Regulatory mechanisms are needed to protect the public interest from potential abuses from energy service providers. The state's utility local distribution companies have established unregulated, non-union affiliates. These affiliates pay substandard wages and benefits. Assembly Bill 1890, passed in 1996, contained important first steps in protecting the reliability of our state's electric infrastructure and providing some protections to displaced workers. However, reliability safeguards and worker protections are still under attack by large consumers whose only concern is the corporate bottom line, and by some misguided consumer groups who fail to understand that reliable service for consumers depends on adequate investments in human and capital infrastructure.
Deregulation is a threat to the entire economy.
Industry, agriculture and individual consumers need affordable power, but they also need safe and reliable power. Recent history has taught us that excessive cuts in personnel at private utilities will cause unnecessary outages and delays in restoring service during storms, heat waves, and other natural events, with serious economic consequences for those affected. The California Public Utilities Commission and the state legislature have a continuing responsibility to safeguard the public interest in these essential utility services. Safe, reliable and affordable gas and electricity are essential services, and access to these services must be regarded as a universal right. An obligation to serve the public must remain an integral part of any restructured utility industry.