GRU AA Financial Rating: Based on Higher Rates For Customers
February 20, 2012 by Laurie Newsom
Filed under Economy, Hot Topics, Local Info
It appears that the Gainesville city commissioners’ willingness to increase rates greatly influences S&P’s favorable bond rating for GRU. One wonders just how much influence?
Please read this letter to the editor and then give thought to what is actually being said about the future financial yoke that these commissioners are tightening around the necks of GRU customers.
“In Gainesville city commissioner Thomas Hawkins’ article on February 19, he carefully omits some very important information. Last November the Gainesville Sun reported on GRU’s financial ratings. I quote: “For strengths, Standard and Poor’s cited the stable economy and the commission’s “support for rate increases to maintain current financial profile,”. Further, “Fitch, in its first rating of the utility, applauded the “track record of implementing rate increases when needed” and GRU’s stable customer base.”
The Sun’s February 15, 2012, article on GRU’s current financial rating by Standard and Poor’s, pointed out a concern for the debt burden to which GRU has committed its ratepayers: “Debt burden associated with a “sizable capital spending program from 2005-2017, although rate increases implemented and planned help mitigate this.” It makes one think. Just how stable will GRU’s customer base remain over the next decade with only government subsidized businesses locating here? And secondly, even though the city commission is willing to increase rates whenever it wishes, how happy AND capable are GRU’s customers to pay them?”
Laurie Newsom
GHreat article Laurie. The city commission running a commercial enterprise is a total disaster and it imitates thing like Amtrak, Postal Service and Philadelphia Gas Works. All of these institutions are losing money or have created an overwhelming debt structure and all because they are operated by politicians.
Whan the county commisioners set up a study group to analyze the increased cost promised by the city, the Mayor said the county is imcompetent to make this decision. Well Mayor you are the really incompentent to make such a stupid comment. Where is the Mayor’s degree in Economics or Engineering? It is obvious he has neither.