California Online Voter Guide -- 1998 General Election

PROPOSITION 9

Official Title: Electric Utilities. Assessments. Bonds.

Official election results are available from the Secretary of State

Yes:

26.5 %

No:

73.5 %

Measure:

Failed

The way it is now: There are three major private electricity utilities in California -- Pacific Gas & Electric (PG&E), San Diego Gas & Electric (SDG&E), and Southern California Edison (SCE). In the past, the rates these companies charged for electricity were set by the Public Utilities Commission (PUC), a state agency.

In 1998, state law changed to allow the price customers pay for electricity to be set by competition among companies instead of by the PUC. This is called "deregulation." The state set up some ways to help private electricity companies make this change:

Companies can have customers pay an extra charge for the "transition cost" of existing power plants, including nuclear plants, that do not make a profit.
Companies must make a 10% reduction in electricity rates for customers over a 4-year period.
Bonds could be sold to help pay for the 10% rate reduction and higher fees charged to help pay off the bonds.

What Prop. 9 would do: Change current law to:

Stop extra charges to customers for the cost of nuclear power plants
Require a 20% (instead of a 10%) reduction in charges to electricity customers.
Not allow utilities to charge customers extra fees to pay for the bonds that were sold to help pay for the rate reduction.

What it would cost: State and local governments may lose tax income, potentially in the high tens of millions of dollars per year for the state and in the tens of millions of dollars per year for local government. There would also be added cost for more work for the Public Utilities Commission and the courts.

P R O

C O N

ARGUMENTS
Consumers would get a 20% reduction in rates for electricity.

Prop 9 removes the arrangement that California's electric companies were given and it allows open competition. The current system should be given a chance to work before any changes are made.

Prop 9 ignores financial reality and will result in higher costs for electricity, not lower costs.

CONTACT INFORMATION

Californians against Utility Taxes (CUT)
Committee ID# 980386
750 Ocean Park Blvd, Suite 200
Santa Monica, California 90405
phone: (310) 392-0522
email: cut@consumerwatchdog.org
www.nonukebailout.org

No on 9 Coalition
Committee ID# 972086
1201 K Street
Sacramento, CA 95814
phone: (916) 341-1025
www.NOonProp9.org

Yes on 7 No on 9
Committee ID# 982131
c/o the Planning and Conservation League
926 J Street, Suite 612
Sacramento, CA 95814
phone: (916) 444-8726
www.pcl.org

WHO SIGNED THE OFFICIAL BALLOT PAMPHLET ARGUMENTS Harvey Rosenfield, Co-Chair, Californians against Utility Taxes (CUT); Nettie Hoge, Executive Director, The Utility Reform Network (TURN); Harry M. Snyder, Senior Advocate, Consumers Union, Publisher of Consumer Reports. Larry McCarthy, President, California Taxpayers Association; Jerry Meral, Executive Director, Planning & Conservation League; Allan Zaremberg, President, California Chamber of Commerce.

FOR MORE INFORMATION, CVF RECOMMENDS

Follow the money - CVF has compiled summary campaign finance information and a list of top ten contributors for each ballot measure committee that has filed a report with the Secretary of State.

The Secretary of State's Voter Information Guide - features the Attorney General's summary, official pro/con arguments, the Legislative Analyst's analysis (including background information, details of the proposal, and the fiscal effect of the measure) and the full text of this measure.

The California Journal - provides independent, in-depth analysis, including background on the issue and arguments for and against the measure.

The California Budget Project - presents a comprehensive analysis, with a focus on budgetary issues and the fiscal impact of the measure.

The League of Women Voters' Pro/Con Analysis - provides an excellent, nonpartisan review of this measure.

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This page first published October 1, 1998

Final update December 12, 1998

Back to the '98 General Online Voter Guide homepage

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is a project of the
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© Copyright 1994-98.
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	P R O	C O N
ARGUMENTS	Consumers would get a 20% reduction in rates for electricity. Prop 9 removes the arrangement that California's electric companies were given and it allows open competition.	The current system should be given a chance to work before any changes are made. Prop 9 ignores financial reality and will result in higher costs for electricity, not lower costs.
CONTACT INFORMATION	Californians against Utility Taxes (CUT) Committee ID# 980386 750 Ocean Park Blvd, Suite 200 Santa Monica, California 90405 phone: (310) 392-0522 email: cut@consumerwatchdog.org www.nonukebailout.org	No on 9 Coalition Committee ID# 972086 1201 K Street Sacramento, CA 95814 phone: (916) 341-1025 www.NOonProp9.org Yes on 7 No on 9 Committee ID# 982131 c/o the Planning and Conservation League 926 J Street, Suite 612 Sacramento, CA 95814 phone: (916) 444-8726 www.pcl.org
WHO SIGNED THE OFFICIAL BALLOT PAMPHLET ARGUMENTS	Harvey Rosenfield, Co-Chair, Californians against Utility Taxes (CUT); Nettie Hoge, Executive Director, The Utility Reform Network (TURN); Harry M. Snyder, Senior Advocate, Consumers Union, Publisher of Consumer Reports.	Larry McCarthy, President, California Taxpayers Association; Jerry Meral, Executive Director, Planning & Conservation League; Allan Zaremberg, President, California Chamber of Commerce.