How does the present deregulation law affect publicly-owned municipal utilities (DWP, SMUD, etc.)?
A. Because AB 1890 unfairly advantages investor-owned utilities by infusing them with billions in bailout cash, publicly-owned utilities will be placed at a competitive disadvantage when they open their markets to competition, which could occur in 2000. Without Prop. 9, the three private utilities will be in a position to lure lucrative industrial contracts and many smaller customers from the municipal utilities. This will lead to higher prices for everyone else. Ultimately, the publicly-owned utility companies will be forced to sell themselves to the private utility companies. By cutting the unfair subsidy of the three private utilities, Prop. 9 presents the publicly-owned utilities with the opportunity to compete fairly in the deregulated market without having to levy new charges.
