Arizona Official Threatens to Cut Off Los Angeles Power

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Capt Worley PE

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Good for Arizona for standing up to Los Angeles. I hope they do cut off the power.

Updated May 19, 2010

Arizona Official Threatens to Cut Off Los Angeles Power as Payback for Boycott

FOXNews.com

A member of Arizona's top government utilities agency threw down the gauntlet in a letter to Los Angeles Mayor Antonio Villaraigosa, threatening to cut off the city's power supply as retribution for the city's boycott of Arizona.

If Los Angeles wants to boycott Arizona, it had better get used to reading by candlelight.

That's the message from a member of Arizona's top government utilities agency, who threw down the gauntlet Tuesday in a letter to Los Angeles Mayor Antonio Villaraigosa by threatening to cut off the city's power supply as retribution.

Gary Pierce, a commissioner on the Arizona Corporation Commission, wrote the letter in response to the Los Angeles City Council's decision last week to boycott the Grand Canyon State -- in protest of its immigration law -- by suspending official travel there and ending future contracts with state businesses.

Noting that a quarter of Los Angeles' electricity comes from Arizona power plants, Pierce threatened to pull the plug if the City Council does not reconsider. He also ridiculed Villaraigosa for saying that the point of the boycott was to "send a message" by severing the "resources and ties" they share.

"I received your message; please receive mine. As a statewide elected member of the Arizona Corporation Commission overseeing Arizona's electric and water utilities, I too am keenly aware of the 'resources and ties' we share with the city of Los Angeles," Pierce wrote. "If an economic boycott is truly what you desire, I will be happy to encourage Arizona utilities to renegotiate your power agreements so Los Angeles no longer receives any power from Arizona-based generation."

Appearing to tap into local frustration in Arizona over the raft of boycotts and threatened boycotts from cities across the country, including Los Angeles, Pierce warned that Arizona companies are willing and ready to fight boycott with boycott.

"I am confident that Arizona's utilities would be happy to take those electrons off your hands," Pierce wrote. "If, however, you find that the City Council lacks the strength of its convictions to turn off the lights in Los Angeles and boycott Arizona power, please reconsider the wisdom of attempting to harm Arizona's economy."

Arizona has some serious leverage over Los Angeles, as well as the rest of California. The state and city get electricity from a nuclear power plant outside Phoenix, as well as from coal-fired power plants in northern Arizona and two giant hydroelectric power generators along the Colorado River.

Despite that, the Los Angeles City Council voted overwhelmingly last week to ban future business with Arizona -- a decision that could cost Arizona millions of dollars in lost contracts.

Los Angeles officials were furious with the Arizona immigration law passed last month and joined local officials in cities across the country in pushing boycotts to register their dismay. Critics say the law will lead to racial profiling and civil rights abuses.

Arizona officials have defended the law, saying the state needed to take its illegal immigration problem into its own hands.

The law requires local law enforcement to try to verify the immigration status of anyone they have contact with whom they suspect of being an illegal immigrant. It empowers them to turn over verified illegal immigrants to federal custody. The legislation explicitly prohibits screening people based solely on race or national origin.

http://www.foxnews.com/politics/2010/05/19...ayback-boycott/

 
Can we (Colorado) shut both of those guys up by damming the Colorado River? BUWAHAHAHA

 
I think Arizona is shooting themselves in the foot. First, they loose millions in lost contracts due to LA's boycott. Then, they will loose additional funding when they refuse to sell power to LA. This in turn will lead to lost jobs in the utility sector as demand drops. Glad I don't live in Arizona, because it sounds like their economy's gonna take a dive....

 
I think Arizona is shooting themselves in the foot. First, they loose millions in lost contracts due to LA's boycott. Then, they will loose additional funding when they refuse to sell power to LA. This in turn will lead to lost jobs in the utility sector as demand drops. Glad I don't live in Arizona, because it sounds like their economy's gonna take a dive....
You really think LA is going to drop their demand by 25%? Even if they don't, who can they turn to to supply this extra power? Nevada is already in a power crisis (at least Vegas) and has regular rolling brownouts during the summer.

I think Arizona has finally found a firm foothold and isn't going to back down on this.

 
Then, they will loose additional funding when they refuse to sell power to LA.
Believe me, there's going to be plenty of demand for that power.

The point is not that Arizona is going to cut LA off. It isn't going to happen. The point is that LA is completely full of crap because they aren't boycotting anybody if the DWP continues to buy power from Az. Boycott means you stop doing business with someone. If you continue to buy a product from them, obviously you aren't really boycotting them.

What the guy from Arizona is actually saying is if LA is not just blowing smoke up their ass, then LA should negate the sweetheart contracts they have and allow APS to sell this stuff on the open market.

 
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Dude! I'm living in LA at the moment!!!
Don't worry, they'll get the power someplace. You'll just pay $100/kwH. Right now there's enough anyway, just hope it doesn't warm up a little.

LA is such an economic powerhouse these days, they can really wield fiscal power.

 
This is a joke.

What LA proposed to do was at least feasible, basically don't buy stuff that comes from Arizona, what this guy is proposing is more complicated and difficult and could end up harming themselves more than or equal to LA.

And power isn't necessarily sold to cities, it is sold to Utilities so how exactly are they proposing to make this all work? So if you are going to turn away your biggest customer the price you charge will typically drop. Then your old customer will buy power from somewhere, and it will probably be the same power. I don't know who this guy thinks he is fooling this isn't like buying a used Pontiac, -Energy trading is much more complicated.

Basically it would create a huge headache and trust me LA is huge has some big hitters for Utilities do you think they will just roll over and quit selling electricity?

And trust me I am a huge LA/So Cal basher being a native Oregonian, but this has political bluster written all over it. Sort of like when California proposed in the 80's we have to start sharing water with them. They were even kind enough to offer to build us the aqueduct to take it away from us, --how kind.

 
And power isn't necessarily sold to cities, it is sold to Utilities so how exactly are they proposing to make this all work? So if you are going to turn away your biggest customer the price you charge will typically drop. Then your old customer will buy power from somewhere, and it will probably be the same power. I don't know who this guy thinks he is fooling this isn't like buying a used Pontiac, -Energy trading is much more complicated.
1. The whole thing is polticial bluster - on both sides. LA is full of crap saying they are boycotting Arizona businesses but continuing to buy power from them. That's not a boycott. But Arizona cannot just not sell the power. They have a contract.

2. There is a market for all this power. Believe me. I work in California energy regulation. Arizona will be able to sell this power elsewhere, and probably for a far greater amount. We're coming into the peak summer season. Any power producer would love to be released from long term contracts to sell power on the open market during peak season. And nobody wants to be hunting down power from alternative sources during peak season.

3. THe LADWP is a municipal utility, not an investor owned utility. It is closely controlled by the LA city council, who also set the rates, and reap huge amounts of profits from it each year. LA will find power elsewhere, sure. At a higher rate which they will pass on to a bunch of already pissed off customers. Either that, or they'll lose money, which they can ill afford to do. The city council just spent a few weeks whining because the DWP wasn't sending them the profit they needed to keep from laying off a bunch of city workers.

 
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Good for Arizona. I get real tired hearing about how this new law is "racist". If LA wants to boycott Arizona, fine, then stop buying power from them. Matter of fact, how about the entire state of California stop buying power from Arizona.

I am sure there is so much legal red tape that the boycott or the "cut off" could never happen, but first for the Mayor to even say that all contracts should be ended with Arizona should be enough to remove the tard from office. What politician in their right mind would get on the National stage and say to do something that would cut jobs and revenue? So what you don't like the law, you just said to stop buying from Arizona which could cause thousands of people to loose jobs.

 
What's Arizona going to do to all the other City Councils that have voted to boycott them? Uuuuu... I'm so scared. :eyebrows:

 
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What's Arizona going to do to all the other City Councils that have voted to boycott them? Uuuuu... I'm so scared. :eyebrows:
You mean Berkeley? Something tells me Arizona is not too worried about a major dropoff in its falafel and crystal pyramid business. If they manufactured "scrunchies" for grey haired ponytails, maybe.

 
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Scruchies are better for hair than rubber bands. Those darn things pull hair off all the time. Ouch.

 
The Mayor of the largest city in AZ, Pheonix, is also openly opposed to the AZ Immigration law, and is threatening to sue over it, even if he has to do so as an individual citizen. Heard it on an interview with him this morning.

 
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