Rate Increases and BWL Extravagance

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The reason we should be concerned about over-generous employee compensation, huge payouts to dumped managers, and other extravagant BWL spending is that the money comes out of our pockets. It is reflected in our electricity and water rates, which increase almost every year:

 

Electric

Water

Steam

Chilled Water

2010

9.3% 8.9% unknown unknown

5/2009

2.5%

2.5%

2.5%

2.5%

3/2008

7.0%

7.0%

6.0%

 0

9/2006

1.5%

 0

35.0%

 0

7/2006

0

6.5%

0

unknown

7/2005

3.0%

6.5%

0

unknown

1/2003

3.0%

5.0%

3.0%

unknown

1/2002

3.0%

6.0%

3.0%

unknown

1/2001

3.0%

7.0%

3.0%

unknown

It is also reflected in our taxes. State government is one of the BWL's biggest customers, and a rate increase can have a significant impact on the state budget:

Rate increases also hurt local businesses and non-profits:

In a 5/13/2008 article in the Lansing State Journal, Assistant Editorial Page Editor Derek Melot wondered about things unrelated to the delivery of water and electricity that the BWL spends money on - money that ultimately comes out of the pockets of ratepayers:

  • $40,000 a year to sponsor Silver Bells in the City
  • $40,000 a year to sponsor the Chili Cookoff (In 2009, a significant portion of the cost was covered by sponsorships and it was thought there might be no cost to the BWL.)
  • $35,000 for the HOPE scholarship program and Impression 5 Museum
  • $50,000 (paid over 10 years) to the Sparrow Foundation

A longer list of BWL sponsorships is on the BWL's Community Impact page - all examples of the BWL using our money to enhance in our eyes the image of the BWL.

And then there was the mysterious $2500 check from the BWL that ended up in the mayor's 527 account. See Mayor Bernero's "City Administrative Account".