Cities Joining Talks on Power Consortium

Like coup plotters, officials from area cities have gathered every two weeks or so in the back room of a Culver City restaurant.

The group, tentatively called the South Bay Joint Powers Consortium, is studying whether to join forces and demand lower electric rates from Southern California Edison. And if the electric industry becomes deregulated--something that now is being considered by the California Public Utilities Commission--the group would buy power in bulk from the least expensive supplier.

The plan is still in the early stages of discussion, and cities taking part in those talks have by no means committed to the project. But at a meeting earlier this month at Geo Petrelli’s Steak House, there were signs that the effort is stirring broad interest.

The sign-in list included the names of officials from several cities--such as Santa Monica, Beverly Hills, Redondo Beach, Burbank and Rolling Hills--that had not previously taken part in the talks. Officials from nine cities have been involved in the discussions since the idea first surfaced early in the fall--Culver City, Hawthorne, Inglewood, Lawndale, Gardena, Carson, Torrance, El Segundo and Lomita.

A sample joint powers agreement, which would formalize the cities’ participation in the consortium, was distributed. But getting city officials to sign such an agreement could be a challenge. So far, only Culver City, Carson, Hawthorne and Lomita have formally expressed support for the effort.

And prospective new members are clearly keeping their options open. “It may work for other cities, but I’m not sure it would work in Beverly Hills,” said Dan Webster, city director of public service.

Energy consultants, investment bankers and representatives of the Los Angeles Department of Water and Power also attended the meeting. Edison officials have been meeting with officials from some of the cities discussing the consortium.

At least one city official seemed receptive.

“(Edison) does a lot in our city,” said Lomita Councilman Dave Albert. “They’re charging us a little too much money, but they’re bringing us an olive branch. I think we should try and negotiate, not go in there fighting.”