "it could also mean internal cuts OR possible rate hikes for customers". We all know there won't be any internal cuts. That is just a fancy way of saying, "we don't want to make any internal cuts, so we will be penalizing you, the customer".

Well played, Springs Utilities. Well played.
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Old 06-14-2015, 12:54 PM
 
Location: The 719
13,693 posts, read 21,517,011 times
Reputation: 13315
I doubt that there cannot be internal cuts, just not at the upper levels. Furloughs, decreased benefits, hiring freezes, etc. are common or at least a possibility, are they not?

I'm of the opinion that CoSprings should focus more on how they are going to manage and clean their water in the years to come. And yeah, in the end? That's all on yous... the customers.
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