Big victory for energy consumers.

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 21, 1995--Utility consumers statewide declared a major victory after today's unanimous 5-0 vote by the California Public Utilities Commission (CPUC), which reduced ratepayer-financed electric and natural gas programs to $132 million from original requests of more than $600 million.

"This is a big win for energy consumers, and represents a savings of nearly $470 million from the rate increases originally sought by the utilities," said Nettie Hoge, Executive Director of the utility consumer group Toward Utility Rate Normalization (TURN).

Manufacturers and businesses joined with consumers in praising the Commission's decision.

"This is an important decision for California business because it reduces utility rate increases for these programs by nearly 80% from original requests," said Bill Campbell, president of the California Manufacturers Association.

"Just as importantly, it recognizes the principle that utility shareholders -- not ratepayers -- should pay for risky electric vehicle programs."

The utility ratepayer-financed electric and natural gas vehicle programs came under intense opposition from state legislators as well as consumers, business, transportation, senior, oil, agriculture and minority organizations.

"This is good news for California energy consumers," said Assemblyman Mickey Conroy, vice-chair of the Assembly Utility and Commerce Committee and author of the consumer protection law (AB 3239) on which this decision is based.

"But this doesn't mean we can let our guard down," said Conroy. "I have no doubt the utilities will be back again for more of our money if we don't keep an eye on them!"

These utility rate increases have been opposed by a large and diverse coalition objecting to ratepayer funding of profit-making projects more appropriately paid for by utility shareholders.

Among coalition members are Toward Utility Rate Normalization (TURN), the California Manufacturers Association, Congress of California Seniors, Utility Consumer Action Network (UCAN), Latin Business Association, Retired Public Employees Association, National Assocation for the Hispanic Elderly, Oil, Chemical & Atomic Workers International Union (AFL-CIO), United Agribusiness League, Congress of Racial Equality (CORE), Western States Petroleum Association, California League of Food Processors, National Federation of Independent Business (NFIB), American Frozen Food Institute, Consumer Federation of America, Pacific Egg and Poultry Association, California Business Alliance, Apricot Producers Association, California Highway Users Conference, California Seed Association, California State Floral Association, People's Advocate, Nisei Farmers League, Seniors for Action -- and tens of thousands of California citizens.

CONTACT: Californians Against Utility Company Abuse

Barbara Simpson, 415/340-0470