Anti-Merger Ammo

The majority of the board of directors at San Diego Gas & Electric have sold out San Diego and conceded the company to Southern California Edison. It may be a lucrative deal for SDG&E; shareholders, but the Utility Consumers Action Network has determined that the proposed merger promises very few benefits, if any, for San Diego residents.

The evidence available suggests that the merger will result in higher rates and an unacceptable loss of local control over a utility service that is the lifeblood of this community. As currently structured, the merger poses a serious threat to our ability to determine our region’s own destiny. That power is being handed to an L.A.-based utility that has very different needs and objectives.

I offer some note of caution to those who would promote extreme alternatives to the merger. UCAN’s analysis of the merger, thus far, suggests that there are a number of complex issues and potential dangers raised by the merger. They must be studied by experts on rate design, power procurement, corporate structuring and public policy analysts. Until the merger has been comprehensively analyzed, we will not know exactly how dangerous this merger is to San Diego’s present and future.

I have called upon our elected officials to use the San Diego Assn. of Governments--the regional think-tank for local governments--to coordinate a comprehensive and expert analysis of the merger. Only after quantifying the potential costs of the merger will our community be in a position to identify alternatives. A Sandag study, in conjunction with UCAN’s own study, will prove to be potent ammunition for the battle that lies ahead.

MICHAEL SHAMES

Executive Director

UCAN