AES sues city over Utility Tax Measure

Danette Goulet

AES president Ed Blackford filed a lawsuit against the city of

Huntington Beach on Monday, alleging that a March ballot measure is based

on inaccurate information, is misleading and contains slanderous and

libelous attacks on the company.

Blackford claims in the lawsuit that the Utility Tax Measure, which

will ask city voters if AES should pay the same utility tax as all other

businesses and residents, is based on the false premise that AES does not

already pay those same taxes.

AES pays utilities such as phone and water. It is exempt from paying

natural gas. It is that exemption that the ballot measure looks at

repealing.

“The reason the exemption existed was because they were a public

utility -- they are no longer a public utility,” said Deputy City

Administrator Rich Barnard. “They are no different than Joe’s Pizza who

pay to turn on gas that heats their ovens.”

The measure is an attempt to close what city officials consider a

loophole, Barnard said.

Blackford could not be reached for comment Wednesday.

The suit further claims that the argument in favor of the measure

contains libelous statements that accuse the power plant on Newland

Street of causing pollution and misleading information about how such a

utility tax would be spent.

That argument also suggests that revenues would be used for pollution

remediation allegedly caused by AES, beautification and other purposes

related to AES, the lawsuit states. A second ballot measure proposed by

the City Council states that tax revenues from the Utility Tax Measure

would be used to finance infrastructure repairs throughout the city.

Robert Wheeler, the city attorney assigned to address the allegations,

did not have a chance to read the suit by Wednesday afternoon.

Named in the lawsuit are the city, the City Council, Mayor Pam Julien

Houchen, Mayor Pro Tem Debbie Cook and Council Members Ralph Bauer,

Connie Boardman and Peter Green.

The petition asks that all false statements be removed from the voter

pamphlets before they are printed and distributed.