What do JXN Water and the Amazon Data Centers have in common? Why are decisions by JXN Water’s Interim Manager (Water Czar) and the Federal Judge who appointed him now suspect? Why do Entergy’s residential customers now fear higher rates due to the secret Amazon data center deal?
Because JXN Water and Entergy customers no longer trust those in charge. Before they said: “Trust us. This is for your own good.” Now, we say: “Show us the receipts.” When the Environmental Protection Agency took over Jackson’s dysfunctional water system, desperate customers hoped a court appointed Water Czar spending federal money, supervised by a Federal Judge might save it. Customers tolerated their edicts— but expected results. Now water bills are 2X higher for some customers and 10X higher for others who use the same 6 hundred cubic feet (ccf) of water — thanks to the Czar’s Water Availability Charge and his meter based pricing. He stops service for paying customers with disputed bills — but continues service for thousands of non-paying customers. In a recent ruling the Judge said: “I’m JXN Water’s CEO.” He approved the Czar’s decisions and his 12% rate increase as a “survival” measure. Now he’s Monday morning quarterbacking the Czar’s decisions and his own. So much for the Judge and the Water Czar as saviors. The Judge’s approval of the Czar’s Water Availability Charge looks like bad judgement and judicial overreach. It makes some classes of customers pay more than others for the same volume of water. It has a disparate impact on poor customers with limited means to pay. His approval of the Water Czar’s scheme to discount bills for poor paying customers on food stamps (SNAP) was overturned by the Fifth Circuit Court. His past decisions as CEO don’t inspire confidence in his judgement that rate increases are the only solution to JXN Water’s death spiral. They could make it worse. When the Judge and the Czar took on the challenge of restoring reliable water service and customer trust, desperate customers cut them some slack for mistakes and do-overs. Not any more. What happened? The Overton Window shifted.
Joe Overton was a think tank policy wonk. He said there’s a window of political possibility for
ideas that seem sensible to most voters — but not for Ideas outside the window that seem
radical or unthinkable. He said ideas evolve. They go from unthinkable to radical to acceptable
to sensible to popular to policy. Think tanks that inform and influence public opinion can shift the
window and influence what becomes law. Example: same-sex marriage.
Failed policy initiatives can shift the window too. Examples: failure of the Water Czar and the
Judge to fix JXN Water problems. Failure of electric utilities in other states with operating data
centers to protect residential rates. Failure of Entergy to protect residential rates (without Public
Service Commission oversight) while upgrading its system for the data centers. And fear of
greater increases when upgrades are complete and the data centers are operating.
The failures have something in common: secrecy. The Czar used secret no bid contracts to
repair and replace plants and pipes. But current revenues from the repaired system don’t cover
current expenses even at rates 3-4 times those in neighboring cities. Why?
More secrecy. Who gets free water? Who decides? Does the Water Availability Charge pay for
today’s operations or for past mistakes? Are legacy obligations including water bonds more
than the current customer base can support? If so, is there a way to start fresh (e.g.,
restructuring, refinancing, even partial default)? Has the CEO considered this?
There are unanswered questions about the secret Amazon deal too. Its secrecy follows an iron
law of politics: hide bad deals. Senate Bill 2001 authorized the secret deal. It slyly stripped the
Public Service Commission’s authority to determine if Entergy’s spending for Amazon is prudent
and should increase rates. It removed caps on rate increases. Entergy’s reporting hides how
much of residential rate increases are caused by spending for the data centers
When the Legislature passed the Governor’s bill (with help from Entergy’s lobbyists), the
Overton Window was open for it. The pitch that Amazon’s investments and economic benefits
were more important than affordable reliable electricity for other customers seemed politically
safe then. Entergy’s claim that the data centers would put a lid on residential rate increases
seemed plausible then.
But the Overton Window began to shift. Electric utilities in other states with operating data
centers levied big residential rate increases. They socialized and spread part of their cost for
data centers onto residential customers. Then service interruptions due to large data center
demands and overloaded grids began to happen more frequently.
Now the President and congressional leaders and others are saying: “Make Big Tech pay and
bring its own electricity.” The shift accelerated last week when the President extracted a
Ratepayer Protection Pledge from Jeff Bezos and other data center billionaires. They promised
to “build, bring, or buy” power their data centers need and to pay for grid upgrades so residential
customers and small businesses don’t get stuck with higher bills.
Is that pledge retroactive? Is it enforceable? Is the secret deal grandfathered? Entergy’s
answer: “Don’t worry. Our models say data centers will benefit residential customers for 20
years.” Is Amazon’s secret rate locked in for 20 years? Are residential rates protected for 20
years? Do you believe that? Me neither.
The poor in JXN Water and Entergy’s monopoly service areas will likely get poorer. They
already struggle to pay for essential water and electricity. JXN Water and Entergy have failed
to provide reliable affordable water and electricity. They are obliged to do so as regulated
monopolies.
Has the Overton Window shifted to excuse these failures? No. It’s probably moving the other
way to hold regulated utilities and their managers responsible for their failures, broken promises,
secret deals, and unaffordable bills.
We’ll see.This post was authored by Kelly Williams, Chairman of Bigger Pie Forum.
This post is a paid advertisement by Bigger Pie Forum.
23 comments:
I am the first person who ever commented on this blog about the Overton Window.
Does no research just running mouth.
The fifth circuit didn't overturn his snap
discount. Misinformation.
Why are stories printed with misinformation?
Editorials and paid advertisements have no obligation to be factual.
Jxn Water finances are not secret.
I am the first person who ever commented on this blog about the Overton Window.
Right. And I am the Pope.
The idea that Kelly Williams cares about the poor is laughable.
Crap
2:46, misinformation is right. Bigger Pie Forum use to not be this way.
5:12 He didn't look for the facts.
A few things on JXN Water: The availability charge is extremely common. Others call it a base rate. Probably every water utility in the state charges one. Also, if done correctly, Jackson will probably always have higher rates than the suburbs. This is because surface water is more expensive than well water with chlorine treatment only. And the suburbs can spread out their wells within their geographic area to keep pipe sizes smaller. This results in a cheaper way to serve water.
7:13 He didn't care about the facts.
Here are a couple of corrections:
The people who don’t “trust” JXN Water just happen to be the same people who want to control the funds and steer the contracts. Chockwe’s sister is the main instigator, and we all know that family’s love for contract steering.
Same-sex marriage wasn’t an evolution of ideas. Most of us just don’t give a sh*t how other people choose to live their lives, so long as they’re not hurting anyone.
Jxn Water doesn't have the highest rates compared to others around Jxn.
Bigger Pie Forum – Promoting market-driven economic growth for a bigger and brighter Mississippi ...DO WHAT MOMA?
I'm surprised at Mr William's position toward Ted Henefin and Jxn Water. COJ screwed this up over many years and it is going to take many years to clean this mess up. We are so much closer to repairing this crooked, broken system than we ever have been before. It is going to take some pain on everyone's part to ever get this under control. We continued to elect the corrupt politicians that did nothing but kick this down the road.
9:34 said it perfectly "The people who don’t “trust” JXN Water just happen to be the same people who want to control the funds and steer the contracts. Chockwe’s sister is the main instigator, and we all know that family’s love for contract steering."
Mr William's criticism and lack of support for Jxn Water, Judge Wingate and Mr Henefin is astonishing to me! Instead of looking for the bad, why don"t you look at the good they have accomplished! How much emergency money did we have to spend during the freeze this year? nothing! Broken lines and poor pipes are being replaced everyday. It's a long road but thank goodness we have Mr Henefin leading this thankless effort to hopefully rebuild and stabilize the Jackson water system! I will guarantee that new Mayor Moreno in New Orleans would love to have a Jxn Water and Ted Henefin running her city"s water instead of their corrupt S&WB!! My friend's in NOLA are envious of our current water regime!
Lastly, 9:38 is correct "Jxn Water doesn't have the highest rates compared to others around Jxn." Go look at the rates at Lake Lorman Utility and North Hinds water association! Jackson is cheap compared to what my friends are paying out there! That is fact!
9:32 Agree 100%
Thank you 7:13 pm You are absolutely correct! The problem is also that cutting off water to large buildings with rented stores or apartments has an economic and political negative consequence. Most of Mississippi has enough underground water to tap for wells.
I think "Bigger Pie" just got a cream-pie or three in the face. Of course they paid for their post and I didn't, so their's will appear and.....
Is he actually suggesting the city should consider default on bond obligations?
He's an attorney. Predict nothing. Expect anything.
The math is straightforward. Jackson Water must raise rates because operational costs remain constant while individuals like Fabian and his friends fail to pay, shifting the burden onto honest, bill-paying residents.
Many people complain about rate increases without recognizing that these outcomes are tied to the leadership they elected. Real change begins at the ballot box. Unfortunately, it is not an immediate fix—some leadership decisions, including those involving individuals like Fabian, carry multi-year consequences for voters’ choices.
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