Power Points

Background

The state Legislature approved electricity deregulation with a unanimous vote in 1996. The move was expected to lower power bills in California by opening up the energy market to competition. Relatively few companies, however, entered that market to sell electricity, giving each that did considerable influence over the price. Meanwhile, demand has increased in recent years while no major power plants have been built. These factors combined last year to push up the wholesale cost of electricity. But the state’s biggest utilities--Pacific Gas & Electric and Southern California Edison--are barred from increasing consumer rates. So the utilities have accumulated billions of dollars in debt and, despite help from the state, have struggled to buy enough electricity.

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Daily Developments

The Senate neared a vote on legislation that would raise rates for the majority of consumers who use more than what the state considers the minimum “baseline” amount.

A vote of confidence by a major investment firm boosted utilities’ stock prices and eased Wall Street predictions of bankruptcy.

California spent its 14th straight day in a Stage 3 emergency, meaning it was within 1.5% of running out of electricity.

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Verbatim

“We’re at the moment of maximum peril for the rate-payers of the state.”

--Harvey Rosenfield, president of Foundation for Taxpayer and Consumer Rights

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Complete package and updates at www.latimes.com/power