State agency suspends power interruption agreements

Tariq Malik

HUNTINGTON BEACH -- Some city officials and businesses are breathing a

sigh of relief now that the weight of hefty energy-use fines have been

lifted from their shoulders by state officials.

The state’s Public Utilities Commission suspended power interruption

agreements between businesses and the Southern California Edison Co. on

Friday pending a reassessment of the program and input from its

participants.

The city has been in the program since 1996 and received a 15%

discount in power costs from Edison by agreeing to curtail its

electricity use during Stage 2 and Stage 3 energy alerts. At the time,

city officials said, it was thought that Edison would have enough power

to run through 2003, but the state’s energy crisis has changed that line

of thinking.

Since Jan. 1, the city has endured 12 power interruptions out of 25

allowed under the deal, as compared to only a handful in the years since

1996. As a result, it has incurred about $835,000 in penalties associated

with operating during the interruptions.

“The biggest thing from this is we don’t have to close down our City

Hall and Central Library,” Mayor Pam Julien Houchen said.

Both city-run buildings were closed at 11 a.m. Friday to avoid penalty

fines during an energy alert.

“We still need to have a backup plan, so the city is continuing its

plan to purchase power generators and pushing conservation as key,”

Julien Houchen said.

The state commission’s decision also eases fines for larger companies

like Boeing Co. and the Waterfront Hilton Beach Resort, which have drawn

fines up to $1 million per day and $5,000 an hour, respectively.

Each year, the city has a chance to opt out of the interruption

agreement with Edison, an option it chose not to use in past years

because of the rarity of power interruptions, city officials said.

Kyle DeVine, a spokeswoman for the state commission, said

commissioners blocked the exit option in October for more study before

suspending the penalties last week.