Fairfield Bay had a little bit of
paradise come to town Saturday night August 20th. Ohana,
from Tulsa Oklahoma, entertained more that 180 people with
traditional Hawiian Dances and a fire dance. The food was
excellent and everyone had a wonderful time. Congratulations
to Sheryl Paxton and her staff for all their hard work
Petit Jean rising operational cost to cause availability
increase
Because of rising operational costs, something we can all
understand in these days of spiraling fuel prices, Petit
Jean Electric Cooperative recently announced that it had
filed with the Arkansas Public Service Commission (PSC) for
a much needed rate increase, specifically a service
availability rate increase from $10.00 to $14.00 which
reflects a system rate increase of 5.9%. (See June’s Rural
Arkansas magazine). This is something the Cooperative did
reluctantly especially considering the fact that Petit Jean
Electric’s overall rates have not increased since 1985 and
actually decreased in 1996 (The availability charge went up
$1.00 in 2001, but KWH went down).
Petit Jean Electric has always prided itself on providing
the very best service possible to all our members at the
lowest possible cost within the parameters of the existing
economy. Therefore, one can easily understand why for Petit
Jean and its Board of Directors this was not an easy
decision. Unfortunately, the present economy has outpaced
the Cooperative’s best efforts to keep operational costs as
low as possible, and thereby our membership’s costs as low
as possible. As valiant as the Board of Director’s efforts
have been for many years to keep operational costs as low as
possible and pass those savings on to the membership,
reality has come home to roost. Petit Jean Electric can no
longer stave off the realities dictated by today’s economy.
Since the announced intended rate increase, there have been
two recurring questions, both concerning the service
availability charge. Why the service availability charge
itself? And why increase the service availability charge?
Both questions are certainly understandable, not to mention
very good questions.
Regarding the service availability charge itself, not too
many years ago the cooperatives of Arkansas, Petit Jean
Electric included, would simply post the total cost of
providing power to each of our members on the billing
statement mailed each month. However, the Arkansas PSC felt
this was not informative enough. In an effort to help the
consumer understand and differentiate between the actual
costs of power generation and the actual costs of delivering
that power (infrastructure costs), the PSC required all
power providers and distributors in the state of Arkansas to
itemize their bills. This way the consumer could more
adequately distinguish between the costs of the production
of the electricity itself and the costs of delivering that
electricity to their home or place of business.
The PSC’s required itemization resulted in the present day
itemized billing statement received each month, including
the monthly posted service availability charge. Per
instruction of the Arkansas PSC, the service availability
charge reflects Petit Jean’s actual costs to build and
maintain power lines to each member’s home and/or place of
business. For example, when a power line is first
constructed, or when a power pole or transformer
deteriorates or is damaged in a storm, and thus needs to be
replaced, this charge is applied toward the cost of building
or replacing the necessary materials, plus labor and
equipment costs. Simply put, the PSC wants you to know
Petit Jean’s cost to build and maintain the necessary
infrastructure just to get power to each member’s home or
business, even when a member is not using any electric power
at all. This infrastructure may not seem to be much but to
put things in perspective it might help to keep in mind that
it currently costs Petit Jean as much as $9 per foot to
construct a single phase line, or approximately $48,000 per
mile. Obviously, three phase line costs more, approximately
$68,000 per mile. This is money Petit Jean must spend
before a single kilowatt can even be used. As can be seen,
with 3,245 miles of power line to be maintained, Petit Jean
Electric must put out a sizeable outlay of capital just to
deliver power to our members, even before the first electron
is delivered or paid for. The service availability charge
is applied toward repaying this investment and outlay of
capital.
So why increase the service availability charge? There are
two answers to this second question. First, increasing the
service availability charge more directly addresses the area
of Petit Jean’s fiscal cost increase, namely operational
costs. In other words, if it is the cost of constructing,
operating and maintaining Petit Jean’s infrastructure that
has gone up, it makes sense to increase the service
availability charge which seeks to recover those operational
costs. Second, the service availability charge is the
fairest and most equitable way to distribute the cost of
operating and maintaining the Cooperative’s power delivery
infrastructure. It is important to remember that the
service availability charge is applied to all meters –
including vacation homes, hunting cabins, etc., that are
used only seasonally. It costs as much to construct and
maintain power lines to unused facilities as it does to used
facilities. As mentioned above, the service availability
charge is applied toward the cost of construction and
maintenance of power delivery infrastructure, even when a
member is not using any electric power at all, and even
before the first electron is delivered or paid for.
Therefore, it is fairer and more equitable to ask every
member who has a meter, for both unused and used facilities,
to share in paying for the cost of construction and
maintenance of the power infrastructure built to their
facility. A simple increase in the electric power rate (KWHs)
would have placed the burden of operational and maintenance
costs for Petit Jean’s entire operational grid only on those
who actually use electricity, namely those who live in
residences or operate businesses year round.
Petit Jean Electric exists to serve its membership and is
fully transparent, accountable and approachable. Should a
member have a question, Petit Jean will do its best to
provide an answer. You may visit in person or contact Petit
Jean Electric at 501-745-2493.
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Oil
companies thriving not Arkansas families
By Bart Haynie
Communications Director
Arkansas Democratic Party
Oil & Gas Companies put the pedal to the metal with record
profits, leaving ordinary Arkansas families in the dust.
With gasoline prices reaching record highs, recording the
highest single-week increase in 15 years, Arkansas drivers
are feeling the pinch despite soaring oil company profits.
As Americans feel pain at the pumps, the Republican
leadership in Washington has done nothing to provide relief
to ordinary Americans.
Arkansas Democratic Party Chair Jason Willett issued the
following statement: “The only thing rising faster than the
prices we pay at the pump are the oil companies’ profits.
Arkansas drivers are paying more for gas then ever before,
but the Bush Administration is doing nothing about it.
Because of this president’s failed leadership, gas prices
have risen 75 percent nationwide since he took office. Here
in Arkansas, a gallon of gas now costs $2.55, that’s a 71
cent increase in the last six months.”
“It is time for President Bush and the Republicans in
Washington to get in the driver’s seat and steer us toward a
real solution to the gas price crisis. Because we’re not
only feeling the pain at the pump, these soaring costs are
affecting us at the grocery stores, too. Arkansans can find
sometimes alternate modes of transportation, but we’ve all
got to eat.”
FFB
Economic Development to host forum
The next meeting of the Fairfield Bay Economic Development
Committee, scheduled for September 1, 2005 at 2 p.m. in the
Community Club board room, will be an open forum. Members of
the community are invited to bring their ideas for economic
development and share them with the committee and each
other. Solutions to current problems and volunteers to work
on them are also very welcome.
It is a general consensus of the committee that the primary
need is a hotel/motel and convention center in the bay.
Without such a facility or the availability of short-term
housing, there is no need to solicit any type of convention,
tourist activity, sports event or a multitude of other
special events that could be brought to Fairfield Bay.
It is also the feeling of the Fairfield Bay Economic
Development Committee that the following three areas are
where the main focus of the future development of our
community should be aimed.
1. Enlarging our local infrastructure. This envelopes adding
roof-tops for a diversity of demographics ranging from
primary housing to second homes and retirement homes. It
also includes improving amenities such as shopping, adding
lodging, convention centers, amusements, etc.
2. Tourism, by definition, tourism is an industry and, with
what we have available, will probably be our leading
industry over time.
3. Light industry (data center, education, other
non-polluting endeavors) capable of being supported by the
local population.
The committee invites your thoughts and ideas and looks
forward to hearing what you think can be done by all of us,
to improve Fairfield Bay and make our future brighter.
Automatic Aid to improve local fire protection
By: Chris Weiss
Gozarks.com
The Burnt Ridge Volunteer Fire Department (BRVFD) and the
Holley Mountain Airpark Fire Department (HMAFD) have entered
into an automatic aid agreement to enhance the safety of
both communities.
By terms of an “automatic aid” agreement, HMAFD will
automatically assist on all fire calls in the Burnt Ridge
Fire District area lying north of Highway 16.
Jim Collom, Chief of HMAFD, and Jerry Pico, Chief of BRVFD,
agreed that this will greatly enhance the safety of life and
property within the “automatic aid” area due to the savings
in response travel time and increased availability of
firefighters and equipment.
Both men also noted that their respective fire departments,
along with all others in Van Buren County, routinely respond
to fire calls in neighboring fire districts “on request” as
a common and ongoing practice known as "mutual aid." This
new agreement does not change that, it simply provides for a
quicker response time to initial alarms within the
“automatic aid” area.
Chief Pico emphasized that this agreement has no effect to
his members and all annual membership dues for residents
anywhere in the Burnt Ridge Fire District outside of Holley
Mountain Airpark proper are still payable to the BRVFD as
usual.
Collom explained that the automatic aid agreement is just
another example of Holley Mountain Airpark’s spirit of being
a good neighbor to our community. He also extended an
invitation for all to visit the “Virtual Tour Trailer” that
will be on display this year at the Van Buren County Fair,
September 13-17, 2005. “The trailer is an example,
educating what Holley Mountain Airpark is all about and the
roll it plays in the larger community,” Collom informed.
“This is the same display that was debuted at Airventure
2005 last month in Oshkosh, Wisconsin, where over 800,000
persons attended.”
Collom added that he also wants to invite everyone to enjoy
the family fun of the 7th annual Holleyfest
“fly-in/camp-out” and community open house, being held this
year on September 23-24, on the grounds of the residential
aviation community. Sponsored each year by the Holley
Mountain Property Owners Association, Inc., the event
features an aviation and artisan vendor market,
entertainment by the Lost Creek Band on Friday night, pilot
education programs by the FAA on Saturday, and a fun-filled
agenda that includes games for children and cash-bar food
services by KD Bar-B-Q. Admission to Holleyfest is free and
open to the general public.
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