Utilities Spend Millions on Promoting Merger

San Diego Gas & Electric and Southern California Edison have spent at least $2.2 million on merger-related public relations and advertising expenses, according to documents filed last week in connection with the state Public Utilities Commission’s review of the proposed utility merger.

SDG&E; spent $784,300 on merger-related advertising and public relations expenses during the first 10 months of 1989, according to disclosures made at the request of Utility Consumers Action Network, a San Diego-based consumer group. Edison’s 1989 budget indicated that $1.4 million would be spent on merger-related public relations and advertising, according to an Edison document.

“The numbers are real big,” said Michael Shames, the consumer group’s executive director, who earlier thought that the utilities would spend about $1.5 million. “The $2.2-million total surprised me because there really wasn’t a lot going on this year” with the merger review, he said.

Shames predicted that the utilities could easily spend “two to three times that amount” in 1990, when San Diego County residents will vote on the proposed merger in a non-binding straw poll. He also questioned whether Edison’s disclosure truly represented the Rosemead-based utility’s 1989 expenses. “They said what was budgeted, but not what they spent,” Shames said.

In a related development on Monday, the Public Utilities Commission delayed a scheduled rate case review for SDG&E; until commissioners complete their merger review. Commissioners agreed that SDG&E; “would find it difficult to handle both the merger proceeding and its own general rate case,” said Dianne Dienstein, commission spokeswoman.

The commission uses the lengthy rate cases to determine what utility customers will pay for their electricity. The upcoming review, which had been scheduled for 1990, will now be concluded in 1992. Commissioners will continue to review SDG&E;’s rates during shorter, less-burdensome interim rate hearings.