T.W.
Patch – Regulatory Commission of Alaska/Chair Commission
Stephen
McAlpine, Robert M. Pickett, Norman Rokeberg, Janis W. Wilson – Commission
Subject
Matter: Doyon Utilities – Request for Non-involvement by RCA
Dear Members of the Regulatory Commission
of Alaska;
With all due respect, I request this
correspondence forwarded to the sitting members of the Regulatory Commission of
Alaska be accepted and considered as a “General Correspondence Complaint &
Public Comment” and not confined under any “Confidentiality” but made available
on the RCA site along with all other matters of “Public Interest”, as it is a
matter with purpose through such interest.
I have followed closely the proceedings
before the Regulatory Commission of Alaska, with respect to such important matters
between the United States of America – d.b.a. U.S. ARMY/Defense Logistics
Agency - and Doyon Utilities, a joint venture owned in equal shares by Inland
Pacific Resources, a Canadian corporation and Doyon Limited Corporation, an
Alaskan Native corporation. With respect these matters before the “Commission”,
the affiliation between the parties under “Utility Privatization” is through
“Contract”, one that finds RCA oversight fulfilling a haphazard role.
The fact that the RCA finds oversight with some control upon the contract
specifics, at least that seems to be the trend forward the “Commission's”
involvement, it appears to be delaying a once-and-for-all “settlement” upon a
long winded battle that is going into the 4th year. In consideration
Doyon's most recent filings, which occurred soon after the RCA approved
settlements between the parties which seemed to show some semblance of
“closure” affording arbitration before RCA involvement was necessary, Doyon was
quick to renege on the approved language, as has been the case since the
difficulties between the parties manifested itself. It appears DU cares not
about the RCA's involvement such settlements, unless it benefits DU in
capturing more money away from the U.S. Taxpayers. The U.S. ARMY may be the “Sole
Customer” this contract dispute, yet it is the U.S. Taxpayers that ultimately
are burdened with the costs of resolving differences. That is who is being
“harmed” this continued abuse upon the system of merits promulgated through
“Regulation”. It is a contract, let it behave as such without interference. Due
my experience with DU, I find in favor the U.S. ARMY's commitment, that we
would be better off if the RCA recuse itself from any further interest in the
on-going proceedings in hopes the parties find negotiation skills consistent
with contract disputes, away from heavy handed “Regulation”. When Doyon
Utilities entertained the “Privatization Contract” back in 2008 and as stated
by DU's executive management: “Regulation by RCA - The regulated
approach provides the greatest certainty and therefore lowest risk for both the
Army and Doyon Utilities. The expectations of each party are clear and
mechanism for rate setting is transparent.”, that was a valuable
selling point yet that seems to be no longer the case, as it appears to be more
of the same with DU and the current attacks on the “contract” are due that
entities self-propagated failures. As was pointed out early on by our brave
soldiers in uniform that act as legal advisors to protect this nation, it appears
this continued abuse upon the “Contract” is based on DU's unqualified
management with expectations of deliverables by this 50-year multi-billion
dollar contract award. Case in point, the “DOD has consistently received
misleading and erroneous information, along with numerous unfounded allegations
by Doyon Utilities, LLC” and such sworn “informational” statements by
Doyon without merit are in essence an attack on our nation's sovereignty. And
as quoted back in 2011 by a government official involved in the disputes: “This
unusual combination of having a Federal Government contract with the State
regulating has been interesting for us as we attempt to get DU to perform to
the contract requirements. We are currently involved in several significant
contract dispute issues, with more on the horizon. All of our jobs will become
much more challenging by adding in the RCA. If we now want to ask that the RCA
not regulate our Fort Wainwright contract with DU, what level of authority from
the Army would be needed?” Why
the RCA did not recuse itself back then is an indication of a weakness within
the Regulatory Commission itself. So enough is enough, especially in
consideration that “Settlement” criteria approved by the RCA with respect to
due diligence, DU seems to forget what it has negotiated and since the power of
the RCA also finds oversight “Exemptions” when such is in the “Public
Interest”, it is time the RCA comes to grips that its role as a referee has
timed out and will cause reprehensible harm should it continue to act as DU's
instrument of abuse. The RCA is being used today by Doyon not as a ways and
means for equitable regulatory oversight, but as a tool of destruction upon a
“contract” that found no major faults. No doubt the role of the RCA has come to
that end and the RCA should exercise that option so allowed under AS
42.05.711. Exemptions. (d) The commission may exempt a utility, a class of
utilities, or a utility service from all or a portion of this chapter if the
commission finds that the exemption is in the public interest. What is
going on today is no longer in that “best interest” arena and the dispute
should be left alone and if the parties to the dispute cannot find closure
without RCA intervention, well that is what State and Federal court jurisdiction
is all about. The bottom line, this is OUR government fighting what was a
signed, sealed and delivered “Contract”. The “Contract” was clear and concise,
with every i-dotted and t-crossed and to watch and read what DU management
contends is a fault of government and extorting through its expert witness
program, used to serenade DU's failures, it is like a child trying to defend
why that homework was incomplete, like that entity did not know what it was
getting into – blame it on the dog! There were several other entities that bid
on this “Privatization Contract” but lost out due the fact Doyon may have faked
out the competition, and said again my association shows indications that the
upper management engaged in this “Privatization” process but for a single
reason, to abuse what was behind the mandate to allow private sector to engage
in military operations upon the installations' utility infrastructure – and in
efforts to save money it is now just the opposite case! So the time has come
for this “Exemption”, as the use of the RCA is causing harm, to the U.S.
Taxpayers as DU is using the RCA as a front, not the intent of “Regulation”.
Through a FOIA request, the costs – additional exaggerated costs – that
have been tallied up by the DLA and other legal entities so engaged in this
battle, it takes away valuable resources from other issues that need attention
to protect our men & women in uniform that are defending this nation, as
there is only so much to go around. The team of dedicated military personnel
that is exhausting valuable resources on these “matters” should be and could be
working on more important issues of national security, not trying to defend
itself against DU's inability to understand the “Contract” as was approved by
many. With protracted litigation that finds no end due the RCA interference,
the RCA should take this into consideration, as in the end we all pay for this
ridiculousness. As it stands, Inland Pacific is enjoying a healthy profit from
this contract and such profits are more than likely being re-invested in
another country, not in America. When one digs deeper into the negotiations
that warranted Doyon gaining traction on the contract award, with respect to
banking and local investment opportunities, it has also reneged on that aspect,
so American's are loosing footing in what was supposed to be a good thing with
“Privatization”. Don't see a Toronto Dominion bank yet in Fairbanks? Yes, a
bank of Canada is funding DU's stake in this “privatization” venture, when in
the beginning DU said it would use Wells Fargo, a local. Even though this has
nothing to do with the current “contract dispute”, it shows a deeper sentiment
of abandonment what “privatization” was supposed to promote, for America. Like
already mentioned, I have worked at several DU sites, and the waste is
mind-boggling, from mismanagement and pathetic reasoning that DU didn't know
what it was getting into because “they were only allowed a drive-by” some of
the facilities along with what appears a lackadaisical attitude from the
executive branch, so it got what it deserved. This in not what the American
Taxpayers bargained for, corporate pirating at the expense of the U.S.
Taxpayers. If the parties cannot forever find closure this dispute and it ends
up in the courts, best for all would be the law finding a dereliction upon the
“contract deliverables” and then maybe we could re-coup our looses. And it
appears even though DU insists that the oversight is but for a single
“customer”, it appears we are starting to realize that DU wants “precedence
set” for its defense, and that can only affect all of us “rate-payers” in the
end. What Doyon uses today before the RCA will be used by others in the future.
Yes, today the RCA is on a slippery slope
such interest in this matter. In ending, I believe it is the duty of the
RCA to reassess its worth in this contract dispute and forever recuse itself
away from any further involvement. We owe that to the military, we owe that to
ourselves as this continued abuse by DU management upon a negotiated contract
is but, well no different then real “war”. This is NOT about Alaska, it is
about OUR military and this interference by the RCA, it was pre-meditated by
the original DU executive management as a ways and means for interference,
Think about it, who in their right mind would beg for “Regulation”? The RCA
intervention has only been for interference, and as a result we find protracted
litigation, as for the bottom-line DU's owners are just trying to get “blood
out of that turnip”, thinking the U.S. government will finally throw in the
towel as resources do become limited over time. So it is “We the People” that
must stand up and be heard this ridiculousness still before the RCA as a
never-ending battle. And it must also be a drain on state resources, with
respect to the filings by DU before the “Commission”. It is time for the RCA to
step away from this dispute and the Alaska Statutes provide for such release
and relief, and the “Commission” owes that to this nation, that when push comes
to shove we stand for principals not upon dereliction our convictions. If the
RCA were to recuse itself, the matter would be resolved post haste, either a
solution or an abandonment of the contract by Doyon, then maybe a reputable
entity could take charge as “Privatization” is working in other states were
there is no “Regulatory Commission” interference. Was the RCA wrong to accept
Doyon's request for “Regulation”, of course as the intent was for other reasons
we see playing out today, and it starts with $$$$$$. I am asking the RCA “Commission” to seriously
consider and move on rescuing itself away from any further oversight between DU
and the U.S. Government, based on an AS 42.05.711. Exemption, else
continued cooperation leaves me no other
alternative then to seek relief elsewhere - as a jury of peers would come away
with the same reasoning, let the military handle its own problems as it is good
at fighting for our benefit, even if not in the trenches abroad but in the
corporate boardroom right here at home. Thanks for the time.
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