Friday, February 5, 2010
EXCLUSIVE: Greensboro water rate increase coming
The City of Greensboro owns two plants that manufacture drinking water for profit. One is out at Lake Townsend and the other, the Mitchell plant is on Battleground Avenue. But beginning late this summer Greensboro will own a third water treatment plant in Randleman—well, 53% of it to be exact.
HOW MUCH?
My guess is a rate increase of 10% only because Council won't dare permit anything higher in this economy. But 10% isn't enough. Another increase will be needed later in the year.
Greensboro projected it would be selling much more water by the time Randleman Dam came on line. Those projections failed miserably (see CHART). The local news refuses to report them. Water use is lower now than 15 years ago in 1995 when the dam was being justified. The only people who know are those of you who read my report.
It costs more to run 3 plants than it does 2. And there is not enough revenue (profit) from GSO water sales to pay for the operation of a third plant. Therefore Greensboro will be forced to raise its water rates to offset declining water sales and the addition of a third plant.
To the best of my knowledge PTRWA has not yet established the price of R-water. When it does I will be sure to let you know. I expect it will be higher than anyone imagined. Can you guess why?
Once PTRWA recognizes it is a monopoly it will do what every other municipal water works monopoly does—make a hefty profit! Eventually PTRWA will sport the best trucks, the most comfortable office chairs, the best computers, the fanciest water warden uniforms and the fastest patrol boats your money can buy.
What's more dangerous than government? —a government-run water-selling monopoly! Do you think PTRWA will ever operate a water conservation (sales reduction) program? Go ahead and LOL!
Greensboro must purchase 6 million gallons of R-water every day when PTRWA opens for business in late summer whether it needs the water or not.
Once PTRWA sets the price of R-water I doubt it will be made public. GSO will then secretly add "shipping and handling" charges to import R-water 20 miles uphill.
You can expect the City of Greensboro to give every reason but the real one for raising its water rates.
ECONOMICS 101
And guess what happens after a 10% water rate increase? People will use less water. Get the picture? So keep your wallets wide open because Greensboro's water-selling monopoly is suffering from declining sales. Tell somebody.
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