The San Diego County Taxpayers Association announced its opposition to a public power ballot initiative, calling it a “bill of goods” that could turn back the clock on clean energy use in the region.
The Power San Diego initiative seeks to buy out San Diego Gas & Electric and create a public utility, promising lower electric rates because of nonprofit operation.
The Taxpayers Association estimated a buyout would cost citizens $6 billion, or approximately $11,640 per household, with no guarantee of cheaper rates unless the new utility turned to less-expensive, higher-carbon energy sources.
Increasing the use of renewable energy “requires capital investment that would have to come from private investors wanting to make a profit or the credit of a large group of customers,” the Taxpayers Association said, adding that a municipal utility would not have a sufficient customer base to do this.
“If you want more renewable energy and cleaner air for your kids and mine, don’t sign this petition,” said Haney Hong, president and CEO of the Taxpayers Association. “Dividing up ratepayers into even smaller groups between San Diego Gas & Electric, San Diego Community Power, and then a future municipal utility only shrinks the capital pool that could be drawn upon for any entity, public or private, to get more renewable energy online.”
“That means rates will either have to skyrocket to be greener, or more likely, we’ll all just use cheaper — and dirtier — power,” he added.
The Taxpayers Association also questioned whether the city has the expertise to reliably operate an electric utility.
“People are nuts if they believe the city can successfully operate and maintain a $6-billion electrical system, when it cannot now maintain our streets, stormwater runoff system, public buildings, and produce accurate, timely water bills,” said Mike McLaughlin, chairman of the Taxpayers Association board of directors.
Public Power San Diego claims the acquisition cost would be much less at $2.5 billion and promises a 20% savings in electric rates.
Bill Powers, campaign chair of the ballot initiative, noted that SDG&E has regularly contributed to the Taxpayers Association, and said the group’s numbers include “serious errors in an apparently rushed attempt to satisfy its donor.”
Powers reiterated that the savings from municipalization will come from not having to make a profit. “SDG&E last year earned over $400 million — more than $1 million each day — in profits from city utility customers, while charging the nation’s highest rates,” he said.
The Taxpayers Association is a 79-year-old nonprofit, non-partisan organization, dedicated to promoting accountable, cost-effective, and efficient government and opposing unnecessary new taxes and fees.
Updated at 5:20 p.m., Monday, March 4, 2024
