Message Points

Recent legislative proposals designed to have the state play a dominant role 
in developing, owning and operating power plants in California (SB6X--Burton) 
and buy PG&E and Edison's electric transmission assets (SB33X--Burton) are 
taking California in the wrong direction and won't solve the State's 
electricity crisis.
Two new bills are equally disturbing:  AB60X (Hertzerg) would make plant 
certification contigent upon the developer agreeing to sell the power to the 
state at "just and reasonable, cost based rates."  SB39X (Spier) would make 
power plant owners public utilities
The proposals represent a political solution, not a commercial, financial, 
economic or technical solution.  
As a political solution, these bills will not increase supply, decrease 
demand, or get the utilities back on their financial feet.
In fact, it's worse than that.  These bills will exacerbate California's 
problems:
The transaction contemplated in SB33X is extremely complex, requiring 
approval by state and federal authorities, bondholders, creditors and 
others.  California will be forced to spend an enormous amount of time and 
resources trying to achieve the deal, with no certainty of success, 
particularly in view of PG&E's public opposition.  In the meantime, summer 
approaches, and the gap between supply and demand remains staggering.  This 
complex, costly and litigious alternative will not lessen the serious threat 
of blackouts that California faces this summer.
SB6X would have the state finance, develop, own and/or operate power plants 
in the state.



? Unfortunately, the proposal being offered will not solve the problem; 
rather, it,s a significant step backward that will make matters worse in 
California.

? The reason?  Rather than remove California,s roadblocks to increased 
generation and transmission investment, this proposal requires California to 
use taxpayer dollars to get into the business of financing, owning and 
operating power plants and transmission.

? The best solution ) recognized across the country and around the world ) is 
for the state to allow private companies to site new generation immediately.

? Once built, California could easily enter into contracts with private power 
plant developers and avoid using taxpayers, dollars.

? Given government,s other failed experiments in other large scale 
participation into public power, like TVA, BPA, NYPA, it is highly unlikely 
that a California state agency will succeed in doing something that private 
capital is better equipped and willing to do.

? In the short, the proposal is neither in the public interest nor rational.

? Issuing debt to build power plants and take over transmission systems costs 
consumers money and takes money away from investments in schools and other 
important priorities.

? We would be willing to work with the Legislature to help craft a bill that 
gets more supply in California quickly, efficiently, and in an 
environmentally sound manner, but this draft achieves only one goal:  
creating more bureaucracy.