Should the California Constitution be amended to require two-thirds voter approval before local governments can start up or expand electric service?
Electricity is delivered in California by
- Investor-owned utilities (for-profit corporations)—Pacific Gas & Electric, Southern California Edison, or San Diego Gas & Electric and
- Publicly-owned utilities (government agencies)—such as the Los Angeles Department of Water & Power and the Sacramento Municipal Utility District.
Although most customers buy electricity from the utility serving their area, some buy from other companies known as "electric service providers."
California law allows local governments to create their own publicly-owned utility or a community choice aggregation program, which buys power in bulk from electric service providers. Decisions about local electric service are generally made by an elected local government board or by a majority of voters in the service area.
Proposition 16 would require a two-thirds majority vote of the people before local governments could use public funds to start up electricity service, expand service into new territory, or contract with electric service providers through a community choice aggregation program. The new two-thirds vote requirement would not apply if public funds were being used for any of the following:
- To produce or buy electricity from certain renewable sources like wind and solar,
- To buy electricity solely for a local government’s use, or
- To expand the local electric service area, if the action was already approved by voters in the existing local service area and by voters in the proposed new area.
The net fiscal impact is unknown and would depend on future actions of local governments and voters.
Before local governments could start up electric service or expand into new areas, they would generally need two-thirds voter approval.
Local governments could continue to start up or expand electric service when approved by the governing board or a majority of voters.
- Prop 16’s two-thirds vote requirement is consistent with the longstanding two-thirds requirement for local bonds and special taxes.
- Voters should have the right to vote before local governments spend taxpayer money or incur debt to get into the electricity business.
- A two-thirds majority requirement for a public takeover of power service is reasonable and prudent.
- This measure would place an unreasonable burden on local governments trying to provide an alternative to the existing power supply monopoly.
- PG&E sponsored Prop 16 to reduce competition from municipal utilities which offer lower rates to their customers.
- Prop 16 would make it more difficult for communities to increase their use of green energy.
Supporters: YES on 16—Californians to Protect Our Right to Vote
www.taxpayersrighttovote.com [3]
Opponents: NO on Prop 16—Taxpayers Against the PG&E Power Grab
415.929.8876 x306 • www.powergrab.info [4]