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Businesses may get energy break

December 06, 1999

Buck Wargo

CITY HALL - Glendale's biggest businesses may get $1.6 million to

improve their energy efficiency over the next three years.

The City Council tonight will consider a proposal to pay for audits

and make improvements that help businesses lower their electric bills.

It's one of several programs either approved or under consideration by

the city for spending the $3.6 million it collects annually from the

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Public Benefit Charge on electric bills. Since 1998, Glendale has been

required by the state to collect a 2.85% fee on electrical use and pour

it back into programs that reduce bills and promote efficiency.

The so-called Business Energy Solutions program is geared to

Glendale's top 100 electric customers, who spend $36.8 million a year in

electricity and pay more than $1 million a year in the Public Benefit

Charge. The businesses would be eligible for energy audits and upgrades

for such equipment as mechanical, refrigeration, heating, air

conditioning and lighting systems.

The council will also consider approving spending $76,500 a year to

give a break to those who use medical equipment. The discount will range

between $5 and $15 a month, depending on usage.

Earlier this fall, Glendale increased the monthly discount for

low-income seniors from $3 to $10 a month. Glendale is also planning an

energy efficiency program for smaller businesses.

Bernie Palk, executive director of Glendale Water & Power, said the

audit and upgrades will save the city money because they reduce the

amount of power the city buys. It's also good business to help customers

help themselves, because they will have the option of buying power

elsewhere if Glendale opens its borders to competition because of

deregulation, Palk said.

"By helping businesses, we are helping ourselves," Palk said. "We want

them to stay with us."

Glendale enacted a policy that divides the $3.6 million in annual

revenue between businesses, government and residential programs.

Mayor Ginger Bremberg said it is appropriate businesses benefit from

the program because they are putting in so much money. "They are paying

just as much as anybody else and should get something back," she said.

Arnold Schaffer, president of Glendale Memorial Hospital, which pays

$94,000 a month for electricity, said the program is good because it will

reduce the hospital's energy costs and the need for the city to buy more

power. "In the long run, that will save citizens money," Schaffer said.

Glendale is unable to tie any business assistance to getting companies

to buy their power from the city in the future. Schaffer said his

hospital hasn't decided on its energy needs.

"We are going to wait and see how this plays out. There is not enough

information to make a decision," Schaffer said.

Besides the 2.85% fee, electric users pay a 7% utility tax.

The Glendale City Council will meet at 6 p.m. Tuesday in the council

chambers of City Hall, 613 E. Broadway. The Glendale Housing Authority

will meet at 2:30 p.m. and the Glendale Redevelopment Agency at 3:30 p.m.

The meetings will be televised live on Charter Communications Channel 6.

In other action, the council will consider:

* Proceeding with bond financing for the police building.

* A report on rental assistance for housing programs.

* A report updating city efforts to help auto dealers along Brand

Boulevard.

* A report on Y2K preparedness of the city.

* A report about water deliveries from the cleanup of Superfund sites.

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