California Consumer Group Submits Electricity Reregulation Ballot Initiative 

 Nov. 28, 2000 
 Dow Jones Online News 
 (Copyright (c) 2000, Dow Jones & Company, Inc.) 

 LOS ANGELES -- A California consumer group submitted a draft ballot 
initiative to the governor and state legislature Tuesday, calling for a
 publicly owned and controlled electricity system. The Foundation For 
Taxpayer and Consumer Rights called for the creation of a state
 power authority that would build and operate power plants, transmission and 
distribution facilities. 

 It also advocated the oversight of electricity rates by the state Public 
Utilities Commission, and the issuance of refunds to San Diego
 customers who were hit with large bills this summer when they were exposed 
to full market rates. 

 The consumer group filed papers Tuesday with the Secretary of State to 
establish a campaign committee called the Campaign for the
 Protection of Ratepayers, which would sponsor the 2002 ballot measure, FTCR 
announced at a press conference Tuesday. 

 Refunds should be issued to customers of Sempra (SRE) unit San Diego Gas and 
Electric Co. via a "windfall profits tax" on power
 companies that sold energy at unjust and unreasonable prices, according to 
the FTCR draft. 

 The PUC should be authorized to establish the thresholds for excessive 
energy prices that would be used in determining the tax. It should
 also be able to oversee the issuance of refunds, as well as electric rates 
on a cost-of-service basis, the FTCR said. 

 At the same time, the PUC should be restructured so its commissioners are 
more publicly accountable. A Citizen Utility Board should also
 be created to protect consumer interests, the FTCR said. 

 The FTCR also advocated that a separate state agency be created that could 
build, own, operate and buy power plants and transmission
 and distribution assets. That agency could auction the right to build plants 
to, or contract with, private generators that would sell energy to
 utilities on a cost-of-service basis. 

 As well, the FTCR recommended giving authority to state and local 
governments to take over generation, transmission and distribution
 assets if necessary. No specifics were given in the draft on what would 
necessitate such a takeover. 

 FTCR stressed that Edison International (EIX) unit Southern California 
Edison and PG&E Corp. (PGE) unit Pacific Gas and Electric Co.
 shouldn't be permitted to back bill customers for the unexpectedly high cost 
of buying wholesale power this summer. 

 The two utilities have filed lawsuits against the PUC for authority to 
recover those costs, as they are unable to do so while their customers
 are under a state-mandated rate freeze. 

 "Any effort to force the ratepayers to pay even one cent more to cover the 
greed and stupidity of the utility companies in this disaster of their
 own making will conclude our participation in the legislative process," said 
FTCR president Harvey Rosenfield. 

 Mr. Rosenfield questioned how the utilities could claim they are having 
financial difficulties when they donated $1.2 million to lawmakers
 and lobbyists in this year's third quarter, and called for a moratorium on 
power company campaign contributions. 

 "We urge elected officials to cease accepting money from any of the 
interested utility and power companies ... while the deliberations are
 underway. To fail to do so will cause the public to doubt the integrity of 
the legislative process," Rosenfield said. 

 Mr. Rosenfield also said his group would "not participate in any 
behind-closed-doors legislative negotiations or discussions," saying that
 the 1996 deregulation law was "the product of a three-week legislative 
ramrod featuring back-room meetings, late-night hearings, payoffs
 for various participants and other shenanigans." 

 Copyright (c) 2000 Dow Jones&Company, Inc. 

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