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This story appeared on http://www.individual.com December 7, 2000
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Under TURN Proposal Electric Rates Could Be Held at 5 Cents a KWH



SAN FRANCISCO--(BUSINESS WIRE)--Dec. 6, 2000 via NewsEdge Corporation  -
An immediate way to
get electric rates under control was offered today by TURN, the
Utility Reform Network. The plan, included in a report titled "The 5
Cent Plan for California's Energy Crisis," would keep electricity
affordable while larger, long-range reforms are contemplated. Under
the proposal, the utilities would be required to sell consumers
electricity at the rate of 5 cents per kwh. Unlike utility proposals
calling for increases of up to 35%, TURN's proposal would hold rates
at or below current levels.


"The time for debate about deregulation is over," said Nettie
Hoge, executive director of TURN, the Utility Reform Network. "The
time for action is here, and the bottom line is no rate increases."


TURN's plan, like Governor Davis', requires that the utilities
stop selling off their generation assets. But under TURN's proposal,
the profits from those electrical generation facilities, which were
paid for by ratepayers, would benefit ratepayers. Rates for
residential customers would be cost-based, with large commercial and
industrial customers free to broker their own deals.


"Now that California's deregulation experiment has blown up in our
faces, consumers expect action from their elected representatives, who
forced deregulation on us despite widespread opposition," Hoge said.
"While looking at a long range strategy to get us out of the mess they
created, leaders can easily implement these reforms guaranteeing that
consumers will pay no more than 5 cents a kwh for the electricity they
need."


TURN's proposals include:


--  Electricity provided to residential and small business


customers at 5 cents per kwh.


--  Utility companies retain their remaining electric generation


facilities, and the revenues from the sale of that electricity


are credited primarily to ratepayers, not shareholders.


--  Utilities increase use of long-term contract for purchasing


power -- but purchases over the 5-cent benchmark would be


presumed unreasonable.


--  Utilities required to include renewables in their residential


power purchases.


Hoge said if the utilities are unwilling to provide residential
electric service at the reasonable price proposed by TURN, the state
should create a new public power entity, "CalPower," and charge it
with the responsibility of serving residential customers. "We are
tired of being guinea pigs," Hoge said. "Consumers can't pay their
electric bills with promises that deregulation will work. We need
reasonable rates and we need them now."


The report, and charts contrasting the utilities' proposed rate
hikes with TURN's proposed reforms, are available on our Web site at
www.turn.org/turnarticles/news.



CONTACT: TURN |              Bob Finkelstein, 415/929-8876, ext. 301 | Mindy 
Spatt, 415/929-8876, ext. 306


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