Daily Press, Victorville

10/22/03

Edison 'rattling their swords,' mayor says

Utility sends letters to Victorville requesting records about formation of municipal utilities

By Larry Rand

VICTORVILLE - The mayor thinks Southern California Edison is trying to persuade cities to stay out of the electricity business.

The big utility, near bankruptcy in recent years, has written letters to Victorville and several other cities requesting large amounts of records relating to the formation of municipal utilities.

"They are rattling their swords," said Mayor Terry Caldwell during Tuesday night's City Council meeting. "There's no question that, while Nancy Martin's signature is on the letter, that it was written by lawyers."

Martin, regional manager of public affairs for Edison, said after the meeting: "Everything that goes out has to be reviewed by our legal department."

The letter to Victorville requests records in 17 specific categories, most of them sweeping in scope.

They include all feasibility studies relating to a municipal utility or electric co- generation; all engineering studies; electric rate projections; financial analysis and "any contracts and/or agreements between the city and any other company ... for business relating to providing municipal electric utility services and co-generation services for city areas and that of (Southern California Logistics Airport)."

The city has until Friday to tell Edison how long it will take to comply with the request, which the utility made under the California Public Records Act.

"They have a right to this information," said Caldwell, "but I'm upset by the misinformation in the letter. They say we 'appear to be moving forward' to the formation of a municipal utility, when they know we already have one."

The city-operated municipality offers businesses electricity at rates guaranteed to stay below Edison's.

City Manager Jon Roberts called the letter "strange - they claim we formed the utility without appropriate public hearings, when, in fact, we have done everything out in the open."

Roberts and Richard Bunnell, director of the municipal utility, said that Irvine, Moreno Valley and Corona have received similar letters.

Bunnell also said that Edison pressured Gov. Gray Davis' administration to impose exit fees on businesses leaving their Edison service for municipal utility electricity.

"This could become a legal battle," Caldwell said, "but we will deal with it and we will not be dissuaded."

Martin, when asked if the letter was preliminary to a lawsuit, said, "No, we just want to see what they have."