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From: phil@amdcad.UUCP (Phil Ngai)
Newsgroups: net.flame
Subject: Re: Help: rapped and robbed monthly
Message-ID: <589@amdcad.UUCP>
Date: Sun, 27-Jan-85 18:47:21 EST
Article-I.D.: amdcad.589
Posted: Sun Jan 27 18:47:21 1985
Date-Received: Mon, 28-Jan-85 07:46:40 EST
References: <763@loral.UUCP> <256@oliveb.UUCP>
Organization: AMDCAD, Sunnyvale, CA
Lines: 41

> I am afraid at least in California, that most utilities are not publicly
> owned.  I grew up in San Diego and have sinced moved to the Northern part
> of the state.  With the exception of some cities, most of the power comes
> from Pacific Gas & Electric Co. (PG&E).  It is also privately owned.

The City of Santa Clara, California, owns and operates its own electric
utility. Because it is a municipality, it gets preference in bidding
for power from the Western Power Administration, or at least, used to.

The WPA sells the electricity produced by Federal Hydroelectric projects
such as Hoover Dam. Because they are a Federal agency, they are only allowed
to charge what the electricity cost to produce. They are not allowed to
charge market rates even if market rates are much higher. Since the only
cost for Hoover Dam to produce electricity is a little oil once in a
while to lubricate the generators' bearings and debt service on the plant,
WPA's prices are lower than market. I think the Treasury also loaned the
money or guaranteed the loans for the money used to build many of these
projects, therefore the debt service is also below what PG&E might pay.

Santa Clara gets preferential treatment in other ways. By selling
tax free bonds, their cost of capital is less than PG&E's. They also
get first dibs when hydro sites come up for relicensing, even if
PG&E built it!

How do I know all this? I live in Santa Clara and get cheaper electricity.
I wish they'd supply the gas too...

This article wasn't a flame but I expect it will provoke flames about
how government keeps getting into things it shouldn't be in, such as
utilities. Personally, if I didn't live here, I'd be outraged at how
Santa Clara gets low rates at the expense of everyone else. (PG&E
has to charge higher rates because Santa Clara got the cheap stuff
from WPA)

hee hee
-- 
 This is my opinion, I guess.

 Phil Ngai (408) 749-5720
 UUCP: {ucbvax,decwrl,ihnp4,allegra}!amdcad!phil
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