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| I have wondered what would happen if the Muni drove prices down so far that they were losing money on the service. Would the taxpayer then have to subsidize those operations ?
As a taxpayer, I would not like this at all since I would have no choice in the matter. | | |
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TACSPEEDPremium
join:2001-04-14
Tacoma, WA | quote:
what would happen if the Muni drove prices down so far that they were losing money on the service. Would the taxpayer then have to subsidize those operations ?
The services are suppose to be self supporting. I guess if they continued to lose money over a long period of time they would have two choices: shut down the system or find a way to subsidize the operation. Since Grant county PUD is using the network for electrical monitoring, any subsidy necessary would most likely come from shifting more of cost of the network to the electrical side of the equation.
As far as changing the Washington state law to allow Muni's to supply retail services, I'm all for it! I feel my ISP, Advanced Stream, and the other two ISP's using Click! are raping their customers at the higher levels of service.
BTW, Luke Esser is Qwest's main lackey in the Washington state.
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Fiber Optics is the future of high-speed internet access. Stop by the BBR Fiber Optic Forum. | |
 winkyTurn Left At The Moon
join:2001-02-11
Saint Louis, MO | DUDE! You must be physic: "The services are supposed to be self supporting. I guess if they continued to lose money over a long period of time they would have two choices: shut down the system or find a way to subsidize the operation. Since Grant county PUD is using the network for electrical monitoring, any subsidy necessary would most likely come from shifting more of cost of the network to the electrical side of the equation."
DUDE! You must be physic:
Dalton Georgia starts a "Cable Company" to compete with Charter
From:
»www.zwire.com/site/news.cfm?news···62&rfi=8
"Dalton Utilities residential customers will likely see their electric bills go up by 12 to 13 percent in November as officials move to stem losses they say could eventually put the utility in financial trouble.
The board which governs the utility voted unanimously Monday to increase some rates to keep from eroding the utility's $300 million in investments.
"Residential sewer rates will also go up substantially, and industrial customers will be paying higher electric and sewer rates as well", CEO Don Cope said.
"As much as we regret having to increase rates, we do not think it is prudent to continue to subsidize the rates until all of our capital has been depleted," he said.
Burkett, who served on the board several years ago and was appointed again by the City Council at the start of this year, said the utility has been losing money "for at least eight years, that I know of."
"Cope said rates will now be adjusted each fall as part of the utility's budget process. Rates for any one service will not go up by more than 20 percent in any year, he said."
"The only area where the utility won't use investment income to offset rates is in its new fiber optics services", Bethel said.
The utility is using its fiber optics network to offer telephone, cable TV and high-speed Internet access, competing with area providers Alltel and Charter Communications.
"When you are in an arena where you are competing head-to-head with other providers, it wouldn't be fair, and it would be against the law, to subsidize your rates," Bethel said."
I may have altered the general tone of the article, so you'll want to check the link.
Gee, Ya think it might start to cost 'em sumpin? Of course Charter lowered its rates, which was nice. The city slapped Charter with some new stipulations concerning response times for tech support and service..I wonder if the city will live up to it's own regulations. Posted comments from the citizens (only 3) are not favorable. It'll be nice if it works out for them, but since municipals lack the ability to operate in a vaccume they are often at the mercy of the whims and vagaries of public opinion.
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