Q & A
Chris Becker, Placentia, North O. C. Electric Industry Committee
The North Orange County Electric Industry Restructuring Committee has been meeting for more than a year to discuss issues and opportunities of recent state legislation reshaping the electric industry, starting Jan. 1, 1998. The committee, made up of municipal and school officials from six North County cities and Southern California Water Co., meets once a month at Placentia City Hall. Chris Becker, Placentia’s public works director, spoke with Times correspondent Debra Cano about the group’s goal: to buy electricity at a lower rate.
Q: Why have the cities, agencies and special districts joined forces?
A: The original idea was to learn about the legislation and see if there was going to be opportunities for the local agencies to save money. One of the very first things we asked ourselves as a group was: Are we large enough of a customer to really be a major player in the market of buying electricity? One of the early tasks was to assemble all our annual electric usage data from bills and other sources. What we found is we are a $15-million- to $20-million-a-year electric consumer. The electrical costs are for things like street lights, buildings, traffic signals, water pumps--anything that is electrically driven.
Q: What is the next step?
A: To develop a request. But to develop that document, we need to get a grasp of the similarities and differences in our committee members’ electrical power needs. What this process is, is a detailed study of the power demand on every single type of electrical facility that we have, such as a street light, a water pump, school classroom or a building. This study will take place over the next 60 days, and we’ve selected a consultant, Edison Source, to help us. Then what we are likely to do is issue a request for proposal for electrical supply on the open market. With the restructuring, you can buy your electricity in the open marketplace, much like soybeans or barrels of oil. And groups such as ours can enter into contracts with electrical suppliers for different rate structures. Right now, we’re locked into a set pricing schedule with Southern California Edison with very little flexibility for pricing options. It’s very reliable power but very expensive power.
Q: What do you want to happen when restructuring begins next year?
A: The Public Utilities Commission has indicated that those groups ready to enter the open marketplace and with an understanding of the new rules will probably be selected in the first or second year to compete for electrical supply. Because of our preparation, we hope to be found to be ready and to be selected to compete for electrical supply.
