Thursday, April 2, 2015

Catalina Island Natural Gas & Water

SCE is the sole provider of natural gas and fresh water service to Catalina Island, including the city of Avalon, California.  SCE operates the utilities under the names of Catalina Island Gas Company and Catalina Island Water Company.[1]  

            Natural gas is shipped to SCE’s Pebbly Beach facility on tanker trucks weekly, with shipments based on expected consumption. The SCE storage tank has a capacity to supply about two months of Avalon’s demand for gas. The gas is vaporized and distributed by pipeline through the City of Avalon and adjacent areas. SCE has accommodated development and growth in Avalon by extending the gas main pipelines and increasing gas purchases. Most gas main pipeline extensions are financed directly by SCE. Hence, gas availability and infrastructure does not impinge on Avalon’s
growth potential. The fact that gas is not available outside Avalon means that Two Harbors, the private camps and other inland areas rely on their own LPG tanks.[2]

             Southern California Edison (SCE) wants to sell its old water and gas utility in Avalon, Santa Catalina Island.  The water in the Catalina Island water system is a blended supply, with fresh groundwater sources located in the interior of the island and seawater processed by the desalination system located at the Pebbly Beach Generating Station.

            SCE is entertaining two prospective bids for the gas and water business, which Edison has valued at $35 million; one is from Corix Utilities Inc. of Richmond, Canada, a Vancouver suburb, and another comes from the consortium representing the island's 1,800 ratepayers. SCE intends to continue providing the island's electricity service.

            The bid from Corix has galvanized environmentalists, commercial fishing operations, hotel and restaurant owners, city officials, private land owners, and summer camp operators to unite under the auspices of the Catalina Island Consortium, which is composed of the Catalina Island Conservancy, the Catalina Island Chamber of Commerce & Visitors Bureau, USC, a representative of the island's youth camps, the Hamilton Cove Homeowners Association and the Santa Catalina Island Company. Edison says the utility is worth $35 million but the stakeholders think it might be worth $5 million. Corix has submitted a bid for the water and gas company and deposited $1 million in earnest money in a bank designated by Edison.

[2] Ibid, p. 54.

1 comment:

  1. Hi,
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    public, keep doing the great works.

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