Public utilities facing voter scrutiny

Public utilities in Glendale and Burbank may soon have to secure voter approval for their decisions if a proposed initiative qualifies for the state ballot.

The initiative would require utilities to obtain approval from two-thirds of voters within their service areas before they try to expand their offerings, invest in additional infrastructure or band together with other providers for shared investment in new infrastructure.

It is awaiting approval from the secretary of state, pending the results of a random sampling of petition signatures.

According to a partial count of the sampling, the Taxpayers Right to Vote Act does not yet have enough acceptable signatures to qualify for the ballot, but signatures from some counties have yet to be checked for validity or duplication.

While the initiative has been cast as an effort to give taxpayers more of a say in investments that could result in rate increases from their utilities, officials contend that it would increase the obstacles they face as they try to serve more customers and compete with private providers.

“Needless to say, I’m against it,” Glendale Mayor Frank Quintero said.

Authors of the initiative, who could not be reached for comment, argue that the expenses related to expanded utility offerings affect rates, according to the proposal.

Plans to expand utility services typically require “either construction or acquisition of facilities or other services necessary to deliver electric service, to be paid for with public funds, borrowing, bonds guaranteed by ratepayers or taxpayers, or other debt or financing,” according to the initiative. “The source of the public funds, borrowing, debt and bond financing is generally the electricity rates charged to ratepayers as well as surcharges or taxes imposed on taxpayers.”

While that may be true, utilities already obtain approval from voters for their investment decisions, said Ron Davis, general manager of Burbank Water and Power.

“The difference is it’s a majority vote, not a supermajority vote,” Davis said.