National - James Fallows - Let's Talk Infrastructure (and Extreme Weather, and Pepco) - The Atlantic:
As the good-government website OurDC notes,"From 2008 to 2010, Pepco CEO Joe Rigby earned $8.8 million and Pepco top officers earned more than $22 million. During that same period, Pepco reported $882 million in profits, paid no federal and state income taxes and received $817 million in tax refunds." Yet as the money rolled in, the Maryland Public Service Commission allowed Pepco to cut back on maintenance, in order to divert funds to dividends and management bonuses....
Pepco faces a simple reliability equation: The more it spends on improving service, the less is available for dividends and executive bonuses. CEO Rigby is a major shareholder, so in effect awards himself a commission when he keeps infrastructure spending low and dividends high. After the mega-thunderstorm, Dominion Power [another provider in the area] took 14 hours to restore all its transformers and main feeder lines... while Pepco took 36 hours... Within 48 hours of the storm, Dominion had 2,000 out-of-state workers present to assist in restoration; Pepco had just 300. If Pepco drags its feet on recovery, the utility avoids paying doubletime or tripletime, plus expenses, to out-of-state crews.
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