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| For Immediate Release May 7, 2003 |
Sacramento, CA- - A bill to re-regulate California’s electricity industry passed out of the Senate Energy, Utilities & Communications Committee Tuesday by a 5-3 vote.
SB 888, by Senator Joseph Dunn (D-Garden Grove) repeals electric restructuring, signed into law in 1996, and direct access, the ability of customers to choose an alternate power supplier.
“Repealing direct access would be a giant step backwards,” said CMTA President Jack Stewart. “To remain competitive manufacturers must have access to non-utility power suppliers and be able to contract for energy supplies that meet their needs for price, reliability and level of risk. Direct access allows customers to manage their own energy requirements and lower their energy costs. Without customer choice, consumers will always pay more, and receive less, than if they are able to choose between providers vying for their business.”
In addition to eliminating direct access, SB 888 favors the construction of utility-built power plants over privately-financed generation, which could lead to power supply shortages during the transition back to utility-owned generation.
“Manufacturers and other businesses value stable, low cost, and reliable electricity supplies,” said Stewart. “What California needs is new power generation and a continuation of customer choice. The repeal of electric restructuring and direct access would create uncertainty in the market, leave us with another supply shortage we can ill afford, and deny large power users a valuable tool to control costs,” concluded Stewart.
SB 888 now moves to the Senate Appropriations Committee where CMTA will make the bill a priority to defeat.
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