Out of Merger Mania Arises Flood of Groups : Utilities: An explosion of interest in the SDG&E-SCE; proposal has led to the creation of organizations for, against and even neutral on the issue.
It’s gotten to the point where observers probably need score cards to keep tabs on groups that support or object to San Diego Gas & Electric Co.’s proposed merger with Southern California Edison.
Some groups are strictly for or against the merger. One is against a government takeover but undecided about the merger. Another isn’t for or against anything.
The explosion of interest in the utility business initially surprised Michael Shames, executive director of Utility Consumers Action Network, a San Diego-based consumer group that has monitored SDG&E; since 1983.
The utility industry “is a very arcane, very esoteric thing,” said Shames, whose organization used to be the only San Diego group that took part in regulatory proceedings involving SDG&E.;
“Until the day that Edison wanted to take over SDG&E;, I never thought I’d see this kind of interest.” But, with the exception of UCAN, which has 56,000 dues-paying members, the merger-related groups are generally small, loose-knit organizations with minimal cash reserves.
The Coalition for Local Control is probably the best-organized of them.
“We don’t actually hand out membership cards,” said Robert Hudson, executive director of the coalition, which is anti-merger but neutral on municipalization. The group, which has raised about 25% of its $200,000 goal, has about 1,000 members, Hudson said.
The coalition has attracted wide support. Its board, which includes representatives from organized labor, consumer groups, environmental groups and the business community, is headed by Great American Bank Chairman Gordon Luce.
The Committee for Fair Treatment has taken a neutral position on the merger and municipalization. The group, which includes civic, religious and education leaders, hopes to provide a neutral forum for discussion.
“It is critically important for San Diego citizens to have full knowledge of the facts relating to the merger,” said San Diego National Bank President Murray Galinson, who chairs the Committee for Fair Treatment. “We believe it is essential that San Diego County residents do not rush to judgment or make up their minds without hearing both sides of the issue.”
Taxpayers Against Government Takeover is a “loosely organized” group with several hundred members, according to spokesman Fred Schnaubelt, a San Diego City Council member in the 1970s. Despite its relatively small membership, Schnaubelt believes the group enjoys broad public support. Its members recently gathered 26,000 signatures from county residents who oppose any attempt to municipalize the local gas and electric company, he said.
Taxpayers Against Government Takeover has attracted about $20,000 in donations, Schnaubelt said. Some of that funding came from SDG&E.; The utility declined to describe donations made to the group.
San Diegans for the Merger has attracted about 2,700 members, spokesman Larry O’Donnell Jr. said, adding that about 2,000 “have agreed to let us use their name” as the group mobilizes to support the merger.
The pro-merger group attracted many of its members through mailings conducted by Edison and SDG&E;, according to O’Donnell. Many of its members are SDG&E; shareholders who would register a profit if the stock-swap deal were completed.
O’Donnell declined to discuss the group’s finances. However, Edison has supported the group financially by paying its “administrative expenses,” according to Edison spokesman Lewis Phelps.
The merger battle has renewed interest in UCAN, which had been losing members in recent years because SDG&E; had been reducing its historically high electric rates. A mailing shortly after Edison made its bid for SDG&E; brought in 5,000 new members, Shames said.
Several other small groups are now active in the merger fight:
* Ratewatchers, with about half-a-dozen members, is an intervenor in the review being conducted by the state Public Utilities Commission, according to Don Klein, the group’s founder. Ratewatchers has “serious doubts about the credibility of the merger,” he said.
* Prevent Los Angelization Now, a small group formed to promote growth controls in San Diego County, has also taken a stance against the merger. PLAN was founded by Peter Navarro, a University of San Diego professor.
* The California Assn. of Utility Shareholders, a San Francisco-based group, also supports the merger.
Who the Group Players Are in Utility Merger Game
The proposal to merge San Diego Gas & Electric with Southern California Edison has prompted creation of a number of groups. The groups and their positions on the plan are:
Coalition for Local Control: Anti-merger but neutral on government takeover.
San Diegans for the Merger: Pro-merger but neutral on government takeover.
Utility Consumers Action Network (UCAN): Anti-merger but neutral on government takeover.
Committee for Fair Treatment: Created to provide a neutral forum for pro- and anti-merger groups.
Taxpayers Against Government Takeover: Formed to oppose municipalization and generally against the merger as well.
Ratewatchers: Against the merger, neutral on municipalization.
California Assn. of Utility Shareholders: Pro-merger and anti-municipalization.
Prevent Los Angelization Now (PLAN): Anti-merger, no stand on municipalization.
