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Article #2867

Re: Sell the LA DWP

#2867
From: Robert S. Helfman
Date: Mon, 21 Oct 1996 00:00
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In article <MHigby.3647.07A69618@Primenet.com> MHigby@Primenet.com (Michael Higby) writes:
>
>The problem with the DWP is that it is a government agency.  The City should 
>not be in such a business.  The DWP is not run competitively and union rules 
>block its profitibality.

That comment is, to put it mildly, a crock.

The L.A. Dept of Water and Power retails its power for approximately 15%
less than Southern California Edison. Despite this, the DWP is a
profit center for the city.

BTW, the city of Riverside (where I lived from 1964-1979) also has
a municipal water and power system. Their residential rates were
also lower than the corresponding Edison services. (I know -- I lived
in an unincorporated area on the edge of town and had Edison service. I
then moved inside the city limits and was then served by Riverside muni.)
The per-kilowatt-hour rate was about 20% higher under Edison than it
was under the Riverside muni system. And the amazing part was that
Riverside bought power wholesale from Edison at that time. (They
subsequently bought in to the Four Corners plant, in which they are
a substantial partner.)

Edison power employees are also union members, and they have hungry
stockholders that have to be satisfied. They have no competitive edge
over DWP.

>  In the same case, the city should probably sell the 
>airport and the harbor too.
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References: <MHigby.3641.002B00D0@Primenet.com> <lclee.567.001F4DAE@primenet.com> <MHigby.3647.07A69618@Primenet.com>

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From: helfman@aerospace.aero.org (Robert S. Helfman)
Subject: Re: Sell the LA DWP
Date: 1996/10/21
Message-ID: <54gr5b$37n@news.aero.org>
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references: <MHigby.3641.002B00D0@Primenet.com> <lclee.567.001F4DAE@primenet.com> <MHigby.3647.07A69618@Primenet.com>
organization: The Aerospace Corporation
newsgroups: la.general,ca.general