Review reveals board’s worries By DARREN SIMON, Staff Writer
Tuesday, April 24, 2007 10:39 PM PDT
Imperial Irrigation District Board President Stella Mendoza questioned whether those negotiating the Green Path projects on behalf of the district have served the ratepayers best interests.
IID Director John Pierre Menvielle said he had changed his mind and was happy the district had done a so-called prudence review of all Green Path agreements.
Those developments came Tuesday as the firm hired by the district to review the most critical energy pacts the district has considered in recent history — pacts that could cost the district millions of dollars — reported its findings.
At the heart of the issue are the two projects that make up the Green Path. One would call for the building of a massive energy line to move renewable energy from the Valley to the Los Angeles Department of Water and Power. The other calls for building a similar line to move renewable energy from the Valley to San Diego Gas & Electric.
“Based on what I have read in this report, there is now a legitimate question as to whether positions adopted by our negotiators offer the benefits to ratepayers we expect and consistent with the district’s long-term energy policy,” Mendoza said.
The report identifying possible shortcomings in the proposed Green Path agreements was discussed in closed session because of confidentiality issues, IID officials said.
What was shared with the public was a report by the firm that left more questions than answers about what Green Path will mean to the Valley.
IID officials say more information could become public in coming days as the board decides how to proceed with Green Path.
A special closed session has been called for 10 a.m. today to discuss the matter further.
The report on Green Path was done by D&G Energy Advisors LLC at a cost of $327,000. The review was called for by the board to have an independent source review all Green Path contracts to ensure they serve the district’s best interests.
While the firm found issues with the contracts, specifically with the pact that would have the district partner with SDG&E, specific findings were not released to the public.
But issues that have been raised in the past have dealt with concerns over who would own the massive power line that would move energy to San Diego and how much capacity IID would have to sell power through that line.
Another point of concern raised has dealt with one of the proposed partners on Green Path — Citizens Energy of Boston, which has promised for its involvement in the project to pay IID as much as $2 million a year to help low-income energy users.
The concern has been that Citizens Energy has not come out in writing with a specific amount it will provide to the IID.
Jack Allen of D&G told the board Tuesday he was not there to tell the board whether to participate in Green Path.
“This is not a recommendation of yes or no; it’s simply an evaluation,” Allen told the board.
But the report, while pointing out concerns in the contracts, did include the benefits of taking part in Green Path, including that the district by participating would protect its power control area from private utilities.
Still, the findings have caused the board to want to take a new look at Green Path.
Menvielle was the one board member who had voted against conducting the review of the Green Path contracts.
“I’ve definitely changed my mind,” Menvielle said. “This report cost $327,000 and it was worth every cent.”
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