CMUA Opposes the Divestiture of PG&E Hydroelectric Resources.Business Editors SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 16, 2002 The California Municipal Utilities Association (CMUA CMUA California Municipal Utilities Association CMUA Central Maryland Ultimate Association CMUA Certificate Management User Agent ) has gone on record opposing the portion of the PG&E Chapter 11 Reorganization Plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. that calls for the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the utilities hydroelectric generation system. "While we believe that returning PG&E to financial stability is in the best interest of its ratepayers and in the best interest of the state, we do not believe it is in the best interest of California consumers to transfer hydroelectric resources to an unregulated Adj. 1. unregulated - not regulated; not subject to rule or discipline; "unregulated off-shore fishing" regulated - controlled or governed according to rule or principle or law; "well regulated industries"; "houses with regulated temperature" 2. subsidiary," said Jerry Jordan, Executive Director of the California Municipal Utilities Association. "PG&E's hydro system is necessary for reliability of the California grid. California consumers can not afford to lose those benefits." Under federal law hydroelectric resources are licensed in the public interest to benefit all of the public, not unregulated companies. "California market structure has not eliminated the ability of generators to exercise `market power.' PG&E has itself agreed that it does in fact have `market power.' Until those market corrections Market correction A relatively short-term drop in stock market prices, generally viewed as bringing overpriced stocks back to a level closer to companies' actual values. are made, California should not allow more power plants developed in the public trust to sell their output at market rates," said Jordan. "The PG&E plan does not even preclude the hydro system from being sold off in the future." |
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