What is Going On at CPS?

First, NEWS4SA reports that CPS is spending $2 million for a pavilion for “employee events,” among other things.  Then, the San Antonio Report tells us they “may write-off” almost $43 million in delinquent accounts, while at the same time pulling in an extra $130 million from markets across Texas.

“CPS Energy claims the pavilion is not being funded by the rate increase that customers will see on their bills beginning February. The utility says that money will go towards infrastructure and technology updates.”

Money is fungible.  As we all well know regarding social security, there are no lockboxes up in D.C. with our names on, and contributions in them. That money has been spent, just like all taxes Uncle Sam takes.

Same here. Though the rate hike may not be directly related, it’s all under the same umbrella.

Bad debts, like those delinquent accounts, are regularly written-off by companies.  It’s a cost of doing business.  Some folks, for various reasons, don’t pay.

However, those that do pay will see higher rates, which are estimated to bring an additional $85 million in revenue?  Could that $130 million not have filled the same gap?

Moreover, when phenomena like these occur, why is there never any talk about concurrently reducing property taxes?

If CoSA’s take from CPS was greater, it would serve two beneficial purposes. One, excessive energy consumption would be deterred by higher rates. Anyone who has been into meat-locker-feeling grocery stores, public schools, etc. knows what we’re talking about.

And two, the exceptionally harmful effects of property taxes (diminished savings/investment and suppressed home-ownership, to name two) would be minimized. To the extent government has to be financed, user fees, taxes on consumption, are arguably the least harmful, and most efficient way to go. 

Conservation, check. More prosperity, less cronyism, check.

Too often opposite sides of the political spectrum, in search of the holy grail of bipartisanship, gain consensus to pass laws they think are beneficial, but really aren’t. Increasing spending on this ‘compassionate’ program or that. Spying on citizens in the name of ‘public safety’. Etc.

Here however, would be a genuine win-win that would actually promote the public good.