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One potential reason I can come up with is the dam aging and becoming a liability. The town may also have been putting other revenues towards the electric util
by maxerickson 2y ago
One potential reason I can come up with is the dam aging and becoming a liability.
The town may also have been putting other revenues towards the electric utility (so losing money on the service and billing).
It was probably just a mistake though.
My town charges about $0.11 per kwh, with a fixed monthly service fee making the effective rate for a small user closer to $0.20.
- fooqux 2y agoI think you're spot on. Damn failures are on the rise, and usually it's due to the simple fact that maintenance is expensive and everything has a shelf life. A lot of these dams were built during the same time period and the cost to replace / maintain the aging infrastructure is tough for small communities to swallow. And they're all coming due at roughly the same time. Selling to a larger company who hopefully has the capital to fix them seems like a bargain when compared to the cost of replacing a hydro dam (or even replacing it with a non-electric generating dam). Of course, that does come at a cost, and it's probably spread across all rate payers.