Initiative on Utility Deregulation

The electric utility proposition slated for the 1998 November ballot (June 25) should be viewed with skepticism. The California Chamber of Commerce, the California Taxpayers’ Assn., the California School Boards Assn., Consumers First and the Natural Resources Defense Council are all opposed to this initiative.

This proposition contains too many problems and uncertainties for consumers and businesses because it is so poorly drafted. In addition to creating a bureaucratic nightmare, the proposition would also dismantle the current electrical market that has brought about lower electric rates, true competition and increased choices for consumers. This initiative could also place the taxpayers on the hook for up to $6 billion in already-issued bonds. The state’s independent legislative analyst has concluded that a court could find the state responsible for the bonds.

Since the market’s opening, over 100,000 residential and business customers have already switched to new providers. Don’t let the naysayers and doomsayers derail the new competitive market before it’s had a chance to succeed. Let’s not trade the competitive market for an uncertain, unstable and monopolistic system that will only hinder the consumers’ ability to choose their own electric provider.

ALLAN ZAREMBERG, Chair

Californians for Affordable

and Reliable Electric Service

Sacramento