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

* State legislators focus on a plan that would hike rates for residents who exceed their “baseline” allowance by more than 30%.

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* About $45 million a day now flowing from state coffers for power is expected to be repaid with surplus funds from the budget surplus.

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* The first measure aimed at relieving the crisis, which would issue $10 million in bonds, stalled in debate.

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Verbatim

“Using electricity to cool yourself is not a matter of convenience, it’s a matter of necessity.”

--Sen. Jim Battin

(R-La Quinta)

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