Letters submitted by BDN readers are verified by BDN Opinion Page staff. Send your letters to letters@bangordailynews.com
I urge a “yes” vote on Nov. 7 on Question 3, establishing a public power concern to take over the operations of foreign-owned Central Maine Power and Versant. During my career, I worked on several public power financings, examining the underlying legal documents, as well as the reports of consulting engineers pertaining to the project being financed. I would like to remind readers that public power serves 49 million Americans through 2,000 public power utilities, not least of which is the Los Angeles Department of Water and Power, providing electricity service since 1916 and now serving more than 4 million people.
CMP, according to the most recent ratings from J.D. Power, remains the worst regarded electric utility of its size in the country. Moreover, in CMP/Versant bills, there is a payment to shareholders of the parent company providing them with returns around 10 percent per year. (How ironic that in the case of Versant, it is the citizens of Calgary, Alberta who are reaping profits off of Mainers!)
Public power, in contrast, is capitalized with tax-exempt revenue bonds at interest rates well below the rates paid by taxable corporations such as CMP/Avangrid/Iberdrola. Revenue bonds do not allow recourse to taxpayers, this could never become an obligation of the state government. There would be no interruption of electric services. The present workforce and even most of management could continue in place.
Don’t listen to the advertisement saturation campaign being carried out at great expense by CMP and Versant (and their parent companies). Vote “yes” on Question 3.
Richard Wolfe
Cumberland