Sacramento Bee:

Editorial: Power at 1917 prices

Klamath subsidy distorts farm economics


Published 2:15 am PST Tuesday, March 1, 2005

The West Coast's storm cycle hammered Southern California this winter but ended up missing Oregon. That has produced dry conditions that have set the stage for another farmers-vs.-fish drama on the Klamath River.

On top of this looming fight over a limited water supply, a new debate is unfolding over electricity. This feud should be simpler to solve. Farmers - or any consumer, for that matter - should purchase electricity at 2005 prices, not those set in 1917.

Farmers throughout the Klamath basin have enjoyed the same rate for electricity since Woodrow Wilson was president. The going price is sixth-tenths of a cent per kilowatt of electricity. A Northern California farmer in the service territory of Pacific Gas and Electric, for a comparison, pays a rate that is about 20 times higher.

PacifiCorp is proposing to raise the price tenfold. That's a huge jump at one time. But the proposed price is still a bargain compared to what many California farmers have to pay. And raising the electricity price to reflect 2005 costs would bring a much-needed dose of economic forces to the water debate.

If a marginal farming operation can only survive by keeping electricity prices frozen at 1917 levels, it's questionable whether it really should have the use of precious Klamath water. There is no choice but to use water efficiently for fish and farmers alike. Raising electricity prices to 2005 levels is one way to achieve that efficiency.

 
 

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Source:  http://www.sacbee.com/content/opinion/editorials/story/12491072p-13346879c.html