DWP NOT SQUEEZING THE JUICE RATES WON'T FALL, BUT ELECTRICITY KEEPS FLOWING.Byline: Joseph Giordono Staff Writer
As much of California suffers power shortages and looming rate hikes, the head of the Los Angeles Department of Water and Power The Los Angeles Department of Water and Power (LADWP) is the largest municipal utility in the United States, serving 3.9 million residents in 2006. It was founded in 1902 to deliver water and electricity supplies to residents and businesses in Los Angeles. said Friday his customers can run all the lights they want.
The story is starkly different for customers of Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. , which Thursday won concessions from the state Public Utilities Commission that will allow rate hikes as early as Jan. 4.
Despite the rate hike, SoCal Edison and its parent, Edison International Edison International (NYSE: EIX) is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and un-regulated non-utility assets Edison Mission Energy, a power producer, and Edison Capital. , announced Friday that it was cutting 400 jobs as a result of the economic hand deregulation Deregulation
The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.
Traditional areas that have been deregulated are the telephone and airline industries. has dealt. Edison said it was also eliminating its fourth-quarter dividend and cutting $100 million in maintenance and operations.
``To preserve our ability to provide electric service and remain viable, we are taking these immediate cash-preserving actions,'' Edison International Chairman John E. Bryson said in a statement.
SoCal Edison, which serves about 4.2 million customers, says it is in financial dire straits Noun 1. dire straits - a state of extreme distress
straits, strait, pass - a bad or difficult situation or state of affairs . Critics said it was a political move in the running electrical crisis which has threatened power blackouts throughout the state.
But in L.A., the DWP DWP Department of Work and Pensions (UK)
DWP Drinking Water Program
DWP Dynamic Weapon Pricing (gamin, Counter-Strike: Source)
DWP Department of Water & Power
DWP Drinking Water Protection is outside the scope of deregulation and has an ample power supply.
Still, in an interview Friday, Freeman acknowledged that the DWP will likely not be able to deliver a 10 percent rate cut as earlier promised, but deflated de·flate
v. de·flat·ed, de·flat·ing, de·flates
a. To release contained air or gas from.
b. To collapse by releasing contained air or gas.
2. rumblings that his department would implement conservation measures or raise rates.
``I certainly would think I was a failure in my duties if I have to ask people to turn off their lights,'' said S. David Freeman S. David Freeman (1926– ) is an American engineer, attorney, and author, born in Chattanooga, Tennessee, who has had many key roles in energy policy. He currently heads The Hydrogen Car Company and is a member of the Los Angeles Board of Harbor Commissioners. , general manager of the DWP.
``My job is to have enough electricity so that people can do what they want. I'm not a dictator, and I'm not a nanny.''
Even though power rates for DWP customers likely will not drop, they still will pay less on average than consumers across the state.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. estimates provided by both the DWP and Southern California Edison, the average residential consumer uses about 450 to 500 kilowatts per month during December.
The average monthly bill for a DWP customer, based on 500 kilowatts of usage, comes to $52.17. For the average Southern California Edison customer using the same amount of power, the bill comes to $59.26.
DWP officials said the rate for electricity always remains the same. The rate is 7.3 cents per kilowatt hour, no matter how much power a customer uses.
According to Edison officials, their rates vary depending on ``climate zones,'' but that the average baseline rate is 12 cents per kilowatt hour. Once a customer uses more than 200 kilowatts, however, that rate goes up to 14.2 cents per kilowatt hour.
As a part of the restructuring plan implemented statewide in 1996, Edison customers automatically receive a 10 percent discount on their bills.
California power officials on Friday said they celebrated the first workday in three weeks without declaring any power emergencies.
Box: POWER USAGE
SOURCES: DWP and SoCal Edison