Fueling controversy

Will Madison Metro accept cut-rate oil from Venezuela?

By Sarah Turner
Jan. 26, 2006

Madison is once again leaping into a national political controversy, and this time the city may have something to gain.

Madison officials are now awaiting an offer from the Venezuelan government for low-cost diesel fuel that might reduce the financial burden on cash-strapped Madison Metro. The idea is under active consideration, amid concern that accepting the deal will make the city a pawn in an international dispute.

"We're straying from the core mission of the [city], which is to fill potholes and pick up trash," says Ald. Zach Brandon, who has nurtured a local reputation as a cost-cutter. "Let's fast-forward through the propaganda. If Citgo and [Venezuelan president Hugo] Chavez were really concerned about the poorest of Madison, they would take that money and buy the poorest among us monthly bus passes with their profits."

But Ald. Austin King believes the city ought to seize the opportunity: "Rejecting Citgo's offer on a purely political basis isn't just short-sighted, it's downright cruel."

Venezuela's state-run oil company, Petroleos de Venezuela SA, and its Houston-based U.S. affiliate, Citgo Petroleum Corp., have already offered other U.S. cities millions of gallons.

New York and Massachusetts have accepted more than 20 million gallons of heating oil at 40% discount. But opponents say U.S. cities shouldn't accept help from a Latin American leader who's denounced President Bush and U.S.-style capitalism.

Under pressure from conservative groups, the Chicago Transit Authority initially rejected a similar offer for the city's bus fleet, claiming an incompatibility of fuels. But after widespread public outcry and renewed offers from Venezuela, the CTA has come back to the table.

King says Madison's bus system is in dire straits: "With the monthly bus pass increasing from $39 per month to $47 per month, we've entered what a lot of people call a death spiral. Every time Metro faces a problem there are only two solutions, raise fairs or cut routes, and when you do this you end up with less ridership and less income."

Local activist Ben Manski approached the Venezuelan government several weeks ago after hearing about the offer to the city of Chicago, and has since had ongoing contact with the Venezuelan Embassy. As a fellow with Liberty Tree Foundation for the Democratic Revolution, a Madison-based national nonprofit group, Manski believes this is an opportunity to build ties between local municipalities.

"In the U.S., cities are becoming more and more centers of democracy and innovation," he says. "You see federal and state governments becoming less accountable and the American people are increasingly reacting to that and looking for new ways to exercise power and to provide services."

In a Jan. 18 memo, Ann Gullickson of Madison Metro identified several problems with the Venezuelan fuel deal. Madison Metro currently uses a special type of low-sulfur diesel and a different type of fuel might require new fuel pumps in all Madison buses, "The cost to Metro," she reckons, "would be approximately $31,000 for parts and labor."

Another concern is how long Venezuela would be able to provide the fuel. The memo says any benefits must be "weighed against the impact of alienating vendors who would be involved in a competitive process in the future."

Madison Mayor Dave Cieslewicz doesn't yet know enough about the idea to comment, but spokesperson George Twigg says the mayor "is open to any environmentally friendly alternatives that will help ease the city's fuel costs."


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