Council Approves More Job Cuts at City Utility

Seeking to trim the Department of Water and Power in order to compete in a deregulated utility market, the City Council has agreed to cut 56 more positions, increasing the number of jobs eliminated at the utility to 109.

The council’s move to reduce the work force over the next three years comes on the heels of an 11.3% utility rate increase for residential customers and a 15% rate hike for large businesses.

The changes are part of a plan to prepare for 2002, when the city will open its utility market to competitors and customers will be able to choose their power provider. The money generated by the rate increase will be used to pay off the utility’s $156-million debt by 2002. With the debt paid off, the city utility will able to slash its prices to compete, officials said.

The job cuts were approved by a 5-0 vote, with council members William Paparian and Joyce Streator absent. The city will offer severance packages totaling nearly $4 million to some employees, while others will be transferred to vacant jobs elsewhere in the city.