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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (150769)	12/12/2005 10:13:09 PM
From: Stevefoder	Read Replies (1) \| Respond to of 793818

Re: "Feds reject Entergy bailout" In 1992 hurricane Iniki devestated the Hawaiian Island of Kauai (population 60,000). Power was out to most of the people of the island for over a month with some out for over 6 months. The devestation on the island was comparable to New Orleans except for the flooding. The utility was part of a larger company as Entergy but could not declare bankruptcy of this one small unit. To finance the repairs the electric rates for the island went almost doubled from $0.14 per KW-HR to $0.23 per KW-HR in 1992 (a very high rate then) Question: If that utility had to self finance its repairs. Why should another company 13 years later be bailed out? If the people and tourists of New Orleans want to live in such a hazardous location, then why should the rest of the country bail them out completely? Should not there be a premium in electricity cost be borne by those who wish to live in such a hazardous area (eg. living by the ocean below sea level)? Could I suggest a loan with interest that would have to be paid off by the ratepayers of New Orleans? They would get their electricity back (at a much higher cost) and the taxpayers would not be stuck subsidizing such a high risk location. (The loan would need teeth - Feds would own the company if they don't pay the loan on time). Bailout - NO. Loan - negotiable.