Energy Commission Won’t Use Environmental Study in SDG&E-SCE; Review

The Federal Energy Regulatory Commission probably will not include an environmental impact study during its upcoming review of the proposed merger between San Diego Gas & Electric and Southern California Edison, according to a preliminary order issued by the FERC Wednesday in Washington.

However, the preliminary order suggests that commissioners would remain open to adding an environmental review sometime in the future.

The FERC, which has yet to set a schedule for its review of the proposed merger, also indicated that it would not investigate the city of San Diego’s allegations that SCEcorp, the parent company of Edison, used coercion to win support for the merger among SDG&E;’s board members.

Review of Impact on Rates

The FERC’s preliminary order indicates that commissioners will review the proposed merger’s impact on electric rates in Southern California, as well as the impact on utility competition in the West.

Edison is “pleased that the commission has limited its review to the issues that we think are relevant,” company spokesman Lewis Phelps said Wednesday. “We look forward to the FERC setting a firm schedule for its review.”

“Of the two (the environment and coercion) the most important issue to us is the environmental issue,” said Paul Downey, spokesman for San Diego Mayor Maureen O’Connor. “We feel strongly that there ought to be an environmental review by FERC.”

In a related matter Wednesday, a City Council committee unanimously passed a resolution that would create a special committee to review the proposed merger and recommend a strategy for the council.

The newly formed committee, which would include all council members, would be chaired by O’Connor. The resolution now must be approved by the entire council.

Fact-Finding Meetings

If created, the committee would conduct fact-finding meetings and make recommendations to the council on the city’s role in the merger review, according to Assistant City Atty. C. M. Fitzpatrick.

As envisioned, the committee would pay special attention to the financial health of Rosemead-based SCEcorp, which owns several nonregulated businesses outside of the utility industry.

The committee also would review Edison’s ability to serve SDG&E;’s existing customers should the merger occur and would study Edison’s “intention and capability . . . to be a good ‘corporate citizen,’ ” according to the resolution.

The resolution calls for the committee to hold public hearings to gather testimony from the public and utility representatives.