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		 Subject: Utilities, Electric: Deregulation: Temecula, Calif., Forms 
Committee to Study Electric ...


 
Temecula, Calif., Forms Committee to Study Electric Deregulation 
Dave Downey 
? 
10/06/2000 
KRTBN Knight-Ridder Tribune Business News: North County Times - Escondido, 
California 
Copyright (C) 2000 KRTBN Knight Ridder Tribune Business News; Source: World 
Reporter (TM) 

TEMECULA, Calif.--Shocked by San Diego County's experience with skyrocketing 
electric rates this past summer, the City Council has formed a committee to 
study ways of shielding Temecula residents from similar jolts when the 
deregulation wave washes into Riverside County in a couple of years.

The council appointed colleagues Jeff Comerchero and Mike Naggar to serve on 
the electric needs committee, scheduled to hold its first meeting later this 
month. 

"Deregulation is something that is supposed to be friendly to customers," 
said Mayor Jeff Stone.

It turned out to be anything but these past few months as temperatures 
soared, sending demand for electricity to power air conditioners and monthly 
electric bills for neighbors to the south through the roof. The rest of the 
state watched in amazement as the 1.2 million customers of San Diego 
Gas&Electric sweated through a long, hot summer, serving essentially as 
California's guinea pigs in the statewide experiment with electric 
deregulation. They were the first to feel the effects of wildly fluctuating 
wholesale rates passed directly on to customers.

"We're concerned that deregulation may have that sort of effect on Temecula 
and our residents, and we would like to try to avoid Temecula residents 
getting a double or triple bump on their bills," Naggar said.

"The electric deregulation took San Diego officials by surprise," he said. 
"They were asleep. We now know what can happen, and we don't want to be 
caught asleep."

One of the things the committee will look into is whether it would make sense 
for Temecula to try to contract with an electric provider to bring in 
relatively cheap power for its 54,000 residents. The area is served by 
Southern California Edison.

San Marcos and Chula Vista have held talks with the Enron Corp. about the 
possibility of providing power to their residents to hold down rates. Those 
cities are studying the experience of Palm Springs, which in 1997 contracted 
with Portland Gas and Electric to provide residents with a flat rate for 
electricity for five years.

Whether such an arrangement would work for Temecula is anyone's guess, Naggar 
said.

"If it turns out we can't do anything, at least we've gotten everybody's 
attention," he said.

Naggar said the council has yet to form a committee charged with monitoring 
San Diego Gas&Electric's proposal to string new lines across huge metal 
towers through Southwest County, to relieve San Diego's electric rate 
explosion. Cities and communities throughout Southwest County have rallied 
against the project, saying they don't want the visual blight and perceived 
health threat from having fat power lines buzzing 150 feet overhead.

The San Diego-based utility is expected to name a preferred route soon.

"I get about five or six e-mails a day on the preferred route subject," 
Naggar said. "It is a hot, hot, hot issue. But there is nothing for us to do 
until they make a move. If they decide to go down the middle of Temecula, I 
can assure you we'll make a move. If they decide to go through the (Santa 
Rosa) Plateau, I can assure you we'll discuss it."

Temecula council members have been unanimously opposed to bringing new power 
lines through, or near, the city since the project was unveiled about two 
months ago. And, in September, City Manager Shawn Nelson sent off a letter to 
the utility expressing the city's opposition to routes through the pristine 
hills of De Luz to the west and the verdant Wine Country to the east as well. 

Folder Name: Utilities, Electric: Deregulation 
Relevance Score on Scale of 100: 99

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