BRIGHTER HOLIDAYS FOR L.A. DWP EXPECTS AMPLE WINTER POWER SUPPLY.

Byline: Dominic Berbeo Staff Writer

Los Angeles officials say city residents will enjoy fixed rates and a steady flow of electricity this winter season, even as the rest of California - supplied by private energy sources - braces for possible rate hikes and power shortages.

The city has been immune to the growing statewide power crisis that has driven state regulation officials to even consider issuing a warning against the use of Christmas lights this holiday season.

``It hasn't gotten that bad yet,'' said Stephanie McCorkle, spokeswoman for the nonprofit California Independent System Operator, a state-created agency which oversees power distribution for most of the state. ``We are not warning people not to string up Christmas lights.''

McCorkle said that if the winter proves to be extra cold and the power supply shrinks, the agency might consider issuing a warning against using decorative lights, but for the time being is simply recommending that lights generally be turned on after dinner instead of before.

The situation worsened with heat waves this summer creating a higher demand for air conditioning, and in recent weeks with cold temperatures and power supply problems straining state supplies, McCorkle said. In the past week, the ISO issued three Stage Two alerts - called when state power reserves drop below 5 percent.

Several large private energy suppliers, including Southern California Edison and Pacific Gas and Electric, have petitioned the state to be able to raise rates by about 10 percent on Jan. 1 to make up for lost profits.

``We incurred huge costs this summer,'' said SCE spokesman Steve Hansen, adding that the state-mandated rate freezes are in place through March 2002.

Both Edison and PG&E have filed lawsuits against the state's Public Utilities Commission in recent days to allow for the rate increases, arguing they have met debt-paydown requirements that qualify them for the rate hikes.

The PUC is considering the petitions and the lawsuits, and a response is forthcoming, said agency spokeswoman Kyle Devine.

The Federal Energy Regulatory Commission is expected to step into the state's energy crisis scene by issuing a draft master plan in December with energy market solutions.

California Senate Democrats have proposed spending $2 billion next year to devise and implement a cost-saving plan, and Gov. Gray Davis is expected to submit to the FERC next week recommendations to resolve the state's energy crisis.

But power in Los Angeles - supplied by the city-owned Department of Water and Power - has been plentiful, resulting in plans for a dazzling city holiday display, and expectations of more than $100 million in profits this fiscal year from the sale of excess energy to the state.

``We're going to have a bright Christmas here in Los Angeles,'' said DWP General Manager S. David Freeman. ``I don't know what's going to happen in the rest of the state.''

Freeman said the city department has benefited greatly by not being subjected to the state's deregulation plan, which was designed to lower rates but so far has been mired in the power crises.

He said the DWP, which faced a $4.1 billion debt three years ago, is on track to increase capacity, lower rates by 10 percent and completely pay off the debt by 2003.

A major unit of one city power plant, the Haynes Generating Station in Long Beach, is even producing energy exclusively for sale and export for profit outside the city, Freeman said.

And despite conservation calls in other parts of the state, Los Angeles will host the DWP's Griffith Park Festival of Lights, an illuminating holiday display from Nov. 25 until Dec. 26.