California Deregulation Crisis Update

June 2001 IBEW Journal

California’s electricity problems are only getting worse. PG&E, the state’s largest investor-owned utility and employer of thousands of IBEW workers, declared bankruptcy and analysts expect already astronomical electricity prices to increase as the high-demand summer months approach.

For now, it appears the IBEW members working for PG&E will remain employed. After PG&E’s April announcement, the bankruptcy judge gave the utility permission to continue paying its employees and providing service.

Also in California:

• The Federal Energy Regulatory Commission finally agrees that a limited temporary wholesale price cap should be imposed. Critics worry the measure will not go far enough to reign in profit gouging power generators.
• California’s debt mounts as the state continues to purchase power on behalf of the struggling utilities. Governor Gray Davis and the state Public Utility Commission agree that a consumer rate hike is necessary.
• The state has been unable to secure enough long-term contracts for the anticipated need this summer, and the like-hood of more rolling blackouts looms large.
• The state of California has made a deal to buy Southern California Edison’s transmission lines for $2.76 billion. Members of California’s IBEW locals lobby to state legislatures to approve the deal, which could avert a second utility bankruptcy.

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Coming Soon to a Utility Bill Near You: Higher Electric Price$