San Francisco (Platts)--3Jun2008

A proposed renewable energy initiative calling for all electric utilities
in California to derive 50% of their electricity from renewable resources by
2025 qualified late Monday for the November statewide ballot, after
environmental groups and other critics called it deeply flawed.

The measure gathered 491,092 valid signatures compared with the roughly
430,000 needed, according to the California Secretary of State.

Environmental groups, the state's three investor-owned utilities, the
Independent Energy Producers Association and other critics contend that the
initiative would, among other things, disrupt the siting process for renewable
projects by limiting it to 100 days. Perhaps the most glaring problem, they
say, is that the initiative would require a two-thirds majority of the
Legislature to correct serious flaws in its provisions.

But the Yes Campaign, which is backed by by John Sperling, a billionaire
and founder of the University of Phoenix, maintain that the imitative will
help California attain its climate goals and polish the state's renewable
credentials.

"Our proposition will make California a leader in renewable energy and
provide thousands of clean power jobs," Jim Gonzalez, who oversees the Yes
Campaign, said in a statement. "California, the nation's most populous state,
will have a chance to take a big step forward," he said.

California's existing renewable portfolio standard requires load serving
entities, with the exception of municipal utilities, to acquire 20% of their
energy from renewable sources by 2010. Munis are expected to set their own
renewable goals.