News Release

SUPERVISOR DIANNE JACOB

DATE: April 7, 2001

CONTACT STEVE SCHMIDT AT 619-531-4766 or 619-206-9108

 

GREEDY GENERATORS STILL PROFITING UNDER GOVERNOR'S ENERGY PLAN

SAN DIEGO- In his attempt to stem California's power crisis, Governor Gray Davis is ignoring unlawful profiteering by wholesale generators and is sticking innocent ratepayers with the brunt of the deregulation tab, Supervisor Dianne Jacob said today.

"Ninety days ago, Governor Davis pledged to investigate market manipulation by wholesale companies," said Supervisor Jacob. "Since then, generator after generator has reported record profits, some as high as 900 percent," Jacob said.

"We've seen an unprecedented one-third of our state's generation off line at one time, we've seen plants on idle during stage three emergencies," Jacob continued.

"How much more evidence does the governor need to take these gamers to task?" she asked.

The governor's plan, which calls for a massive statewide conservation effort and the construction of new power plants, also calls for statewide rate hikes which would be used to stabilize the state's faltering utilities. A majority of San Diego residents will see their bills increase by an average of 27 percent.

"Our bills are already artificially high," said Jacob. "Now, the governor is forcing innocent ratepayers to bailout utilities who are owned by generators who've made billions and billions of ripping off ratepayers?" said Jacob.