Edison Wants to Sign Contracts for Power
Southern California Edison Co. said late Friday that it wanted to sign contracts with independent power companies to secure enough electricity to power an estimated 1.1 million home, beginning as early as summer of 2006.
The move could spur construction of new electrical generating plants in the state.
Edison, which provides electricity to 4.6 million customers in the Los Angeles Basin, said that up to 1,500 megawatts of new power was needed to prevent blackouts from hitting the region, including areas served by municipal suppliers, private energy providers and Sempra Energy’s San Diego Gas & Electric.
Edison said it would sign the contracts if it received approval from the California Public Utilities Commission to allocate costs to all customers throughout Southern California.
“There are growing concerns that this part of the state may not have adequate generating capacity in coming years,” said Alan Fohrer, chief executive of Edison, a unit of Rosemead-based Edison International. He described the plan as a “transitional measure” to ensure regional power supplies while state lawmakers and regulators craft long-term energy policy for the state.
The Edison contracts, if let, are good news for private generators, who would be able to more easily secure funding to build energy efficient power plants.
“It’s a movement in the right direction,” said Jan Smutny-Jones, director of the Independent Energy Producers Assn. in Sacramento. “This will lead to potentially 1,500 megawatts of investment opportunities in Southern California, which desperately needs the power.”
