Original Article Link: Opinion: Power San Diego’s Plan to Create a City Utility Is Too Good to Be True – Times of San Diego
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In the era of budget cuts, and unfunded critical infrastructure projects, one might wonder why anyone would be looking to saddle our citizens — the working families and businesses we represent — with debt.
In a new study, Concentric Energy Advisors — a company that specializes in energy infrastructure valuations — calculates that Power San Diego’s proposed initiative which forces a government takeover of the utility grid will result in the City of San Diego incurring $9.3 billion in new debt to acquire the electric infrastructure while losing billions more in revenue.
The Power San Diego initiative, proposed by two individuals, has been making promises that a government takeover to create a city owned utility can be created at little to no direct cost to San Diegans and will result in big savings on electric bills. As the adage goes, if something sounds too good to be true, it likely is.
The plan to acquire the electric grid and create a city owned power company is really no plan at all. The petition being circulated says the people who would run the new utility could be chosen at random — essentially putting the power grid and backbone of San Diego’s economy in the hands of individuals selected by drawing names out of a hat.
The five randomly selected people, with no experience running the electric grid of the sixth largest city in the nation, have a year to produce a plan to force the government takeover of the electric grid at any cost they determine necessary, with no oversight and no further public votes.
Imagine what the city would have to cut from its services and programs if these five political appointees decided to force the seizure of the power grid, adding more than $9 billion of debt on the backs of taxpayers awhile losing property tax and electric franchise revenue of more than $3.9 billion that funds essential city services. That’s almost a staggering three times the city’s annual budget. At a time when city leaders are making tough decisions regarding funding for road repairs, storm-drain upgrades, staffing, and essential programs like affordable housing, we simply can’t afford this costly mistake.
With $13 billion, the city could build thousands of housing units, retain, grow and support our current city workforce, improve hundreds of miles of road, and eliminate the infrastructure funding deficits for crucial projects including stormwater drainage systems, public safety facilities, and homeless services.
Importantly, Concentric’s study is the only financial assessment that has been conducted analyzing the existing energy infrastructure assets, providing San Diegans with the facts to inform their decision-making. Power San Diego does not want us to know the true cost.
It’s clear, they are working to bypass an ongoing taxpayer funded city study that will look at the financial effect of a government takeover of the electric grid, by rushing this initiative to the ballot without any financial analysis or consultation with affected businesses and workers. That’s irresponsible — San Diegans deserve to know the facts before voting on a scheme created by the few, to seize the grid and incur billions of dollars in debt on the backs of all San Diegans.
A hastily planned measure to create a new government run utility is not the solution to addressing the cost of energy in California and will likely mean higher rates for San Diego working families and businesses.
