If rates go any higher, there will be consumers and ratepayers who will take the revolt straight to the ballot box. Barone said that without such a boost, the utilities could find it impossible to buy electricity by January or February. In addition, the PUC is said to be waiting for the governor's office to finish its negotiations with the power companies.
Consumer groups are skeptical of the push for higher rates for customers.
If they're willing to go bankrupt, the answer shouldn't be a bailout. It should be a buyout, with the state moving in to protect the reliability of system instead of worrying about bailing out the shareholders. As the battle over rates continued, California lurched into another Stage 2 power emergency, due to the failure of a key energy pipeline in the Central Valley. The contracts are meant to guarantee energy at a fixed rate over the next five years. But power producers and energy marketing firms are pushing for the right to alter the rates each year to reflect inflation and shifting market conditions.