Prop 16 Would End Consumer Choice Choice in California and Make Customers Captive to Major New Rate Increases After Paying $ Billions in Utility Bailouts for the Privilege of Choice

PG&E charges Northern Californians some of the highest power rates in the nation, and is now petitioning state regulators for the largest electricity rate hike in its history, estimated at a 30% increase over the next three years. Meanwhile, with Prop 16, PG&E is conspiring to eliminate all legally existing alternatives for California residents and businesses so that they will have no choice but to pay the rate increases when they hit the electric bill - or be shut off. Worse yet, the increases will finance PG&E's backward investments in fossil and nuclear power plants that continue to hit California consumers with stiff new rate increases. Prop 16 would see to it that no other choice exists, such as greener power for the same price. That is what San Francisco and Marin are offering their residents and businesses. PG&E wants to kill "Community Choice" the same way that GM killed the electric car. Prop 16 is PG&E's effort to reinstate California monopoly in the name of taxpayer protection. Considering that PG&E has led the nation in ratepayer bailouts, this farce is a shame indeed - a graphic illustration of the serial abuse of California's initiative refefendum and recall process. That's why TURN, the Consumer Federation and other consumer groups not only oppose Prop 16 but organized the No on 16 campaign and are quoted in the official California ballot statement. This is the greatest outrage yet following over a decade of outrages from California's power industry.

Consumers benefit not only from exercising choice, but from having it at all. Without competitive alternatives, would-be monopolies like PG&E can raise rates as high as they like - captive customers must pay. For over a century, consumers have had the constitutional protection of local control over power monopolies. If rates got too high or a utility provided bad service, local communities have always had the option to municipalize. Prop 16 would make that nearly impossible. More recently, after the energy crisis, the California legislature provided that communities wanting to negotiate better rates or services with other power suppliers could do so - through a form of choice called "Community Choice." PG&E's Prop 16 would place major obstacles before communities seeking to offer local residents and businesses an alternative to monopoly rates and service. Prop 16 would make it all but impossible.

"PG&E plans to spend $7 Billion To $10 Billion on projects over next 2 years," Dow Jones Newswires story (March 3, 2010)

"Public power backers cry foul over utility effort," Associated Press article by Jason Dearen (February 15, 2010)

"PG&E spending millions to block local utilities"San Jose Mercury News article by Dana Hull (January 31, 2010)

"PG&E customers feel sticker shock from rising rates," Fresno Bee (Feb 07, 2010)

"Community Bids to Bypass Utilities Facing Hurdles in Calif."New York Times article by Debra Kahn (January 7, 2010)

"PG&E news roundup: Discounts for energy hogs, new power plants in poor communities, and the CEO’s incredible expanding pension," San Francisco Bay Guardian article by Rebecca Bowe (November 6, 2009)

"San Francisco City Attorney Dennis Herrera seeks rule change to block PG&E efforts to kill consumer choice"Digital News Report (January 21, 2010)

"EDITORIAL: PG&E makes a new power grab"Sacramento Bee (January 20, 2010)

"EDITORIAL: Don't vote for PG&E's newest power grab"Fresno Bee (January 20, 2010)

"EDITORIAL: PG&E measure is a bad idea"Modesto Bee (January 21, 2010)

"San Francisco City Attorney Slams PG&E: Argues utility monopoly using your money to try to stifle competition"NBC Bay Area (Jan 12, 2010)

"PG&E ballot measure is a stealthy power play:" Los Angeles Times column by Michael Hiltzik (Dec 28, 2009)

"New Group Seeks to Bring Greener Power to Marin:"New York Times article by Katharine Mieszkowski (Dec 22, 2009)

"Paul Fenn vs. PG&E - Activist-turned-entrepreneur Paul Fenn's effort to bring affordable sustainable energy to California could be revolutionary -- and electricity giant PG&E isn't happy about it at all." Fast Company feature article by Pulitzer-nominated Author Anya Kamenetz

"Class Action Accuses PG&E of Overcharges - Utility accused of negligence, fraud in SmartMeter program," ConsumerAffairs.com article by Jon Hood

"PG&E Wants Rate Hike for Efficient Energy Users," Mission Local article by George Szakallz

"The PG&E Plan: Trick the Voters and Make them Cry," by Sierra Club California (The Santa Lucian, San Luis Obispo, October, 2009)

"PG&E doubles its stake against local energy choice," by Josh Richman (Contra Costa Times, August, 2009)