Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, May 17, 1993 TAG: 9305170271
SECTION: EDITORIAL PAGE: A4 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
I am forever grateful that I live in Bedford County and pay Appalachian Power Co. rates, some of the very lowest in the United States. However, citizens of Bedford city could enjoy the same rates if they would demand that Bedford sell out to Apco. I would hope that Apco would pay enough to pay the $14 million debt off at the power house on the James River.
When that debt was incurred, Bedford City Council did not ask citizens if they wanted a huge debt and higher electric rates. The first penny of profit from that venture was not to be realized for 12 years. Of the $14 million, $5 million was borrowed just to pay interest. The prospectus for the bond issue said electric rates would be raised yearly for amortization. To my knowledge, the rate increase this past March was only the second since the plant was built.
How efficient is the Bedford electric department? Recently I had to wait on North Bridge Street while one of its truck crews strung a banner across the street. This happens quite frequently. The banners could be put up by one person standing flat-footed on the street.
There was a fatal fire and electrocution at Big Island several years ago that emanated from a Bedford substation. Never making the news was the fact that Bedford's liability-insurance rate went up $50,000 a year. I wonder why?
Your story mentioned "cash cow." Bedford also has a "golden goose" that goes a long way to pay many bills that otherwise would have to come from property taxes, etc. That golden-goose source is the Virginia Department of Transportation. In '91 and '92, the department gave Bedford $1 million for repair and maintenance of city streets. They spent 15.5 percent of that repaving.
A bonded debt of $28 million for 6,000 people is too much.
THOMAS M. MARTIN BEDFORD
by CNB