One year into electric deregulation, the benefits promisedconsumers by the California legislature have failed to materialize,making monopoly utilities the primary winners in the state’sderegulation game, according to San Francisco-based TURN, TheUtility Reform Network.

Small consumers scored zero on savings, despite the “legislated10% rate reduction” appearing on their bills, the consumer advocacygroup said. The rate reduction, financed by consumers through a TTA charge, is actually about 2%, far less than consumers wouldhave seen had generation regulation remained, TURN said. “Andconsumers must pay inflated rates for 10 years to pay off the bondssold to pay for the minuscule reduction.”

TURN maintains fewer than 1% of California’s residentialcustomers have switched electric companies, despite the $80 millionthe CPUC awarded to utilities to explain deregulation and millionsmore spent by would-be competitors on sales and marketing. Theutilities have collected billions in accelerated recovery onunprofitable investments.

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