Utility Rates Rise April 2, 2001 01-67

It has hit like a bomb.

This past week the California Public Utilities Commission announced it has approved a 46 percent increase in electricity rates for customers. The commission members believe the hike will encourage energy conservation and will help avoid blackouts. The move comes just before the high-demand summer season.

KNX finds it fundamentally unfair to suggest that consumers are to blame for this crisis. The consumer did not vote for deregulation, but they are certainly going to pay for it. Fixed-income residents and small businesses will be hardest hit. If bonds are sold, we will pass along the debt of this energy crisis to our grandchildren.

The state is paying $50 million to consultants who have not provided workable answers. And the state surplus of taxpayer money is being gobbled up by payments for wholesale power every single day. All because of a shortsighted legislature.

We need leadership from Governor Davis to protect the future of this state. It is unbelievable to hear his claims that he didn't know the PUC would raise rates. The Governor needs to offer a clear and concise strategic plan aimed at protecting consumers and California's economy. He must offer it now before any more damage is done.

-- PHO (owennos@bigfoot.com), April 19, 2001

Answers

My bet is that he won't.

-- Wayward (wayward@webtv.net), April 19, 2001.

Moody's, S&P and the third credit grader already have downgraded the State of CA's credit rating.

They wouldn't have done this if the State of CA could afford to pay the massive cost of electric every day. Its just a matter of time before CA runs out of money.

-- Guy Daley (guydaley@altavista.com), April 19, 2001.

I predict that EIX will file for bankruptcy. When Gooberman Davis' has lost his power and credibility (he's almost there), and his cronie Loretta Wynch, then you'll see FERC to the rescue. No way will Bush help out CA to make Davis look good! JMHO.

-- CAkidd (CAkidd_94520@yahoo.com), April 19, 2001.