megavikingman t1_j1yqawh wrote
Reply to comment by Coffee-FlavoredSweat in Group opposed to Maine consumer-owned utility turns in signatures for a ballot question of its own by DrMcMeow
Numbers are suspect, but now calculate everyone's share of profits.
Coffee-FlavoredSweat t1_j1yqwog wrote
$16 per month. Don’t spend it all in one place, you’re still on the hook for the $80/month mortgage payment.
megavikingman t1_j1yshd8 wrote
How I know your numbers are wrong: CMP is still in business, after being purchased.
If they make enough money to spend a million bucks on a ballot measure that may fail, they are profitable enough to buy.
Coffee-FlavoredSweat t1_j1yy0ha wrote
It’s pretty easy math.
$40 million per quarter comes straight from the news article, divided by 3 months, divided by more than 800,000 customers.
Feel free to do your own math and prove me wrong though.
popejohnpaul2nd t1_j1z4pv0 wrote
Not sure what interest rate you are using to come up with $15 billion of interest. At 5% lifetime interest on a 30yr, $9 billion loan would be about $8.6 billion.
Lets talk profit. The $40 million represents just CMP. If we take a look at the 2021 year end financial reports combined net income would be about $263 million. If we want to truly look at cash income, we need to add back depreciation, as well as add back interest, for a new entity wouldn't be responsible for the repayment of CMP's debt. That would leave us with about $487 million compared against $285 million in annualized interest repayments. I want to ignore principal repayments as those are accounted for on the cash flow statement and there is whole lot of additional fuckery going on there (e.g., CMP reported $183 million in net income in 2021 but $330 million of cash provided from operating activities). I am also not able to look at a Versant only cash flow statement.
It would appear a new entity could handle the debt load. I don't think it would result in cheaper rates right away, but certainly in the long run. I would imagine that service levels would also improve as they would be committed to serving their customers instead of padding the rate base to justify rate increases.
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