Separate but closely linked California legislative proposals toprovide consumer electricity rate relief and accelerated powerplant siting/energy efficiency programs were signed into lawWednesday by Gov. Gray Davis, who used the occasion to list 11separate previous electricity-related actions he or hisadministration have taken since June 14 immediately following thefirst controlled rolling brownouts in the San Francisco Bay Areasince World War II.

The governor did not act on a third electricity bill addressingutility company revenue shortfalls from the rate capping measure,and a spokesperson in his press office said he has until Sept. 30to make up his mind whether to sign or veto the measure, or let itdie by inaction. The still undecided measure would use $150 millionin taxpayer dollars to help make San Diego Gas and Electric whole.

As a result of his most recent actions, a new law (AB 265)reduces residential electricity in San Diego to an average of $68monthly, and to $220 for small businesses, with a retail price capof 6.5 cents/kwh.

The second measure (AB 970) establishes a six-month, expeditedsiting process for new power plants in an effort to addressCalifornia’s growing shortage of adequate power supplies duringheat wave-induced peak-demand periods.

Davis called the two new laws “one of the major achievements” ofthe just-concluded state legislative session, adding that althoughhis administration “did not create this problem, it is 100%committed to solving it.”

The legislation was set up as “urgency measures,” becomingeffective with the governor’s signature, and he used that fact tostress that the rate relief for San Diegans is “finally on theway,” although regulator-directed relief in the form of refundchecks actually began arriving in early August, averaging $290 foreach residential customer and $760 for small businesses.

Davis’ formal announcement noted that the need for new powerplants is one of the major steps California must take to begincutting the run-up in wholesale electricity prices that have stayedalmost double what they averaged a year earlier — even innon-peak demand periods.

“Restriction and red tape have presented a powerful disincentiveto those who would build more power generators in California,” thegovernor said. “This (new law) will benefit consumers by increasingsupply to meet growing demand. It will also establish new programsto reduce demand.”

As part of the siting law, an extra $50 million of state fundswill be allocated to demand-side management programs to help reducepeak electricity demand levels.

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