Group Works on Initiative to Repeal Power Rate Hike

A citizens committee is seeking to place an initiative on the November ballot to repeal an 11% electric rate increase, Councilwoman Ann-Marie Villicana said.

The initiative is one of five that the group, the Committee for Affordable Government, wants to put before voters in an effort to downsize government and pay off the city-owned power company’s $156-million debt.

Three months ago, the City Council approved the utility rate increase to help pay off the debt by 2002, when the market will be opened to competitors.

But Villicana and other members of the group say the utility debt should be tackled by shrinking City Hall, not by increasing electric rates through a surcharge.

In addition to a repeal of the rate hike, the measure calls for an amendment to the City Charter to allow the sale of the city utility, prohibit an annual transfer of $5 million from city utility accounts to City Hall until the debt is paid, reduce salaries for all city employees and require a 5% cut in annual city expenditures until the utility debt is retired.

Villicana said the group needs to submit the language for the measures by Feb. 23 to allow time to collect voters’ signatures and meet a deadline for the November ballot.