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Coalition says state missing big picture on TVs: set makers, retailers fear new power standards will hurt sales.


A NEW business coalition formed last week to fight an impending California Energy Commission regulation restricting the sale of big-screen TVs.

The regulation, due to be considered within the next couple months, sets energy output standards for televisions manufactured after Jan. 1, 2011, with the aim of reducing energy output from televisions by 33 percent as of 2011 and 49 percent as of 2013. Many big-screen plasma televisions made today would not meet the standards.

The coalition, called Californians for Smart Energy, consists of electronics retailers, repair shops and business groups. They claim the regulation would effectively ban the sale of roughly one-fourth of all big-screen TV models currently on the market, cutting into die bottom lines of retailers and electronics repair shops. They are seeking to stop the regulation entirely; failing that, they are hoping for a delay.

The first phase of the regulation that takes effect Jan. 1, 2011, "would take 25 percent of the televisions we currently sell off the shelves because they don't meet the standards," said Mike McMaster, president of Wilshire Home Entertainment in Thousand Oaks, a coalition member. "It puts me at a competitive disadvantage if potential customers can buy the television sets from an out-of-state online retailer."

He added that 80 percent of the 35 television set models that he currently sells would not meet the regulation' s 2013 threshold, though he acknowledged that many newer compliant models would likely be on the market by then.

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McMaster said he was especially concerned that many of the larger plasma screen models would be banned under the regulation because many of his customers desire the brighter pictures with richer colors offered by plasma TVs.

Adam Gottlieb, Energy Commission spokesman, said many of the claims made by the electronics retailing industry are exaggerated.

"No existing televisions will have to be taken off store shelves," Gottlieb said. "There are televisions of virtually every size and type that meet the standards today, and even more will meet the standards before they take effect in 2011."

Gottlieb noted that one major local big-screen television manufacturer, Vizio, has agreed to respect the standards, as have television component manufacturers 3M and Agoura Technologies.

Also, he said, commission staff workers are in discussions with the Consumer Electronic Associations to address their concerns.

Gottlieb added that consumers are now demanding more energy-efficient televisions and manufacturers are listening to them.

"Just look at how Samsung is marketing its new LED televisions," he said.

The newly formed coalition will get a chance to make its case at a public hearing held by the energy commission sometime in September or early October.

Staff reporter Howard Fine can be reached at hfine@labusinessjournal.com or at (323) 549-5225, ext. 227.

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Title Annotation:ENERGY
Comment:Coalition says state missing big picture on TVs: set makers, retailers fear new power standards will hurt sales.(ENERGY)
Author:Fine, Howard
Publication:Los Angeles Business Journal
Geographic Code:1U9CA
Date:Aug 10, 2009
Words:455
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