The URL can be used to link to this page

Home My WebLink AboutAgenda Statement 1982/03/09 Item 14COUNCIL AGENDA STATEMENT Item 14 ITEM TITHE: Meeting Date 3/9/82 Resolution lp,~~- Urging audit of San Diego Gas & Electric Company to secure a basis for stability in utility rates SUBMITTED BY: City Attorney (4/5ths Vote: Yes he City Council at its meeting of February 2, 1982, rather than aking a precipitous action in response to the request of the City f Escondido or because of the current statewide hostility toward he San Diego Gas & Electric Company, deferred any final decision n action in regard to the total problem of excessive rates uthorized by the Public Utilities Commission, and continued the iscussion of such matters to its Council Conference of February 5, 1982. At that Council Conference, the City Council requested hat a resolution be prepared embodying certain requests to the alifornia State Legislature and annunciating the policy position f the Chula Vista City Council. ECOMMENDATION: Adopt the Resolution /COMMISSION RECOMMENDATION: N/A iISCUSSION: t the meeting of February 25, 1982, the City Council again eevaluated the recommendations of the City of Escondido and other ities in San Diego County and listened to representatives of San iego Gas & Electric Company. Councilman Scott made a motion to irect staff to return a resolution to the City Council expressing he Council's concern over the ever-increasing high rates charged y the San Diego Gas & Electric Company and most particularly the uture possibility of higher rates and their effect on the general conomy and the citizens of Chula Vista. ouncilman Scott expressed the feeling that the study should not ttempt to provide a detailed analysis of the management practices f the San Diego Gas & Electric Company, but should be more oncerned with the regulatory practices of the Public Utilities ommission as presently instituted in the State of California. he motion was seconded by Councilman Campbell, who felt that here should be a clear request to the Legislature to conduct an udit of the Company in order to provide a frame of reference for he ratemaking system. Councilman Scott also included in the otion a study of the relationship, operations and interface etween the PUC and the San Diego Gas & Electric Company. n response to such request, the resolution has been prepared elineating the basic points discussed by the Cites ''~~•~~=' ISCAL IMPACT: N/A :lgk Form A-1~3 (Rev. 11/79) :, 1 No x ) ,_ . .. - ~i;~~ V'.'G.. s7 ;i d » .. 1()V B ., ~~r~ J TT'vF_R uary 15 , 19 82 100 VALLEY BLVD., ESCONDIDO, CALIFORNIA 92025 X714) 741.4610 T e Honorable Gregory R. Cox M yor, City of Chula Vista and City Council Members P O. Box 1087 C ula Vista, CA. 92012 UTILITX RATES - SDG&E ar Mayor Cox: i~Ap O~ R~y~ H storically, utility monopolies have been tolerated by the people a an alte rnative to the traditional competitive forms of providing a service because such has been deemed to be in the public interest. J'r2 ~/ A an incentive to provide utility service in the most economical a d efficient manner possible, the company is permitted a reasonable r turn on investment free from the necessity of expending its human a d financial resources in the competitive marketplace. To insure t at such lack of competition will not lead to economic .oppression o those served by the monopoly, the public interest is safeguarded b a regulatory agency in the form of a Public Utilities Commission. I is reasonable to expect that the system will work if the utility c mpany and the P.U.C. can work harmoniously within the framework o their respective obligations. In the case of SDG&E and the P.U.C., i would appear that the public interest is not considered an obli- g ticn for which either party feels a sense of duty or responsibility. I is unreasonab le to allow one public monopoly so much control over i s captive users that children must live in cold houses and the b sic need for adequate lighting must be avoided because the users c no longer afford confiscatory utility rates. The public is b ing forced into an involuntary rate-payer boycott because of the i ability to pay excessive rates for energy and still afford the b sic necessit~_es of life. The situation presently confronting t ose served by SDG&E has reached a degree of repression that adversely a fects the economic and physical well-being of residential users as w 11 as creating inflationary and bankrupting oppression of the b siness community. _~~ ~~ WRITTEN COb1MLTNICATIONS CITY COUNCIL MEETING -~- ~ ~' - `~ ~ tiON S~TT.`~F~. MAYOR aR~ DRN~LL. ^:WYOR PRO r=wt COu~ mac.,' :c?Rr ;, yAr?MON „'a^„ts ~,.. SAC'' yor Gregory R. Cox nuary 15 , 19 82 Page 2 January 13th, the Escondido City Council unanimously adopted the llowing recommendations to the California State Legislature: 1. Commission an independent management audit of SDG&E with a view toward identifying management and oper- ational deficiencies that could be corrected to provide greater efficiencies .and more economical operations. 2. Investigate the rate-making procedures of SDG&E and the P.U.C. including, but not necessarily limited to, accounting procedures. 3. Study the P.U.C. to determine if its regulations, policies, guidelines, organizational structure and composition truly serve the public interest. 4. Cause SDG&E to immediately cease and desist the collection of surcharges on rate-payers at large for the purpose of subsidizing energy conservation methods applicable to only a limited number of subscribers. s elected officials, we have a duty to those we serve that obligates s to represent them beyond the defined scope of our responsibilities s members of local governing bodies. It is to that moral commitment hat we respectfully urge your body to support the foregoing ecommendations to the California State Legislature. spectf ully, ~- ~ ~~ ~-~ ~- n B~.ttner yor -/o~~/' ~zl/s2 rg to: City Clerk c: City f~1anager he Honor ble Alan Cranston 15 E Stre t .S.Post 0 fi.ce~ Bldg Rm 1Q3 an Diego CA 92101 The Honora le S. I. Hayakawa 80 Front treet San Diego, CA 92188 The Honora le Duncan Hunter 23092 Nati nal Avenue San Diego, CA 92113 The Honora 550 West V Vista, CA le William A. Craven sta Way, Suite 201 92083 The Honora le Jim L. Ellis 2755 Navaj Road, Lower Level E1 Cajon, A 92020 The Honora le James R. Mills 815 Third venue, Suite 201 Chula Vist CA 92011 The Honora le Peter R. Chacon 5106 Feder 1 Building,Suite 207 San Diego, CA 92105 The Honora le Wadie P. Deddeh 815 Third venue, Suite 219 Chula Vist CA 92011 The Honora le Robert C. Frazee ~~ 2725 Jeffe son Street, Suite 14 Carlsbad, A 92008 The Honora le Lawrence Kapiloff 967 Hornbl nd San Diego, CA 92109 The Honora le Larry Stirling 7051 Alvar do Road, Suite C La Mesa, C 92041 /~ ~ ~ ~ ~ 0 r j _ „ ~~ ~/ '/ ,~ ~ ~~ /