Conexant paying heavy price for power

Paul Clinton

NEWPORT BEACH -- Technology giant Conexant Systems Inc. is among a

host of county businesses paying a hefty price for keeping its lights on.

The company, which manufactures semiconductor chips for computers and

fax modems, has rung up $3 million in penalties this month by ignoring

orders from Southern California Edison to use less power.

Edison imposed the fines under terms of a year-to-year contract with

the company known as an “I-6 Plan,” in which Conexant swaps a 15%

discount off its power bills for a promise to reduce usage when state

supply runs short.

“We don’t have the type of business that can just be stopped,”

Conexant spokeswoman Lisa Briggs said. “If we had a blackout, it would

delay production by two to three days.”

The large companies that entered into the deals are sent letters by

Edison asking them to shut down when the state’s Independent System

Operator -- which controls the statewide power grid -- demands more power

from the utility.

“We do recognize that they have had the advantage of the lower rate,”

Edison spokeswoman Kim Scheer said. “But we acknowledge the extreme

difficulties in the past six months curtailing their operations.”

Scheer would not disclose what other Newport-Mesa companies have the

I-6 Plan, saying they are private contracts.

To relieve the crippling power shortage, Gov. Gray Davis signed a bill

Friday allowing the state to spend $400 million to keep electricity

flowing.

Adding to Conexant’s troubles, the state’s Public Utilities Commission

late last year froze the contracts, suspending a provision allowing large

users to opt out of the I-6 plan each year.

The moratorium was put in place until March.

Conexant and other large businesses in Orange County have been

lobbying elected officials in Sacramento to introduce legislation that

would free them from the contracts.

But newly elected Assemblyman John Campbell (R-Irvine) said that kind

of bill is not expected to be introduced.

“I would like to give Conexant and other companies encouragement,”

Campbell said. “But there’s not much encouragement to give them.”