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      Home > Fall 2005 Election Info > Ballot initiatives > Prop 80 > Article

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No more Enrons

Proposition 80 will make energy companies serve the public
by Eric Wolfe

Californians will have a chance to nail the coffin shut on electric deregulation in the special election scheduled for this November.

Proposition 80—sponsored by the consumer group TURN and strongly supported by the state’s largest union of utility workers, IBEW Local 1245—would repeal key provisions of the failed deregulation law passed in 1996 and restore regulated utilities’ obligation to serve California customers.

Proposition 80, tentatively called the Repeal of Deregulation and Blackout Avoidance Initiative, clearly establishes that utilities have an obligation to serve, and places independent power producers under state regulatory authority as well.

While some Californians may think that the energy crisis put an end to deregulation in California, the disastrous law remains on the books and will spring back to life after the expiration of electricity contracts negotiated by the state during the 2000-2001 energy crisis.

“We have a deregulatory time bomb sitting in the heart of the current situation,” said Marc Joseph, an attorney for the union-backed coalition of California Utility Employees.

Especially dangerous would be the return of “direct access,” a system championed by Enron that allows unregulated power marketers to make contracts directly with large energy users. Direct access, in addition to being unfair to average consumers, makes it much more difficult to predict and plan for future electricity demand, which in turn heightens the risk of blackouts. Under Proposition 80, current direct access customers would be grandfathered, but no new direct access contracts would be permitted.

Another provision of Proposition 80 establishes that regulated utilities will be responsible for metering and billing. During the heyday of deregulation, Enron attempted to take this work away from regulated utilities like PG&E. One can only imagine how the energy crisis would have been magnified if Enron had succeeded in taking these functions away from skilled employees working for state-regulated utilities.

Deregulation die-hards keep insisting that “free markets” are essential to assuring future power supplies. This claim is pure nonsense, scare tactics put forward by an industry that fleeced Californians to the tune of $40 billion and hoping to get another bite at the apple. Proposition 80 will lock into place a stable set of rules that will help to attract new investment in electricity generation at the lowest possible cost.

Electric service is essential to modern life. Proposition 80 will ensure that this service remains in the hands of state-regulated companies who have an obligation to serve the public, not in the hands of price-gouging companies whose only obligation is to maximize profits.

Eric Wolfe is the Communications Director for the International Brotherhood of Electrical Workers, Local 1245. Local 1245 represents the workers of Pacific Gas and Electric Co.

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