Monday, May 30, 2005

IBEW Local 1245 Supports Pacific Gas and Electric Market Efforts Over Rival SSJID--Both are IBEW Employers

Power play: IBEW sides with PG&E

The power plays have started in the fight to see who controls retail sales in Manteca, Escalon and Ripon -- PG&E or the South San Joaquin Irrigation District.

The International Brotherhood of Electrical Workers have gone on record against the SSJID's plan to flex its power under the state constitution to conduct a hostile takeover of the PG&E system in a bid to provide electricity at costs they contend will be at least 15 percent less than PG&E across the board.

In a letter to SSJID Board President Ralph Roos, IBEW Local Union 1245 Business Manager Perry Zimmerman says the local "supports the status quo when it comes to proposed changes to electric and gas jurisdictions. We favor neither publicly owned utilities nor investor-owned utilities, simply the status quo."

Zimmerman went on to say that the SSJID employees "no qualified electrical workers" although the employees that work on the Tri-Dam hydroelectric system that is a joint project of SSJID and Oakdale Irrigation District are IBEW workers. Zimmerman also claimed there is a severe shortage of line workers, substation electricians and other essential personnel.

He also noted that 300 of the 1,302 signatures on the petition PG&E submitted to SSJID opposing SSJID's bid to lower rates were members of IBEW Local 1245. The water district has also indicated that a number of those signatures were not of SSJID residents but those who live in other areas that may sustain higher costs if PG&E losses a chunk of its revenue base.

Roos responded to Zimmerman's letter noting that "having enjoyed a long and positive relationship with Local 1245 we would at least hope you would afford us the same opportunity to speak with you about this issue as you afforded PG&E."

Roos also countered suggestions by Zimmerman that SSJID is not aware of the risks involved in the competitive power markets. Roos noted that SSJID has been engaged in the sale and generation of electric energy for 50 plus years.

"You should also know that PG&E has more than two thirds of their total electric load served by market purchases while SSJID owns enough generation to serve more than two thirds of our own loads," Roos wrote. "There are other advantages that SSJID has over PG&E regarding wholesale power markets. For example, we have no debt and no bankruptcies in our history which equates to a far superior credit rating, key factors in purchasing wholesale power."

Roos also said SSJID has been contacted by a number of PG&E employees interested in going to work for the irrigation district should they enter the retail market. He also noted SSJID will continue its relationship with IBEW. And in the event there is a shortage of workers, that a number of private contractors have already approached the district about helping upgrade the system.

"To suggest that we will not be capable of hiring a sufficient number of qualified staff is simply not factual." Roos added. We will, and they will be IBEW."

Roos closed by writing "if you are interested in hearing the rest of the story regarding what this project represents in the way of economic opportunity for our community, I repeat the offer we have made on several past occasions to Mr. Sam Glero, Business Representative, Local 1245, to come to our offices and discuss this project with the executive team at IBEW."

By DENNIS WYATT

Managing editor of the

Manteca (Calif.) Bulletin

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