Public vents over rate increases
By Kathy Helms, Diné Bureau

Related story: NTUA officials defend rate hikes

WINDOW ROCK—It was difficult to find anyone in favor of Navajo Tribal Utility Authority's proposed 7.2 percent temporary surcharge at Wednesday's public hearing. Approximately 55 people were given 5 minutes to vent their frustrations over NTUA's back-to-back increases.

Delegate Leo R. Begay of Chinle asked the NTUA management board and audience to think about how the surcharge would affect them on an individual level as well as "how the surcharge and the previous rate increases are detrimentally affecting the businesses of the Navajo Nation."

Begay said businesses first were hit with a rate increase of 43 percent about two months ago. "Now, with the 7 percent increase, that's 50 percent of what they were paying in the past.

"When the price of gas goes up it affects the cost of everything else," he said. "Likewise, when the 7.2 percent surcharge is charged to people, guess what will happen? The restaurant food costs, the cost for clothing, the cost for motels also will automatically go up in order for these businesses to pay the 7.2 surcharge.

"We not only pay the 7.2 percent individually, but as customers to other businesses restaurants, motels and retail stores we also will pay additional costs," Begay said.

Ralph Milton, 73, of Houck Chapter questioned why NTUA waited until two or three days before the proposed surcharge was to go into effect to have the meeting. "You don't have to wait till the last minute," he said.

An interpreter said Milton talked about when he heard news of the increase. "From then on he couldn't sleep. He is asking why NTUA waited until now to ask for the rate increase. He said there is such a thing as long-range planning and the management team and employees should plan ahead."

Define 'temporary'

Delegate Lorenzo Bedonie (Hardrock/Pinon chapters) presented NTUA with a resolution from Hardrock Chapter. Pinon already had submitted its resolution, he said.

"I think a correction needs to be made in a statement that was made earlier, that is regarding whether we were informed that the surcharge would be temporary to recoup the loss in revenue. We were also informed that if it was a rate increase, that would be permanent.

"But we know for a fact that Black Mesa mine may never reopen," he said, receiving applause from the audience. "I think that is something that we really need to know before we can really claim that this is only temporary."

Bedonie, who is a member of Budget and Finance Committee, said NTUA has experienced rapid growth. "We know that because it has acquired other electrical companies." Also, he said, "Many times when we come to NTUA to make a follow-up on the electrical line progress, they always tell us that they have lots of backlog.

"They have really overextended themselves, and I believe for myself that NTUA has really overcharged. They have really inflated the price of their services," he said, receiving another round of applause.

"An example that I could give you is at one time several years ago I had an extension done to my home. ... I paid for the legal survey and I paid for archaeological clearance. I paid for the blueprints, all of that; the drawings, everything. On top of that, NTUA charged me another $3,200 for one pole and 150 feet (of line).

"I don't know if they charged me at the commercial rate, but I'm not operating a business. I'm just a resident," he said.

"For that reason I believe the answer is for NTUA to make a correction in their service charges. I believe that NTUA has gone through the market bubble that the stock market has gone through. The bubble has burst. Now, they need to make that adjustment.

"NTUA is addicted to rapid growth. I think they need to come back to the real world," he said. He requested more public hearings before the surcharges are implemented.

Small biz, big bill

Patricia Nezzie, operator of a laundry in Dilkon, told NTUA, "Last year at this time, my NTUA bill was $1,833. This month it has gone to $6,679. I'm paying $7,000 a month in NTUA bill. It has more than tripled. It seems like as a Navajo-run business, I'm being pushed out."

She said NTUA General Manager Ken Craig asked for public support for the increase. "Well, I'd like to tell Mr. Craig, I'm not here to give you the approval. I disagree with it.

"One small business cannot support the entire community. I ask the board not to approve the surcharge, or to give businesses who are Navajo owned and operated some kind of a discount or rate decrease for us."

Whose benefit?

Leonard Redhouse of Burnham Chapter also questioned the surcharge. "As stated by one of the speakers earlier, what is 'temporary' and how is that construed?" He said he firmly believes NTUA will come up with "an extenuating circumstance" that will keep the surcharge in place for years and years.

"Look at it this way, Southern California Edison which is the primary shareholder for Mohave Generating Station which is the one that closed out there in Nevada has no interest in reopening Mohave, which is the reason why Black Mesa was actually running.

"And the reason why that is, is because they have already built a gas-fired plant out in California to absorb the energy loss that they actually had with Mohave. Not only that, but look at it this way: They're making a profit with it closing."

Redhouse said Mohave and Southern California Edison will save $1.1 billion if they don't have to reopen Mohave. "So the state of Mohave is definitely the state of Black Mesa. What incentive does Southern California Edison have in order to reopen a $1.1 billion facility if their profit margins don't cover that expenditure?"

He made reference to the U.S. Environmental Protection Agency's Clear Skies cap-and-trade policy which gives plants credit for not producing toxic emissions.

"The United States Congress, through the United States Senate, said that Mohave Southern California Edison can go ahead and sell the waste that they could provide by the power plant to any other company out there by credit 53,000 tons of toxic waste that that plant can produce will be sold to everyone else at $1,300 a ton, which is $69 million annually."

Redhouse said the media had been reporting on Mohave's impending closure since 2000. "With that in mind, where were these guys and where was their planning?" He received a rousing round of applause.

Sammy Kee told NTUA board members, "When I need money, I go to the bank and try to borrow it. ... Why can't you get a loan for that $2.8 million? Another idea is go to the tribal council and get it from the Undesignated Reserve Fund like everybody else does." He received a rousing round of applause, hoots and laughter from the audience.

Delegate Amos Johnson of Black Mesa/Forest Lake/Rough Rock chapters, said he thought Black Mesa Mine was being used as an excuse for the surcharge and presented resolutions from his chapters opposing it.

"When did NTUA get married to Southern California Edison and Salt River Project? When did the marriage take place? ... The honeymoon happened and we missed it," Johnson told the audience.

He said his chapters recommend NTUA"seek federal subsidies to recover the so-called lost revenues," develop and implement cost-saving measures such as a cap on salaries and benefits and cease use of company vehicles for personal use, including driving company vehicles to and from home and work.

"The last recommendation is to have NTUA board of directors, the Navajo Nation President and the Navajo Nation Council support the Just Transition plan, which is to use sulfur dioxide credits from the Mohave Generating Station to cover the surcharge proposal by NTUA."