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LMUD HAS BEEN IN TROUBLE BEFORE
LMUD SPECULATED WITH POWER PURCHASES AND LOST
FRANK CADY DIRECTED THIS DISASTER
Frank Cady led the LMUD Board down a path that led to a cliff. LMUD speculated, in the market, with the thought of reselling power at a profit . It backfired and they ended up losing $8.7 million dollars.
THE LMUD DIRECTORS PUT THE DISTRICT AT RISK
The ratepayers paid dearly. The LMUD Board had to pass rate increases to save the District, with the promise of removing them by January 1, 2002. The LMUD Boards did not honor their promise to the ratepayers, to remove the last surcharge.
ARROWROCK WAS USED AS A DIVERSION
The ratepayers needed to be distracted from this $8.7 million loss. Frank Cady came up with the Arrowrock scam in December of 2000. The LMUD Board, on April 25, 2001, brought the project before the public but never voted to approve any money to support this scam. The actual Arrowrock MOU was kept from the public and was eventually signed on August 9, 2001. It became a "ghost" MOU and it was used as long as they could use it........
KWH filed a Motion to Intervene with FERC, on April 3, 2003, and exposed the Arrowrock scam at a LMUD meeting in May of 2003. KWH kept the pressure on LMUD and LMUD was finally was forced to abandon the scam on June 6, 2004.
THE RATEPAYERS WERE NEVER SUPPOSED TO CONNECT THE DOTS