Editorial

January 3, 2007
Plug it in
New power play bodes well for Valley energy consumers.
The Fresno Bee

A new player is about to join the energy market in the central San Joaquin Valley, and that's good news for consumers, from residential customers to cities and counties.

The San Joaquin Valley Power Authority, a creation of the Kings River Conservation District, will soon begin purchasing electrical power for delivery to Valley customers. Because it's a government agency, there is no need to seek a profit on the sales or pay dividends to shareholders, so customers will see small savings in their power bills.

An average homeowner with a $200 monthly electric bill will save about $3.50 a month, according to David Orth, the conservation district's general manager. The savings will be larger for cities and counties — Fresno, for instance, will save about $600,000 annually. That's a boon to taxpayers, because that money can be used to pay for other essential municipal services.

Another benefit will be greater stability in Valley energy supplies. Investor-owned utilities serving the Valley — Pacific Gas & Electric and Southern California Edison — sometimes have difficulty supplying the Valley's needs. Locally purchased supplies of energy will help address that problem.

The Kings River district also plans to build a 500-megawatt cogeneration plant in Parlier, fueled by natural gas. One megawatt is enough electricity to serve 1,000 homes. The district already operates a smaller, 97-megawatt plant near Malaga, which is used to supply extra energy at peak demand times, typically the hottest days of summer.

The new agency will cover a large swath of the Valley. Included in its operations are the city of Fresno, Kings County, Clovis, Hanford, Lemoore, Corcoran, Dinuba, Reedley, Sanger, Selma, Kerman, Parlier and Kingsburg. Tulare County may soon join. That will give the power authority a customer base of some 307,000 homes and businesses. Tulare County could add another 40,000.

This innovative approach — similar in some respects to public power companies that have been around for many decades — is made possible under a state program called Community Choice. The Valley agency is the first in the state to sign up and begin operations.

There is everything to like about this effort, including its regional nature. Cheaper energy, more reliable supplies and more stability for Valley energy users should win wide support. The Kings River Conservation District board and its staff deserve applause for setting the program in motion. It ought to be replicated everywhere.