Electricity Costs and Brownouts

* The general manager of the Los Angeles Department of Water and Power has proposed selling the city’s 20% share of a large power plant in the Nevada desert (July 25). The city would have a $190-million profit that could be used to rehabilitate old power plants within the city. On the surface this looks like a good deal.

However, the City Council and mayor must check this proposed deal out very carefully. While the city owns 20% of this power plant, we have some control over calling for electrical power from it in the event of a major power failure (brownout) in Southern California. If we sell our ownership, then we are just another bidder for high-priced electrical power. These costs will be passed on to the consumer. I do not want my power bill to double when a brownout occurs.

If the city needs money to rehabilitate our old power plants within the city, the DWP could sell bonds to finance this work. Also, DWP management must guarantee that there will be no increase in consumer power bills caused by the selling of this desert power plant.

LARRY BURKS

San Pedro

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* Re “Lawmakers to Hold Hearing on Utility Bills,” July 21: Did anyone believe that the utility industry in California could go from regulation to one operating in a free market without any disruption whatsoever? This transition will take years to play out and produce lower rates. The uncertainty now will simply delay the process, as no prudent company would invest in new power plants, the key to lower rates, in such an environment.

The shortages that we now suffer would also be present in the old, regulated environment because of the increase in demand coupled with a stagnant supply of power. Blackouts and price increases are inevitable, however borne.

JERRY ANDERSEN

Pacific Palisades