Font size:
DETROIT—The city of Detroit is moving closer to privatizing its Public Lighting Department (PLD).
Mark Petty, director of the department, says he is currently evaluating privatization proposals from four private utilities, which applied for consideration in face-to-face meetings in September and October of 1999. Following his evaluation, Petty will make recommendations to Mayor Archer, who will submit the plan to the city council.
Originally advanced in 1998, the formal request for private proposals states that the city's objective is "competitively priced electricity for the customers of the city of Detroit." The formal request also states that the city is prepared to consider everything from partnership with other energy providers to improve PLD operations, including the outright sale of the entire public system, leasing the PLD to a private utility for a finite term, to allowing another utility to operate the system without any transfer of property.
The four bidders are Detroit Edison/Energy Resources Management, Michigan Consolidated Gas, Enron (a Texas-based oil and utility company), and a consortium headed by Texas Utilities/Enserch. None of the proposals submitted so far involves a wholesale change of ownership for Detroit's public lighting system.
However, the efforts toward privatization are meeting strong union opposition. Accusations include that the PLD has deliberately downsized in recent years in order to sabotage operations and justify a takeover; that turning operations over to Edison would be a disaster since the company has had problems supplying the suburbs with electricity; and that the PLD has failed to provide a comprehensive report detailing the need for privatization, or to satisfy other requirements called for in the new city charter.
