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For Immediate Release
For More information contact Bruce Hahn: 703-536-7776
AHGA Announces Opposition to
California's Proposition 80, Calls Re-regulation Measure "Shortsighted"
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Energy Re-Monopolization Measure Would
Deprive California Homeowners of Choices and Lower Prices
[September 27, 2005, Washington, D.C.] The American Homeowners
Grassroots Alliance (AHGA) today called on California voters to reject
Proposition 80 in the November special election. The measure would
restrict consumers’ ability to choose their electric provider and result
in the re-monopolization of the California electric market.
“Proposition 80 is shortsighted and an overreaction to some of the
problems the California energy market experienced in the past,” said
Bruce Hahn, president of AHGA. “While no one wants to see a return to
the blackouts of 2001, Proposition 80 would swing the pendulum too far
towards command and control regulation of energy markets.”
Proposition 80 would prohibit homeowners who currently receive
electricity from a private investor owned utility (IOU) from switching
to a competitive energy provider. Rising energy costs are a tremendous
concern to homeowners, and by eliminating any opportunity to seek lower
electricity prices from another provider, Prop 80 handcuffs California
homeowners. According to the California Attorney General’s legislative
analyst, it “could result in higher electricity rates in the long term”.
In addition, many homeowners are now seeking environmentally conscious
providers who offer 100% green and renewable energy. Proposition 80
locks in rather modest environmental standards, which could limit even
greater environmental improvements, innovation and choices for consumers
in the future. It is not surprising that the California Solar Energy
Industries Association and the Geothermal Energy Association observed
that Prop 80 would “undercut the construction of environmentally
friendly renewable energy generation from wind, solar, and geothermal
resources”.
Prop 80, while being billed as a measure to prevent blackouts like those
that occurred in 2000 and 2001, actually offers no actual guarantees
against blackouts. It simply presumes that imposing government control
on the energy market will provide a magic solution.
Prop 80 ignores the positive steps that have been taken since 2001 to
help prevent a recurrence of another energy crisis in California. These
include both changes in California, such as the landmark energy
efficiency standards adopted by the California Energy Commission (and
strongly supported by CalPIRG) last December.
At the federal level, the recently enacted comprehensive energy bill
will help both expand energy supplies and reduce energy demand. It
includes incentives to encourage the development of both solar and
nuclear energy sources, and $874 million earmarked for drivers who buy
alternate-fuel (hybrid) vehicles over the next decade. It provides tax
credits for homeowners of up to $500 in 2006 and 2007 for expenses to
upgrade heating and air conditioning systems, insulation, windows, doors
and thermostats, caulk leaks, install pigmented metal roofs and
otherwise reduce energy costs. There are incentives for builders of
energy-efficient houses and manufacturers of more energy-efficient
appliances. Collectively these actions that have already been taken will
significantly reduce the risks of recurrence of the previous energy
crisis.
“Prop 80 is a bad deal for California homeowners. It will result in
higher prices, fewer choices and reduced environmentally sound energy
options. California voters should reject Prop 80 and demand sensible
energy policy from their elected officials,” said AHGA’s Hahn.
The current energy market in California has stabilized and choices are
available to both large and small customers. Energy shortages have not
caused blackouts in recent times. Yet there are still some who advocate
rolling back the deregulatory measures.
Prop 80 substitutes a thoughtful legislative approach where all voices
can be heard for an inflexible mandate that would require legislative
supermajorities to over-ride its provisions. It will make it harder to
respond in timely manner to future challenges beyond the imagination of
its authors or the rest of us.
For more information on Proposition 80 and actions California voters can
take, please visit the AHGA website at
www.americanhomeowners.org
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