There has been much discussion lately over Dominion Power's recent rate increase. The Washington Post says Dominion expects the average bill to increase $17/mo. or $204/yr.
Panel Sees No Way Around Rate Increases, Washington Post, B01 (June 25, 2008).Some commentators have been critical of the legislature which has loosened regulations on Dominion Power. For example, one commentator wrote this:
Over the past decade, Dominion's strategy has been to obfuscate the true costs of providing service by eroding the power of its regulatory body, the State Corporation Commission (SCC). Using the most powerful lobbying techniques available, the company has successfully persuaded the Virginia General Assembly to disassemble the state's utility regulation law. Under a weakened SCC, Dominion has become an unregulated monopoly whose base rates have not been examined in 10 years. In fact, it has been allowed to continue charging rates that are well in excess of its actual base rate costs.
Folks familiar with Virginia's utility issues understand that Dominion's base rates have been frozen until 2009. Unfortunately, however, the benefit of a "rate freeze" is illusory if those rates are "frozen" at an unjustifiably high level. In fact, based on a decision in the late 1990s, Dominion was allowed to collect compensation for "stranded costs" that were expected to result from the opening of the state's electric markets to competition. But no substantial competition ever materialized, so the company incurred no significant costs. As a result, Dominion may have picked up between $1 billion and $2 billion in unwarranted "stranded costs" to date. And because of legislative constraints placed on the SCC, these excessive base rate levels will apply well into the future.
Without the SCC's ability to thoroughly investigate the utility company's base rates and without any opportunity for the SCC to recommend areas of potential savings, residents are left to silently suffer -- or make choices between paying utility or other essential bills. Businesses and nonprofits may be forced to make dramatic cuts -- in such critical areas as investments, services or new hires. Mary Lynch, Electric Shock in Virginia, Washington Post Page B08 (June 22, 2008).
So one of
Del. Dave Albo's constituents apparently reads this article in the Washington Post one day and writes petitions his representative - what's
Albo's response? Read below and read the constituent's response.
Gentlemen: In America we don't have government run electricity. And I can assure you that if we did, your rates would be much much much much much much higher. We have private sector generated electricity with oversight by the government to make sure they are not overcharging customers. Fuel rates have gone up dramatically. You all know this when you fill up your gas tank or pay your natural gas bill. Natural Gas fuels a great deal of Virginia Power plants. The "environmentalists" won't allow new coal and restrict Dominions ability to expand nuke. So your rates are going up, but I can assure you that it's better than the communist alternative of having the government do electricity.
[-Del. Dave Albo, June 24, 2008]
Here's the constituent's response:
Dear David Albo:
Your answer is silly and dumb. It makes no sense and certainly did not address my concerns. In fact, your response insults the intelligence of your constituents, especially one who served our country's flag for more than 32 years and probably knows more about the functioning of our Nation's government and economic system than you do.
The allegation is that you and your colleagues allowed the law that regulates utilities to be slowly changed over the years to the extent that Dominion Virginia Power has become an unregulated monopoly. David, you have been in office long enough to have insisted that there be better oversight on the power industry. It seems to me you have gotten out of touch with "We The People."
The citizens of Virginia deserve better than they are getting from you and your colleagues in the General Assembly on both sides of the aisle.
Lon Caldwell [Address of Constituent Redacted]
(FYI - See Albo Response to a different Lon Caldwell Letter here - AMG, A Career Ending Exercise Jan. 16, 2008) - it's not like he's not on notice....)
We're glad that
Delegate Albo is keeping us safe from what commies are still left. The South County Communists has been quite active lately. But we would really appreciate some actual sympathy every once in a while for people of limited means. Then again, we all remember this gem:
"My job is to fight for my people, my people are wealthy."-
Del. Dave Albo, Washington Post, Jan. 1, 2004
