Anaheim : Stable Electricity Rates Likely; Refunds Aren’t

For Anaheim’s electric customers, there’s good news and there’s bad news.

The good news is that residents can expect their electricity bills to remain the same through July, 1987, under an agreement reached recently between the city utility and Southern California Edison Co., said Gordon Hoyt, the city’s public utilities general manager.

The bad news is that under a proposal recommended this week by the city Public Utilities Board, those same customers will not receive refunds as part of an earlier $11.34-million settlement with Edison. The proposal--to place the money originally meant for refunds in an account geared to offset any increases--will go before the City Council Jan. 28, Hoyt said.

Anaheim operates its own utility, which buys most of its energy from Edison at wholesale rates. For years, Edison has increased those rates, much to the chagrin of the city, which has fought the rate increases. Through the years, Anaheim has won several court cases and received refunds. The cost of defending the city’s position over the years, however, has become “very expensive,” Hoyt said.

Under the accord, Edison agreed “for the first time (that) it would attempt to negotiate rates with us (the city) rather than litigate,” Hoyt said. “We agreed on the rates that would be applied for a one-year period. It was an excellent settlement for the company and for the cities.”

The new rate agreement translates to a savings of about $700,000 over the next year, Hoyt said. With the wholesale rate reduction to the city, local rates should remain stable through July, 1987, he said.

Meanwhile, the city has $11.34 million from the settlement with Edison over past rate hikes. Hoyt said the Public Utilities Board recommended that the money be placed in an account that would, in effect, stabilize Anaheim’s rates. If the council agrees to the proposal, Anaheim’s 105,000 electric customers will not receive the refunds from the settlement.

The city has at least two other cases against Edison in litigation before the Federal Energy Regulatory Commission, Hoyt said.

Anaheim has been striving to reduce its dependency on Edison. The city now owns 3.16% of the San Onofre Nuclear Generating Station and 13.225% of the coal-fueled Intermountain Power Project, which will go into commercial operation in July, Hoyt said. The city also has a long-term contract with Deseret Generation and Transmission Cooperative in Utah, he continued.

“We’re becoming less and less dependent upon Edison to meet our requirement,” Hoyt said.