More Q & A's at the PUC

Here is another question posed to the VDE to try and validate how they are working in the public interest as they swore an oath to do.

Eastman Sewer Company, Inc.

DW 13-171

Responses to Robert F. Logan Set 1

Data Request Received: 08/12/13      Date of Response: 09/12/13

Request No. Robert F. Logan 1-9      Witness: William S. Weber

REQUEST: Paragraph 6.04 of the signed VDE/ECA/ESC Purchase & Sale Agreement of

5/29/13 stipulates that “In the event that VDE discontinues its operation and maintenance of the sewer system, for any reason, ECA shall be given the FIRST OPTION to re-acquire the sewer system for one dollar ($1.00)…”etc. Can you please explain why you agreed to grant ECA a “most favored” buyer status?

RESPONSE: This clause was inserted as a courtesy to the community given that the ECA was the only entity that existed that was in a position pre, and now post Purchase and Sales execution, that could obtain or re-acquire the sewer operation.

MY COMMENT:  The VDE’s agreement establishes a price--$1, to return the Eastman Sewer Company after capital improvements have been made to its current private ownership (the ECA Board) which is solely responsible for all decisions and actions of ESC for the past 12 years. It is in the seller’s interest, NOT in the 500+ sewer users/ECA owners who will pay for all Capital Improvements anticipated to exceed more than $2 million cumulatively by 2016. I see no way this agreement is in the Public Interest which in this case I define as sewer users/owners.