Can Big Energy Money Convince Californians to Swallow Deregulation Again?

San Francisco--Big energy companies are spending millions to oppose a ballot initiative that would dump California's failed deregulation policies for good. Supporters of Prop 80, the "No More Enrons" initiative, say out-of-state energy companies are misleading voters with an advertising campaign that obscures both who opposes Prop 80 and why.

"The anti-80 campaign calls itself Californians for Affordable and Reliable Electricity, when in fact the vast majority of the money comes from out-of-state energy companies that reap benefits whenever electric prices go up," said Bob Finkelstein, executive director of TURN, sponsor of Prop 80. "Their record in California is shamefull. The major funders of the No on 80 campaign are companies that have paid millions to settle accusations of market manipulation in California, including Constellation, Mirant, and Duke. Sempra, another major funder, is currently on trial in San Diego for colluding to raise natural gas prices."

No one doubts that few Californians want to return to the dark days of deregulation, which crippled California with rolling blackouts and allowed unscrupulous energy companies to suck $40 billion out of the state. But television advertisements paid for by the energy companies obscure their deregulatory agenda.

"The stakes in this campaign are high. Our last misstep on electricity cost us $40 billion." Finkelstein said. "Deregulation allowed Enron, Mirant and other energy companies to control our access to an essential element of modern life -- electricity. Yet the CPUC and the Governor continue to follow big energy's lead on electric policy by promoting deregulation."

"It's simply nonsense to claim, as the no on 80 ads do, that Prop 80 will make electricity less reliable," said Finkelstein. "Prop 80 replaces failed deregulation policies with tried and true regulatory ones. It also addresses the need to reduce our dependence on natural gas at this crucial time, by providing for more renewables and energy efficiency programs."