What’s going on at SPSA?

I’m confused.

Perusing PilotOnline, I ran across this article about the abrupt cancellation of a Wednesday morning public hearing and vote on the proposed rate increases of the Southeastern Public Service Authority, better known as SPSA. Seems there was a little problem in that the 60-day advance notice was not met. But a larger problem looms.

The delay means SPSA will take up the contentious issue in late March.

It also means that the waste authority, which has handled most trash and recycling in South Hampton Roads for the past 30 years, may run out of cash by then and be forced to close it doors, [SPSPA spokesman Tom] Kreidel said.

The proposed rate increase would more than double the tipping fees – from $104 per ton to $245 per ton – making the fees, according to this editorial, “the highest disposal fees on the planet.” The editorial was prompted by SPSA’s rejection, for the second time, of an offer to buy the troubled agency. From the editorial:

Adoption of the plan would create a veritable garbage monopoly for ReEnergy in Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk, Franklin and Isle of Wight and Southampton counties – the eight localities comprising SPSA, which is itself a monopoly.

Exchanging a private monopoly for a dysfunctional public one may indeed be a bad idea. But it needs more analysis than it has received.

The fiscal model that heralded SPSA’s birth, long since obsolete, is no longer sustainable.

Sometimes, the Pilot editorial writers are almost prescient. Or maybe they just looked at the books. However they got there, they got this one right. I am amazed that SPSA lacks sufficient cash reserves to make it another 60 days, yet turned down a buyout offer.

But then I ran across this (link no longer works, try this similar link)  story, which says not only are they not running out of money, but that the rate increase may be scrapped:

Because it will receive an infusion of cash later this year, SPSA expects to cancel or at least greatly reduce a proposal to sharply raise local trash disposal fees, SPSA board chair Don Williams told the Norfolk City Council Tuesday night.

Williams said he hopes the increase will not be necessary because the Southeastern Public Service Authority is close to selling its Portsmouth waste to energy plant. He implied the sales price could be upwards of $200 million.

According to the story, selling the Portsmouth plant will bring in as much money by itself as the total buyout price offered by ReEnergy.

Something  smells here and it ain’t the garbage.  Supreme Court Justice Louis D. Brandeis once said,  “Sunlight is the best disinfectant.” Looks like to me it’s past time to get more information about SPSA out in the open for the citizens to discuss.

UPDATE:  Hmm – another story today.  Seems that there is a plan to restructure debt payments to keep the agency afloat. No mention of the possible sale.