UPDATE!
The case is now on appeal.
The Judge made the Final Order on Thursday, April 11, 2019, in favor of the City. After three years of fact findings and deliberations, it appears that the Judge agreed with most of the facts offered by the Plaintiff Class, however she concluded that the City proved that the Plaintiff Class was not “injured”. I do not know whether the Plaintiff Class will appeal the Judge’s ruling.
Although, the Plaintiff Class, the electric rate customers did not win in court, the case provided very invaluable information that can have a greater impact on the residential electric rate customers than a one-time payment. Consider what was discovered:
- Mayor Joe Macon and his administration voted to use its forty million dollars refund from MEAG to reduce the City’s monthly electric wholesale cost for ten years from January 1, 2008 to December 31, 2018.
- The decision was also made to open a savings account (MCT) with MEAG for the City to deposit the same amount of money each month that MEAG was reducing the electric wholesale cost by instead of reducing the residential customers rate.
- As of December 31, 2018, MEAG ended its reduction of the electric monthly wholesale rate.
- As of December 31, 2018, the Electric Utility had deposited forty million dollars into the MCT account. The money in the MCT account came from residential and commercial electric rate customers. In other words, the money in the MCT account belongs to the residents of the City.
- The City has used some of the MCT funds to pay for capital projects in the General Fund.
- The MCT account along with the City finally taking action to reduce the City’s $59 million Unfunded Pension during my administration caused the City’s bonding rate to rise and thus making it possible for the City to secure financing for the building of the City Hall.
The Greatest Outcome!
The greatest outcome of the Plaintiff Class lawsuit is that we now know that the money in the MCT account came directly from electric rate customers and not MEAG as fees and not taxes. Hence, there is nothing to keep Mayor and Council from making a one-time payment or credit to the residential electric rate customers. Remember, the spending of any monies in the City is a political decision. It is up to you, the residents, to pursue this if you want to. I will be sharing more thoughts on how residents can leverage the use of excess electric revenue for the good of the residents and the City at a later date.
