Energy Program Pays Its Way

Over the past 20 years, a state program to save electricity through increased efficiency and to encourage renewable energy sources has been an uncontested success. The program has developed an estimated 6,600 megawatts of new power from wind, geothermal, solar and biomass sources. That’s roughly 10% of California’s total electric energy generation. It’s been an especially critical source this summer when wholesale power prices have soared and demand has threatened to exceed supply. Now the program is up for renewal. Assemblyman Rod Wright (D-Los Angeles) and Sen. Byron Sher (D-Stanford) are sponsoring bills to extend this program for another 10 years. Wright’s bill (AB 994) is headed for the desk of Gov. Gray Davis and Sher’s (SB 1194) is nearing final passage. The measures enjoy overwhelming support, including backing from both the business and environmental communities.

Suddenly, however, word has circulated in Sacramento that Gov. Gray Davis has concerns about the legislation, fearful that the cost of the program may be considered a new tax or surcharge on soaring power rates. Neither is the case. The bills would only continue the present rate surcharge, which amounts to about 3% of a customer’s bill, and has averaged about $1.25 a month. Nothing in the legislation would allow the charge to increase.

In fact, the program has saved ratepayers considerable money. The state Energy Commission estimates that efficiency programs cut electric bills statewide by more than $2.8 billion during the 1990s.

The program is administered by the Energy Commission and the Public Utilities Commission and projects are reviewed by the Legislature. Under the new legislation, the governor would also appoint an independent review panel. There are certainly adequate safeguards against abuse.

This is a valuable program, especially in these days of electric power uncertainty. Davis should not hesitate to sign it into law.