City to Invite Proposals for Utility Partnerships

Seeking to increase the competitiveness of Anaheim’s 102-year-old electric utility, the City Council has approved inviting proposals from private firms interested in working in partnership with the city.

The action comes as city officials prepare for competition from other utility companies that could be allowed to operate in the city as early as mid-1999 under a statewide electric restructuring plan.

Mayor Tom Daly described the utility, which serves 105,000 residential and business customers, as “the most important asset the city of Anaheim has had in its history. We’re at a turning point now with the deregulation.”

Proposals must be submitted by Jan. 30, with a recommendation expected before the council in mid-1998. A consultant examined restructuring options for the city-owned utility, including public-private partnerships, mergers or sale of all or part of the utility.

With the city’s electric rates as much as 30% lower than Southern California Edison rates, study findings show the city’s utility can be competitive when deregulation occurs.