Sparks Fly Again in Laguna Utility Battle

Southern California Edison is not giving up the fight to take over utility service from San Diego Gas & Electric in South Laguna.

Edison representatives have been going door to door in South Laguna asking residents to sign a petition demanding that the City Council reconsider its decision last month to retain SDG&E.;

The council voted May 3 to retain the San Diego utility after some residents requested a change because SDG&E; has higher rates than Edison, which serves the rest of Laguna Beach.

The Laguna Beach City Council is scheduled tonight to consider an ordinance granting an electrical franchise to SDG&E; for the area, which was annexed to the city in December.

Steve Sullivan, area manager for Edison in Orange County, said “several hundred” residents have signed the petition. He said that petitioners have canvassed most of the 1,400 South Laguna customers and that they plan to present the petition at tonight’s meeting.

In addition, Edison officials have started a letter-writing campaign to South Laguna residents and have asked them to mail post cards to the City Council urging reconsideration. About 300 such cards have been received at City Hall, according to city officials.

“We’re surprised and disappointed for Edison’s disrespect for the City Council’s decision,” said Karen Hutchins, SDG&E;’s public affairs director for the county.

Last month, SDG&E; officials asked the state Public Utilities Commission’s approval for an annual $30-million rate cut and for eliminating a $4.80 monthly customer charge, which amount to a 5% decrease for Orange County customers.

The request is coming before the PUC next month, but some PUC consumer advocates are charging that SDG&E; will have to increase its rates in 1990 to compensate for the rate reduction, which would take effect immediately in July if the PUC approves it.

Sullivan said the City Council may have been impetuous in agreeing to give the franchise to SDG&E; because of its proposed rate decrease. Edison officials said they plan to present new information at tonight’s meeting in a bid to persuade council members to reconsider.

Laguna Beach Mayor Dan Kenney said he will want a definite answer from SDG&E; tonight about whether the company will have to raise its rates later. Last month, SDG&E; officials told the council that a series of SDG&E; rate decreases, coupled with Edison rate increases, would bring the rates closer in the next few years. (SDG&E; customers now pay an average of $9.91 more a month for electricity, according to both utility companies).

“We want to know if it is a (rate) decrease and not a deferral,” Kenney said. “It’s a legitimate question to ask, and if it is not a problem, then maybe they can include it in their (franchise) agreement.”

SDG&E; officials said Monday that the company’s sales growth will coincide with the rate decrease and that the utility will not have to increase rates in 1990.

Edison customers were handed a 3.7% annual rate increase June 1. The average monthly residential bill, based on 469 kilowatt hours, went from $41.24 to $42.87.

SDG&E; customers pay an average $52.78 a month for 460 kilowatt hours. That would fall to $50.12 if the PUC approves the decrease.