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Public Utilities File Suit To Rip Proposition 16 Off California Ballot | in News Departments > New & Noteworthy | by Renew Grid on Friday 19 March 2010   |
A group of California-based public utilities has filed suit to disqualify Proposition 16 from a June 8 statewide ballot. Opponents say the measure will make it "virtually impossible for public agencies to provide any energy services to new customers" because of a mandate requiring two-thirds voter approval for the creation or expansion of a public utility.
The consortium of public utilities - which includes the Sacramento Municipal Utility District, San Joaquin Valley Power Authority, City and County of San Francisco and others - has argued that Proposition 16 represents little more than Pacific Gas & Electric Corp.'s (PG&E) attempt to protect a monopoly in its territory.
The San Francisco Chronicle recently reported that PG&E Corp. intends to spend upwards of $35 million to ensure that Proposition 16 gets passed. The opposition contends that the proposal is "false and misleading" and is intended to "protect PG&E from competition from public providers of electric service."
"The so-called 'Taxpayers Right to Vote Act' doesn't help taxpayers and doesn't empower voters - in fact, it does the exact opposite," San Francisco City Attorney Dennis Herrera noted in a press release. "It's anti-competitive, anti-democratic and misleading in its entirety."
"Public utilities such as the Modesto Irrigation District [MID] could be prevented from providing electricity to new customers right next door to customers we already serve," MID's Tom Kimball added. "Not only will Proposition 16 have a negative impact on public utility operations, it will potentially escalate electric rates for all consumers as well."
The full text of the lawsuit is available HERE. | | ******* Don't miss the latest smart grid news -- register to receive Renew Grid's news headlines. |
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