Spokane7
68°
February 4, 2012 in Opinion, Letters
End the Avista monopoly
You would never know it looking at your Avista bill that natural gas prices have dropped about 50 percent during the last year, from about $5 per thousand British thermal units to $2.50. Prices have dropped due to a glut in production.
A bill reduction never happened, however. Appointed commissioners are again asleep at the switch. So what’s happening to the extra money? It is going out in increased salaries and benefits for corporate executives and for increased dividend payments to Wall Street stockholders. Currently, producers are also trying to restrict supply to drive up prices (sounds like OPEC).
The last time there was a temporary spike in natural gas prices, in 2001 to $15 per thousand BTUs, Avista got a temporary surcharge of 20 percent, which lasted for about 10 years.
It is time to change Avista from a for-profit monopoly utility into a Public Utility District like those in Seattle and other areas. There is no reason for a private corporation to be in charge of a basic need of heat and power.
David Smith
Post Falls
Trudy Rubin: Egyptians say no to Islamists 
liveinfearoftheSPD on February 04 at 8:13 p.m.
It is beyond time to do away with this and all monopolies.
greenenergy1234 on February 05 at 2:35 p.m.
A few points here:
1. Economics 101. Power companies are natural monopolies due to the necessity of crisscrossing the city and countryside with power lines, which creates a huge requirement for capital expenditures, which would never be worth the risk unless there were the profit protection that comes from being a regulated monopoly.
2. The majority of Avista’s power comes from hydroelectric sources rather than natural gas, so that should be clear.
3. The thing about natural gas is that it fluctuates over time; there’s a liability item on Avista’s balance sheet called “Natural gas deferrals,” which represents future reductions in rates that are owed when gas is going down (and that prevents increases when it’s on the upswing). There’s a section in the company’s annual report called “Power Cost Deferrals and Recovery Mechanisms” if you care to find out the reality of the situation.
4. Finally, if you think Avista is making too much money, the best thing to do is to buy stock in it. That way you can benefit from it too. (Send your dividend checks to charity or use them to support your family.) One thing I have learned is, “If you can’t beat ‘em, join ‘em.” That sure beats “occupying” or camping out at city hall with no toilets or showers while being made fun of by the media and harassed by cops.
greyhound2 on February 08 at 5:22 p.m.
alledged “green”energy,
If you think the train robbers are making too much money, the best thing is to do is grab a gun and steal the old lady’s purse for the cash and the credit cards. which you can use the cards up and then sell to illegals for use as an ID. Sure beats “occupying” and sleeping in a tent for 3 months.
The hydropower was built in the ‘30s by taxpayers in the New Deal program. While Avista has a few small dams, they are not even a drop in the bucket in production. For heat, compare your July bill with your January bill. That is the diffrence.
Power companies are not natural monopolies. They are predatory monoplies who have no morals, no social responsibility and no concern about the mess left behind after they have raped the population, gutted the enviornment and sold off the assets before they declare bankruptcy and then leave town. And “Cost Deferrals” are a joke, why would Avista get a 20% surcharge for a spike and then continue it for 10 years? Ha, Ha.