PROP. 80 PRO: NO MORE POWER CRISES.

Byline: Charles F. Bostwick Staff Writer

Utility reformers who authored Proposition 80 say the measure is needed to prevent a repeat of California's 1990s electricity deregulation, which led to rolling blackouts and skyrocketing electricity costs.

Officials of The Utility Reform Network say Proposition 80 would mandate adequate supplies, expand the authority of the state Public Utilities Commission and bar small customers from being charged more for electricity used at peak periods.

``What it does is say we're not going to ever repeat the electricity market disaster of 2000-2001,'' said TURN's executive director, Bob Finkelstein. ``It says we're not going to do electricity deregulation again.''

Qualified for the Nov. 8 ballot in a signature-gathering campaign backed by labor unions, Proposition 80 would codify into state law many current PUC policies.

But the measure also would bar individuals and companies from leaving public utilities like Southern California Edison to sign up with independent-energy producers, which would sell them electricity sent through Edison's lines, and put the independent producers under control of the California PUC.

The measure also would forbid charging existing residential customers and small companies more for using electricity at peak periods, such as hot summer afternoons, as is under consideration as a conservation measure.

And Proposition 80 would require the PUC to make plans for balancing three years in advance, instead of one year as at present.

In addition, it would change a post-energy crisis law ordering utilities to get 20 percent of their electricity from ``renewable'' sources such as wind or solar power by 2017, upping the deadline to 2010 and requiring a 1 percent increase annually after that.

Finkelstein said critics who fault the measure for its support from unions are off base. ``If you don't have anything against the substance, then you attack the people behind it,'' he said.

The background to all this was California's experiment starting in the early 1990s to introduce competition into the generation of electricity, with the ultimate goal being lower prices to customers of investor-owned utilities.

But the deregulation process was put on hold after the 2000-01 energy crisis, which investigations since have shown came about as some energy producers were manipulating California's short-term energy market to hike prices.

To end the crisis, the state began purchasing electricity on behalf of the utilities and halted utility customers from signing up with independent producers. That ban on what is called ``direct access'' lasts until the energy-crisis era long-term wholesale contracts expire in about 10 years.

Charles F. Bostwick, [phone]

chuck.bostwick(at)dailynews.com

PROPOSITION 80

Regulation of Electric-Service Providers

What it does: Regulates electric-service providers under the California Public Utilities Commission and restricts electricity customers' ability to switch from private utilities to other providers. Requires all retail electric sellers to increase renewable-energy resource procurement by 2010.

Key supporters: The Utility Reform Network, California Teachers Association, California Public Interest Research Group, Assembly Speaker Fabian Nunez

Key opponents: Constellation Energy Group Inc., Calpine Corp., California Chamber of Commerce

Fiscal impact: The Legislative Analyst's Office estimates potential annual administrative costs from negligible to $4 million, paid by fees. Unknown net impact on state and local costs and revenues from uncertain impact on electricity rates.

Web sites: www.ss.ca.gov

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PROPOSITION 80 (see text)