Thursday, May 22, 2008

MC32- CUC SERIES, THE END

A FINAL ANALYSIS
I was going to do a series on the reconstruction of the power company as I would have done being in Tony Munas position and starting when he was appointed director. Due to lack of understanding how businesses operate and knee jerk reactions I will show a brief outline here and not continue with the series.
I had got through the first two phases until I thought what the hell, who is listening and mostly who cares?
The phases of change would have gone like this...
1 - Set rates to equal costs, that was done
2 - Collect arrears, and stop the bleeding, cut out all non payers especially the government.
This was as far as I got (see post MC27)
The rest would have been as follows...
3 - Repair the plant, get it in top efficient running condition, this is supposedly happening now.
4 - Reorganize personnel and streamline operations, this could be done concurrently to equipment and plant repairs.
5 - At this point there could be a fair assessment made to implement the actual rate costs as things would be on an even keel of production. This could result in a minor reduction 0f rates unless oil prices continue to climb. In any case they would be now fair and realistic.
These steps should have been running concurrently with a RFP for privatizing and a search for new alternative energy sources.
I would have gone into deeper details then I have here but never mind it's your island, your leaders, your decisions, your power plant and your mess. So I've been told. So I'm outta here!
Who needs my recommendations/advice anyway?
.....GED.....

3 comments:

Anonymous said...

it would be nice if they truly set rates based on the cost to produce but that is not true. the law allowing cuc to increase the rates was passed on may 3rd. the new rates were implemented by a new director at the same time. there is no way that he crunched the numbers and came up with a true figure. he has been asked numerous times to detail how he arrived at the new rate. he has not been able to sufficiently do so and even admitted the other day that "he just started so he hasn’t had time to figure in all the costs".

the new rate is nothing more than another knee jerk reaction. these guys are jokers.

not only does the new rate not hold any water but it was also adjusted and changed in the middle of a billing cycle. this is nuts.

my billing cycle is 4/14 to 5/14. if the old rate was 17 cents and the new rate as of may 3rd is 35 cents, how in the world will cuc be able to determine how many kwhs i used between 4/14 and 5/2??? they only take my meter reading at the end of the billing cycle.

cuc has done this many times and lawmakers finally made it illegal for them to do it (in the public law that lowered rates).

basically, if i started conserving majorly because i found out rates doubled i will still most likely pay the new rate for half of my power consumption for this billing cycle.

another thing that is questionable is retro actively raising rates. that is insane.

Don’t get me wrong glen. they should charge what it costs but until you can prove to me that those monkeys up there can accurately come up with a true rate, accurately meter the usage, cut all the crap with under the table deals, etc... this is just another band aid wanna be solution to a much bigger problem.

if they will not privatize the damn utility then hire an expert to run the place. head hunt and grab someone from a properly run utility or contract someone out to properly analyze and set our rates.

good god.

glend558 said...

Anon, 'Good god' You are right about the present rates and the mode of collecting, however if you take note I mentioned the accurate rates should be readjusted upon the completion of repairs and the streamlining of operations. This is only when an accurate assesment can be made, right now all we knew is the rates were to low to equal costs but the mess they had could not be used produce a reliable rate. That should come soon. Hopefully.

ya what good god said...

oh my god you are the voice in my head.