By Karen Albrecht
Daily Bruin Reporter
Enron Energy Services is attempting to alter a four-year
contract with the University of California and the California State
University that provides energy to the universities at 1998
prices.
UC and CSU have requested a federal court to issue a preliminary
injunction preventing the unilateral contract change a year before
it expires in March 2002.
The changes proposed by the Houston-based energy company
transfer the universities from their status as direct access
customers of Enron to Pacific Gas and Electric Company and Southern
California Edison customers.
This would potentially make the universities liable for paying
debts accumulated by PG&E and SCE when the universities were
not their customers.
The price of transferring the universities could cost UC and CSU
students between $132 and $297 million, according to a UC Office of
the President statement.
A hearing on the motion is scheduled for April 11 in San
Francisco with federal judge Phyllis Hamilton, according to Charles
McFadden, spokesman for UC Office of the President.
UCLA does not have a contract with Enron, but with the Los
Angeles Department of Water and Power. UC Riverside also has a
separate energy contract.
UC’s legal wranglings with Enron comes at a time when
California political leaders are struggling with ways to solve the
state power crisis.
Gov. Gray Davis, addressing Californians in a televised speech
Thursday night, for the first time endorsed rate increases for
utility customers, urged conservation to fend off blackouts this
summer, and defended his handling of the energy crisis.
He listed actions he has taken to try to solve the power crisis,
including negotiating long-term contracts to purchase power and buy
the utilities’ transmission lines.
Davis also said he has cut red tape and provided incentives to
speed construction of power plants.
“˜”˜We can’t fix 12 years of inaction overnight.
But we’re making real progress,” he said.
UCLA is not in danger of widespread rolling blackouts predicted
for this summer, according to David Johnson, director of energy
services
“We have several lines of defense against blackouts. Our
co-generation plant produces about 80 percent of our electricity,
and our contract with LADWP provides backup in the event we have a
problem,” Johnson said.
The DWP has made frequent public assertions that its customers
will not be subject to the rolling blackouts seen in other parts of
California. Furthermore, the department asserts that the 40 percent
rate increase approved last week by the Public Utilities Commission
will not be felt by DWP customers.
DWP officials did not return repeated phone calls for
comment.
But several candidates at Wednesday’s mayoral debate at
UCLA warned Los Angeles residents of gaining a false sense of
security.
“Some people in DWP believe (the energy crisis) is not
going to impact you,” said State Controller Kathleen Connell.
“You’re dead wrong.”
Los Angeles tax dollars are being funneled toward the state
energy problem, said Los Angeles City Attorney Jim Hahn.
“Don’t be fooled that we are immune to this energy
crisis,” he said. “We have been paying, and we are
going to pay in the future.”
Additionally, UCLA continues to feel the effects of skyrocketing
natural gas prices as well.
During the first half of this fiscal year beginning in July, the
university spent $10 million over budget for utilities, according
to Steven Olsen, vice chancellor of budget and finance.
“The situation is not getting any better,” Johnson
said of the second half of the year.
After Davis asked UC to make efforts to become electric energy
independent, UCLA submitted state funding requests for five energy
conservation projects on campus. Decisions on all UC state funding
requests should be reached in May, Johnson said.
Two projects currently funded by the campus are under way: a
thermal energy storage facility near the Bomb Shelter is scheduled
to be completed in December, and cooling tower upgrades in the
co-generation plant will be completed at the end of June.
Pending state funding approval, three other conservation
projects are under consideration.
A second thermal storage tank is proposed, in addition to a
satellite chilled water plant near the School of Engineering and
Applied Science building, intended to make water in thermal storage
facilities colder.
Proposed projects also include centralization of energy
management systems currently spread throughout individual campus
buildings. A common control center would lead to greater energy
efficiency, and enable central control of temporary electrical
cutbacks during severe power shortages, Johnson said.
With reports from Daily Bruin wire services.