Quote:
Originally Posted by eldondre
Of course, that good news has an asterisk
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We all know how temporary things more often than not become permanent. It is either a sign of irrational fear or disingenuous to assume that temporary tax increases will become permanent in the case of sales taxes but to assume the opposite in the case of gas rates.
PGW already has its 'temporary' rate increase in hand. The city is still waiting for its second 'temporary' sales tax increase to be approved. Do I really believe that in 12 years PGW will be debt free? No. Probably some of the enhanced cash flow will be spent on renewing their systems. Probably some of the rate increases will be given back once the cash call-induced 'crisis' is over. Do I believe that PGW has gotten over the hump? Yes. With an $800 million debt in four years and much better collection policies it should be well on the road to health, and maybe even able to contribute dividends to its owner.