Governor Says NO to Rational Energy Planning

San Francisco--Despite the unchallenged fact that the only way to prevent another energy crisis is to require the utilities and other power suppliers to rationally plan for the future, Governor Schwarzenegger has vetoed AB 2006, legislation that would have required just that sort of planning. The veto confirms emerging concerns that special interests are in control of the Governor's energy policy and consumers have been shut out.

"Generators like Calpine opposed this bill because they stand to profit from inadequate planning and the resultant inadequate energy supplies. Large customers like those in the Silicon Valley Manufacturing Group want to lower their rates by raising residential rates," said TURN executive director Bob Finkelstein. "Even though their interests are diametrically opposed to the majority of Californians, they alone have the Governor's ear."

Finkelstein said TURN, an advocacy organization with over 30 years of experience in electric policy, had requested a meeting with the Governor to discuss the virtues of AB 2006, a request that was ignored. The Governor's office has indicated that he vetoed the bill because he prefers "competitively priced" electricity, even if residential rates go up in the process. "The Governor must not understand how badly electric competition failed the last time, or he wouldn't support such an anti-consumer approach," said Finkelstein.

TURN views the bill's provisions for regulatory oversight, resource adequacy planning, building new generation at the lowest possible cost to customers and protecting against market manipulation as essential to insuring that California has adequate and affordable supplies of electricity in the future.

In a letter to the Governor, California Senator Diane Feinstein agreed, saying that without the certainty AB 2006 would achieve, "needed financing for new generation is not likely to materialize. The result very well may be a return to volatile energy prices and blackouts." Finkelstein said "this Governor proclaimed that his election meant an end to special interests ruling Sacramento. Instead, the special interests are being allowed to dictate a return to the dark ages of deregulation."