What has happened since restructuring legislation passed in 1996?
Since restructuring became law in 1996, non-utilities have filed applications to build 34 new, cleaner, more efficient power plants in California and to modernize existing, old facilities. By April of 2001, 16 new projects were permitted and six projects are currently under construction. (This compares to a decade-long hiatus on power plant construction prior to restructuring.) Beginning in 1997, the California Public Utilities Commission encouraged utilities to sell their gas-fired power plants and required utilities to rely almost exclusively on short-term, spot power purchases from the newly created Power Exchange to supply their customers needs. Both decisions were designed to mitigate utility market power during the transition. A transitional retail rate freeze remains in effect for most of the state and has made it difficult for competitors to utility services to enter the retail market.
