Newport-Mesa braces for electricity rate hikes

Paul Clinton

NEWPORT-MESA -- A decision by the California Public Utilities

Commission to raise electricity rates Tuesday caused some consternation

among city officials who worried about what effects the hikes may have on

basic services.

The commission passed a three-tiered increase for residential

customers of Southern California Edison, which includes both Costa Mesa

and Newport Beach.

Starting June 1, Newport-Mesa residents will pay 6%, 20% or 37% more

for electricity, depending on the amount of usage. Basically, those who

use more will pay more.

Others were also hit with increases. Small- and medium-sized

businesses will see a 36% hike. Industrial customers will pay 49% more.

City officials were unsure which category their cities would fall

into, but they worried that a significant hike would take its toll.

“That’s a tremendous hit,” Costa Mesa Mayor Libby Cowan said about the

new rates. “It will require major conservation.”

The commission also voted Tuesday to retroactively apply a rate

increase originally approved March 27.

Low-income customers, some medical users and residents who reduce

their power won’t be affected by the rate hikes. To qualify for

low-income status, a family of four could earn no more than $31,100

annually.

Newport Beach Councilman Tod Ridgeway said his phone hasn’t been

burning up with calls from residents outraged by the hikes, which began

in January.

“We elected officials are the only ones talking about it,” Ridgeway

said. “We’re not getting a lot of discussion from our citizens. But that

may have to do with us being a wealthy community.”

Newport Beach spends about $2 million a year to power the city. The

City Council allocates 50% of that to pay for sewage and water pumps and

25% for traffic and street lights.

Conservation efforts are underway in both cities. City Manager Homer

Bludau has encouraged city department heads to lower their power use by

10%.

In Costa Mesa, city lightbulbs were replaced with more efficient ones.

Officials from both cities worried they would have to cut other

services to pay for higher utility bills.

“If we had a 50% impact, there would have to be an action plan,”

Accounting Manager Dan Matusiwicz said. “We wouldn’t just be able to

absorb that.”