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Munis See the Lite

Fortnightly Magazine - July 1 1996

plan a "sham transaction" with no guaranteed cost savings, one that seeks to undermine the customer choice principles central in the state's deregulation effort.

SCE's statement is equally strong.

"The Palm Springs request is a blatant attempt to circumvent federal law, which prohibits FERC from ordering retail wheeling or sham wholesale wheeling," says Robert G. Foster, SCE's public affairs vice president.

"Nothing has happened that we didn't expect," says Harold E. Good, Palm Springs purchasing manager. "We always knew that Edison would pull their brethren in to oppose us. ... It's just incredible that someone would use money that they collect from ratepayers to do this."

The city's muni effort, so far, has been funded by donations.

Good says CAGT's claim that electric revenues collected under the dual meter system would be used to supplement city funds isn't true: "One of the commitments that Palm Springs has made and will continue to make to its taxpayers is that the administrative costs will be limited to one cent [per kilowatt-hour], no higher." Good hopes to cut electric costs from the current high of 14 cents per kilowatt-hour. (em JS


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