March 31, 2010 in Business, City

Avista CEO earns $3 million in compensation

Becky Kramer The Spokesman-Review

Scott Morris is the chairman and CEO of Avista Utilities.
(Full-size photo)

Executive pay

2009	Salary	Total Compensation
Scott Morris (chairman, CEO)	$630,001	$3,028,018
Mark Thies (senior VP)	$314,998	$831,234
Marian Durkin (senior VP)	$274,999	$791,090
Karen Feltes (senior VP)	$240,001	$759,007
Dennis Vermillion (senior VP)	$289,230	$733,929

Source: Avista’s 2010 Proxy

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Huckleberries Online: Does Avista Scott Morris deserve $3 million in total compensation annually when so many customers are struggling to pay their bills? (Also poll)

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143 comments on this story so far. Add yours!

Scoutster on March 31 at 10:56 a.m.
I feel so much better knowing my rate increase is going to something important.
misjustice on March 31 at 11:21 a.m.
I don’t know how Mr. Morris was makin’ it on a mere 2.68 million. I’m sure he was humiliated to have to have his kids get reduced lunches and for the family to get food stamps, and I’m sure his wive suffered with having to drive last year’s Lexus.
Dan_at_Avista on March 31 at 11:24 a.m.
I’m going to sound like a broken record, but our recent rate requests were made mainly to recover infrastructure investments and to cover increasing power supply costs.
If you’re of the mind that top-level executives (at any company) are paid too much – that’s your business. I don’t intend to change your mind about that.
Just know that in our case, the two aren’t linked as plainly as some think. But we want you to know how executive compensation is factored: get all the details here: http://bit.ly/bNYIK4
misjustice on March 31 at 11:29 a.m.
Actually more like a scratched CD; records are soooo last century! LMAO!
spokanecommunistparty on March 31 at 11:36 a.m.
Check out this video somebody made about the avista scam. http://www.youtube.com/watch?v=E_6mnQ6W9
spokanecommunistparty on March 31 at 11:38 a.m.
maby this link http://www.youtube.com/watch?v=E_6mnQ6W9z0
misjustice on March 31 at 11:42 a.m.
Yeah. spokanecommunistparty, the second link/post is the one that works…thanks for the link!
spokanada on March 31 at 11:45 a.m.
Thanks for sharing the Kool aid Dan. Spokane is lucky to have Avista and guys like you!
I don’t care how much CEO’s get paid except for when it is at a company I am forced to do business with.
I choose to do business with ATT, Comcast, and Nike etc. I am forced to do business with Avista and they set the prices.
spokanecommunistparty on March 31 at 11:46 a.m.
That may be the new 21’st century norm, Im buying solar panels for my entire farm before its too late.
MrNatural on March 31 at 12:01 p.m.
Hey Dan
I understand your point and position (apples and oranges). I suppose what folks look at are the “step increases” between levels of employees/ management. Sure he’s not getting what a New York exec is getting but that’s still a bit obnoxious as well. Say for instance if the wage increase between levels was 10% or even 15%-20% for and Exec…Wouldn’t that be enough?….Also you have to admit that when a salary and compensation of that magnitude is expressed to the majority of folks who are paying 5-10% of their monthly income to Avista there’s going to be some loathing.
drinkr23 on March 31 at 12:07 p.m.
as a person livving on SSD…getting less than 1000.00 a month..how does he make it, getting only millions a yr.!! No wonder avista is always raising their rates…especially after they lose millions on bad investments from the past…thanks avista you guys truly do suck!!!
mikeln on March 31 at 12:19 p.m.
It’s a old boys club. Soon, this guy will retire(with great benifits) and the next old boy will move in to fleece us. The power belongs to all of us, not just the people the good old boys have given it to. Time to change this to real public ownership.
Censored on March 31 at 12:23 p.m.
Dan the Avista man, while the lip service is running rapant from you again. Please tell the readers how much you DON’T pay Avista! Your big fat employee discount. Surely you wouldn’t want that truth to come out would you.
Dan_at_Avista on March 31 at 12:41 p.m.
Censored,
Avista employees don’t get a discount on their energy bills, the commissions that regulate us would never allow such a thing. (Would I take it, if we offered it? Heck yes.)
Mr. Natural,
you’re right about the differences in pay between different positions and people certainly have the right to gripe about it. I just hope the folks don’t tie executive compensation with rate increase requests at Avista. It’s really two different practices. We talk about it here more: http://bit.ly/bNYIK4
empyrius on March 31 at 1:02 p.m.
Dan, Dan, the company man, if he cannot rationalize evil nobody can!
Well I suppose us “free” citizens can build a dam on “our” parkland and generate our own energy! O, waitaminute, we would then get busted for developing on “state” land without a license …: well, the only choice left to us is to take the dams Avista acquired from the government at taxpayer expense, and use those resources for all of our benefit!
Like that communist Albert Einstein, no, not that other Jewish communist Karl Marx, but Einstein, the smartest Jew this world has known other than that other Jewish communist Jesus Christ; like Einstein wrote, “capitalist society as it exists today is, in my opinion, the real source of the evil [in the world] … ., [the] ONLY one way to eliminate these grave evils, is through the establishment of a socialist economy … ., the means of production are owned by society”!
http://monthlyreview.org/598einstein.php
Einstein, Trotsky, & Jesus: I will take the side of the three smartest Jews, who are communists, this world has ever known every day of the week!
Amen
horse_feathers on March 31 at 1:29 p.m.
God bless the rich and poor,young and old, fat and skinny, drunk and sober and yes even you whiners.
Loudin on March 31 at 1:30 p.m.
Dan,
If you could be so candid (and I know that’s difficult, as your company reviews your posts), do you really believe that your CEO should be paid 30 times what you earn (assuming you make a generous $100K/year)? Does Mr. Morris bring 30 times more “value” to Avista as CEO than you do as their public information guru? Consequently, given your abilities as a long-term Avista employee, do you think you could provide comparable CEO results for Avista and it’s shareholders…say at only 10 times your current compensation? 5 times? Your same same salary?
In short, what does this guy do to “earn” so much more than the vast majority of well-educated workers who work for Avista? And should not Avista be constantly trying to replace “high-earner” employees with those who can perform at the same high-levels, yet at lower salaries? I mean, I’m sure Mr. Morris and his upper-management team are constantly looking at that (employment costs) when it comes to you and your co-workers…
BTW: There are over 300,000,000 Americans in this country; please don’t give us the old “CEO’s need to paid X-amount or you can’t attract qualified candidates…schtick.” Again, if you can’t find someone who is well-educated, well-connected & adroit at utility management for less than $3M a year (in this environment), you’re not trying hard enough for Avista shareholders.
mercator79 on March 31 at 1:58 p.m.
Dan @ Avista:
Perhaps in your business education in PR you avoided accounting, but I did not. Salaries and benefits were expenses to the company, just as operating costs, depreciation, and so on. Avista’s net income is directly affected by the cost of salaries.
Your next misleading statement is that only 75c of a $150 bill goes to salaries. Again, I reference the cost of doing business. Plant maintenance, asset depreciation (all those trucks), advertising (which has always amused me since we have no choice), and the big one, operating costs, are so huge that it is easy to make that tiny 75c look insignificant. Again, it is relative. We see by the transparency rules that your top executives are paid incomes *hundreds* of times the regional average.
To further say the shareholders pay the balance of the salaries is also a misleading statement. I assume your inference there is because these top-level executives have stock options, the shareholders of Avista ‘pay’ because the share value is diluted by the executives’ share ownership and/or the fact that the stock options allow them to purchase stock at a heavily discounted price?
Is then your argument that “hey we aren’t ripping you off, we’re ripping off our shareholders” really any better? I don’t directly own any of your stock, and that kind of sentiment certainly does not interest me to do so.
I give you credit. You have a terrible job. Avista is hated in the community, and you get to try and toe the party line, whether you actually believe it or not. What kind of “combat pay” do you receive? I know I would not sell out to the level you have for less than a couple hundred thousand a year (and some of those shareholder damaging stock options!).
Lulubelle on March 31 at 2:00 p.m.
The 2009 salary for the Superintendent of Seattle City Light, the publicly owned electric utility in Seattle, was $224,000. Additionally the Mayor of Seattle authorized a $40,000 bonus, which the Superintendent donate to Project Share, which helps City Light customers pay their electric bills.

http://seattletimes.nwsource.com/html/politics/2009430810_citylight08m.html
BigE on March 31 at 2:01 p.m.
We’ll try this again, more civil please.
Nobody is worth that much money, I say if you are making 1 million a year, you should work 20 hours a day, 7 days a week. That way you can work yourself into an early grave and the next sap can saddle up, fair enough ?
I am thanful I have Inland Power, Co-Op is the way to go.
zelda on March 31 at 2:04 p.m.
The Spokesman-Review lost any pretense of objectivity by printing the Dan_at_Avista feature last week. What were you thinking, editors? His blogging is not an example of one company’s creative use of social media; it’s a stunning display of how the interests of the S-R and Avista are intertwined and symbiotic. Shades of Otis Chandler and Mulholland. The power brokers around here haven’t changed since the 1930s.
If the S-R wishes to further reduce its fixed costs, e.g., employees, why not just print Avista’s press releases verbatim because what needs to be clarified is plenty obscure already. Better yet, have Drew deSilver at the Seattle Times cover Avista. He already runs circles around the S-R in his coverage of Sterling. OAO
lewis8457 on March 31 at 2:11 p.m.
Maybe if every body in this town ran big ugly black pipes on their roofs, and installed ugly wind mills and solar panels on their homes the powers that be would get the hint.
Verner made sure big billboards are a thing of the past imagine tourist driving down Monroe and every house has a black hose on the roof and solar panel steam generators in their yards where flowers used to be.
We have no chance in hell of getting rid of the monopoly, but we can fight fire with fire.
Lessen the need for their services and they will have to drop their price.
barb35 on March 31 at 2:27 p.m.
Hey Avista what happen to the settlement you got from Enron?Over the next 12 month you are to distribute that money back to your customers. Is this why you are asking for such higher rates to make up that difference for your pockets. Bend over Spokane we are getting screwed again
Albert on March 31 at 2:28 p.m.
I have a question for Dan at Avista please. As noted before Avista had a return of 18%+ to their stockholders in 2009. This is far beyond any rationalized return in a depression based economy. Now we see a salary base that cannot justify any rational excuse. These returns and benefits were paid at our expense. Avista is given an exclusive right to do business in Spokane in this energy production endeavor. Please provide “who” determines this monopoly right to do business without competition. Is it the Mayor/City Council, or another entity that provides this exclusive right to conduct this business. Thank you for your direct response to my question.
Dan_at_Avista on March 31 at 2:49 p.m.
Loudin,
The company does not review any postings before I comment. I wouldn’t agree to talk with you fine folks if I wasn’t giving you my honest opinion while sharing information.
Should a CEO make many times more than a “regular” employee, you ask? You decide. But consider this - A regular employee isn’t in charge of a $1 billion company, isn’t on the hook with the SEC if something goes awry, doesn’t have the pressures of operating a 2,000-employee corporation serving 356,000 homes/businesses with electricity and 316,000 homes/businesses with natural gas, isn’t solely answerable to customers, shareholders, external stakeholders, regulators (and I’m certain others, who I don’t even know about).
mercator79,
I appreciate you reading the blog and sharing your accounting expertise. I won’t run through everything point for point, but the formulas you refer to are basically correct – at least from my accounting standpoint. But the salary and incentives of our company officers make up ½ cent of every dollar customers pay in rates. Its not insignificant, but relative to what’s really driving the cost of energy, its a small piece. The rest is made up from shareholders which is a bit different than a traditional for-profit model. State regulators also review executive compensation and decide what is included in the rates you pay.
liarsinnews on March 31 at 2:51 p.m.
HEY, DAN:
HOW MANY EXECS AT AVISTA STILL WORK THERE WHO WERE GUILTY OF BLAMING A BAD BET AT THE WALL STREET CASINO, ON THE POOR SOUL THAT HAD COMMITTED SUICIDE? THE GHOULS WERE CAUGHT WHEN IT WAS POINTED OUT HE`D BEEN DEAD SEVERAL DAYS WHEN THE TRANSACTION WAS MADE. TALK ABOUT LOW LIFE’S!!
addyh on March 31 at 3:21 p.m.
Zelda, the idea to feature Dan at Avista came up last week when we posted the story about Avista’s requested rate increases. We noted Dan gamely wading into what became a pretty toxic comments section and thought he fulfilled the main requirement for the Q&A: he was involved in something that was in the news currently. That story was one of the most-read online last week.
As to the “symbiotic” relationship of this newsroom and Avista, I can assure you, there is none. I’m sure Avista would assure of that as well, especially today.
ShannonSullivan on March 31 at 3:35 p.m.
How much do they pay you Dan??
I know bit*hing is not going to help, I bet the majority of the CEO’s at Avista are Republicans, meaning more for the rich and less for the poor.
At that rate of pay, Scott should be able to help the community’s underprivileged. I wonder how much he contributed to the SNAP program along with any other organizations that help us struggling to make ends meet.
Oh, is he single??? Just kidding.
He is probably a nice guy, so attaching him personally is not the right thing to do!! It is the AVISTA CORP that is at fault here!!!
EagleEye on March 31 at 3:37 p.m.
The crux of the problem is that Avista has been granted monopolistic powers. The consumers simply don’t have a choice in the matter as anyone who lives within their territory is captive to whatever they claim they need for increases, as often as they say they need it. The government regulators are merely “rubber stamps” for whatever the big corporations say they want (corporate/ government collusion is how our entire political system works folks!)
Perhaps it could be argued that the monopoly powers made some sense during the original build out of the electrical infrastructure to entice companies to electrify the area. But those powers should have included a sunset clause that limited the amount of time that customers could be held captive. Surely the original investments to build the distribution grid must have been paid off.
So now that we’re dealing with a sever economic downturn and people everywhere are hurting, it seems quite reasonable that competition should be allowed to take over to help push costs down for consumers.
I don’t pretend to know the details around how the Avista monopoly is structured with regard to the PRODUCTION of energy vs. the DISTRIBUTION of that same energy, as I haven’t studied it. If it hasn’t already been considered, maybe it’s time to establish a separate entity to control electrical and gas distribution (new build-out and maintenance of the grid, new customer connections, disconnects, etc) vs. the actual generation of the energy (dams, gas fired power plants, solar, geothermal, wind, etc). The distribution side would either stay with Avista (if that’s the part of the business they want to pursue) or be divested to a separate entity. Either way, the result would be two completely separate companies/entities.
This would allow new companies to add new energy supply by establishing energy inputs into the existing distribution system. More supply should equate to lower cost if properly structured. A key element of this would be that consumers would also have the ability to buy our energy directly from whichever new entities we support such as ABC Solar Co. or XYZ Windmill Co. if we choose that option. Maybe some people would be ok with paying more if they KNEW their money was going to support companies that specialize in alternative energy sources.
And what can be done about all of the obscenely overcompensated executives? Increased competition helps solve that problem, as companies who pay such huge amounts to their management would be at a disadvantage relative to those that don’t. More choice, more supply, ultimately lower cost.
Seems like a good idea to me but perhaps this has already been discussed and/or elements of this idea already exist (my apologies if that is the case).
What do you think about these ideas Dan? Your captive audience is tired of paying millions in unjustified executive compensation and is looking for new and better ideas…
EE
Shylock13 on March 31 at 3:43 p.m.
Dan,
Your job is a tough one, I agree. I hope to make it tougher.
If Avista were a publicly-owned utility, would the CEO make $3 million per year? No way! Would there be stockholders to pay huge dividends to? No way!
If the stockholders are getting a 10-19% return, how can you justify that per-cent given the interest rates on CDs and savings, and even the interest rates charged by banks—all of which are way, way below 10-19%?
At what they get in dividends, the stockholders are NOT paying salary money, are they? And the % of the income Avista receives from its customers that goes into Executive salaries/bonuses.etc. is irrelevant, isn’t it? It is the amount that is relevant, right? And if the income Avista receives from customers does not pay the salaries, where does Avista get the money to pay them? And, please, do not say the stockholders!
Further, can you provide any reasons why Avista should not be made a public utility? Private utilities have a very significant profit motive, so they can pay execs and shareholders big bucks. Public utilities do not have such a profit motive. Can you honestly state that if Avista was public, instead of private, rates would remain at the same high levels? If so, prove it!
Finally, Avista is a monopoly. Would you welcome competition from either a public utility or a private one???
Please respond!
spokanecougar on March 31 at 3:49 p.m.
It costs $3 million to have someone decide to raise rates every 4 months? Man, I want this job.
Avista sucks.
spokanecougar on March 31 at 3:54 p.m.
Also, Dan, stop coming on here and spouting off about how good you thin Avista is. The fact that you have to defend yourself and your horrible company should show you just what everyone thinks of them and you. As someone else said, the only reason I do business with them is because I am forced to, if I had a choice I would have nothing to do with them.
misjustice on March 31 at 3:59 p.m.
Avista is not only a monopoly; it is a PROTECTED monopoly!
Dan_at_Avista on March 31 at 4:12 p.m.
Albert,
To answer your question directly: We enter into franchise agreements with the municipalities (cities/counties) we serve that give us the right to serve customers in those areas, but they aren’t usually exclusive. For example a number of other electric utilities serve customers in Spokane and Spokane Valley. We’re also regulated by the Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission.
I wrote a blog post back in September discussing what it means to be a regulated utility: http://bit.ly/cU23U7 Might be worth a look.
Diana on March 31 at 4:13 p.m.
Everyone knows that Avista is a greedy pig of a company and Dan can’t spin that, no matter how he tries.
Shylock13 on March 31 at 4:25 p.m.
Waiting for your response, Dan.
N75Ranger on March 31 at 4:25 p.m.
I find it remarkable how many people on this site do nothing but throw jabs at Avista and Dan without any real knowledge about the company or the man. Yes, he is a representative and needs to do his best to stay civil and try to correct misinformation… and there is plenty of it here. Kudos to Dan.
Do any of you calling Avista greedy have any idea how much they do in every community in their service territory? Do you like Baseball? go to Avista stadium ever? Ever been in a service club? Notice how Avista volunteers are in all of them? Volunteers on boards and commissions everywhere. Ever notice the grants and sponsorships of community events and charitable groups? Who do you think came up with the energy assistance programs that help thousands of people every year… and yes Avista employees, including the CEO contribute heavily to project share. I could go on, but it’s probably lost on people who don’t want to open their eyes to the truth.
And for those of you whining that rates are too high…take a minute and look up what others pay in other areas. We are so lucky to have some of the lowest rates anywhere.
One more point for those who think public power is the answer: they are also raising rates this year and they can do it without any oversight by a regulatory commission.
misjustice on March 31 at 4:36 p.m.
Other areas have to burn coal or use other means to generate power; we largely use the means of water and dams. And I believe that the dams were built by tax payers, and the rivers are owned by citizens. So, Avista is using the publicly owned means of production to generate power, which means our power costs in this region SHOULD BE LOWER THAN OTHER REGIONS!!!
zelda on March 31 at 4:41 p.m.
Addy — My point is that the Dan_at_Avista story in aggragate with the benign coverage that Avista receives in the business section leaves me with the impression that the relationship between the S-R’s ownership and Avista is quite cozy. And yes, I remember the S-R’s coverage when the guy from Dynergy was in charge and dividends went to hell. The S-R did a good job in covering that debacle. Another day, another time, another editor. There currently aren’t many who believe there’s a firewall between newspaper ownership’s interests and the newsroom. Stockholders suffering because their dividends fell in 2001 is a different situation than recession-strapped ratepayers having to endure an endless succession of rate increases for reasons so complicated that a reasonably educated person can’t understand the rationale. And those who do understand finance know that there’s a lot of “dark matter” in their operational expenses and P&L statement.
Also, Avista is SO dominant that one would believe that there are no other electric utilities in this area. A big part of the reason is that they spend an extraordinary amount of time and money on PR while other utilities choose not to have a massive staff of paid flaks. Yes, I know Avista has many more customers than Vera, Modern and the others, but their dominance and saturation of the airwaves, print and online media suffocate other voices and other viewpoints. It seems that when Avista speaks, they speak for every electricity provider and the media don’t go out of their way to get input from the smaller utilities. Or maybe the smaller utilities are afraid to say anything to the contrary. We’ll never know.
N75Ranger on March 31 at 4:48 p.m.
@Misjustice you are mistaken about the dams. They were built by investors in WWP, now Avista. Those investors, or shareholders (I am one) built the entire electric system in the inland northwest. And in fact, we do enjoy the lowest rates in the U.S.
spokanecommunistparty on March 31 at 4:49 p.m.
Spokane Public Utility has a nice ring to it. With out greed getting in the way, things like firestorm‘91 will be avoidable and Innocent family’s might not get their power shut off in the dead of winter. It sounds like Spokane is demanding a Public Utility System. Speak up and tell Mayor Mary Verner (509) 625-6250
mfew on March 31 at 4:51 p.m.
Could we please get some more feedback on this article. Just a few more comments please!
N75Ranger on March 31 at 5:02 p.m.
@mfew - LOL! perfect comment, I’m smiling.
zelda on March 31 at 5:06 p.m.
N75Ranger — While Avista’s contributions to the community are commendable, the sheer scale of their involvement is not purely benevolent. Virtually every publically regulated, publically traded utility does what Avista does, i.e, PG&E, Florida Power & Light, and so on. But in a city the size of Spokane, that kind of calculated altruism ends of shaping, steering and dominating just about everything. People like to ridicule the “nanny state,” but applying company paternalism so deeply and broadly to a population this small and isolated winds up being “we know what’s best for you.” You’re enveloped in their vision of the future whether you like it or not.
spokanecommunistparty on March 31 at 5:16 p.m.
Mayor Mary Verner
City of Spokane
808 W. Spokane Falls Blvd.
Spokane, Wa 99201 phone (509) 625-6250 http://www.spokanecity.org/government/mayor/ or https://clients.comcate.com/newrequest.php?id=63 Don’t be shy, write a letter, call, or email our mayor. She is there to serve you! Write this info down and do it tomorrow. Say,”I think its time for Spokane to have Public Utility’s”.
N75Ranger on March 31 at 5:25 p.m.
Zelda — I don’t disagree that utilities in many places have similar community involvement, and it may seem overwhelming to have AVA everywhere. But Avista has adopted a very transparent culture. Dan@avista is a great example. One might say he is spinning, but I bet he can back up all of his assertions.
You bring up a great point about being enveloped in their vision of the future. But is that necessarily a bad thing? Common sense would dictate that if a community prospers it’s good for all engaged businesses. Yes that is a self serving interest, but consider the way our economy works. For every dollar spent on a construction project, a salaried employee, local suppliers etc. there is a 3x economic turnover of that money. So if Avista has say a $200 million capital spend, and hypothetically $100 million in salaries (I’m just throwing out a number there) The annual impact on the local economy would be around $600 million. That really is huge.
As I pointed out earlier, we enjoy very low rates for electricity (compared to almost anywhere), the community gets plenty of support, and the company helps the disadvantaged. So why are we vilifying them?
Scoutster on March 31 at 5:27 p.m.
Dan..
Tough gig…I’m not sure it is a help or a hindrance for the company to have someone try to defend the indefensible. I think it just incites.
But, since you are here, I have to agree with mercator79…compensation is a choice…the board could have chosen to offer more moderate rates and more moderate compensation/dividends and STILL paid for infrastructure…it CHOSE not to. It chose to increase rates instead.
Hey, Scott…you make all the money. YOU come on here and defend for us, your customers whom you care for so much, and tell us exactly WHY you are worth this money. Dan’s a nice guy and he tries hard, but don’t send a lackey. Do it yourself.
N75Ranger on March 31 at 5:27 p.m.
Oops, messed up on my math. Should have said $900 million economic impact.
schleufer on March 31 at 5:32 p.m.
want to see how you compare to your CEO? go to this afl-cio web sitehttp://www.aflcio.org/corporatewatch/paywatch/index.cfm and just look up your company then put in your annual gross and you will see how many years it would take you to earn what the CEO gets in just one.
i did one on this guy on the 2008 calculations for a flat $10.00 an hour compairison and a person making 10 bucks an hour would have to work 106 years to earn what this guy did in 08. he made more in 09 than 08.
it dont matter how much you hate thier guts…they just shrug it off and keep cashing the checks.
addyh on March 31 at 5:45 p.m.
Zelda, I can’t help that conspiracy theorists believe there is no firewall between the newsroom and its owners’ interests. “Many” also believe that Barack Obama isn’t an American citizen - does that make it correct?
zelda on March 31 at 5:47 p.m.
N75Ranger — I’m not really vilifying them so much as pointing out that we live in a monoculture without the benefit of a diversity of viewpoints that carry clout comparable to Avista’s. Maybe what this points out is the paucity of large businesses in Spokane. Avista is dominant because there simply isn’t much else. Their influence is concentrated while the viewpoints of smaller companies are too diffuse to matter.
ValleyVoice on March 31 at 6:01 p.m.
Dan,
I know nobody likes to pay bills, me included.
However I saw your article in the paper a few days ago and I commend you for putting the FACTS about Avista out there.
Unfortanatly there are so many people that just cant face reality and think they are entitled to EVERYTHING for cheap or free that they have to come up with farce for others’ riches and visions.
Thank you for letting us know the true people and personality that is visable within Avista and standing up for what is truly right.
For the folks that are unhappy with Avista……get out there and invent your own power company and co-ops instead of complaining to the people that spent the money to do so and continue to upgrade and better their own company and are now reaping the benefits of sacrifice, hard work and loss they had to go through to get what they have today.
misjustice on March 31 at 6:02 p.m.
N75Ranger, I concede; the dams that are on the Spokane River system were, indeed, built with funds that came from private investors. So I was wrong about that, but I am not wrong about the water that flows through those dams. It has not been privatized, yet.
And the fact that we do not have to purchase the water in order to generate the power( such as power companies that have to purchase coal) still justifies us enjoying lower costs for power.
misjustice on March 31 at 6:04 p.m.
Oh, great counter Addy…
Oh_Really on March 31 at 6:26 p.m.
Uh-hummmmm…. you know we are all (well most of us…) quite upset about hearing about your glowing salary, Mr. Morris et al, and all the perks/bennies that accompany it… that just made my day, thanks… I barely got a raise this year, how can I afford that new proposed rate increase you all just submitted again and… get real… we ALL have to juggle our money around to keep afloat and Avista keeps asking for more and more every year! Woah!!!!! Something’s sooo wrong with this picture. Live within your means, that’s what we all have to do, I am soooo sorry if you cannot adequately manage a large budget, and why should we be stuck paying for all your upgrades and high salaries and such in these tough and challenging economic times?? That is not our problem. Guess I’m working for the wrong company~
Albert on March 31 at 6:44 p.m.
Good evening. Just a quick update. I did call the Mayor today at 1 p.m. pertaining to this exclusive provider relationship with Avista. My call was forwarded to an voicemail and I have not received a reply. Typical. I also sent an email to my council representative, Ms. McLaughlin and have not received a reply. Typical. To assume that anyone will enact any changes on this exclusive fleecing of the citizens of Spokane by Avista is of course a total and complete effort in futility. We the people, the broke, unemployed, under-employed, minimal wage earners, and all of those earning less than 50K per year, will of course continue to suffer the consequences of this injustice. Our comments and concerns as expressed in this article will be ignored. Rates will continue to rise, our “do-nothing” city representatives will allow shrug their shoulders, and in the end good friends, we will see our assets depleted as we endeavor to “pay our bills”. Avista, their highly compensated employees, and the well oiled stockholders are without a soul. How tragic indeed.
flutieflakes on March 31 at 6:46 p.m.
Straight from the Mgmt Discussion & Analysis section of the Annual Report (located at <http: www.avistacorp.com=”” documents=”” ava2009annualreport_bookmarked_final.pdf=”“> look to page 36)
“Our utility net income was $86.7 million for 2009, an increase from $70.0 million for 2008 partially due to an increase in gross margin (operating revenues less resource costs). THE INCREASE IN GROSS MARGIN WAS PRIMARILY DUE TO THE IMPLEMENTATION OF THE GENERAL RATE INCREASES IN WASHINGTON AND IDAHO. In addition, our POWER SUPPLY COSTS WERE LESS THAN THE AMOUNT INCLUDED IN RETAIL RATES IN WASHINGTON. This was due to lower wholesale electric and natural gas fuel prices”
CEO pay is largely a result of running successful operations. In Avista’s business, whenever they need more “successful operations” they simply petition for a rate increase. So basically, this guy got paid by charging more for something that was worth less, and forcing people to pay it or live in the cold and the dark. That, my friends, is a damn good business model.
N75Ranger on March 31 at 6:47 p.m.
OK, Misjustice and others here who think Spokane/Avista rates are too high, check out this national rate comparison from another utility and see what you think:
http://www.idahopower.com/AboutUs/RatesRegulatory/Rankings/default.cfm
spokanecommunistparty on March 31 at 6:56 p.m.
Albert, don’t give up, they work for us. Our Mayor will hear you all if you pick up the phone and call her.
monkeyman on March 31 at 7:11 p.m.
“Less than one-half cent of each dollar in your energy bill goes to pay for the salaries and incentives for all of our officers. That’s less than 75 cents on a monthly bill of $150. ”
I am sorry, but this is pure spin - representing salary as a function of company’s revenues. Any real business owner would just love to have such a guarantee.
If you used similar approach for Costco, it’s CEO should be making about $140M.
However, in 2008, Costco’s CEO made just over $3M, just over Mr. Morris’s compensation. And he was a co-founder of the company in 1983…
(Revenues - Costco - $70B, Avista - $1.5B)
zelda on March 31 at 8:16 p.m.
Monkeyman — It’s not just spin, it’s sophomoric spin.
Dazzeetrader11 on March 31 at 8:23 p.m.
Hmmmmmmmmmmmm………
GValley on March 31 at 8:40 p.m.
N75Ranger
I think you are reading the comparison chart incorrectly
Residential Billings for Selected American Cities
Monthly Cost for 1,000 kWh
City State Utility Monthly Cost
Tulsa Oklahoma Public Service Co of Oklahoma $71.98
Lexington Kentucky Kentucky Utilities Company $72.03
Spokane Washington Avista Corp $77.25
Lewiston Idaho Avista Corp $79.92
Casper Wyoming PacifiCorp $80.81
Boise Idaho Idaho Power Co $85.42 to the highest
San Diego California San Diego Gas & Electric $249.72
Idaho Power rate is $85.42 vs. Avista’s rate of $77.25
Just thought I point it out…
According to the Avista Website there is a brief overview of the dividend payout
Declaration Date Ex-Dividend Date Record Date Payment Date Amount Type
02/12/10 02/23/10 02/25/10 03/15/10 $0.25 Regular Cash
11/13/09 12/01/09 12/03/09 12/15/09 $0.21 Regular Cash
08/13/09 08/25/09 08/27/09 09/15/09 $0.21 Regular Cash
05/07/09 05/19/09 05/21/09 06/15/09 $0.21 Regular Cash
02/13/09 02/24/09 02/26/09 03/13/09 $0.18 Regular Cash
11/14/08 12/02/08 12/04/08 12/15/08 $0.18 Regular Cash
08/13/08 08/26/08 08/28/08 09/15/08 $0.18 Regular Cash…
02/06/04 02/17/04 02/16/04 03/15/04 $0.125 Regular Cash
from the gradual increase in the dividend I would think that the current managment team has done a good job.
Theodore J. Bear…I found the following information that indicates the stockholders are recieving 10.2% on the lower end of your range (10-19%).
According to the WUC The Commission approved a 10.2 percent return on equity and a 46.5 percent common equity ratio. According to the most recent testimony filed with the WUC Because Avista’s requested ROE of 10.9% percent falls below both the midpoint and 8 the median of the DCF results for the proxy group of risk-comparable electric 9 utilities, it represents a conservative estimate of investors’ required rate of return
Shylock13 on March 31 at 8:42 p.m.
Still waiting for your reply Dan. I did not think you would dare try to answer my questions or reply to my comments.
zelda on March 31 at 10:31 p.m.
The more comments we make, the more justification for Dan and the whole Avista PR crew to keep their jobs, add staff and ask for raises. Next thing you know, they’ll start randomly generating press releases just to draw fire.
If there’s only silence, things would get mighty slow in the PR department and they would have to eliminate staff.
That could be 30 cents of each ratepayer dollar SAVED in our energy bill.
D Statler on March 31 at 10:43 p.m.
I believe that if every poster on the thread filed a complaint with Rob McKenna’s office.He might actually have to do something about the WUTC granting these excessive increases. You can do this online at the Washington Attourney Generals office. The WUTC is funded by monies collected from AVISTA and other big utilities in the state.Hardly an objective opinion! So common everybody,quit complaining unless you are willing to kick some AVISTA CEO rear end. It will be hard for these overpaid executives to get these kind of compensation packages if the company as a whole were limited to a 5% return instead of the 10.4% the WUTC authorized why we were looking the other way. Please mention in your complaint about AVISTA’s teir schedule billing.This is a very devious and confusing way to extract more dollars from our empty pocketbooks.The WUTC has allowed AVISTA to manipulate the Spokane market at will.AVISTA hides under the WUTC skirt looking for more handouts to come falling out. HELP ME PLEASE!
misjustice on March 31 at 10:58 p.m.
Here’s the link to the AG’s office…
www.atg.wa.gov/
zelda on March 31 at 11:19 p.m.
Addy — Don’t jump to the conclusion that I’m a conspiracy theorist. The Avista coverage is superficial and I’m wondering why. (Besides, there’s plenty of evidence that the firewall didn’t exist when the RPS fiasco occurred, but I won’t open that can of worms.)
Businesses around here love Bert Caldwell (don’t know about John S.) because of the nerf ball questions and kid-glove treatment. Times are tough and it’s rough going for many businesses — no question there. But I can’t see going easy on companies that offer disingenuous explanations to customers whose lives are so severely affected by rate hikes. This is a poor town (but better than Wheeling, WV - hooray!), so comparisons to rates in other cities need to be “normalized,” to use a favorite utility term. Avista is better run than it was in 2001 & cleaned up its act, but that shouldn’t give them blanket absolution going forward.
I’ll give you the benefit of the doubt and say that with reduced staff and major cutbacks at the S-R, there probably isn’t room for coverage that involves much critical thinking or probing. The Journal of Business has stepped up admirably to ask the tough questions and pin some of these guys down as has the Seattle Times. Execs still give weasel-word answers but at least it’s clear that the question was asked.
Dazzeetrader11 on March 31 at 11:28 p.m.
Well…these arguments are empty. CEO works for Avista and he makes money for the compnay. Be angry with Avista for their rates and for the structure allowing them to name their price.
Verner and the AG have no standing….it’s useless to write either. This is just a publicly traded business….nothing more or less. They have no competition….which is what the Republicans like. If you don’t like what Avista does, turn it over to Obama…..he’s your nanny. And since you seem to like him, call him. I’m sure he’d be happy to reach further into your lives under the guise of protecting you all.
Morris seems to be doing his job. He’s rewarded for it. It’s how it works. He went to school, spent his time learning and worked his way up the ranks. He worked for his job ( a refreshingly American concept) and he’s done it very well. His performance is being rewarded….it’s how it works.
If competition was in place, things would change. In Beverly Hills, water and pwer were deregualted and it help the prices as multiple companies could be chosen by the people. Some companies did well and some didn’t. Avista has the place to itself. Be angry with the company or the structure…Morris is doing his job for the company.
Life is about the choices you make…among other things. SOme chose school and training…some don’t. Beware that life goes awful fast. If anyone wants to be in the bigger leagues, chose schooling and training. It gives youall options. If you don’t chose those things,….you chose your lot in life…by the “default option”.
So it goes in America…remember this though: Obama won’t help you. It’s up to you…
misjustice on April 01 at 1:44 a.m.
For those of you that are so inclined, you may also call the local office of the AG.
Spokane office of the Attorney General Consumer Protection Division at (509) 458-3509.
Dazzeetrader11 on April 01 at 2:34 a.m.
And what would you have them say misj? “wahhhhhhhhhhh?”
Or what?
I mean seriously……Arrest or sue him because he makes too much money???
EagleEye on April 01 at 3:28 a.m.
@addie hatch,
Your patronizing and inflammatory comment implying that someone would have to be some kind of a “conspiracy theorist” to dare suggest a possible link between S/R ownership interests and actual newsroom published content is completely out of line. Based upon some of the heavily biased and inaccurate reporting by the S/R over the last few years, you may have a very hard time convincing your readership about the truth and sincerity of that statement.
In stark contrast to your assertion, it doesn’t take a “conspiracy theorist” to understand that newspapers have been purposefully slanting the news since the invention of the printing press. Why? Because somebody always has something to gain, whether it is money, power, influence or control over others.
As an example, William Randolph Hearst was a newspaperman who had a genius for manipulating public opinion. He actually made a fortune by elevating public manipulation to a high art form and a lot of his crony’s profited greatly as well.
The truth of the matter is that big money interests have ALWAYS found ways to control the flow of information to the public (yes, most especially through newspapers). This is beyond dispute by intelligent people as it has been demonstrated historically time and again.
Let’s be honest about this Addie - Money and advertising dollars ABSOLUTELY have an impact upon the flow of information in the real world and the Spokesman Review is NOT immune. The entire Public Relations industry has been built upon these very principles and routinely feed information to newspapers for the sole purpose of swaying opinions.
Unfortunately, when somebody has an agenda to promote (not uncommon in matters relating to money, real estate development or especially politics) certain facts or other relevant information all too often get distorted, over-emphasized or under-reported. And it happens a lot more often than newspaper editors/ staff will ever admit.
In fact, widespread MISTRUST of the reporting in newspapers (and the rest of the Main Stream Media) is precisely why the public has been cancelling their subscriptions in droves. There is just too big of a credibility gap that develops when people witness events, then later wonder in disbelief at how that event is later portrayed in the media.
People don’t want to feel like they are being manipulated by somebody’s agenda, they just want THE FACTS. Understand that and you MIGHT have a chance at staying in business over the long term.
EagleEye on April 01 at 3:44 a.m.
Specifically with regard to this article, there are actually more revealing facts being displayed by some of the subscribers about this topic (right here in the online Comments) than I ever remember seeing in previous S/R articles concerning Avista.
@zelda, Insightful comments, thank you!
@flutieflakes, Thanks for the terrific info. Very pertinent to this discussion.
mikeln on April 01 at 8:14 a.m.
Didn’t Avista include it’s charitable donations in their rate increase? It must be nice to be able to pat yourself on the back for helping people with their money.
dtpt5 on April 01 at 8:55 a.m.
“Further, can you provide any reasons why Avista should not be made a public utility? Private utilities have a very significant profit motive, so they can pay execs and shareholders big bucks. Public utilities do not have such a profit motive. Can you honestly state that if Avista was public, instead of private, rates would remain at the same high levels? If so, prove it! ”
Dan hasn’t responded because your logic is fatally and horrifically flawed. There is no way anyone could predict what would happen if Avista became public. I got a better one, how about you prove that prices will drop? The burden of proof falls on you are you are the one trying to make a point.
I started paying $150 a month three years ago and with the decreases in the last two years I currently pay $130 a month for a 2600 sqft home on my comfort bill with 5 people in residence. That my friends is cheap. With the increase proposed I will pay an additional $5-10 a month, seems like a pretty good deal to me. If $10 a month is going to sink you you should really get on one of their low income plans that I donate into every month to help you out and then you would not have to worry about it.
Instead of complaining why do you all not do something to try and decrease your energy consumption? If you live in a trailer you by nature will have higher utilities bills as they are poorly insulated and rarely have energy efficient appliances. The higher bill is more than offset by your inexpensive housing costs. Same thing goes for older homes with single pane windows and ancient furnaces. If you cannot afford to make these types of essential improvements you should not own a home. Owning a home is not an entitiled right, it’s a privilege that one earns through careful planing and hard work.
The reality is that Avista is what’s called a natural monopoly. This means that while the market is open to competition the capitol cost of competing with them would be almost impossible. You are more than welcome to compete with them as soon as you raise a couple hundred million to build your own power grid.
It’s funny how nobody ever complains about rate decreases?
http://www.avistautilities.com/community/blog/archive/2010/01/11/011110.aspx
http://www.tradingmarkets.com/.site/news/Stock%20News/2554558/
http://www.spokesman.com/stories/2009/may/28/avista-customers-will-see-rate-reduction/
I would like to know how many of the people complaining to the internet here have lived somewhere outside WA or ID? I have and the service was horrible from public utilities because of no accountability and archaic equipment. The money requested is for capitol improvements not to line the pockets of the CEO and if you do not believe that learn to read a financial statement as theirs clearly spells it out.
Keri on April 01 at 9:15 a.m.
I was an Avista electric customer but recently moved to the valley and now have Inland. For the same amount of electricity, our bill is higher with Inland- and the rates are increasing by 8% today (April 1st). Co-ops aren’t all that great…
eagleproducer on April 01 at 9:16 a.m.
People, please… it takes salaries and bonuses that seem over valued to you and I to retain the top tier talent it takes to profitably operate a legally protected monopoly!
eagleproducer on April 01 at 9:31 a.m.
Keri: Inland is a monopoly in the regions where they provide service. They get most of their power from Bonneville Power Administration, another scam on the tax payers where a few profit after immense public investments.
Where are all the right wingers like Richard and gmorton on this thread, where you’d think they’d be clamoring for the competition that will bring us the most efficient and inexpensive electricity the market can produce. Oh wait, there isn’t ONE PLACE IN THE ENTIRE U.S. where people have a choice for a power company.
A truly public takeover of the electric grid needs to be a class warfare issue. In fact, the only struggles that matter any more in the U.S. should be grounded in class consciousness.
One question for Dan: How much did Avista receive in federal tax credits last year for infrastructure improvement?
MrNatural on April 01 at 9:49 a.m.
A CEO’s salary is loathsome
To those who pinch pennies and wane
What makes this abhorrent there is no deterrent
To raising our loss for his gain
dtpt5 on April 01 at 9:53 a.m.
It’s not a legally protected monopoly, it’s a natural monopoly. You can throw your hat in as a competitor, all it takes is a few hundred million and you are off to the races.
I think there is a misconception here about utility companies. They do not intersect due to their own choosing and not through regulatory control. The cost of providing a power structure to a neighborhood where only half of the populace subscribe would be prohibitive. That’s why the regulatory boards exist, not to protect their “monopoly” but to protect the people.
Personally, I do not care if the company who provides my power is public or private as long as the price is competitive and the service is reliable.
Public takeover of the power grid? Right, because the public sector has such a great reputation for running a lean and efficient organization.
lewis8457 on April 01 at 10:11 a.m.
Several years ago many of us complained to the AG about the rising costs of Avista power. The AG came to town and had a forum in the Masonic Temple. At that time Avista agreed to go with only half of their requested increase. 5 days later SR reported Avista was going ahead with the full increase they originally wanted.
Don’t waste you time contacting the Mayor she will NEVER respond even with an empty form letter.
Those of you who want a public utility, who would run it? The City? The same people who have spent 9 million dollars in less then 30 days for two properties they have no immediate plans for?
My only choice is to outfit my home with the ugliest alternative power sources I can think of. And wait for my city to outlaw that too.
I too would never buy anything from Avista if i had a choice it is like having to go to Macys for a pair of jeans instead of Walmart.
D Statler on April 01 at 10:54 a.m.
Thanks for the help MsJustice, We all have a small voice. Added together make a Strong voice capable of bringing justice.This may seem like a futile action.These small steps add up to leaps and bounds.
The total of 1/2 of AVISTA’s employees wages add up to ONE overpaid CEO and FOUR overpaid executive VPs’.
Dan_at_Avista on April 01 at 11:06 a.m.
It’s nice to see after 80+ comments on here, that we’ve actually had some real discussions about the issues facing Avista and utilities. That doesn’t mean we all have to agree on one direction, just that different people differ. I appreciate those who have refrained from childish personal attacks, but shared thoughtful insights - even those who counter my own beliefs. A few of people above have addressed me directly and I’ve tried to answer their questions as best I can. I chose to avoid answering some of the hypothetical and rather outlandish questions for obvious reasons – they don’t progress the dialog one bit and serve to inflame the conversation for anyone seeking information.
I can promise you that you’ll continue to see news articles from the media about us over the next 7 to 11 months as we go through the process of our rate cases in Washington and Idaho. Each story will stoke the fire again and I suspect we’ll be talking about the same issues and that’s OK. We’re not hiding – which is why I’m out on discussion forums like this and host our blog at www.avistautilities.com/blog and answer e-mails at conversation@avistautilities.com. The discussion forum here and on HBO, doesn’t have to be the only places you offer options and seek information. I welcome a continued discussion.
Shylock13 on April 01 at 3:09 p.m.
I knew Dan would not (could not?) answer my questions.
To dtpt5: regarding public utilities—we lived in Peabody, Massachusetts about 35 years. The Peabody Municipal Light Plant was a public utility providing electricity to the city. It generated much of its power and bought the rest. During our stay there, Peabody consistently had, by far, the lowest electrical rates in Eastern Massachusetts (all I ever compared), if not in New England. Further, I was privileged to know a retired executive in the Florida Light and Power Company (he lived next door to my mother in Florida). On more than one occasion we discussed the pros and cons of public vs. private utilities. He was totally convinced that because a public utility did not have a need for huge profits, and because it did not need to pay astronomical salaries/benefits, it was a far better deal than a private company.
In addition, it is your logic, not mine, that is flawed. In logical discourse (something in which I am trained and which I also taught), one side makes an argument using premises to arrive at a conclusion. It is then up to the other side to disprove the premises (that’s the only way to disprove the conclusion). In this case, my premises include, but are not limited to: (1) a public utility does not have a profit motive, but a private utility must have one; and (2) a public utility does not pay its executives huge salaries-compared with the private sector-but the private sector does. One conclusion: rates from a public utility are, therefore, less,often much less, than from a public utility. I do not believe it possible to argue against either of the premises I just listed. If you can, please do so. (Also, see my comments above about my experiences with public utilities.) And if you can’t argue against my premises (which Dan either could not or would not), then you must grant my conclusion.
And no one knows more about what it takes, in terms of hard work, to buy and pay for a house than my wife and I do. My father never graduated from high school (both his parents died and he had to work to raise his three younger sisters). We grew up something less than affluent (economically, we were in the lower class). My father never made much money. It was clear to me that the only way I could go to college was to compile an academic and extracurricular record that would get me a full scholarship. And it did. In college I worked hard again to compile a record worthy of a graduate fellowship (I also worked in a chemical warehouse, mostly loading and unloading trucks and freight cars). That worked. I ended up with an earned Ph.D. and had to work my way up the academic ladder in public higher education, starting at $5000 per year, and ending at over $100,000 per year. Please do not presume to tell me what hard work is.
Finally, if you were to visit our home, your would discover all energy efficient appliances, additional insulation, an energy efficient water heater a new insulating roof, and energy efficient light bulbs, among other things, designed to lower the use of energy. We also conserve water in a number of ways. Please do not presume to inform me on how to save energy.
n8 on April 01 at 3:32 p.m.
@N75Ranger
You are an Avista shareholder!!! No wonder you speak so highly of Avista and its CEO, he is earning you a TON of money!! So all of us whiners just need to buy Avista shares and then we could control our rates, or at least make a great return on screwing ourselves over!
And you are so WRONG about public power!
It is public, so they can’t raise rates without having locally elected officials giving it an okay. How long do think that Avista’s board would be around if it was up for election from the public rather than by shareholders like you that they are providing high returns to?
It nice that your Idaho Power chart doesn’t include any of the local PUDs in Washington State.
eagleproducer on April 01 at 3:34 p.m.
Legally protected monopoly, natural monopoly…
You say tomAHtoes, I say tomAYtoes….
JusticeForAll on April 01 at 4:36 p.m.
That PUD rates are subsidized by ALL taxpayers. If everyone was served by a PUD, the rates would not be so low because they would not be subsidized. Not to mention all the taxes a private entity has to pay skews the numbers. Those making shallow comparisons to PUDs have no clue what they’re talking about.
Lets put PUDs and private utilities on an even ground and we will see whose rates are lower.
dtpt5 on April 01 at 5:57 p.m.
Sorry but casually dismissing the difference between a “protected” monopoly and a natural one is absurd.
This is not a “You say tomAHtoes, I say tomAYtoes” issue, it is business 101. The casual dismissal which shows a fundamental lack of business knowledge. There is no such thing as a “protected” monopoly. You could have a government backed or granted monopoly but that would be entirely different. The government has not legislated that you cannot open a power company.
What I think you are referring to as a “protected” monopoly would be Standard Oil and the like that were taken care of by the Anti-Trust Laws at the beginning of the 20th Century called a coercive monopoly. They are nothing alike. Standard Oil was a coercive monopoly which actively sought to ruin or prevent competition. Has Avista come after any of the local power companies?
While I do not necessarily agree or disagree with Avista’s natural monopoly it is important to understand all of the facts.
Shylock13 on April 01 at 5:59 p.m.
I knew that neither Dan nor dtpts would reply to me. I wonder why?
Spoketucky: nice question to Dan. Bet he doesn’t reply.
n8 is correct. In Peabody (see comments above) we ELECTED Electric Light Commissioners!!!!!!!!!!!!!!!!!!
JusticeForAll: Simply put, you are wrong. As it is, all of the Avista rate payers are PAYING way more than they should. Please see my earlier comments about logic. When you can invalidate my premises, please let me know!
misjustice on April 01 at 6:08 p.m.
A monopoly by any name is still a monopoly.
I’m just glad that Mr. Morris is getting a pay increase, goodness knows, he needs it. I don’t know how he was getting by on a paltry 2.86 million total compensation package. ; )
Dazzeetrader11 on April 01 at 6:09 p.m.
Many in the thread are simply angry….not sure they even know why they’re angry. Is it a sign of the Obama times? He won’t save you…..you must work hard, be smart and then you’ll be more financially solvent. This is NOT Scotts fault…it’s been the structure of this company for years.
Avista built and has maintained the dams and other power generators for decades. I thinkI they go a good job. Live in a foreign country. You’ll soon see what collective socialism does to service. In some ways, it’s best that Avista is rewarded with money.. I think it’s a monoploy but they do provide good service for the money.
Don’t be so angry because someone else makes lots of money. Many of you could to that too. So why the anger?
Think…..in America, if you work hard, use your wits, make good choices and you can be rewarded too…..In Obama’s America you won’t be. Everyone should be the same (except him and his chosen helpers)…then true equality will exist…won’t it? Justice too!
It’s garbage people. Don’t fall for it. You study, work hard…you’ll get things. You’ll have families, nice homes….but it takes work …and opportunity. Live in a foreign country and you’ll soon see that opportunity is scarce? Why? Because the feeling is that everyone should be equal….sound familiar? Defend the constiution. Sorry but I cannot see why Morris and Avista are being picked on here. The made some opportunity and they offer a good service. Shouldn’t they be rewarded?
At least Morris isn’t out playing basketball…..
dtpt5 on April 01 at 6:18 p.m.
” In logical discourse (something in which I am trained and which I also taught), one side makes an argument using premises to arrive at a conclusion. It is then up to the other side to disprove the premises ”
Right, that’s logical discourse. However, just because you cannot disprove a hypothesis does not make it correct.
Why do elephants paint their toenails pink?
To hide in cherry trees of course.
Have you ever seen an elephant in a cherry tree?
Nope, then it must be working.
I propose that elephants, despite their obvious bulk and hide in cherry trees. Prove me wrong. Now you can site facts and figures out the wazoo about an elephants habitat and that a cherry tree could not support the bulk of an elephant but there is no way to really disprove that. It is a fun exercise but makes a pretty good point. Just because you cannot prove me wrong does not make you right.
Yep, if you were to go to my house you would find all of these. So if you want to lower your electric and gas bill take advantage of the incentives and tax credits available to upgrade your home.
I lived in PHX all my life until moving here and I pay about half for my utilities here. I have been fairly by Avista and feel that they follow the law as set forth by our elected officials. If you want to complain, complain to them.
BTW, flaming Dan for actually responding to you and trying to engage you in a professional manor does not befit a man of your education. I thought you were trying to engage in “logical discourse.” Just because someone does not respond to you within a few hours does not make you right.
You did not respond to me so I was right. What kind of premise is that?
misjustice on April 01 at 6:20 p.m.
Why don’t you go live in a foreign country and save us from your diatribes?
misjustice on April 01 at 6:22 p.m.
…not you dtpt5…sorry for any confusion…I like your style.
misjustice on April 01 at 6:39 p.m.
dtpt5, how does the greater Phoenix area generate their power? They are in the middle of the desert…
And I mean this question as a true interest in knowing how they provide electricity.
Thanks!
misjustice on April 01 at 9:01 p.m.
I Topekaed Phoenix AZ…
Power is generated there by many means. For a closer reading see:
http://www.aps.com
Palo Verde Nuclear power plant
4 Corners; coal burning
Cholla; coal burning
Navajo Power Plant; coal fueled steam electric generating
Redhawk Power Station; natural gas
The point of my question to dtpt5 was that here electricity is (largely) generated by the public waterways spilling over dams.
It makes sense that since Avista does not have to purchase coal or gas to burn to generate electricity that our regional costs should be lower than Phoenix AZ.
dtpt5’s point of power costing way more in Phoenix makes sense, as the costs of producing the power are higher…
Likewise, the cost to produce power is less here so what Avista charges its customers SHOULD also be less.
I was unable to find an actual KWH cost; as many variables are used to determine that, and this is not an area of expertise for me…
Just interested in checking on some of the information put forth by others in this thread…inquiring minds want to know!
Dazzeetrader11 on April 01 at 9:49 p.m.
misj…why so angry? Some are simly jealous ro outraged. DO you know why you’re out of sorts over this? CEO’s salary doesn’t depend on fleecing of SPokane, Avista makes millions on energy and energy management.
But you must tell me if you know…misj….cmon…what’s up with your anger OR are you a teen who likes to play on the computer?
Dan_at_Avista on April 01 at 9:51 p.m.
Misjustice,
Avista generates about 49% of your power with hydro, 33% with natural gas-fired generation, 9% coal, 2% biomass, 2% wind and the remaining amount with other power contracts. As demand grows, the percentage of hydro shrinks, since we aren’t building dams any longer.
I did a video about power supply, which shows a chart of the numbers noted above and how power supply impacts rate costs. See it here: http://vidego.multicastmedia.com/player.php?p=m3tvtc06
misjustice on April 01 at 10:04 p.m.
Hey, Dan!
Thanks for the answers, Man! I did not know about the natural gas-fired generation, coal, or biomass. Useful information! Appreciate it! That gives a fuller picture to the generation and thereby also the associated costs to produce power…off to Topeka! ; )
misjustice on April 01 at 10:12 p.m.
Hey, Dan!
Is the coal burning facility the one in Oregon? Cyote Springs II?
Does Avista still hold any interest in the Centralia, Wa facility?
Thanks! ; )
Dan_at_Avista on April 01 at 10:17 p.m.
Coyote Springs is a natural gas-fired plant. We don’t have an interest in Centralia (if memory serves).
agillskis on April 01 at 10:22 p.m.
In short, Avista is a commendable company. They do exceptional things for the community and their investment in renewables alone is an excellent thing that has established Spokane and the inland Northwest as leaders in energy innovation. They can go farther there by getting rid of their coal plants and shifting said energy production to alternative sources.
Their CEO does deserve to make a larger sum than the company’s core employees. But I think that such a large increase was imprudent given the current state of the economy and the general negative public opinion toward economic leaders that is present as of now.
Someone made a point using Costco. There is simply no comparison in this case. Jim Sinegal, CEO of Costco, makes a similar amount to Scott Morris, CEO of Avista. Avista is a much smaller company than Costco. It’s an invalid comparison given that Jim Sinegal is compensated perhaps the least of any comparably sized corporation. The pay is simply not proportional in any way.
The reason people are angry has much to do with the undeniable monopoly of Avista and the overall lack of alternative perspectives. Sure, Avista is regulated, but the state of Washington is so corrupt that I wouldn’t be surprised if the WUTC and Avista had some sort of back-room deal.
The whole thing is very similar to the general opinion of citizens of the S-R. The one-sided thinking and the lack of alternative perspectives are taking a toll on people. And that’s probably the only thing that’s holding Spokane back from being the city that it was meant to be.
Dazzeetrader11 on April 01 at 11:48 p.m.
Well there’s a BINGO Anthony…well said.
n8 on April 02 at 8:43 a.m.
JusticeForAll:
PUDs do not have shareholders to disperse profits to. So please, explain how cutting out profits would not reduce rates? PUDs pay the State Public Utility Tax on gross revenues plus the PUD customers pay any municipal taxes that are levied on them. PUDs are able to buy power from the BPA at preferential rates, but other than that, I’m not sure how they are subsidized.
The bad thing about private utilities (good for their investors) is that they can take profits when the going is good, but are shielded from risk and the downside by simply raising rates to “recover infrastructure investments and to cover increasing power supply costs.”
misjustice and Dan:
The Centralia Coal Plant and Mine (the mine is closed and the coal used in the plant is brought in by train from somewhere else) are owned by TransAlta of Canada. Avista sold its share (roughly 15%) in 2000. I don’t know if Avista buys electricity from the plant or not.
misjustice on April 02 at 9:46 a.m.
Oh, thanks n8..
And from your post I copied the following…
“The bad thing about private utilities (good for their investors) is that they can take profits when the going is good, but are shielded from risk and the downside by simply raising rates to “recover infrastructure investments and to cover increasing power supply costs.”
My words follow: So this analysis seems to suggest that private utilities “socialize” the risks and “privatize” the profits.
eagleproducer on April 02 at 9:53 a.m.
dtpp5: “Protected” monopolies don’t exist? How about Major League Baseball?
This issue comes down to energy prices and compensation of executives at companies that people don’t have a choice whether they use their service or not. I suppose a choice does exist, but the costs on either end of the spectrum either in opportunity or installing infrastructure are prohibitive.
Like I said, the salaries are justified because it’s SOOOOOOO difficult to run a company where your profits are essentially insured and with collusion and obfuscation you can create more profit using the shadowy veil of a so called democratic “process.”
Dan: The professionals who I work with, and for, who regularly produce videos don’t call what you you “did” a video. We call them slide shows. You would think with all that jack floating around Avista you could have outsourced that project to a local company that would have produced something with what we call production values. You could have helped meet a payroll at the same time. I’m not all that surprised by the lack of imagination and simplicity of what you “did” because the people I know with real talent would never whore themselves out to an energy company and expect to sleep at night.
I noticed you still failed to answer the amount Avista received in tax credits for infrastructure extension/maintenance in the last year for which records are available. Does Avista also get part of the tax credit available to property owners when they replace old windows or install a more efficient natural gas furnace? If not, do they receive a tax credit for the commercials aired encouraging Avista customers to take advantage of tax credits? If not, what is Avista’s incentive to spend money on initiatives that will adversely impact their bottom line?
You are still on the clock.
It’s always refreshing to watch Daisy froth with Pavlovian predictability each time an opportunity arises to defend a class of people who wouldn’t cross the street to spit on her should she be ablaze!
eagleproducer on April 02 at 9:59 a.m.
Public and Private systems exist side by side all over Washington. Has anyone here lived in the city of Seattle proper? The city owns the utility. My sister has never had a utility bill that exceeded fifty dollars.
Enron should remind people of what private ownership of power companies can mean. They have absolutely no incentive to try and lower their costs and since they are allowed to trade in as well as create their power, the opportunities to manipulate supply for shareholder profits are rampant and essentially unavoidable when not strongly regulated. Which they aren’t.
misjustice on April 02 at 10:19 a.m.
All I can say, spoketucky,is “WOW!”
Oh, and now I want to view Dan’s little power point presentation; you piqued my curiosity!
Dan_at_Avista on April 02 at 11:19 a.m.
Spoketucky, if you really want a discussion, stop the name calling, it does nothing for you. I’m not sure how you’re viewing tax credits because businesses and individuals are different of course, but Avista has recieved matching federal funds for smart grid projects in Spokane and Pullman as part of ARRA for infrastructure work. Details here: http://www.avistautilities.com/community/blog/archive/tags/Smart%20Grid/default.aspx
Avista does not keep, or profit from rebates for energy efficiency. You’ve pointed out a true conundrum for utilities - encouraging less usage, which is a nationwide issue. Washington state is rather strict on the energy savings requirements it manadates, thus we track those savings though rebate programs for example. If we don’t meet mandates, we’re penalized.
Since you “loved” my video/slide show, I’m sure you’ll just go nuts over my podcast which explains our rebate programs and how they are paid for. Listen here: http://www.avistautilities.com/community/blog/archive/2010/02/12/021210pod.aspx
n8 on April 02 at 11:45 a.m.
spoketucky:
I love how you are all over them on rate increases but want them to pay an outside vendor for a higher quality video. And, Dan has a good point, have a conversation about it and stop the belittling comments. Your sister’s cheap utility bill at Seattle City Light is because the City of Seattle owns a dam on in Eastern Washington; taking the resources of another county and transfer them to Seattle of its benefit with very little compensation for it.
Dan, your videos are pretty good and I appreciate your efforts to better Avista’s communications rather than just taking your pay and doing what has always been done.
JusticeForAll on April 02 at 12:19 p.m.
n8:
How would cutting out profits not reduce rates? In the immediate aftermath of removing profits, sure it would reduce rates. In the long run, what motivation factor would replace greed (profits for shareholders and management) for running an efficient and productive organization? Efficiency and productivity are lost. Nobody would care about finding the most cost-effective and efficient way of doing work, only what’s easiest. Have you ever worked for a government organization? I have. The one thing I always noticed was the waste, and nobody gave a crap because they all had a good gig. There was no fear of being replaced; there was nothing to motivate someone to go beyond the bare minimum.
spotucky:
What do you mean, no incentive to lower costs??? The lower the costs, the more money they take home and pay off as dividends.
misjustice on April 02 at 3:36 p.m.
Have to agree Justiceforall, greed is a great motivator!
eagleproducer on April 03 at 10:40 a.m.
Dan: What makes you think you can tell me what to do? Please point to the “name calling” in my last post directed at you. Simply saying it’s there won’t make it magically appear. I’ve tried that before when your company shut off my power, wishing it was warmer in my house, but it didn’t work.
So what you’ve conveniently left out up till now is that Avista gets HUGE subsidies to improve their infrastructure but still gets to pass the costs onto their customers. I’m glad you finally admitted what I knew all along.
misjustice on April 03 at 10:54 a.m.
“Socialize” the risks and “Privatize” the benefits!
Shylock13 on April 03 at 4:00 p.m.
Everyone PLEASE NOTE: “Dan” has never responded to my series of questions. What should/does that tell you about the validity of my position.
Also note that dtpt5 DID respond, in part, and I welcome his response.
dtpt5: Your lack of familiarity with logic is showing. Some logic is based upon a syllogism, which has two premises and a conclusion. To invalidate the conclusion, one must invalidate one of the premises. For example: (Premise 1) a public utility does not have a profit motive, but a private one does; (Premise 2) a public utility does not pay its CEO a huge salary, but a private one does; (Conclusion) public utility rates are lower than private ones. You do not even attempt to invalidate even one.
Your elephants in the trees comment is cute, but irrelevant. You provide no syllogism to invalidate, and invalidating your single statement is easy—elephants, except of course for Dumbo, have no way to climb trees (and he has no way to hang on), something VERY easily proven scientifically.
Logically, if you look at the empirical evidence, provided by the comments of folks above, and readily available on the internet, there is no way you, or anyone else, can reject my syllogism, and there is no way to support a position that private utilities have lower rates than public ones.
I am not sure why you are so in love with Avista and private utilities. Can you explain?
misjustice on April 03 at 6:47 p.m.
Stock owner? ; )
Dazzeetrader11 on April 03 at 8:55 p.m.
Comment is irrelvant kisj. This conversation boils down to people who are in favor of free enterpise and those who aren’t.
Namecalling is a fav tool of the libs…and while it might be fun for miscreants, it down’t forward the conversation..
Avista has never, by law ro anything else prevented another compnay from coming to the Inland NW. Theyhave sucha leg up after 100 years in the region , that it wouldn’t hard for anyone to compete…..made more difficult by recent events regarding taxation in the near future ( Gee Thanks Obama).
The money is being sucked out of potential investors by the government. Soon though, even Avista will be controlled by Obama. Then it’ll matter. For now though, the company serves the region with quite reasonable rates….compared to other parts of the country. They turn a nice profit too…which is expected in a “for profit system” without competition.
Morris runs a good company. Much much better than WWP was ten years ago. As I recall , the CEO flubbed so much he didn’t survie ( as in he died). They’ve recovered withthe investments they’ve made and with selling power to the other parts of the country…yes OUR power. Whever they need a dip or two, they raise rates. How that rate raise is calculated is unknown to the public. ….or at least the ratepayers who have no real say-so in anything. Avista basically justifies whatever it wants to the commission.
One thing is clear: if you geniuses want a hedge against the rates, you’re all free to become stockholder in Avista. Then, you not only get reduction of rates (as a practical matter) but you let the rest of the people pay for your retirements. It’s how the system works. Bet you’d be real happy then…..
misjustice on April 03 at 9:15 p.m.
Since you mentioned the President, Dazee, I thought it only appropriate to fill in a few things that you left out.
“it’s not good to have a spending wildman in the White House…..them thar Dims git everythings for free.. we have a virtual madman at the helm.. this little pretender in the WH. The rest of the world doesn’t trust Obama. They shouldn’t. Tyranny breeds this. Tyranny… That’s tyranny. Obama loves it.
Obama was elected by a majority.. despotic abuse of authority….. people don’t like tyranny;) I know one when I see one…..he’s a Socialist. Tyranny only goes so far. arbitrary or unrestrained exercise of power. Tyrannical Socialism is one step back from the Russia of old.
America seems to be waking up after 14.5 months of tyranny…. I cannot imagine Obama surviving given the tenor of his first year. disfavor of the Obama… he plotted for the Presidency. Dreams from the faux messiah. In America, you’re on your own.
He concealed, shucked, bobbed and weaved until his own pride and inexperience have lifted the veil on this “wonderkind”. Terrible days ahead for America. Communists/Socialists love this type of thing… Obama will take what he wants. Obama is an idealogue. I’m not a caucasian goofy.. obama takes over. do whatever’s necessary to control citizens. and most of his work has been directed at tearing down the Constitution by any and every means
Obama has never been in the real world of work. he is trying to make his vision work… Jobs matter to him so he can notch an accomplishment and be re-elected. He’s fled reality complete liberal socialist Communists/Socialists love this type of thing….it cripples production, jobs, etc. It’s a version of mayhem….and what follows is…..??? Guess! Wake America….”they’re here”… and obama takes over
Next up: Immigration…he’ll try to buy their votes too. a version of mayhem… control citizens and push his ideas throughwhy they’re angry. Is it a sign of the Obama times? He won’t save you…..Don’t be so angry you can be rewarded too…..In Obama’s America Everyone should be the same (except him and his chosen helpers)… It’s garbage people. why so angry? you’re out of sortswhat’s up with your anger
The rest of the world doesn’t trust Obama. They shouldn’t. them thar Dims git everythings for free.. this new “peacock”…. we have a virtual madman at the helm this little pretender in the WH Tyranny… Obamacare. ignored the will of the people. people don’t like tyranny;) I know one when I see one…..he’s a Socialist. That’s tyranny. Obama loves it. And don’t patronize me. Stick to the facts and you might make a point worth considering. america seems to be waking up after 14.5 months of tyranny Tyrannical Socialism
Dreams from the faux messiah Obama will take what he wants Obama is an idealogue I’m not a caucasian goofy..I do have common sense though obama takes over If you ever read something instead of just mouthing off, you might be close to literate..not smart but conversant with some intelligence added in. Obama has never been in the real world tearing down the Constitution by any and every means.
Obama shucked, bobbed and weaved this imposter wildman in the White House…..them thar Dims git everythings for free.. this new “peacock”…. a virtual madman this little pretender in the WH Obama was elected by a majority Tyranny breeds this That’s tyranny. Obama loves it. And don’t patronize me. the will of the people. people don’t like tyranny;) I know one when I see one…..he’s a Socialist.”
There, did I leave anything out from your previous rants?
Dazzeetrader11 on April 03 at 10:33 p.m.
Yes I have a bit more though……. your goofiness is like porn…Can’t quantify it but I know it when I see it…just plain ill prepared.. You’re not only a total ditz…you can’t read well either. When did you hit it the head? You don’t understand any of this…just superficial remarks…like you have a perpetual concussion.
You haven’t refuted one thing let alone offer a cogent thought or argument. You write things you may have heard somewhere like a jr high dance. Not one new idea or not one shred of substance…just Shirley Temple lolipop stuff.
And THIS is what America has become….voting privileges…why waste em one someone brainless who cannot or will not understand the gravity of the situation.. The charm of America I guess…
misjustice on April 03 at 10:44 p.m.
And Mr. Morris wouldn’t even hire you to clean his toilets; so why so faithful?
I, and others that write on various subjects on the SR blogs, have continually tried to present you with evidence that will meet your oh, so high standards; you continually name call, belittle, and posture; acting as if you are the only person that every did f’in any thing to make this world a better place.
No matter what is said, or what the topic is, you always go back to your “socialist” rant against the President, and you never produce anything to substantiate your rants. So, in the name of economy, I will post for you or at least follow your rants, with more of your rants, to make YOUR point.
spoketucky nailed it when he wrote; “It’s always refreshing to watch Daisy froth with Pavlovian predictability each time an opportunity arises to defend a class of people who wouldn’t cross the street to spit on her should she be ablaze!”
Oh, Rush called; he needs someone to go pick up his oxycontin!
Dazzeetrader11 on April 04 at 1:01 a.m.
Tucky knows nothing but left wing blather. Not so far from him resides Scoutster although he can make a decent argument…
You, however..I’ve decided I owe an apology to misj. I’ve been hard on you. …remember though..it’s incumbent upon you to be smart and well spoken…and well thought out. These guys won’t help. Just remember that..it’s up to you to be an excellent young woman.
With that, I apologise to you..Best wishes.
Daisy
ps Happy Easter all my boardmates.
eagleproducer on April 04 at 10:06 a.m.
A Shirley Temple reference?
I’ll bet Misjustice had to Topeka that one!
Ahhhh, Dazee… there used to this thing called Vaudeville… gimme a C, a bouncy C!
As for my “left wing blather,” who cares if its just “blather.” “Blather” is harmless, right? What you don’t like is that the “blather” that is coming from progressives is finally being implemented into policies that won’t permit you to continue supporting policy choices that are clearly against your best interests.
We’ve saved you from yourself, Dazee!
eagleproducer on April 04 at 10:12 a.m.
Okay Daze, I’ll bite:
A socialist would never have transferred nearly a trillion dollars to the financial sector.
A socialist would not escalate a nebulously defined foreign conflict.
A socialist would have insisted upon a single payer health care system instead of delivering to the the private insurance sector 30 million new tax payer funded customers.
A socialist would have taken over the car companies and not paid them billions to shut down plants and fire workers.
Obama is not a socialist. Not even close. He’s a business friendly centrist like Clinton, surrounding by neoliberal economic advisors who simply want the keep the wheels of the gravy train well greased for the already wealthy. They have a way to co-opt everything and everybody to suit their needs.
D Statler on April 04 at 8:57 p.m.
KIDS, KIDS, KIDS, I don’t think even Dan can figure out what to do with you. First of all,AVISTA wasn’t on my energy bills decades ago. I seem to remember making my payments to Washington Water Power. I am pretty sure the name is still in a prominent spot downtown.LOL AVISTA is a good place to work in a community that is suffering. I think even the grounds persons are treated good.I thanked AVISTA’s CEO for taking care of their employees at a rate hearing. If they didn’t, we as taxpayers would be paying for that too on top of the ever increasing rates. I mentioned in a earlier post how a good neighbor wouldn’t drink all the water before passing the canteen to his neighbor. Maybe Dan could pass this on to the upper managment at AVISTA. I also mentioned at the rates meeting that if the CEO donated a portion of his EXECUTIVE COMPENSATION to building fish ladders. We could go fishing for the biggest salmon in the world on his lunch break just accross the street. I would be happy to donate to that cause too. Last I would like to mention that a windfarm project was permitted and started.Then sheved so that it would not create a glut of electricity in the Northwest. So much for looking to the future.The only saving grace is technology in the turbine industry is getting better daily.AVISTA is manipulating supplies. They are also manipulating the WUTC. I believe AVISTA has what it takes to be a good neighbor. I just wish they would tighten their belts in the hard times like the rest of us have to. Leave alittle water in the canteen for your neighbors to have a drink :^)
misjustice on April 04 at 10:23 p.m.
Hey, hey, undooly; you raise some great questions…re; manipulating the supply of power to jusitify rate increases…and influence/pressure on the WUTC. Additionally,why a rate increase in difficult economic times can be justified; especially given the generous compensation package of Avista’s CEO…
And I still question the why the risks of running a public utility are socialized while the benefits are privatized????
D Statler on April 05 at 7:42 a.m.
There are no risks with a socialized utility. We have plenty of qualified leaders that would be happy to receive 2 or 3 hundred thousand a year. The posters here that are against such a move probably own AVISTA stock. LOL We actually could live with AVISTA if the WUTC excercised better judgement when agreeing to increases.Who in the world would agree to a guaranteed 10%plus profit margin to begin with? They need to learn to say NO once in awhile.REREGULATION might be the answer too. Believe me,AVISTA is healthy enough to survive a couple NO rulings! We all need to keep writing those letters to the WUTC and the AG’s offices.Thanks to everbody for the insight. I hope Dan takes some of this back to AVISTA leaders.
n8 on April 05 at 9:08 a.m.
undooly_prosecuted: PUDs do have risks, poor management will effect your bill, be it either a PUD or a private utility.
The biggest difference between a PUD and a private utility is that a PUD is governed by a locally elected board of commissions which sets the rates and hires a general manager (like a CEO) to run the day to day operations. A Private utility must have permission from the WUTC to change rates. Generally speaking, a general manager’s salary is lower than a CEO’s at a private utility, but I see from reading that Wenatchee World, there are nut cases that complain about a general manager’s pay even when it is 15% of what Avista’s CEO makes. Chelan County PUD’s rates are much lower than Avistas and you still get all the same hate about rate increases and pay over there as you do here.
Here is one for all readers to answer for Dan, since he is too nice to ask it:
What do you pay per month for your cell phone, cable/dish and internet? I bet you that it’s near to what you pay for electricity. In may case it is more. Really, think what goes into those services and what goes into getting power to your home every day.
Ron_the_Cop on April 05 at 4:35 p.m.
Dan, and Ms. Hatch,
Dan I really do appreciate your informative comments here. Coming from So Cal and having worked for a City that owned it’s own utility, your rates are still substantially lower here. Largely because of hydro power generation. Of all things for certain tax policies reasons - conservation/green reasons - dams and the electric power that they generate is not considered a renewable resource. I’ve only been here for several years. AVISTA and probably largely for the actions of its predecessor, Washington Water Power Company, there is lingering public suspicion. I know one of Avista’s current executives. Knowing this person I would find it highly unlikely that they would engage in any inappropriate/suspicious behavior that seems to have been the norm for WWP.
Mr. Adams is quite correct that WWP got caught gaming the market. Ms. Hatch there was a very cozy relationship between the Cowles family and WWP as the Cowles owned substantial shares in the Company. For a primer on this read Tim Connor’s recent interview with your own investigative Spokesman-Review Reporter Karen Dorn Steele:
“Clearly, a turning point came early in her career at the Review/Chronicle when, in February of 1983, Wendel Satre, the board chairman of Washington Water Power Company (now Avista) was allowed to obstruct her reporting on a devastating exposé involving WWP. All it took was a phone call to the paper’s publisher, William H. Cowles III. As it turned out, the effort to spike and then re-write the story backfired, not only on on Washington Water Power, but on the newspaper. You can read my former colleague Larry Shook’s article about it for the Seattle Weekly here [ http://tinyurl.com/yczxybc ]
The episode could have been the end of her career in Spokane. But it wasn’t. She says she made her views known, and then tried to focus on regional stories that she thought would avoid future conflicts with the publisher. But the tensions never really went away. They re-emerged, most visibly, twenty years later for her, Morlin and other Spokesman-Review journalists during the River Park Square controversy in the way that the publisher’s conflicts of interest demoralized the paper’s newsroom. It is one of many issues she candidly discusses in the following interview.”
http://cforjustice.org/2009/07/04/outside-looking-back/
Ms. Hatch, yes I am very sensitive to the S-R practice of self-censoring, low balling and/or under reporting stories that have a direct impact on the Cowles Co.’s interests. The most recent under reporting was with the formal nomination and submission of Michael Ormsby as the US Atty for the Eastern District of WA to the US Senate for confirmation. Neither Mr. Camden or Mr. Craig in their stories on Ormsby mentioned the IRS’s scathing public rebuke of Ormsby. As I wrote recently:
“You’d think the Obama vetters would have discovered Ormsby has considerable baggage and there is bi-partisan opposition. The IRS was not all impressed with Ormsby’s ethical/ professional standards:
This is the same Michael Ormsby that the IRS took the unprecedented action of castigating publicly in implicating him in the RPS bond fraud as reported in Bond Buyer[http://tinyurl.com/yj8yfgr] for, “… incompetence and disreputable conduct” The Bond Buyer mistakenly reported though that the tax-exempt status of the RPS bonds was preserved in this settlement. In fact the tax-exempt status was disallowed and the IRS got its back taxes … through a secret deal with Preston & Gates” . . .
Readers wishing more on the Ormsby’s nomination can read more here:
“An ‘Ominous’ Pick” - Tim Connor at the Center for Justice
http://cforjustice.org/2010/03/24/an-ominous-pick/
“The dark implications of a U.S. Attorney nomination,” Larry Shook of Camas Magazine
http://www.camasmagazine.com/articles/viewArticle.asp?aid=218
Det. Ron Wright (Retired)
Ron_the_Cop on April 05 at 4:39 p.m.
Misjustice,
Sorry off thread but since this went off thread to Obama being a socialist or not:-)
Misjustice re President Obama could you please tell him that I have no objection to picking a US Atty of like mind. I do have major issues re the nomination of Ormsby for the top federal law enforcement officer for this judicial district. This nominee must have high ethical and professional standards. Ormsby has none of these. There surly must be more qualified candidates that Cantwell/Murray can nominate that will not carry the water for the Cowleses like McDevitt has:-)
Ron_the_Cop on April 05 at 5:11 p.m.
Sorry the link to the Bond Buyer was not active. Try this one:
http://tinyurl.com/yj8yfgr
misjustice on April 05 at 5:31 p.m.
Dear Ron:
I do not have a direct line to President Obama but I will attempt to pass along your concerns, and also will inform you any response.
Sincerely,
MisJustice
; )
Ron_the_Cop on April 05 at 6:08 p.m.
Misjustice,
Thank you. I’m in the process of writing the Senate Judiciary Committee to advise them of Mr. Ormsby’s lapses in professional ethics and standards. Whether you agree with the Obama Administration or not, this Administration can’t really afford to have another one of their appointees/nominees that will tank. Ormsby’s a ticking time bomb.
misjustice on April 05 at 6:48 p.m.
Well, good luck with that Ron!
I’m sure that you will be as successful with that project as you have been in ridding Spokane of the corruption that you think eminates from the Cowles family criminal enterprise; and which you endlessly rail against in your posts, regardless of the thread.
Everyone has hobbies, some people fish, some collect stamps. You root out evil and criminal collusion where ever you may find it! ; )
Ron_the_Cop on April 05 at 7:10 p.m.
Misjustice,
Thanks for your confidence;-)
D Statler on April 05 at 9:47 p.m.
n8, As I said in my last post.There are plenty of really good managers that would be happy to do the job for two or three hundred thousand a year. No need for the 3 million a year baggage. I appreciate and listen to all opinions here.I have noticed that not too many people believe AVISTA execs deserve this kinda compensation.I wanna keep this thread on track.THESE GUYS ARE SUPER GREEDY!!!
Did I mention I received my bill today and it had a nice were gonna raise your rates pamplet with it. Please take the time to file your complaints with the corrupt WUTC and the short sided AG’s office.As AVISTA puts it: EVERY LITTLE BIT HELPS! LOL
misjustice on April 06 at 8:36 a.m.
Great points, undooly…only 3 or 4 people on this thread applaud the obscene compensation package of Mr. Morris; the majority of comments question the timing of rate increases during an economic downturn and also raise other valid concerns such as how our power needs are generated.
eagleproducer on April 06 at 3:11 p.m.
And don’t forget, misjustice, that Avista public honk, Dan, readily admitted Avista receives generous subsidies for infrastructure and expansion but STILL seeks rate increases to offset those costs.
Sounds like they get us coming and going, eh?
misjustice on April 06 at 4:53 p.m.
Spoketucky, it’s like my short post re: “socialize” the risks and “privatize” the benefits…Notice that Dan, the Corporate Answer Man hasn’t been as attentive lately. Maybe he’s making another fancy video??? ; )
spock1497 on April 07 at 1:36 a.m.
just pay there suckers a straight salary and no more
big bucks for these so called ceo
3 million bucks are they silly and are we stupid for
letting them get away with it
eagleproducer on April 07 at 10:27 a.m.
misj: Exactly. Your post and mine reading “it’s so hard to recruit and retain the type of talent required to operate a monopoly of an essential service at a profit” should be placed side by side at the top of the comments listing to spare others from reading the corporate goose stepping of Dan.
n8 on April 07 at 12:18 p.m.
Let’s remember that while it is a monopoly, it still is a private company that is regulated by the State. If you don’t like it, form a PUD or COOP or go off the grid or start your own competing company. While I think that the executive pay is extremely excessive, it is a private company. Don’t like, take some of your money, buy stock and vote in a new board.
Or better yet, if you own a home, make some improvements to it so you are more energy efficient and start reducing your energy use. Avista will even give you rebates to do it (although I think they are required by law to do so, it’s not like they are doing this on their own):
http://www.avistautilities.com/savings/rebates/Pages/WashingtonandIdahoCustomerRebates.aspx
They will help you have a reduced-cost audit to find out where you’ll get the biggest savings:
http://www.avistautilities.com/savings/inhomeaudit/Pages/default.aspx
And they will help you get a loan to do it if you don’t have the money:
http://www.avistautilities.com/savings/energyloan/Pages/default.aspx
n8 on April 07 at 12:22 p.m.
JusticeForAll: Obviously Washington State its PUDs have cheaper rates.
Hydropower draws BMW carbon-fiber factory to Washington
“Cheap, abundant hydroelectric power.
That’s the chief reason BMW and another German company chose Moses Lake as the site for a new plant to make carbon fibers to use in building a new, lightweight BMW electric car, company executives said in Seattle Tuesday.”
http://seattletimes.nwsource.com/html/businesstechnology/2011539444_moseslake07.html?syndication=rss
eagleproducer on April 07 at 6:36 p.m.
n8: The programs Avista offers to homeowners are subsidized by the federal government from stimulus funds. They aren’t reaching into their own pockets to encourage less consumption of their product. Home improvement loans for weatherizing more often than not carry interest rates that are so high any savings in energy costs are offset.