Bill O'Brien: City shouldn't sell TCL&P

By BILL O'BRIEN
Business editor

June 22, 2008 12:00 am

There are enough problems to tackle in Traverse City without trying to fix things that may not be broken.

The recent discussions on whether to sell Traverse City Light & Power appear to be an overreaction to the public utility's recent missteps, sort of like throwing out your refrigerator because of a burned-out lightbulb.

Traverse City's forefathers showed some long-range wisdom when they established a city-owned electric company more than 90 years ago, and also were bright enough to insulate it from day-to-day city politics. But a city public advisory body that's set up to review city finances and operations raised questions about Light & Power that from this vantage point indicates they may be overstepping their original charge.

No one has come close to making a strong case for getting rid of Light & Power. Any financial advantage that may be derived from selling the utility or returning its property to the tax rolls could pale in comparison to higher costs city residents and businesses would incur through long-term rate increases.

Communities in Michigan and beyond made news in recent weeks because of severe weather and resulting power outages that lasted days and weeks, in part because they're served by large power companies that cover vast areas.

When's the last time Traverse City residents have been without power for more than a few hours? It's hard to remember.

Not that Light & Power hasn't almost begged for some of this scrutiny. The utility board and administrators at times lost their way by forgetting it's a "public" utility, and acted more like privately held power companies that operate in secret and answer only to the corporate bottom line. There were the huge utility poles foisted on the Central Neighborhood a few years ago, back-door involvement in a regional electric substation in Elmwood Township that raised neighbors' ire and several other incidents, including the recent ousters of Light & Power's top two administrators.

Now there's talk of partnering in a coal-fired power plant in Lansing. Didn't we just dismantle one of those?

But the solution to those problems is more public oversight and accountability for the utility, not less. Those upset with Light & Power can't possibly believe that would improve if the utility were sold to a rural electric cooperative or a statewide operation, where director boards can be far more detached from their communities than Light & Power's set-up here.

In the end, city voters will have the final say over the future of the utility, so there's only so much the politicians can do. But a growing amount of time and effort is being spent on this issue, without anyone first deciding whether there's really a problem to fix.

There's a lot to be said for keeping the lights on and the rates low. In that regard, Light & Power has served its citizens like few public operations in this region. The city would do better to attain that level of service and efficiency in all its departments, rather than risk losing local control of utility decisions in a tumultuous energy market.

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Bill O'Brien