Political forces are prevailing over economics in California’songoing efforts to finish the job of unbundling its natural gas andelectricity industries, and no one in the newly elected Gov. GrayDavis’s administration so far is getting involved, according toenergy industry observers in the state capital in Sacramento. As aresult, three months into 1999, the five-member California PublicUtilities Commission is operating with two vacant seats, stillawaiting gubernatorial appointments.

On both the unbundling and the CPUC seats, organized labor,which played a major role in the new governor’s election, is adominant player, according to utility and industry insiders. Aknowledgeable observer among the state’s big business communitysaid the CPUC positions should be filled once labor representativesput more pressure on the governor’s staff for some action. Unionrepresentatives reportedly want new regulators tied to Gov. Davison the CPUC early enough this year so they can slow current movesto further open up natural gas and electricity, particularly in themetering and billing areas where the unions want to preserveutility jobs. The unions are supporting two proposed bills in thestate legislature (AB 1421; AB 1082) that would put a moratorium onadditional unbundling in electricity and extend a currentmoratorium in natural gas that runs through the end of this year.

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