W. Hollywood May Give Edison the Boot

As Southern California Edison Co. turns to its customers for a financial bailout, one municipality is looking to bail out of Edison’s services.

West Hollywood City Council members say they intend today to look for a way to plug into next-door L.A.’s Department of Water and Power for electric service for the six-square-mile city.

And if they can’t do that, officials say, they may try to form their own power department--seizing Edison’s poles and wires throughout the city through inverse condemnation.

Officials say they could end up inviting Beverly Hills, Santa Monica and Culver City to join with them to create an independent local electricity distribution network, using cutting-edge power sources such as fuel cells and solar installations.

West Hollywood leaders say the expected effects of coming electric rate increases on the city’s many residents on fixed incomes is prompting the search for alternative power.

“In theory, it’s doable,” said Mayor Jeffrey Prang, who, with Councilman Sal Guarriello, plans to introduce a proposal for new power sources tonight. Councilman Steve Martin plans to introduce a similar proposal.

West Hollywood’s move is being warily viewed by Edison officials.

“We would strongly oppose a takeover of our system,” said Mark Olson, Edison’s regional manager for Westside cities.

Operators of Los Angeles’ DWP say they have more than enough surplus power to handle West Hollywood, although a linkup could prove politically difficult.

“We’re more than happy to talk with them and give them some ideas,” said Frank Salas, the DWP’s chief of staff. “The energy field is changing dramatically, both from a technical point of view as well as an economic one.”

Prang said that, in the long run, the DWP probably would be a more reliable source of electricity as well as a more economical one for West Hollywood. Los Angeles generates most of its own power without having to buy it at deregulated prices from outside sources. As a result, its customers have not faced a rate increase in eight years.

“We’d have more of a voice with the DWP than we do with the statewide power grid,” he said.

According to Prang, the two proposals are likely to be combined during the council meeting, scheduled for 7 p.m. at the West Hollywood Park Auditorium, 627 N. San Vicente Blvd. Because of a state law that prohibits private discussions of official business, the three councilmen have not met to consolidate their ideas.

At the minimum, Martin said, he intends to mount a citywide public education campaign to inform residents of an existing Edison rate reduction program that can save low-income customers 15% on their electric bills. Martin said he will also seek to establish an emergency fund to assist West Hollywood residents unable to pay higher bills.

Officials say that as many as 30% of West Hollywood’s 36,100 inhabitants receive public assistance. About 60% of the city’s residents live alone; a third of them are senior citizens. All residents, along with the city’s 1,600 businesses, are Edison customers.

Salas said the DWP has already been approached by municipalities in the South Bay and in the San Fernando Valley about affiliating with his agency. He said his agency has explained the obstacles that the smaller cities would face.

One hurdle could be reluctance by the DWP to accept outsiders. Under state law, “once we deal outside the city, others can come in and take our customers from us as well,” Salas said.

The Los Angeles City Council would have to approve the DWP’s involvement. And any city abandoning Edison would have to pay the company for its power poles, lines and other electrical transmission equipment, Salas said.

Edison’s Olson could not estimate what that might cost. “We haven’t put a price on our system--we’re not at that stage,” he said.

Edison representatives will attend tonight’s meeting, Olson said.

“We’ve pledged to take a look at what they’re interested in. We think their interests are valid,” he said.

But Olson suggested that an independent West Hollywood power department would be in the same boat as Edison, once it started trying to purchase power to sell to its citizens.

City officials say that may not be entirely true--especially if a network of power generation stations is scattered around town. Closet-size fuel cells, which are nonpolluting and use chemistry instead of combustion to generate electricity, are potential power sources, they say.

Power experts say the state Public Utilities Commission would have to approve creation of any new publicly owned power agency. Sacramento is the only moderately sized California city that has switched from an investor-owned to a public-owned power system since World War II.

Changing is “a daunting process,” Stuart Wilson, assistant executive director of the California Municipal Utilities Assn., told The Times last month. “I’m telling agencies that call that: ‘If I were in your shoes, I’d be looking at it too, but be prepared. It’s not a magic bullet.’ ”

Prang said Edison “will not be happy with the direction I’m asking us to go.”

“To Edison we may just be a gnat. But if there are enough gnats flying around, they have to pay attention.”