Last updated: December 12. 2013 8:30AM - 383 Views
By - cchalmers@civitasmedia.com - 937-569-4312



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Editor:


It seems to me that when we elect people to represent us, just as soon as the process ends the focus changes. Our elected officials immediately stop meeting the public needs for the requirements of the few with the greatest influence. The influence peddlers, lobbyists, and the causes they find important. Money launderers gain, we lose.


When a farmer finds a new way to increase his output at reduced cost the market learns of the change and the market adjusts the commodity price. Let’s say the increase in corn produces 25 bushels per acre and this process reduces the cost by 5 cents. Market adjustment is going to immediately reduce the price of corn say 4.5 cents per bushel. The market sees the change and makes adjustments.


Now a public utility makes improvements yet the market does not make adjustments. Our elected officials are contacted by the money launderers, get the influence required and so a bill is introduced and passed so the utilities get to keep the bounty. Market be damned, the farmer utilized his capital to make the improvements and the market may give him a half a cent per bushel. The public utility gets the reward at your expense. We the public have to stand the cost of innovation plus a relegated profit to the company before improvements. Utilities work on a cost plus regulated profit.


Example: Natural gas sells on the market for .4129 cent per cubic foot the PUCO sets the price on a specific day then adds .105 cents as a margin. Three days later the market sees a supply increase and the price drops 1 cent per cubic foot. Does your cost fall? No, it was fixed and therefore the suppliers are the owners of the wells that get increased profit. Now when the reverse occurs the cost rises by the market increases. That is why utilities try and get customers to sign a contract for a fixed price plus the margin .105 cents.


The Ohio Senate has passed a bill in which money normally due to the public will be allotted back to the utilities. The bill is headed to the house and now is in your court. I think a call or letter to the member of the House and the Governor is in order.


Take Care and May God Bless you.


Kirby Clark


Greenville


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