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| California Power Prices Going Up for Customers March 30, 2001 California's Public Utility Commission (CPUC) has abandoned previously capped retail prices for a system that charges customers according to how much or how little energy they use.
California Public Utilities Commission officials said the increase could help the utilities avoid bankruptcy. However, some critics say these increases will not be enough to end the state's power crisis. Already in the 11-month old crisis, power blackouts have been ordered and observers fear even more this year during the high-demand summer months. The basic increase approved on March 27 is 3-cents per kilowatt-hour applicable to all rate classes. This increase is in addition to an average 10 percent temporary rate increase ordered in January. Some Southern California Edison customers will see rates go up by as much as 42% and Pacific Gas & Electric Co. customers may see bills up to 46% higher. Utility commission officials said the increase would average about 30 percent but affect only about half of all residential customers.
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The
rate increase will remove the protection of customers who had little
or no incentive to conserve under the state's failed first experiment
with utility deregulation. While retail prices were frozen,
utility companies were victimized by wholesale power suppliers who
withheld power on the open market to force outrageously high prices.
The crisis has nearly put California's largest utilities into insolvency,
and they are working desperately to avoid bankruptcy filings.
Subsequent orders by the utility companies for massive layoffs were
later rescinded by the state's utility regulators. 
"The
rate increases will obviously cause an outcry, but they were unavoidable
given the bind in which California currently finds itself,"
said IBEW International President Ed Hill. "We find it
ironic that industrial userswho were among the most vocal proponents
of deregulation several years ago -- will be the first to feel the
effect of the rate hike. This is not the long term solution
to a system that is broken, and we will continue to fully monitor
the situation and help search for ways to deal with the problems
for which the IBEW long ago issued accurate warnings."