City Scores Nearly $100,000 From Laguna Beach

Despite the light agenda before the City Council of Rancho Santa Margarita, one issue yielded a pretty heavy result—in the city's wallet.

The council's 5-0 decision to sell off its Public Utilities Commission credits from Southern California Edison for underground infrastructure—moving current overhead power lines underground—will deliver more than $95,000 to the general fund.

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These Rule 20A credits are for so-called "undergrounding" projects, but RSM doesn't need such work because its power lines are already underground. Still, the city accumulates the credits and has found an eager partner in Laguna Beach.

The deal is similar to the one forged in 2010 when RSM agreed to sell the seaside community its Rule 20A credits at 55 cents on the dollar. That deal netted RSM $437,550.

The deal approved Wednesday, also for 55 cents on the dollar, involved credits accumulated over the last two years, and will amount to $95,506 for Rancho Santa Margarita.

City Engineer Max Maximous said RSM will continue to accumulate credits in the future, and Laguna Beach has indicated it wishes to continue buying those credits as it moves its lines underground.