ANAHEIM : Council Considering Utility Rate Hikes

The City Council today will consider electric and water rate increases that would raise the average family’s bill by $2.24 a month.

The proposal by the city’s Public Utility Department would also increase the electric and water rates for most businesses.

Michael Bell, the department’s financial services manager, said the combined increases will raise about $4.5 million. The money will be used to place some electric lines underground, to wire a New Mexico power plant into the city’s electric system, to replace some leaky plastic piping with metal pipes and to begin operating a new water well.

Bell said Anaheim’s residential electric rates will still be 20% lower than those charged to residents in surrounding cities served by Southern California Edison. Residential water rates will remain slightly higher than other comparable cities.

Under the proposal, residential electric rates would increase by 3.8%. Small-commercial rates would increase by 3%, and large-commercial rates by 3.5%. Industrial electric rates would not change. The residential water rate would increase by 2.6%. Apartment owners would see their water rates increase by 5.7%, while commercial and industrial customers would see their rates increase by 8.2%.

Opponents of the increases say the proposal shows the department’s bias against small residential users as opposed to large industrial users.

Phil Knypstra, a community college business professor and former City Council candidate, said that a gallon of water for a residential customer can be 50% more expensive than a gallon for a business.

“The water rates in this city are unfair, favoring farms, commercial and industrial users over residential users,” Knypstra said. He said that the increases proposed for businesses are a positive step but that he thinks they should be larger.

Amin David, the owner of a local small business, said that although the electric rates for his home and his business will go up if the proposal passes, large industrial users would see no increase.

“I’m going to be getting it two ways . . . but the industrialist, he doesn’t get the shaft, he gets kissed,” David said.

Edward K. Aghjayan, the department’s general manager, said that industrial users are being exempted from the proposal because their rate is already slightly higher than the rate Southern California Edison charges.

“That is a factor that concerns us greatly,” Aghjayan said. He said Edison could use that difference to lure businesses away from Anaheim.

The council last approved a utility rate increase in December, 1991. The average electric rate rose 3.5% and the average water rate, 4.5%. Three months earlier, the council had rejected increases that were 1% higher.

The council is scheduled to meet at 2 p.m. to discuss the rate increase proposal with utility officials. It is scheduled to vote on the matter at its 5 p.m. meeting.

City Hall is at 200 S. Anaheim Blvd.