Over the past several weeks, El Paso Electric has spent a lot of money trying to convince us that its proposed sale to a New York investment firm is best for the El Paso community. Many readers are not so sure this is true, so I thought I would share some of their concerns that are not being addressed in all of El Paso Electric's expensive advertising.
More: El Paso Electric executives, board members to get big paydays under proposed sale. We know that management profits. Apparently, millions of dollars will be paid to the officers and directors in cash and stock. So, we can see why management is so enthusiastic about this sale. We also know that the selling stockholders will receive a huge windfall. So, it looks like large investment firms and their stockholders are going to make hundreds of millions of dollars on this deal as well. More: Some facts on the tax consequences of selling life insurance policies: David Leeper.
What about the buyer? Well, the buyer is a New York investment firm. It is paying a huge premium to buy El Paso Electric's stock. I think it would be safe to assume that the buyer believes that the company is undervalued and it is getting the stock at a bargain. So, exactly what is in it for El Paso Electric customers? To me, the most interesting analysis came from Larry Francis our former mayor. He is quoted as saying the City Council should simply condemn the assets or otherwise take over El Paso Electric.
More: Important information for business owners on labor laws, health insurance: David Leeper. Why is the buyer so interested? Folks, the answer is obvious. The real value of El Paso Electric is the agreement with the city of El Paso granting it a monopoly for providing electricity to our community, and even worse, a guaranteed rate of return on its assets.
The Permian Basin is one of the most productive oil fields in the world, is host to massive fracking operations, and sits less than miles away from El Paso. The most direct way of reaching carbon neutrality would be for EPE to eliminate natural gas from its portfolio. Most recently, EPE announced a plan in conjunction with Mitsubishi Power Americas to make this new generator adaptable to use hydrogen instead of natural gas. The best EPE has given us is a vague assurance that its new fossil fuel generator could be upgraded to clean energy at some nebulous point in its year lifespan.
El Paso is blessed with over days of bright sunshine every year. This plentiful resource is rich, renewable energy available to any homeowner or business who installs a rooftop solar system. When a homeowner with solar panels overproduces electricity in any given month, EPE will buy it back from them for less than 3 cents per kilowatt-hour.
EPE then turns around and sells that same electricity to another homeowner for its regular rate in excess of 10 cents per kilowatt- hour. Thursday, April 22 is Earth Day. April is Earth Month. EPE has certainly emphasized this on its social media too — encouraging us to buy smart thermostats from them in exchange for a rebate.
Unfortunately, its corporate vision appears to lack any serious commitment to our planet. Courtesy El Paso Electric Co. Do not edit the piece. Please ensure that you attribute the author, provide a link back to the original article and mention that the article was originally published on El Paso Matters.
About Us. Editorial Independence Policy. Republishing Guidelines. Become a supporting member. Donor Policy. Send tips, ideas and press releases to news elpasomatters. Commentary Environment. Special to El Paso Matters April 21, Sam Silerio. Previous Article.
0コメント