FixEID

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EID Needs a financial intervention to break its spending and debting addiction!!

February 3, 2012

"Get serious! You have to cut your $15 million per year deficit spending!"

That's what a credit guru like Suze Orman would say as she confiscates EID's credit cards.

Recall the 80% rate hike fiasco of 2010? EID refinanced $12 million of debt, deferring repayment twelve years until 2022-2024, and proudly touted this gimmick as $4 million per year of savings for each of 2010, 2011 and 2012. CLICK HERE to see the EID chart that bragged about this "switcheroo". What EID's General Manager and Board didn't tell us is what these "savings" would cost. The cost of refinancing this loan principal falling due is more than $8 million of additional interest over the twelve year refinance period.

EID's GM thinks this refinancing "savings" charade was so clever that he now wants to do it again. More refinancing enables him to continue running up EID’s debt on:

EID is up to its eyeballs in debt! A "whopping" thirty-five percent of our checks to EID go just to pay debt service... including $16 million annually in interest alone. Another $10 million annually goes to pay those "platinum" EID employee benefits that are nearly double what Corporate America provides. And, why does a small rural public monopoly need a three person public relations staff to tell us what a great job they do?

EID needs a financial intervention to break their spending addiction. Suze Orman would cut up EID’s "credit cards", put the brakes on their $15 million per year deficit spending, and introduce EID’s General Manager and Board to Finance 101.