O.C. Energy Costs Seen Rising 43%

California’s power woes will force Orange County to spend at least $7.7 million more in the next fiscal year on energy-related bills, including higher electricity costs, according to the county’s proposed $4.6-billion budget, unveiled Wednesday.

Energy costs are projected to rise 43% to about $19.5 million from $13.6 million for the current year, which ends June 30. That is enough of an increase to represent a “big hit” to the budget, said Gary Burton, the county’s chief financial officer.

“The higher energy costs won’t break us, but they are impacting us,” Burton said.

In April, the county’s top public works official warned county supervisors of added energy costs because of the state’s electrical energy crisis.

As a major energy user, the county paid $12 million over the last year for lights, air conditioning and heating at more than 220 buildings. Only $13.4 million was initially budgeted for fiscal 2001-02 energy costs.

As part of a strategic energy plan, the county’s Public Facilities and Resources Department has conducted energy assessments of 29 buildings housing such critical offices as that of the county clerk-recorder, assessor and treasurer-tax collector. It would cost the county $4.7 million to install energy-efficient lighting, room sensors that automatically turn off lights, and other equipment in the buildings. Only $1.8 million is requested in next year’s budget for that project, said Robert Boehme, a public facilities spokesman.

“The biggest return for us is lighting. We have an updated fluorescent bulb that uses less wattage. If we retrofit lighting, studies indicate that it provides a 30% savings in electrical costs,” he said.

Boehme said the department asked for the initial funding to begin the work and may ask for more as the job progresses.

Because of uncertainty about the state’s energy supply, the county is already exploring whether it should follow the lead of Los Angeles and have its own power utility.

Earlier this month, county supervisors unanimously agreed to terminate county participation in a Southern California Edison program that gives discounts to large electricity customers who agree to cut power usage in times of high demand. The penalties levied against the county for not reducing usage have been greater than the savings from the discounted rates.

Overall, the 2001-02 budget represents a 3% rise over last year’s and includes such capital projects as $36 million for 576 more inmate beds at Theo Lacy Branch Jail in Orange and flood-control projects across the county.

Burton said the county also is still paying off debt from its 1994 bankruptcy, when $1.64 billion in public money was lost in risky investments. About $77 million in principal and interest on recovery bonds is included in the latest budget proposal.