Anaheim Rejects Hike in Power-Water Rates

Citing taxpayer hardships caused by the recession, the City Council on Tuesday rejected proposals that would have increased residential users’ combined electric and water bills by less than $3 per month.

“I don’t think the rate-payers need an increase right now,” Councilman William D. Ehrle said before the council’s 3-1 vote against requests for a 5.5% increase for water and 4.5% increase for power. “To approve these programs gives the perception that the city is featherbedding the (utility) operation.”

Councilman Irv Pickler, who cast the only vote in favor of the rate increases, said his colleagues were “listening to only a few people” and lacked the foresight needed to maintain city operations. Councilman Bob D. Simpson did not attend the meeting.

Although approval of the water increase would have amounted to only $1.36 more per month on most households bills, the council has approved separate increases in water rates totaling 12% just since May, counting the 2% utility tax approved last month.

Some council members criticized the fee hike recommendation of the city’s Public Utilities Board, the same panel the council voted to replace three weeks ago and then reinstated last week.

Ehrle has criticized the board as a rubber stamp for rate increases proposed by the city’s Utility Department.

Edward Aghjayan, Anaheim’s public utilities general manager, said he was “sensitive to the council’s statments” and would try to make additional cuts. But “there is not a lot of slop in this budget,” Aghjayan said.

In its report to the council recommending the water rate increase, the Public Utilities Board warned of possible future hikes due to the rising delivery costs imposed by the Metropolitan Water District. For 1991-92, the MWD has increased its charges by 13.5%, city officials said.

“This increase is expected to be only the first in a series of sizable increases in rates from MWD over the next few years,” the board’s report stated. “These will occur as MWD works on replacing and improving its 50-year-old water distribution system.”

Utility officials also said the water increase was needed to make up for increasing debt as the city attempts to upgrade its own pumping system to ease its reliance on the MWD for city water.

In the coming years, the city is expected to direct about $25 million toward improvements of the Lenain Treatment Facility to meet new water quality standards, the report stated.

The increase proposed in electric rates would mark the first hike since last year when the council approved a 9% increase.

In its recommendation, the board again cited rising costs for power delivery and mounting debt on the department’s capital projects. The city also needs more money to put utility lines underground throughout the commercial/recreation zone near Disneyland and other parts of the city.

As a result of the council’s action, Aghjayan said he did not know whether more budget cuts would derail department projects.

“We’ll just have to go back and see what we can do.”