As we know, critics you have with you always…even at Thanksgiving time. It seems The Weekly has shocked the community with criticism about Silicon Valley Power. This has created a current of criticism about The Weekly’s reporting.
Shakespeare said it best, “Methinks you doth protest too much.”
SVP, while under the direction and oversight of Santa Clara Council, runs pretty much as an autonomous entity. Even with the competitive rates to residents and businesses, they generate a lot of capital.
Now, we know that it takes millions for infrastructure, equipment and generators to produce their product. The recent acquisition of new equipment required to produce more electricity is in the hundreds of millions.
These funds and their use make SVP a most envious entity as they continue to provide power for businesses and residents.
And this brings us to those living in Santa Clara and benefiting from what have been historically low rates.
SVP admits that residents only use about 5% of its total production. This simply means that 95% of production goes to business and industry.
This raises the question. How can a 5% rate increase on those who generate 5% of SVP’s revenues create a beneficial financial impact on SVP’s bottom line?
If you do the math, it appears that a point zero one (.01) increase to commercial users more than provides an offset for the required increase to residents.
Of course, there are reasons for SVP to increase rates to residents. However, three increases over a two-year period do not sit well with residents or reflect effective planning.
When you look at SVP’s advertising saying it will subsidize new electric car buyers with thousands of rate payors’ dollars, it raises resident’s blood pressure. Electric car buyers represent a small fraction of the market. Last time we checked it was about 3%. This is taxpayer and resident payor money that is being directed to a privileged minority.
There is a fiduciary duty that public servants are given and then expected to apply. The press also has a duty to keep tabs on the process and progress of those officials — appointed or elected.
We appreciate our readers, our supporters and also our critics. Sometimes, they are correct and…so are we.