DELAY IN CITY DECISION ON POWER MAKES SENSE

The city government’s 1970 deal with San Diego

Gas & Electric to provide electricity and gas on an exclusive basis within city limits while giving the utility use of public rights of way for transmission, distribution and related infrastructure expires Jan. 17. But with SDG&E warning that delays in completing negotiations on an extension could force it to stop paying fees to the city that totaled more than $127 million in fiscal year 2020, Mayor Todd Gloria had the good sense to request a formal five-month extension of the negotiations, which the City Council unanimously supported on Wednesday.

The wise delay will give Gloria and five new council members time to get up to speed on a complex issue. The city’s hopes that other energy providers would competitively bid against SDG&E went unrealized when bids were opened Dec. 17. Gloria then smartly rejected SDG&E’s proposal for a 20-year contract extension because it contained provisions meant to protect the utility in case the city chose to form a public municipal utility like the Los Angeles

Department of Water and Power. Some council members were unhappy that SDG&E — which must agree to any extension proposed by the city — wouldn’t accept a year delay. They see setting up a municipal utility as a viable option if SDG&E balks.

That idea merits review — at least if it leads to an honest assessment that isn’t just a blunt instrument to force SDG&E into concessions. After a long history of costly fiascoes, it would take a lot of reassurances to trust City Hall to run a power utility.

Gloria needs to appreciate this concern as mayor.