GUS Continues to Burn Rate Payer $$

Georgetown continues to lose money on its renewable energy contracts as GUS exceeded its budget by $5.6 million as of June 2019, and it had to sell surplus renewable energy at prices below the purchase price. The amount brings the total over-budget figure to $33 million since 2016, the first year Georgetown began using renewable power. 

The City staff likes to spin the tale that they really haven't lost $33 million, they just took funds from other parts of the budget to cover the shortfall. That's like a citizen saying they did not lose money when they over spent their checking account because they covered the deficit by shifting money from their savings account!

The individual and the City are both worse off financially as a result of over spending their budget!

On top of that the rating agency, Standard and Poor’s, lowered Georgetown’s electric and water utility bond rating from AA to AA- May 28 as a result of the city’s problems with its renewable energy contracts. But the City says not to worry, any increased borrowing costs due to the down grade will be inconsequential!

In the meantime, the City is moving at a snail's pace to rectify the problem. Maybe a year or two down the road the problem will be solved. Hey, its only your money!