State rejects rate hike for utility's y2k compliance

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Madsion (AP) - The state Public Service Commission has rejected a request by one of Wisconsin's biggest public utilities for a rate increase to cover costs of preparing computers for y2k.

The decision Tuesday against Alliant Energy Corp. of Madison saves customers from paying 50 cents to $1 extra on their utility bills for 18 months.

The commission refused Alliant's request because the company pledged not to raise rates for four years in exchange for permission to merge in 1998 with two Iowa utilities, PSC spokesman Jeff Butson said.

Under the pledge, rates could only rise in an emergency.

"If ever there was a one-time extraordinary event that warranted our attention and justified rate recovery, y2k is it," Alliant executive Bill Harvey said. "The millenium date rollover is the single grestest technological challenge ever faced by American businesses."

-- dan (dbuchner@logistics.calibersys.com), August 05, 1999

Answers

Stupid is, as stupid does. Who can figure? Wonder what that commission will think about that $1 i/w (if & when). I'd like to believe they know (not believe) everything's ok. The irate citizenry is not evident because they do believe (not know) that all's ok. For the want of an half-a-buck the Kinddom maybe is lost.

-- scratchmyhead (sillyputty@usa...), August 05, 1999.

I would submit to the state as a home owner I would be glad to pay an extra $1.00 a month if Alliant Energy would submit in writting there third party verified compliance to date. I can see there answer know. (sorry just forget it)

-- Les (yoyo@tolate.com), August 05, 1999.

This is one of the reasons why the demand for y2k programmers never materialized and the cost of y2k has not reached the expected $600 billion.

-- a (a@a.a), August 05, 1999.

Ahem, excuse me, but do you think Alliant didn't know about the y2k problem when they pledged not to raise rates for 4 years in exchange for permission to merge with the two Iowa Utilities in 1998?

I'll bet when they put in the 'emergency clause' they had already decided they would pull out the 'y2k emergency - we need to hike rates' card in 1999.

Sure, I'd pay more if it would fix the problem.

On the other hand, this proposed rate hike is supposed to cover costs already expended to fix the y2k problems. And I don't see them coming out and saying there is a fix or that will be no problems.

Interestingly they alluded to brochures they printed about y2k in a newletter billing insert. "Copies of the brochure have been distributed to area public libraries."

Perhaps Mr. Harvey has some dichotomous thought processes going on here. He says, "The millenium date rollover is the single grestest technological challenge ever faced by American businesses." But his actions don't even extend to ensuring that customers receive a copy of their y2k bulletin.

(I did obtain one - I don't have it handy, but the bottom line was they are giving no guarantees. At least they aren't sugar coating it.)

Just a tad cynical again...

-- winter wondering (winterwondering@yahoo.com), August 05, 1999.


Moderation questions? read the FAQ