Did some of the power companies "work" or make money?
I posted the article, too.:-)
WIRE: 09/20/2001 6:04 pm ET
Regulators end consumer choice, a last vestige of California's failed power deregulation
The Associated Press
SAN FRANCISCO (AP) California's Public Utilities Commission voted Thursday to take away the right of consumers to choose their electricity provider, one of the last vestiges of the state's failed experiment with energy deregulation.
The PUC also approved a 12 percent rate increase for residential customers of San Diego Gas and Electric Co., but delayed action on whether to pass along rate hikes requested by the state's power-buying utility to millions of other ratepayers.
That approval is necessary to encourage Wall Street to buy $12.5 billion in bonds the state is issuing to recoup the $9.5 billion-plus it has spent buying power for three financially ailing utilities, according to Department of Water Resources officials and Gov. Gray Davis.
Critics, including the utilities, consumer advocates and even some PUC members, say following the Legislature's orders to pass on the rate hikes without making sure they are necessary will only hurt consumers. Commissioner Jeff Brown said protecting ratepayers from unjust and unreasonable costs is part of the PUC's job.
Allowing consumers to buy power directly from retailers such as Green Mountain Energy or Enron Corp. was one of the key elements of the failed deregulation system passed in 1996.
Its end will affect customers around the state, including more than 170 school districts that had pooled together to seek a new electricity provider. About 200,000 customers had switched utilities by September.
Earlier, the Legislature enlisted the water department to buy power for the three utilities Southern California Edison, Pacific Gas and Electric Co., and San Diego Gas & Electric Co. when energy wholesalers refused to sell to them, fearing they would not be paid.
To recoup its billions, the state plans to issue $12.5 billion in bonds, and has been told by Wall Street it can expect better rates if it shows it has flexible and guaranteed revenues.
Lawmakers have also ordered the PUC to suspend consumer choice to prevent ratepayers from abandoning their utilities. Customers who have chosen new providers will be allowed to remain with those companies through the end of their contracts.
The more who stay, the bigger the pool of customers who can share the cost of paying back the state through their utility rates. Consumer advocates say a suspension also will keep big businesses from switching providers and leaving smaller residential customers stuck with the state's power bill.
However, ending consumer choice also will keep businesses and institutions from bargaining for cheaper power or supporting companies that generate electricity from renewable energy.
On the Net:
http://www.cpuc.ca.gov
Copyright 2001 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
