New Citizens Group Opposes Public Ownership of SDG

J. T. (Tom) Hawthorne, a California Transportation Commission member from Escondido, announced Monday the creation of a citizens committee opposed to a government takeover of San Diego Gas & Electric Co.

The committee, composed of several well-known county residents, was formed because of fears that municipalization of the utility would lead to a drop in service and higher rates.

“It is my firm conviction that the private sector is a more appropriate operator of utilities than the public sector,” Hawthorne said in a prepared statement. “Public takeover would result in poorer service and higher rates.”

The board of directors of SDG&E; has agreed to merge with SCEcorp, the parent company of Southern California Edison, and the two companies are seeking the approval of the state Public Utilities Commission.

Fear Loss of Control, Jobs

The merger is vehemently opposed by those who believe it will mean a loss of local control and local jobs. Mayor Maureen O’Connor has come out against the merger, as has another group called the Committee for Local Control, headed by Gordon Luce, chairman of the board of Great American First Savings Bank. Luce’s committee, however, has not taken a stand on municipalization.

Meanwhile, the San Diego County Water Authority has embarked on an analysis of the feasibility of taking over SDG&E;, a proposal sharply opposed by the utility.

The new committee announced Monday, while specifically formed to oppose any government takeover, has not taken a stand on the SDG&E-SoCal; Edison merger.

The committee, called Taxpayers Against Government Takeover, has asked for “seed money” from SDG&E; to help it get organized, though Hawthorne said the group will also draw on private donations and contributions from other investor-owned utilities in the United States.

Study, Opinion Polls

Hawthorne said two recent developments have reinforced his committee’s opposition. One is a study by consultants CH2M Hill “indicating a possible 23% jump in utility rates if a government takeover did occur.” The second are two opinion polls, including one done by The Times, which show that citizens are opposed to municipalization. (The Times poll also showed strong opposition to the merger.)

Other members of the committee include Gil Contreras, vice president of Contreras Brothers Construction Development Corp.; Bob Watkins, an executive search consultant from San Diego; Fred Schnaubelt, a former San Diego city councilman and now a Chula Vista real estate broker, and Gary Clasen, La Mesa district manager of the Automobile Club of Southern California.

Others identified by Hawthorne as also opposed to a government takeover of SDG&E; were Mac Strobl, a former San Diego city councilman and a public relations consultant; Jack Raymond, a North County developer and former president of the San Diego Economic Development Corp.; Leonard Knight, an executive with the Epilepsy Society, and Bud Wilson, a Chula Vista insurance executive.