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| For Immediate Release April 9, 2003 |
Contact: Gino DiCaro
916-730-3443 |
Sacramento, CA- - The California Manufacturers & Technology Association (CMTA) opposes efforts to eliminate direct access and re-regulate electricity markets in California (most recently expressed in SB 888).
CMTA urges the Legislature to work instead toward a competitive energy market that encourages new generation facilities in the state.
“California needs to move forward with an energy plan that encourages more investment in generation and gives businesses the tools they need to reduce costs and compete in the global marketplace,” said CMTA President Jack M. Stewart.Manufacturers and other businesses value stable, low cost and reliable electricity supplies. Prior to passage AB 1890, manufacturers were paying rates for electricity that were 50 percent higher than the national average and utilities were not pursuing new generation projects. The command-and-control utility regulatory scheme did not guarantee reliable service at competitive prices.
SB 888’s regulatory approach would prevent us from reaping the benefits of a vibrant competitive energy market. A wiser approach would be to learn the lessons from the energy crisis, impose rational market rules and oversight, and encourage customers to contract for energy supplies that meet their needs for price, reliability and level of risk.
“Other states successfully deregulated their markets, including Texas which is enjoying low prices and plentiful supplies. There is no reason California can’t do the same. Returning to cost-of-service, command and control regulation is not a panacea - in fact, history has shown that a well-managed market provides better service at lower costs in the long run,” concluded Stewart.
Energy is a critical component of the manufacturing process. To remain competitive manufacturers must have access to reliable supplies and be able to make firm contracts under the best terms possible.