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Subject:Utilities, Electric: Deregulation: Temecula, Calif., Forms
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Date:Mon, 9 Oct 2000 04:12:00 -0700 (PDT)

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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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