Judge discards ruling that statements were irrelevant in March

ballot that would require the AES to pay a 5% utility tax

The city must throw out several statements in a March ballot measure

that an appeals court judge declared misleading Wednesday.

The judge discarded the previous trial court ruling that statements

were irrelevant in the city-sponsored March ballot measure that would

require the AES power plant in Huntington Beach to pay a 5% utility tax,

but he did strike several others that he deemed misleading.

The ballot argument that states that AES is the only business that

does not pay this tax and the ballot measure calling for AES to “pay the

same Utility Tax as do residents and businesses of the City of Huntington

Beach” were ruled misleading as no other business buys gas whole sale for

the purpose of making energy with it.

The judge also ruled that while many statements, such as AES refusing

to sign a contract to sell power solely in California, were indeed

relevant, they may be misleading as written.

The court ruled, however, that comments about AES’ unsightly

appearance are relevant as they reveal the city’s reasons for singling

out the plant.

“It looks pretty good,” said Huntington Beach Mayor Debbie Cook.

“Obviously we disagree with them regarding the wholesale nature of it.

It’s not unlike an oil field that uses electricity to get oil -- they pay

for the electricity they use. I just don’t agree with their distinction

between wholesale and retail.”

The bright spot in this ruling for the city is the removal of the

words “and California” from the ballot argument statement “any cost to

AES will be passed on primarily to people outside Huntington Beach and

California.” The phrase “and California” was said to be misleading as it

is unlikely that the residents of the city could consume enough power to

be “primarily” affected by any tax increase on the plant.

This reasoning by the court of appeals is in direct contrast to the

argument used by AES that this measure would result in a double tax on

voter, Cook said.

Ed Blackford, president of AES Huntington Beach did not return calls

by press time.

The city filed a writ of appeal in response to an Orange County

Superior Court Judge’s December ruling that much of statements in the

city-sponsored ballot measure and most all of the argument in favor, were

untrue or irrelevant.The first ruling is in response to a lawsuit filed

by AES President Ed Blackford against the city alleging that the March

ballot measure is based on inaccurate information, is misleading and

contains slanderous and libelous attacks on the company.

The city must now make the changes ordered by the court and print out

and distribute the ballot measure and arguments as it is past the

printing deadline for the county, Cook said.