BETRAYAL OF RATEPAYERS BY EVMWD

ELSINORE MAGAZINE 1

Feb. 25, 2007

Elsinore ValleyMunicipalWater District EVMWD has been betraying the ratepayers in many ways by allowing Nevada Hydro to do what it darn, well pleases such as, having allowed the Nevada Hydro Co. keep secrets on the contract negotiated with the potential buyers/purchasers of the LEAPS Project. Nevada Hydro is a private corporation and is co applicant with EVMWD a Public Agency. The Ralph M. Brown Act disallows meetings of any kind as far as the public's business is concerned with respect to a private Corporation held in secret without disclosing the meeting openly. All information must be publicized. EVMWD HAVE NOT BEEN ABOVE BOARD in its approach of handling the LEAPS Project. How is it that a private corporation gets to call the shots when at the same time using public funds for everything in attempting to push the LEAPS project through? EVMWD has allowed this to happen to their own constituents the ratepayers. Worse of all EVMWD continues to allocate the ratepayers funds to Nevada Hydro, issues INVOICES, to Nevada Hydro with due dates that never gets paid and continues to be ignored by your water District Elsinore Valley Municipal Water District. EVMWD has been paying the invoices about a decade and billings received by EVMWD from and for various Nevada Hydro individual billings. In order to overcome this madness the ratepayers must come out fighting. You have Recall Rights, Veto Rights under referendum, and Civil Rights under the Courts.

SAN DIEGO GAS &ELECTRIC COMMENTS TO FERC ON THE FEIS.

The San Diego Gas & Electrice has submited comments to the Federal Energy Regulatory Comission FERC on their Final Environmental Impact Statement FEIS analyzing the proposed LEAPS project. Noting, that they would like to correct the record with respect to statments erroneously attributed to SDG&E and identify issues that warrant further consideration.

According to SDG&E FERC failed to disclose much vital information that would be vital reporting in a an FEIS. SDG&E noted in one instance that their comments concerning the Draft EIS's assumption that the TE/VS- LEAPS project will increase G-1/N-1 import capability into the San Diego area by 1000 MW, it is stated that "the final EIS now uses a value of 750 MW" but in various locations, the FEIS cities up to 1000 MW import capability. EM1 wonders why the difference in numbers?

The Final EIS simply references a new SDG&E substation, without revealing that the Department of Defense has the discretion to approve or disapprove a new substation on Camp Pendleton and must comply with the National Environmental Policy Act (NEPA)

FERC maintains that co applicants have substantially understood cost associated with site- specific geological and groundwater conditions. As a result, of the cost of building and operating the LEAPS Project would exceed the economic benefits anticipated in the first year of the operation. EM1 is noting that everyone has said from layman to the professionals that this project has no economic benefits. The city Treasurer Peter Weber recently issued a report to the city council stating that the LEAPS Project would lose millions, that their is no economic benefit. The question is, why would EVMWD CONTINUE THE BETRAYAL OF ITS RATEPAYERS THROWING THE RATEPAYERS GOOD MONEY AFTER BAD?

SDG&E continues to note the failure of vital information left out of the FEIS. FERC noted that the Federal Energy Regulatory Commission does not emphasize that construction cannot commence until co- applicants obtain all necessary federal, state and local permits, FERC indeed acknowledges that the commission cannot license the TE/VS 500 kV transmission project under thier part 1 of the Federal Power Act, as FERC's jurisdiction is limited to the transmission interconnection of the hydro project to "the point of junction"with the network, that the TE/VS 500 kV line must obtain a " seperate license" or "seperate permit" from part 1. Hydro license and that such separate license may need an approval from the Claifornia Public Utilities Commission (CUPC ) and that neither co-applicants has applied for any CUPC approval. EM1 is wondering what are the co- applicants waiting on? FERC, to issue what ever FERC will issue and of they go running to build without all proper licenses and permits. EM1 IS SHOCKED AT ALL THIS INFORMATION THE PUBLIC DOES NOT KNOW ABOUT. WHAT REVELATION?

Also SDG&E points out that comments submitted in this matter by co-applicant Elsinore Valley Municipal Water District EVMWD and others suggest that EVMWD is disqualified as a matter of state law governing water districts. The California Government code does reference something to the effect that a water district cannot sell power to anyone before first providing for its own customers first. Comments on that law went to FERC during the Draft EIS period.

Finally, SDG&E raises the threshold question of WHY!!! FERC THE COMMISSION would select the staff alternative as the Commission's prefered alternative when the staff alternative is estimated to cost $124,841,500 per year MORE THAN the " No Action" alternative? EM1 would add that many letters including petitions from citizens who would be damaged and impacted by the LEAPS Project was submitted to FERC during the Draft EIS period. EM1 would like to take a guess at the threshold question answer. No doubt Fargo of FERC was perhaps threatened by Issa of his reprisal if he did not make the FEIS say what they wanted it to say.

EM1, seriously call upon law enforcement, FBI to do a serious forensic investigation on the LEAPS Project. there are to many obvious problems and actions that just do not add up. This problem is hughe the public desperatly needs help in getting to the bottom of the whole RIP OFF, KICK BACK SCAM.