CASTAIC AGENCY COULD SELL POWER UNDER BILL.

Byline: Amy Collins Daily News Staff Writer

The Castaic Lake Water Agency would be allowed to sell and deliver electrical energy under new legislation introduced by Assemblyman George Runner.

Since the electricity market was deregulated only Jan. 1, Castaic comes near the front of the line of many agencies expected to apply for the new powers, Runner, R-Lancaster, said Friday.

``The deregulation just makes electricity more of a commodity to be passed on and sold at different rates,'' Runner said.

The goal, he said, is to lower costs to consumers.

Castaic, the wholesaler that provides state water to the Santa Clarita Valley's four retailers, would be allowed to purchase electricity and resell it to the retailers, Runner said.

``You don't deal with equipment at all. It's all paperwork,'' Runner said. ``It just runs through the wires that already exist.'' Castaic would buy the power from a power company, pay a service fee to use existing lines and then resell that power to local retailers, he said.

``There's no profit envisioned in this at all,'' said Castaic's General Manager Robert Sagehorn.

Runner said Castaic approached him several months ago asking him to author the legislation. He said there is only one other water wholesaler in his district, the Antelope Valley-East Kern Water Agency, and he did not check with it to see if it wanted to be included in the bill.

The bill, AB 388, is written specifically for Castaic. It was introduced last week. Runner said he anticipates the bill will receive bipartisan support.

The bill was criticized by a board member of one of the water districts served by Castaic.

Lynne Plambeck, a member of the Newhall County Water District, said Castaic has proven to be irresponsible with its own finances and should not be allowed to get its hands on electricity. ``I don't understand why anyone would want Castaic to do this because Edison is already doing this quite well,'' Plambeck said.

Newhall and Castaic are already members of a group of water agencies that buy electricity in bulk in order to run their own operations, but do not buy the power for resale.

Castaic supplies water from the State Water Project to the valley's four retailers - Newhall, the Santa Clarita Water Co., Valencia Water Co. and L.A. County Waterworks District 36 - which in turn sells the state water, groundwater and river water to residences and businesses.

Sagehorn said Castaic hopes to buy electricity and sell it to the three retailers except for Newhall. Newhall and Castaic already have an agreement to buy electricity in bulk through a state agency. The others cannot because they are private companies.