ANAHEIM : Council OKs Plan to Raise Utility Rates

Despite the pleas of some city residents, the City Council on Tuesday approved a Utilities Department plan to increase the city’s average water rate by 4.5% and its average electricity rate by 3.5%.

By a 4-1 vote, the council agreed with the department’s argument that forgoing a rate hike now would make substantial increases planned for 1993 and 1994 even larger. In October, the council rejected a larger rate increase by a 3-1 vote.

The plan also differs in that it calls for reducing the Utilities Department’s staff by 15 employees next year by contracting out some services to the private sector through attrition and, if necessary, with layoffs.

The department said the rates must be increased because the city’s water and electricity suppliers are now charging more and because of improvements being made to the city’s water filtration plant.

The measure, which will take effect Jan. 1, will increase residential rates for electricity by 2.8%, the small-business rate by 5%, the large-business rate by 3.3% and the industrial rate by 3.8%. Water rates will be raised by 5.3% for homes, 6.3% for apartments and 2.4% for businesses.

Both hikes had been approved by the city’s utility board, which advises the council on rate increases.

Councilman Irv Pickler said the rate hikes were necessary because the Utilities Department’s costs have gone up.

“If the cost of water is going up, we must charge more,” Pickler said. “It can’t work any other way.”

But Councilman William D. Ehrle, the lone opponent, said he did not support the increase because of the troubled economy. “In the recession, we should all be tightening our belts,” he said.

In October, the council, citing the poor economy, rejected a department plan to increase water rates by 5.5% and the electric rate by 4.5%.