Facts on Prop 16 - PG&E's "Monopoly Protection Act" would end local control over energy and replace majority rule with a rule of the minority - all to prop up PG&E as a monopoly

PG&E's Proposed Constitutional Amendment is written, circulated and paid for by energy giant PG&E to prevent local governments from legally negotiating with competitors to provide electricity services under existing California law. Specifically, the 2/3 voter approval requirement would block major efforts to reduce greenhouse gases throughout California, which PG&E regards as a threat to its profits. Currently, numerous communities, including San Joaquin, San Francisco, Marin County, the East Bay, Sonoma County, San Luis Obispo are seeking energy independence under the state's Community Choice law, AB117. In addition, a number of communities have sought to municipalize services, or have irrigation districts provide services to PG&E customers.

PG&E's "Monpoly Protection Act" would place supermajority 2/3 voter approval requirements on even local government energy programs that do not expose local General Funds or property tax payers.

In fact, Prop 16 is about propping up a bailed out, deregulated utility and make it effectively a monopoly again. Formerly claiming to support "choice" by its cusomters, PG&E now regards it as a threat to its stock price and its widely criticized new fossil fuel investments. PG&E is rushing to build a new Liquefied Natural Gas (LNG) terminal to bring overseas natural gas to Coos Bay, Oregon and recently won federal regulatory approval for a 240-mile gas pipeline over the border to fuel a fleet of new Northern California gas-fired power plants PG&E is building or partnering to build - all in the middle of an ongoing decade long fossil fuel crisis.

Prop 16 initiative is about a monopoly seeking to expand its fossil empire based on captive customers who have no alternative but to pay for it. PG&E doesn't want Californians being able to find other suppliers that might reduce local need for their foreign fuels and their power transmission infrastructure. The power grab would strategically threaten California's energy security by eroding local control over energy and climate planning - the very ability of local governments to govern themselves.

In effect, PG&E's proposed constitutional amendment would recreate PG&E's monpoly by making all its Northern and Central California customers captive following the "Stranded Costs" bailout of its Monopoly as a Grand Bargain during deregulation. With these bailouts now approved, PG&E would have its monopoly crown back again. Like the Wall Street bailout, PG&E is moving to get bailed out and get the bonuses - and your future too. The PG&E PowerGrab will block competition, harm businesses, eliminate choice, and block green power programs.

PG&E raised business rates by 40% following its bankruptcy bailout, and continues to collect the customer bailout funds each month from a nonbypassable charge on customer bills. Today PG&E continues to fail to meet minimum state renewable energy laws, but has spent tens of millions of dollars in billboard, bus, radio, newsprint and television and PR to sell its nuclear and hydro power as "carbon free" so as to convince a manipulable public that PG&E is already green. Today PG&E's move to block communities now moving to energy independence plans in the continuing world energy crisis threatens to spend $30M or more to steal Christmas in California. Don't be fooled by the green sheen. NO on PG&E's Power Grab June 2010. Help us stop this outrage of bailout and monopoly against local control and energy independence.

No on 16 - Stop the PG&E Power Grab (powergrab.info) Fact Sheet

The Utility Reform Network (TURN) Prop 16 Factsheet

Approved Sample Northern California City Council (Berkeley) Resolution Opposing Prop 16

Official Sample Southern California City Council (Riverside) Memo opposing Prop 16

Approved Sample Municipally Owned Utility (Roseland) Resolution Opposing Prop 16

Approved Sample Local Agency Formation Commission (SFLAFCO) Resolution Opposing Prop 16

Approved County Board of Supervisors (Marin County) Resolution Opposing Prop 16