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Update February 15, 2021 – Letter to the Community from Steve Krohn (GE) and Matthias Smith (Massanutten Resort)

To the Massanutten Community:

One of the most noteworthy things about the SCC hearings related to MPSC’s proposed rate increases was how much fundamental agreement there is between Great Eastern/Massanutten Resort and those it represents (collectively referred to in the case as “Massanutten Resort Customers”) and residential property owners.

As you may recall, testimony was pre-filed earlier this year by MPOA; at the hearing, a variety of individuals testified – including principals and consultants working on behalf of both MPSC and the Massanutten Resort Customers, plus SCC staff members.

The Commission also heard from MPOA members Orris Hambleton, Thom Bailey, Andrew Jezioro, and JC Powell, testifying on their own behalf (and advocating for homeowners).

It’s true that there are still aspects where residents and the Resort Customers group don’t see eye to eye, but on the larger issues, we’re pretty much on the same page. We were so impressed by their diligence and the quality of their testimony that we invited them to join us for an informal meeting recently. That meeting was attended by Messrs. Hambleton, Bailey, Jezioro, and Powell; Steve Krohn, Executive VP and Chief Operating Officer of the Resorts Companies and Massanutten Resort VP and General Manager Matthias Smith. MPOA was represented by President Liz Walker and Administrator Carter Miller.

The purpose of our meeting? We believe that long-term, the best solution for ever-escalating rates for the entire community is a buyout of MPSC by Rockingham County – specifically, the Massanutten Water and Sewer Authority recently authorized by the Board of Supervisors. The meeting further highlighted areas in which the Resort Customers and residents are in agreement, and helped establish a framework for the next steps.

You might be aware that there’s currently a valuation study of MPSC’s assets underway on behalf of the Authority. That study should, at least theoretically, be finished by the end of March. Before that, we hope to meet informally with several key members of the Rockingham County government and staff to move this concept forward.

There may come a time at which everyone’s support – in the form of communications with County government, letters to the Editor, and other efforts – will be helpful. We all need to recognize that this is likely to take some time. But once things start moving ahead, all of us must speak to the County with a common voice on this critical initiative. To that end, we’ll work collaboratively with the MPOA board so they can offer some guidance on how you can best be helpful.

This is an area in which residents and the Resort customers share far more common interests than disagreement. Rate differentials between different customer groups are a short-term problem; we’ve been pointing fingers at each other when we should both do the pointing at MPSC. SCC may very well come back with a rate structure that some are unhappy with, but there IS a good long-term solution on the horizon – in the form of a County buyout – and we look forward to working with residents to achieve that goal.

Sincerely,

Steve Krohn, on behalf of the Resort Companies
Matthias Smith, on behalf of Great Eastern

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