Orange County Budget Jolted by Energy Costs

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 40% to an estimated $19.5 million from $13.6 million for the current year, which ends June 30. That is enough 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 electricity crisis.

As a major energy user, Orange County paid $12 million over the last year to power more than 220 buildings. Only $13.4 million was budgeted initially for fiscal 2001-02 energy costs.

As part of a strategic energy plan, the county’s Public Facilities and Resources Department conducted energy assessments of 29 buildings housing critical services such as the county clerk-recorder, assessor’s and treasurer-tax collector’s offices. It would cost an estimated $4.7 million to install energy-efficient lighting and similar equipment in those 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,” Boehme 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 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 that 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 Jail in Orange and flood control projects across the county.

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