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Let's not make the same deregulation mistakes.


When California began the process of deregulating de·reg·u·late  
tr.v. de·reg·u·lat·ed, de·reg·u·lat·ing, de·reg·u·lates
To free from regulation, especially to remove government regulations from: deregulate the airline industry.
 its electricity system, it was a bold step that caught national attention. By watching closely how California proceeds, the entire country will either witness our mistakes or seek to replicate our successes.

Deregulation Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Notes:
Traditional areas that have been deregulated are the telephone and airline industries.
 is a massive task that must be done right. We must ensure access, equal reliability and a level playing field See net neutrality.  for all customers. Ours must be a successful model.

The California Legislature worked hard to ensure that equality and consumer protections would be in place as we restructure our electric utility industry. After two years of effort, historic legislation - AB 1890, authored by our colleagues Sen. Steve Peace, D-San Diego and Sen. Jim Brulte Jim Brulte (born April 13, 1956) is a Republican U.S. politician, who served as a California State Senator representing the 31st district, from 1996 to 2004. He also served as the Senate Republican leader from 2000 to 2004. , R-Rancho Cucamonga - won unanimous support from the Legislature and was signed into law by Gov. Wilson.

AB 1890 established a road map to responsible competition while steering clear of the mistakes made during the deregulation of the telecommunications industry.

We should learn from the mistakes. Telecommunications deregulation was a case study in what can go wrong. For example, after deregulation many customers received numerous bills for different components of a single phone number.

There was no accountability among providers, and customers did not know who to call to resolve a service or billing problem. To make matters worse, consumers were exposed to a constant barrage of harassment Ask a Lawyer

Question
Country: United States of America
State: Nevada

I recently moved to nev.from abut have been going back to ca. every 2 to 3 weeks for med.
 by telemarketers peddling unnecessary new services for imaginary savings.

That confusion may return if we allow out-of-state power marketers to take us down the same failed path. Recently, there has been a movement to push the California Public Utilities Commission The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power,  (CPUC CPUC California Public Utilities Commission
CPUC Current Procurement Unit Cost
) to not only deregulate deregulate

To reduce or eliminate control. One of the major forces in the financial markets in the 1970s and 1980s was the federal government's decision to deregulate interest rates.
 power generation but other elements of our electricity industry, as well.

Out-of-state proponents of this proposal want to "unbundle To sell components in a system separately. Contrast with bundle. " electrical distribution services. They want to separate out metering, billing, service repair, customer service functions and more. Such a proposal promises the public the sort of confusion and harassment they experienced when phones were deregulated. Moreover, it could lead to increased costs for certain customers and impede im·pede  
tr.v. im·ped·ed, im·ped·ing, im·pedes
To retard or obstruct the progress of. See Synonyms at hinder1.



[Latin imped
 access to others.

Though out-of-state power marketers are pushing their plan under the guise of "customer choice," in fact, they will only be offering that "choice" to profitable electricity users they choose throughout the state. They want to pick and choose only the most lucrative customers. That may be good for out-of-state power marketers, but it is bad for California's consumers.

In order to protect California's consumers, we have introduced legislation that will re-clarify the Legislature's original intent in supporting deregulation of the electric utility industry. Our legislation establishes objectives for metering and billing in a restructured electric industry. The objectives include:

* Prompt availability of direct access to the deregulated energy market for all customers.

* Protection of the metering and billing process, leaving no one at risk of fraud.

* Equal access to all customers without unfair cost shifting.

We are confident that through the passage of AB 1890, the California Legislature deregulated the California electric utility industry and fixed what was not working, guaranteeing significantly lower electricity prices for California's consumers.

If in the future it becomes evident that it is in the best interest of all Californians to introduce competition into a new segment of the industry, we expect that the same goals and principles will be followed.

All Californians must have access to any benefits created, and all customer classes must be heard and represented in any new plan introduced in this state.

It is our job to ensure that, and we will. Let's be sure the electricity restructuring model California sets for the rest of the nation is a model of fairness and success; one that offers benefits to big users, average users and small users, without putting the interests of any one class of customer over another.

State Sen. Richard Polanco Richard G. Polanco, is a former California State Senate Majority leader and member of the California State Assembly. He is known for his significant efforts in increasing Latino representation in the California Legislature. , D-Los Angeles, represents the 22nd Senate District.
COPYRIGHT 1997 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Author:Polanco, Richard
Publication:Los Angeles Business Journal
Date:Mar 24, 1997
Words:634
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