Wednesday, January 27, 2010

The price-per-gallon of Randleman water

Greensboro Water Director Allan Williams reported to Council that he plans to begin importing Randleman water late this summer. He made it sound like it is a choice, but unfortunately it is a requirement by contract. The day PTRWA opens for business Greensboro must come to the well. GSO must take its six-million-gallon-per-day (mgd) share of Randleman's output whether it needs it or not. Therefore, in order to conceal the decline in water use (water sales) since 1995 you can be sure the City will claim that it needs Randleman's water.

What the GSO water works will likely do is trim the output from its own two water plants by 6 mgd to make room for the water imported from Randleman (R-water). The City will claim this is good for our reservoirs and a misinformed public will buy it (No pun intended). But those of you who have seen my water use history CHART know that Greensboro does not need the R-water it is under contract to purchase from PTRWA.

How much will R-water cost? PTRWA has not announced its price yet but I am almost certain it will be more expensive than treated water from Greensboro's two plants.

PTRWA will see a golden opportunity to profit from the sale of R-water just like the Greensboro monopoly profits from the sale of G-water. If that is the case then City water customers can expect to pay more for the resource. TRANSLATION: RATE HIKES.

When PTRWA does establish its price it will be the price at the pump. That means Greensboro will have to transport 6 million gallons 20 miles uphill every day and add the energy cost to the price at the pump. So Greensboro will need to factor in a shipping and handling fee and hide it somewhere inside the price.

I am not surprised that the local news media has failed to question PTRWA about the price of R-water. The N&R reported that Water Director Allan Williams stated "R-water will be cheaper than Burlington's water." Williams' claim is absurd. That's like buying a $100 million dollar car to get 3 more miles a gallon and claim you are saving money. No reporters have challenged Williams to back up his claim that R-water will be cheaper than B-water.

The bottom line is this—Greensboro water customers will be paying more for their water because Greensboro does not need R-water but it is under contract to take R-water. And this is just the beginning. Eventually R-plant production will increase and Greensboro will have to accept 12mgd whether it needs it or not. None of this can become public knowledge because Greensboro is carefully concealing its Randleman Dam scam. City power brokers wanted plenty of extra water for big commercial real estate deals without having to pay the development costs for more water. Instead they falsely claimed Greensboro was running out of water and they tricked the citizens into funding the Randleman Dam to save the city.

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