Posted on 04/19/2004 8:38:10 PM PDT by NormsRevenge
SACRAMENTO (AP) - A bill that would loosen government regulation of the power market while encouraging utilities to build new power plants in California was approved Monday by a key Assembly committee.
The bill from Assembly Speaker Fabian Nunez, D-Los Angeles, has the backing of a number of major utilities including Southern California Edison.
Supporters say the proposal is not a return to full deregulation that some say led to the energy crisis of four years ago.
The bill does not impose new regulations.
Instead, the bill is a "balanced framework," according to Nunez.
Opponents, which include some independent power producers and consumer groups, say the bill will not work as proposed.
Doug Heller, of the Foundation for Taxpayer and Consumer Rights, warned that deregulation of the electricity market has been tried before and resulted in consumers and business paying big rate increases.
He said some regulation of the system must be imposed to protect consumers.
Although several members of the Assembly's Utility and Commerce Committee expressed their own reservations, a majority passed on the proposal.
The bill still needs to be passed by at least one more committee before it can be considered on the floor.
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On the Net:
Read the bill AB 2006
http://www.assembly.ca.gov/acs/defaulttext.asp
California Assembly
1) It's sponsored by Fabian Nunez - Even political dummies know not to trust legislation sponsored by a single issue liberal.
2) The average consumer can't understand the language of the legislation -When legislation is coached in terms that are not clear and simple it is hiding something and this legislation is hiding something
3) The legislation creates two classes of rate payers. Larger consumers who get regulatory breaks and regular residential customers who pay for the incentives given to the larger customers.
A two tier system is not new except this legislation guarantees the investment in new generation on the backs of residential customers who pay both the cost of generating the power and the generator's profits while larger customers only have to pay for the cost of generating the power.
My best guess. Mr. Nunez is seeking campaign funding from the utilities and the larger consumers.
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