And commissioners made it clear that the citizens of the city will be the primary beneficiaries of some $89,689,956 in credit that is projected to come to WG&L from the Municipal Electric Authority of Georgia through 2018.
“We’re just throwing out ideas right now, but one of the things that has been mentioned is for half of the funds that come in in 2009 to be used to directly benefit the rate-payers,” City Manager Alfred Lott said. “I certainly recommend that that be given consideration.”
City Commissioner Dorothy Hubbard suggested that one way to help all citizens of Albany is to find a means through which interest from some of the funds could be set aside as incentives to draw businesses to the area.
“One thing we have to do is think about the future, about how these funds can help our children and grandchildren,” Hubbard said after the meeting. “I asked Mr. (Lem) Edwards (WG&L’s general manager) if the (current rate-payers) were overcharged or if the funds they paid in were misused, because I feel that if they weren’t, then they got what they paid for.
“These funds could help secure the future of our young people. I don’t know how it’s being done — I plan to investigate — but there are other municipalities that are creating funds that help them with economic development. That’s a way for some of this money to work for us.”
Other suggested uses of the credit that will come to WG&L in yearly increments ranging from a projected $5,220,802 in 2018 to a whopping $12,131,760 in 2014, included building up WG&L reserves that now stand at between $5 million and $6 million, improving the utilities authority’s infrastructure and updating outdated equipment, boosting city economic development and exploring the possibility of investing some of the funds.
The joint city/WG&L meeting included Commissioners Hubbard and Tommie Postell from the city and WG&L board members Carol Fullerton and Andrew Reid. Lott and Edwards supervised the meeting. City Commissioner Bob Langstaff, who was not present, was selected by the city commission to take part in the discussion.
Edwards explained that the funds were paid into MEAG by its 49 members as a hedge against feared federal deregulation of electricity, an action that was never taken. Bonds were issued, and those bonds mature in 2009. A dollar-for- dollar credit, plus interest, will be returned to each member of the authority.
The WG&L general manager, who suggested that the authority work with the Albany Area Chamber of Commerce and Albany-Dougherty Economic Development Commission in an effort to promote job growth, said some funds generated by the credit could be used to offset costs incurred by the Chamber and EDC.
“Of course, if we’re going to contribute to their efforts, it seems right that we have a voice on their board,” Edwards said after the meeting. “I think if we all worked together as a team, some of the money could be used to offset the costs of efforts to try and generate more jobs.”
Postell said his main concern was that Albany rate- payers (and WG&L customers) get a break with the windfall.
“Some of these people can’t pay their bills now, and you just raised the rates by 5 percent,” he said. “These people are suffering. That’s where this money needs to go, to give these rate-payers some relief.”
Edwards said rate-payers would be given consideration, but he noted that the rising cost of fuel, water restrictions mandated by the state and other weather-related issues will enter into the equation.
“You can’t gamble with this money,” he said. “When you gamble, sometimes you lose.”
Postell spent a good portion of the meeting chastising WG&L for “not responding to the city commission’s request for a meeting in a timely manner” and reiterating his often- stated position that the city commission is “in charge” of the Water, Gas & Light Commission.
“Just so we’re clear, we (city commissioners) will be in charge of any money that comes in,” he said. He later added, “If this dialog had taken place in February when we first requested it, that rate increase would not have taken place. The Water, Gas & Light Commission board, which is appointed by the city commission, is not letting us know what’s going on.
“I am disturbed that (the WG&L board) would tell us they don’t have time to meet with us.”
After Fullerton and Reid denied making such statements, Edwards vehemently disputed Postell’s accusation.
“I’ll say, point-blank, this is far-fetched,” he said. “I’m not aware of anyone associated with Water, Gas & Light ever saying to anybody that they didn’t have time to meet with the (city) commission. This is the first time I’ve heard this; it’s ridiculous to suggest such.”
Postell countered by asking, “Then why did it take you from February to June to set up this meeting with us?”
Hubbard finally steered the conversation back on track by asking about WG&L reserves.
MEGA-WATT MILLIONS
The projected amount of credit Albany’s Water, Gas & Light Commission will receive from the Municipal Electric Authority of Georgia over the next 10 years:
YEAR BILLING CREDIT
2009 $8,874,282
2010 $8,542,741
2011 $10,994,855
2012 $6,707,132
2013 $11,659,639
2014 $12,131,760
2015 $10,148,341
2016 $8,552,862
2017 $6,857,542
2018 $5,220,802
Total: $89,689,956