At the same time that the members of the Public Utility Board and the City Commission passed the rate hikes last December, no one was told that both these entities were simultaneously committing the people of Brownsville to foot a major portion of the bill of the newly-announced deal to build a multimillion (several hundreds) dollar power plant.
Typical of Mayor Tony Martinez's style of leadership by deceit (he is an ex-officio member of the PUB), the increase in rates was passed with nary a peep from the rest of the commission or without any input from the public. Oh, sure, there was the perfunctory public hearings that no one attends. But do you remember hearing from any pubic official (Martinez included) that by passing the rate hikes the citizenry was being committed to paying $100s of millions (more then $200 million, to be exact) to help a private energy firm build a power plant that will make them millions in profits in the future?
There is no denying that Brownsville will need more electric energy in coming years based on population-growth projections. Now that we are apparently committed financially to build this 800-megawatt natural-gas electric generating plant, just what will we be getting?
If the plant that Tenaska already has in operation in Enterprise, Texas, is any guide, we can expect that it will be as the Internet description on its website states:"The (plant is a ) 845-megawatt natural gas-fueled, combined-cycle electric generating station...The $200-million-plus facility provides Rusk County (insert Brownsville?) with significant financial benefits. The plant provides 25 to 30 well-paid, permanent jobs and generates an annual payroll, including subcontractor services and vendors, of more than $6.3 million. The plant will pay millions of dollars of property tax revenue over its operating life, providing revenue that can be used for roads, law enforcement, and services. However, the plant does not require a large number of permanent workers who would increase demands for schools, roads, fire protection or other services.
"Generating equipment includes three General Electric Frame 7FA gas turbines, three heat recovery steam generators and one General Electric steam turbine. Natural gas to fuel the plant is provided by Shell.
Tenaska developed the project and formed Tenaska Gateway Partners, Ltd., a Texas limited partnership, to build and own the facility. Tenaska affiliates serve as the managing partner and the operator."
Since Brownsville (a public entity) is going to be one-quarter owner of the 800-megawatt plant, will that mean that Tanaska will only pay three-quarters of property-tax revenues also? Or is there a deal for the company not to pay?
(We'll be asking for a copy of the Tenaska-PUB-City of Brownsville agreement to see what tax-breaks were included in the deal.)
BPUB CEO and General Manager John Bruciak said that PUB will pay for its 200 megawatts through a series of small rate increases over the next five years. He said a portion of that additional money will go for maintenance, repair and replacement of the utility’s existing infrastructure.
Those "small" increases (which by the way the Herald never reported) were approved in December during a special meeting. They adopted upwards rate hikes that will see city residents pay a 36 percent increase in electric rates over the next three years, a 20 percent increase in water rates over the same period, and a 6 percent hike in waste water costs over two years.
Under the plan approved by both bodies, electric rates alone will go up by 14 percent by October 2013 and another 22 percent by October 2016.
Bruciak said. PUB ratepayers will not foot the bill for construction of the water and gas pipelines.
Gee, thanks, John.
And no matter that Hizzoner Da Mayor keeps repeating the same shibboleth about Brownsville residents paying lower rates than anyone in Texas (except San Marcos), we know this isn't true.
"We’re also competing with — I think it’s San Marcos — for the lowest rates in the state of Texas. That’s a great quality to have when you go out there and do what I do and go sell the community. It makes it real easy,” Martinez intoned.
The residents of this city have footed (and continue to foot) the bill for all of what PUB and the City of Brownsville have and do. The least the city commission and the PUB can do is to let them know what they are doing with their money and ask them if they agree rather than presenting their actions as a fait accompli to be taken or left after the fact.
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