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Power struggle: Chula Vista attempts to break away from SDG&E, buy energy for firms, residents.

Publication: San Diego Business Journal
Publication Date: 26-JUL-04
Format: Online - approximately 1484 words
Delivery: Immediate Online Access
Full Article Title: Power struggle: Chula Vista attempts to break away from SDG&E, buy energy for firms, residents.(Special report: cities)(San Diego Gas & Electric Co)

Article Excerpt
Every major county in California has an operating public energy utility or some type of energy agency in the region--except for San Diego County.

The city of Chula Vista is now braving the waters and looking to become the first city in San Diego County to do so, breaking away from San Diego Gas & Electric Co., San Diego County's energy provider, and declaring itself a municipal energy utility.

The city declared itself an MEU in June 2001, after spiraling energy prices caused officials in the city to question whether residents needed to be paying such high rates.

"SDG&E has the highest rates in California and fourth in the United States," Chula Vista Mayor Steve Padilla said.

In 2003, SDG&E collected more than $100 million from Chula Vista ratepayers, according to city officials, and unlike other private utilities in the stare, SDG&E has no public utility competition.

Last month, the Chula Vista City Council adopted an ordinance declaring the city's MEU a community choice aggregation.

As a community choice aggregation, the city would be able to purchase power for its residents and businesses, but deliver power through SDG&E's distribution and transmission network.

"I would think that most people would want the ability to try having a choice and see if in fact they can get energy at a cheaper cost," Padilla...

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