THE JACOB JOURNAL
October 2000

JACOB TAKES BATTLE AGAINST SKYROCKETING ELECTRIC RATES TO THE FEDERAL REGULATORY COMMISSION

The battle against rising electric rates is far from over! This August, I spent a lot of time in Sacramento and San Francisco fighting to get immediate relief for San Diego consumers. Unfortunately, what was supported by the State legislature and signed by the Governor fell short of our goal of a retroactive 32 cent rate cap and guarantee that San Diego consumers will be "held harmless" for the mistakes of others.

On September 6, 2000, Governor Gray Davis signed two bills AB 265 (Alpert/Davis), which established a 62 cent per kilowatt-hour price cap for retail electricity rates retroactive to June 1, 2000, and AB 980 which expedites the siting of new power plants in California.

Although rates are lower, AB 265, in and of itself, is simply an installment plan with a big balloon payment for San Diego consumers due at the end of 2002 or 2003. The difference between the 6½ cent retail price cap and the wholesale price of electricity, which has been as high as 22 cents this summer, will accumulate in a "balancing account" estimated to be between $800 million and $1 billion! San Diego consumers will be forced to pay this huge balloon payment unless further action is taken.

Another bill approved by the legislature, AB 1156, would have appropriated $150 million toward the debt in the "balancing account" and provided San Diegans some relief. On September 30th, Governor Gray Davis vetoed AB 1156.

But, I'm not giving up! San Diegans must not be held responsible for the mistakes of others. That's why in September, I testified before the Federal Energy Regulatory Commission (FERC), the agency appointed by the President of the United States, to ensure that electric rates are "just and reasonable." I urged the FERC to use their power to impose at least a 62 cent price cap on generators throughout the western region as soon as possible! This action would eliminate the huge accumulation of debt in the "balancing account" and give us some real, not artificial, temporary relief while we work on permanent solutions.

After all, if the problem can't be solved for three million people in San Diego, what are the consequences for thirty million Californians and others throughout the Nation facing deregulation?

The Legislature's Failed Attempt At Electric Deregulation

Deregulation has not worked in San Diego for several reasons, including but not limited to the following: a lack of market competition, the California Public Utility Commission's (CPUC) failure to provide aggressive oversight and action to protect consumers, a power exchange that is required to set market price based on the last and highest bid, the lack of forward purchasing and the inability of an energy service provider to be able to purchase electricity from any and all available sources.

The San Diego region is a $100 billion economy ranking 37th in the world! These skyrocketing rates threaten to cripple our vibrant economy. We need both temporary and permanent solutions.

Permanent Solutions

There is much more work to be done to permanently reduce and stabilize electric rates. In August, the Board of Supervisors hosted an electricity conference at my suggestion, which brought together local and national energy experts to discuss permanent solutions to the electricity crisis. The Board has also directed the Chief Administrative Officer to obtain the necessary expertise to review all the suggestions discussed at the conference and return to the Board on October 31st with long-term solutions to this crisis.

Call To Action

You can help! Support action by regulators to eliminate the accumulated debt in the "balancing account" and support investigations to determine culpability forcing those who are to blame to pay the debt, not innocent San Diegans. The FERC is expected to conclude their investigation on whether or not San Diego electric rates are "just and reasonable" by November 1, 2000.

Write, fax or e-mail FERC members and urge them to find that San Diego electricity rates are not "just and reasonable" and take action to immediately impose price caps on western power generators retroactive to June 1, 2000. The price caps should be at least 6½ cents per kilowatt-hour, which would eliminate the accumulation of debt in the "balancing account."

CONTACT:

James Hoecker, Chairman         Federal Energy Regulatory Commission
Commissioner Bill Massey         888 First Street, N.E.
Commissioner Linda Breathit      Washington, DC 20426
Commissioner Curt Hebert         (202) 208-0200
                                               (202) 208-0151 (fax)
                                               e-mail: Public.ReferenceRoom@FERC.FED.US

If you'd like more on the electricity crisis or the latest update, please log onto my website at www.diannejacob.com.

JACOB INITIATES MOBILE VAN TO MAKE CHILD CARE TRAINING MORE ACCESSIBLE

San Diego - The San Diego County Board of Supervisors September 26th, unanimously approved Chairwoman Dianne Jacob's proposal to establish a mobile van unit that will provide on-site training and voluntary health screening at local child care centers, including those working with children who have special needs.

Since welfare reform in 1996, San Diego County has moved 38,000 families from welfare to work, saving taxpayers nearly $500 million. With more families in San Diego County in the work force there is a huge increase in the demand for quality child care in this region.

"The need for these types of opportunities is critical to ensure that working families have stable and reliable child care," said Jacob. "Child care workers provide one of the most critical services - caring for this region's children while their parents are at work. It's critical that these care givers are provided every opportunity to better their skills and learn more about the health and safety of kids in their facilities," said Jacob.

The mobile training van will make child care training more accessible by taking the training directly to them. Child care center employees will have on-site assistance and access to training programs, which will make them better prepared to care for the region's children. Also, providing voluntary on-site health screenings, children will benefit by getting preventive healthcare.

The mobile training van will also work with existing mobile resource providers, such as Care Express, MAAC, Head Start, 10 Mobile and Episcopal Community Services, which will help disseminate information quickly and efficiently directly to child care sites. County staff will report back to the Board of Supervisors in November.

Jacob, Sycuan, Dehesa School District, and Local Planning Group Agree To Joint Effort To Improve Dehesa Road

On September 27th, over a year's worth of work came to fruition as Chairwoman Jacob, the Sycuan Band of Mission Indians, Dehesa School District, and the local planning group came together and agreed to improve Dehesa Road, which will greatly increase safety for children attending Dehesa Elementary School.

"Today's action is a great example of the type of government-to-government partnership that can be formed when we work together toward a common goal," said Jacob.

The project came about when Sycuan representatives approached the County about a year and a half ago with the idea of improving the safety of Dehesa Road. After identifying the need for improvement and meeting with members of the Dehesa School District and the local planning group, an agreement was reached on how to move forward as partners.

The County and the Sycuan Band of Indians will jointly fund the project. The improvements are expected to be completed by September 2001, in time for the new school year.

Improvements For Rios Canyon Ballfields And Lindo Lake Park In Lakeside More Good News For Local Communities!

On September 27th, the Board of Supervisors unanimously approved the enhancement of Rios Canyon and also funding for improvements at Lindo Lake Park.

Rios Canyon Ballfields and play area will receive $150,000 toward the purchase of a new playground set and an outfield fence for little league teams.

Lindo Lake will receive $130,000 to help fund a new pavilion for community events and $100,000 will go toward upgrading their acoustic system and a new public address system for the community center.