Like a Dalmatian to a fire bell runs Mayor Allan Litman, outstretched arms to welcome South West Gas (SWGas) into Mesquite without a vote of the citizens. What a folly!
Some years ago an engineering/feasibility study was commissioned by Mesquite to give city leaders future direction for gas service in the community. Conclusion: for city pride, future low gas rates, and not be captive to a SWGas long term franchise, Mesquite should set up its own municipal gas operation, Mesquite City Gas.
Allowing SWGas through Mesquite’s front door for gas would be exactly like cutting ties with consumer owned Overton Power that offers wholesale rate electricity and jumping into bed with privately owned Nevada Power offering retail rate electricity. A very foolish move since Overton Power (OP) rates are among the lowest in Nevada.
It appears Mayor Litman likes paying taxes to a private gas utility like SWGas to say nothing of helping feed hungry distant SWGas shareholders and supporting life styles of company executives making high six figure salaries… all courtesy of Mesquite gas customers!
Apparently, Mayor Litman has neither the talent nor vision to pull together a team of Mesquite “pioneer blood” to set up Mesquite City Gas. Where is that “blood” that had the foresight to help organize Overton Power(electricity) instead of the easy rout of renting from a Nevada Power company? Mesquite continues to be blessed by that decision!
Invite SWGas into Mesquite and they will be there forever! (They will require a long term franchise from the city). Mesquite citizens will be renting gas service from a gas company operating under “cost plus” rules. By law, a private gas utility is compensated, not for what it produces, but for what it invests in…not for what it sells but for what it spends. And since the state and federal regulators guarantee the company a percentage return for every dollar invested, the more lines in streets coupled with equipment to maintain those lines, the faster revenue will increase to SWG at the expense of Mesquite Gas customers. And when Mesquite gas customers will have paid for SWGas lines in their streets guess who will own the lines? SWGas!
Alternatively, Mesquite City Gas would receive wholesale gas and avoid taxes on profits, plus keep revenues in the city instead of paying distant company shareholders and bloated CEOs. Mesquite City Gas would enjoy “tax exempt” revenue bond financing (usually less than mortgage bonds). Mesquite City Gas would continually “shop” for the lowest cost wholesale gas like Overton Power continually shops for the lowest cost wholesale electricity to pass on to their customer owners. Additionally, utility generated money can be earmarked for rate reduction, conservation incentives to Mesquite customers, expansion of gas facilities, provide “in lieu of” taxes to help pay costs of city government operation. What blessings to Mesquite City!
It’s my opinion that SWGas and Mayor Litman have an agenda. It’s wrong! I hereby challenge Mayor Litman to a public debate of the proposition Mesquite City Gas or SWGas? Mayor Litman, you name the time, date, and place in Mesquite. The editor has my contact information. I’ll be there. Hopefully, all potential Mesquite gas customers will attend.
Carl Leavitt Palmer, Past President
Carl Palmer and Associates
Public Utility Consulting
St. George, Utah
This letter does not mention where Mesquite, which has been struggling with budgets would get the capital to construct a natural gas distribution system. Where is the guarantee that it would be profitable? If not, would all taxpayers be stuck with the cost irregardless of whether they were gas customers?
For 30 years I lived in a town which attempted to operate its own electric distribution system…I say attempted because it was a perpetual mess. Prolonged outages and billing snafus. The fact is that a small city does not have the resources nor expertise to operate a utility.
People have been talking about bringing natural gas to Mesquite for a decade. Mr Palmer talks as though it would be cheap and easy, if so, why hasn’t his group done it already.
Why so critical of Al Littman? Is it just me or is this letter self serving? Perhaps some controversy might generate more consulting income.
Mr. Grosh,
The individual that wrote the letter is a very elderly person from Utah. i don’t know him or what connections he has to Mesquite, but he came to mesquite to attend an open meeting the city had with SouthWest Gas. As mayor, i introduced their representative and sat down to hear their presentation on the possibility of bring natural gas to Mesquite. As mayor, I’m expected to introduce people. I have no connection to SW Gas.
Midway through the presentation the elderly gentleman got up and started raving about a study done on forming a city utility. He refused to sit down and I asked him to leave as he was disrupting the presentation. Guess he didn’t like being asked to sit down or leave. he was about two seconds from being removed by the police that were there. I did ask him publicly what study he was talking about and when it was done. The study was done around 20 years ago when Mesquite had more cows that residents here. There is no way Mesquite could implement it’s own utility period.
I guess the gentleman does not like me and that’s ok.
To sum up, I have no relationship with any gas company or utility.
I think it would be great to have Natural Gas Service in Mesquite. I agree that the City of Mesquite does not have the ability to operate its own gas company. I re-read Mr. Palmer’s letter and realized he is from St. George, Utah. He has no business interfering with our City or Mayor unless he has a vested interest in (read: money) an alternative. Let our Mayor and Council, who live in Mesquite, decide what is best for our City. Let Mr. Palmer concentrate on his own City and leave us alone.
I don’t want gas to my house and have them tear up my subdivision.
Mr. Harper,
If we get natural gas to Mesquite it will probably be several years or more. In conversations with the gas company, we discussed the high cost of retrofitting existing subdivisions. I believe it would not be cost effective. Natural gas will be, when available, for the industrial park and new sub-divisions and mostly for commercial use. There is no intention to tear up existing parts of the city. In fact, we have a strong policy against it. Rest easy.
Al Litman
Personally, I prefer cooking with natural gas. I like heating with electricity. I would like to know how these two are compatible, or if they even are? Will we even have a choice when it comes down to that?
Overton Powers rates are not any lower than NV Energy’s. I have compared them both, and while some specific rates my be different, the overall bill comes out incredibly close per kilowatt hour. I suggest not becoming too near sighted.