I’m repeating Donna’s blog response giving you the charts to calculate your MoPEP debt because this is very important to explain all those mysteriously fluctuating MoPEP wholesale rates you get from MoPEP. MJMEUC-MoPEP has dumped over $2 BILLION worth of debt in obsolete technology on 32 small towns as if it was nothing. These charts explain why your electric rates went up after you joined MoPEP and why they will keep going up as long as you are associated with this bunch of amateur businessmen who think they can beat the big power companies at a game the power companies invented.
So for all you MoPEP sharecroppers, here’s how you can figure out how much of Duncan Kincheloe’s little power empire you are directly responsible for paying off if anything goes wrong – and things are going wrong every day, he’s just not telling you about them.
As far as we know the Owensville auditors, Verkamp & Malone of Rolla, are the only auditors who have caught on that there’s a pot load of very heavy debt hiding out there in the MoPEP bushes that should have been reflected on the liabilities of each of the owner-member cities.
Step 1. Print out Exhibit M which will tell you what percentage your share of the debt is. Use the figures on the “Generation-Exhibit M” chart. Each column gives your share of that particular power plant. For instance the first column is NC2 which is Nebraska City 2 the second is Prairie State etc. Your total allocation (of debt) is in the third column “% Allocation.”
Step 2. Print out Chart B showing the MJMEUC-MOPEP total debt and the individual debt for the eight plants. Rolla’s share is 0.1384 or 13.84% as shown in column 3 of the Generation chart.
Step 3. Multiply your % share of the debt in Exhibit M times your share of each of debt for each plant as was done in the Rolla chart example or just multiply your allocation percentage times the total debt for all these plants which is $2,160,352,403.89. That’s how much of Kincheloe’s debt your town is responsible for paying off if anything happens and one or more of these plants fails to earn enough money to pay off all their debts and all their Carbon Taxes.
Step 4. After the EMT’s revive you, take the charts and the results of your calculations to your next city council meeting and ask why they haven’t told any of the citizens of your town about this huge debt. Then send the charts to the CPA’s who do your city audits so they can add this important information to your annual audits to accurately reflect the city’s total obligations. With this information available to them they should add a note to the "liabilities" section on your next city audit which explains that when your city council signed the MoPEP contract (Section 8.10 page 12-13) the city gave MJMEUC-MoPEP a superior or first lien on all your city electric revenues. That is the collateral MoPEP pledged so they could borrow the $2 Billion to buy into all these power plants. The fact that you don’t own your own electric revenues anymore is something your city is supposed to disclose to anyone who uses your audit to decide whether to loan you money on a short or long term basis. If it's found out that the city failed to disclose all its liabilities and obligations or concealed something like the MoPEP liability and the first lien on one of your major revenues, it can ruin your credit rating for a long time.
Your CPA's will also be very interested in seeing a copy of the MJMEUC Management letter that confesses none of their previous audits have been worth a damn because they left out all this debt. If you do all that maybe you will be able to get a straight answer out of one of those people in city government who rubber-stamped your MoPEP or UPPA contract without reading a single word of the contract.
You could also ask the Kinchloe fan that has been going to MoPEP meetings all these years and who obviously has been voting in favor of all this debt, why the hell they haven’t been reporting it to the folks at home?
The Carbon Tax Chart is for the pinheads who have invested in coal-fired plants - . The next awful news is that after the new president is elected (doesn’t matter which one) Congress is going to get serious about cutting our carbon emissions so this is what the owners of all the dirty coal-fired power plants can expect to start paying for the privilege of fouling the planet. These costs will naturally be passed right on to the consumer in higher rates. The Carbon Tax Chart is MIT’s best estimate of what it will cost them to keep blowing all those “Clean Coal” residues into the air. There are a lot of variables such as the softness or dirtiness of the coal used. The Illinois coal mine that Kincheloe invested in along with the Prairie State power plant that Kincheloe thinks is such a masterful business coup produces the worst kind of soft bituminous coal which eats up expensive-to-replace boilers in the power plant. Clever huh?
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