Corona’s Electricity Plan a Bad Idea, Edison Says

Southern California Edison Co. on Monday continued its campaign against the city of Corona’s plan to take over electricity service, saying it would be a bad deal for power users and could cause rates to rise more than 18%.

The Riverside County city announced in October that it was considering a plan to seize the Rosemead-based utility’s power poles, wires and electricity substations in the city. Corona, a city of about 132,000 residents, is projecting savings of 15% or more compared with current Edison rates because the city would have lower overhead than the utility as well as cost-saving tax-exempt status.

But Edison, in an analysis of Corona’s feasibility study, projects that rates would rise to about 14.2 to 14.3 cents per kilowatt-hour under the Corona plan, compared with current Edison rates of about 12 cents per kilowatt-hour, Edison spokesman Charley Wilson said.

Corona has underestimated the cost of taking Edison’s distribution system, including the replacement value of Edison’s assets and the price of construction and wiring necessary to remove Corona from the Edison system in a way that leaves Edison unscathed, Wilson said. Corona’s consultant never contacted the utility for basic financial and engineering data about the distribution system in the 38-square-mile city, he said.

“They seem to have made a number of omissions and assumptions that need to be evaluated,” Wilson said. “They have not demonstrated that taking Edison’s system is in the public interest.”

Corona officials could not be reached for comment. But Craig A. Moyer, a lawyer with Manatt, Phelps & Phillips, which is advising the city, said a thorough analysis has been made that considers all costs.

“We have analyzed it well,” Moyer said. “We do have some very good people working on it, including former Edison employees.”

Edison officials were scheduled to appear before the Corona City Council on Monday night to outline the utility’s reservations. Edison has said its distribution system is not for sale, and vowed to fight any plan to seize it.