2016-03-11 / Letters

Ratepayers need to break down the numbers for themselves

To the editor: To KLPD ratepayers,

In looking at the numbers presented by the Kennebunk Light and Power District for Alternative 1 (hydro relicensing/ keep the dams), I was initially overwhelmed by the steep costs associated with this alternative. Despite repeated requests by the ratepayers to get KLPD to give additional cost information, no data has yet been produced. I found the whole situation rather upsetting. So instead of being reactive, I became proactive.

Wright Pierce was hired by KLPD to develop different alternatives for the dams on the Mousam River. This company provided KLPD with the following estimated costs and revenues for Alternative 1: the estimated cost of this alternative range from $8,844,989 to $11,680,989; value of generated electricity of $6,909,000; and thus an estimated loss range from $1,935,989 to $4,771,989.

KLPD’s report heralding the nearly $2 million to $5 million price tag for the monetary loss of Alternative 1 is based on a 46 year cost projection. That’s right, 46 years. The way it is presented has great shock value and seems written to do exactly that. The fact is, under Alternative 1, a residential ratepayer that used 644 KWH per month would only have to pay an additional low of $3.48 to a high of $8.59 extra per year. That’s what you’d spend for 1 to 2.5 cans of coffee at the supermarket.

My conclusion was that KLPD’s cost presentation to the ratepayers was down right intimidating. There was no way of identifying costs we could understand. Simply put, no way of telling the ratepayer how much extra it will cost each month or year.

The breakdown for determining how much it will cost: First divide the loss range of $1,935,989 or $4,771,989 by 46 years which gives you the loss field of $42,086.72 or $103,738.89 per year; then divide by KLPD’s aggregate yearly KWH (93.33 million KWH). Thus, the magic numbers are from $.00045093 to $.00111149.

These magic numbers represents the extra amount needed per KWH to cover the loss stated in the WP’s report. To clarify, the ratepayer is presently paying $.105 per KWH. Under Alternative #1, when the magic numbers are added, $.00045093 or $.00111149, the future KWH rates will be from $.10545093 to $.10611149.

So don’t take my word for it, figure it out yourself. Get that magic number and just multiply away.

Remember, do the right thing, make sure KLPD keeps the dams. Help the planet and our town. Then make yourself a cup of coffee.

Daniel J. Bartilucci

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