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.
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