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.

*

Daily Developments

The state Senate voted to create a public power authority that would build, buy and own power plants and sell to consumers at or near cost.

The governor’s negotiators met behind closed doors with executives from Pacific Gas & Electric and Southern California Edison over his plan to buy the state’s power transmission grid and other assets.

The state passed the first workday in more than a month without a Stage 3 alert.

*

Verbatim

“Are we going to use taxpayers’ dollars to build more power or private dollars to build more power? I happen to believe private dollars are the better way to do it.”

--Sen. Ray Haynes (R-Riverside)

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