LUS wins rate increase, smart grid

Well, LUS won its rate increase...about 15% over two years, the first rise in electricity costs since 1998. If you want to see the sausage being made you can tune in to AOC or download the video off UStream.

The central story tomorrow will be that increase, of course. And that is probably all you'll see in the papers. I'll leave any detailed reporting on the back and forth to them.

On the other hand, I expect that there'll be no reporting on the sidelight issue of the status of the smart grid funding and I'll take that up here. (If you've not followed this you can catch up the earlier posts on the issue: 1, 2.) The smart grid package, which includes both water and electricity utilities will go forward and the Feds will cough up half the money necessary to pay for communications infrastructure and the electrical side's new meters—11.6 million dollars. It's a great deal. But if the rate increased had failed, as it initially appeared to have done, then LUS would have had to turn down the stimulus money that would have made the smart grid deal so attractive for Lafayette. With that would have gone the opportunity for the service improvements that would come with the utility having instant, detailed information on the status of every customer and the potential for home owners to save money by actively managing their consumption.

There was a fair amount of back and forth on this topic and it's apparent that LUS believes that the grant money is still there and that with the approval of the rate increase they will have no trouble convincing the Feds to turn over the money they have won.

Now that the money has been secured I'm hoping for more interesting news sooner rather than later on just which information technology will be used to connect the meters to the network. Whether it will be wired or wireless will be the first question and the answer will shape the future of the LUS communications division....stay tuned.

Update: The local and regional media has weighed in and as I suspected there no mention of the 11.6 million dollars in federal lagniappe that goes with the decision. From the Advertiser: "LUS rate hike OK'd" and from the Advocate: "LUS rate hike wins approval." From the Independent: "LUS rate increase approved."

"Dore clarifies position on LUS rate hike"

That title might better be: "Dore commits to LUS rate hike."

According to the Independent blog Sam Dore is now a committed supporter of the LUS rate hike and will both vote for it himself and work for its passage. Dore explains it as less a shift in position than a matter of timing but that commitment changes the odds on the measure's passage.

In a LPUA meeting late last year Dore was sided with Ken Boudreaux and Brandon Shelvin to make a 3-2 majority in favor of voting down a rate hike. The five-person LPUA board must approve any changes concerning the city's utility assets and that loss made a vote by the larger council pointless. Dore, and in particular Boudreaux, cited timing, a lack of information and the feeling that the administration had put forward and a take-it or leave-it position that didn't brook compromise or negotiation.

Among the non-LPUA members of the council, the so-called rural districts, it rumor has it that Purvis Morrison who is planning a run for mayor of Scott is now in support of the increase. That decision could only have been reinforced by the power outage in Scott during Monday's frigid night that was attributed to an overtaxed connection by Entergy and when that same connection went out again Tuesday night LUS' Huval pointed to outages as just the sort of problem that he wanted to avoid by doing the timely capacity upgrades the rate increase would fund.

That brings the pro-rate increase count up to 4...with 3 of those votes being mostly out of the city and thus having few LUS customers to contend with— and the few that they do have are in the more prosperous southern reaches. It seems likely that this time around the administration and LUS have done a better job of vote counting.

Time will tell.

LUS rate hike returns

LUS will be going back to the City-Parish Council for another go at a rate hike on January 19th. Or so report the Independent, (not once but twice), the Advertiser and KLFY.

Of the early reports the most interesting has come from the Independent's Walter Pierce who starts looking into the background politics of the matter. His speculations focus on shifts toward rate hike support from Purvis Morrison and (very tentatively) Sam Dore.

But my guess is that some serious negotiating has already been going on with Brandon Sheldon and Kenny Boudreaux being taken more seriously than in the first pass when the complaint was heard that little explanation was given and no inclination to discuss mitigating the increase was entertained.

There is a lot sitting in the background of this issue, including the upcoming redistricting and a prospective change to the home rule charter that raises uncomfortable questions about city vs parish revenues and charter-based restrictions on how LUS' in lieu of tax revenues are controlled and how that money can be spent.

This might well get more politically sticky before it is put to bed.

For tech infrastructure interests that are a focus of readers of this blog the consequence of securing the rate increase might well be to put the federal stimulus money for LUS' smart grid infrastructure back on the table. (See earlier coverage.) Without the rate increase LUS was going to have to turn down $11,630,000 dollars. It'd be nice to get the feds to pay for all that build out—and smart too. Having to walk away from that much money might well have influenced the administration to quickly take another stab and the Council to reconsider its earlier action.

It should be interesting to watch the sausage being made.

LUS Fiber's First Commercial Customer Goes Live

The headline is pretty much the story: "LUS Fiber's First Commercial Customer Goes Live." The Independent reports that Lafayette Convention and Visitors Center (LCVC) has taken a 50 meg symmetrical service for $119.50. They like it; Breaux, LCVC Director Breaux is reported as having said:

"Unbelieveable,” he says. “It’s been a major difference [in speed] and the whole group at LUS has been incredibly cooperative to get this whole thing going.” Plans are already in the works for a media event or open house demonstration of the service at LCVC. “We want everyone to come in and see how great it really is."

The IND notes that having only a single business customer is part of LUS Fiber's perhaps wise but surely frustrating measured roll-out strategy:

This follows LUS’ slow rollout strategy that allows it to carefully monitor and work out any service issues before expanding its clientele.

Ok, so that makes sense. Still. We want our fiber.