The Southern California Edison Company continues to become an electricity supplier to Anden County, which supplies electricity. “A lot of other cities have watched this,” said Stu Wilson of the California Municipal Utilities Assn. Sacramento. Whenever there is dissatisfaction with the service, the prices charged by utilities or the amount of the deductible fee, city officials raise the issue of creating their own utility, Wilson said. But he said, “There`s a bit of risk in the business,” so few have taken over. Edison`s executives felt betrayed by what is perceived as a backdoor attempt to take away the franchise. The agreement with Tulare County is similar to that reached by SCE with Kings, Fresno and Kern counties, Ruiz said. Developments are being closely watched because industry and other city leaders believe other cities might be tempted to follow suit if Long Beach terminates the franchise agreement with Edison. Edison, with 4.3 million customers in Southern California, has exclusive franchise agreements with 25 other cities.
Long Beach would be the first California city in more than 50 years to commission its own power plant. Benjamin Ruiz Jr, acting director of the Tulare County Resource Management Agency, said the interest rate on the contract`s monetary policy is set by state regulations and 2 percent of the SCE`s gross annual revenue from the use of the franchise. The directors of the RMA recommended the 25-year term. For his first initiative, he chose a Doozy. Why not buy Southern California Edison`s nearly 100-year-old monopoly franchise in Long Beach, he proposed to create a city-sponsored energy company? After a heated debate, the Council opened the barn door and invited other energy companies by refusing to sign the exclusive agreement with Enron and City Light, which had already formed a business unit, Long Beach Power and Distribution Co. Long Beach`s first candidate – a partnership of Enron Corp. and Denver-based City Light and Power Inc., which manages Beach Longs` public lighting – has already promised a $8 million franchise fee. when the city is now received. The competition was triggered by an exit clause within 60 years of Long Beach`s exclusive contract with Edison, signed in 1971.
Under the agreement, Long Beach can acquire Edison`s distribution system in the city and build a municipal electricity supplier similar to the one operated in Los Angeles, Burbank, Glendale, Pasadena and Anaheim. However, Councillor H. Delano Roosevelt sees nothing but the good of the discussions and finds that the city will receive much more for its frankness than it receives now. “Whoever stops there, and he may very well be Edison, we win,” he said. “It`s amazing how interesting it has been,” said a 59-year-old administrator, a 59-year-old administrator appointed city manager in December. But why not? With 175,000 customers now generating about $250 million a year for Edison, Long Beach, the largest city served by the company, is a huge potential market that Edison wants to keep and wants to snatch from hungry competitors. Outside, COVID-19`s statistics may be little more than numbers, but in Southern California hospitals, conditions are deteriorating rapidly.