May 25 - The Record, Calif.



Lodi did it. Stockton considered it. And a south San Joaquin County water district is fighting for it.

But local agencies across California will find it more difficult to launch their own electric utilities if voters next month approve Proposition 16. The measure, supported financially by Pacific Gas and Electric Co., would require a two-thirds vote before any local takeover of an electric utility could take place.

Power to the people, PG&E says.

"We support giving our customers more control over how public funds in their community are being spent. We think they should have a voice," PG&E spokesman Andrew Souvall said.

 Critics say PG&E is more concerned with maintaining its monopoly. Locally owned providers such as the Lodi Electric Utility offer competitive rates and support the city's general fund, said City Councilman Larry Hansen, who is also chair of the Northern California Power Agency representing 17 power-providing communities.

"PG&E does everything they can to take away our ability to maintain local control," Hansen

said. "It's just been a constant battle."

Despite Proposition 16's title, the Taxpayers Right to Vote Act would not create any new rights for taxpayers, the University of California, Berkeley, found in what it called an independent analysis.

Taxpayers already have the right to vote on new local taxes.

The university also reports that on average California's public utilities offer cheaper rates than those owned by investors, although the gap is narrowing. PG&E's costs are higher partly because it serves the most farflung corners of California.

Some argue that an investorowned utility may be less likely to heed customer complaints. So claims Jeff Shields, manager of the South San Joaquin Irrigation District, which is wrestling with PG&E for the right to provide power to Manteca, Ripon and Escalon.

"We'll be accountable to the local citizenry," Shields said. "We've got five (board members) whose businesses, homes, schools and grocery stores rely on this service. If the service is out, you've got direct access to us. But have you been to a PG&E board meeting?"

Lodi officials worry what will happen if the proposition passes. Will a vote be required for the Electric Utility to supply land annexed into the city?

The answer is unclear, the UC Berkeley analysis says.

Overall, the nonpartisan Legislative Analyst's Office found that the proposition would have an unknown long-term effect on state and local government finances.

PG&E has spent $23 million in support of the measure from January through mid-March, Secretary of State records show. A committee in opposition has spent $33,341.

Lodi's Electric Utility has been generating juice for a century. Former Stockton Mayor Ed Chavez proposed that his city take over PG&E's service, but the City Council later dropped the matter.

Contact reporter Alex Breitler at (209) 546-8295 or abreitler @recordnet.com. Visit his blog at recordnet.com/breitlerblog.

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