In her initial proposal, Loretta Lynch, president of the Public Utilities Commission, would have spared many residential users from the highest bills and placed more of the burden on businesses and farms. That feedback also includes Gov. Gray Davis' statement Sunday that he prefers his own plan, which would distribute rate hikes more evenly among residential and business customers. Consumer activists worry that the PUC's one-day delay could mean bigger rate hikes for residential customers. The PUC is scheduled to vote this afternoon. San Diego Gas and Electric Co. customers would not be affected.
Business groups hope the hunch is right.
PUC Commissioner Jeff Brown said after yesterday's meeting that he and other commissioners are trying to lower proposed industrial rates, but said that's tricky business. Commissioner Carl Wood said that today is the latest date the PUC can make its decision and still give Pacific Gas and Electric Co. and Southern California Edison Co., the state's two largest utilities, enough time to add the new rates to electric bills by June 1. Energy experts fear that's already too late for the price shock to spur vital conservation this summer and help stave off more rolling blackouts. Lynch's initial proposal would raise rates anywhere from 7 percent to 61 percent. Since it unanimously approved an increase March 27, the commission has struggled to fashion specific rate hikes that will simultaneously recoup the billions the state has spent buying power, return the state's largest utilities to solvency and trigger conservation.