Electric Utilities. Assessments. Bonds. Initiative Statute.
	Rebuttal to Argument against Proposition 9

California's biggest electric utilities have deceived consumers for decades.

They stuck Californians with some of the nation's highest electric rates. They made money-losing investments in nuclear power costing consumers $50 billion. They claimed to support renewable energy like wind and solar but often worked behind the scenes against it. Their proposed rate hikes were inflated by billions of dollars in unjustified claims.

These utility companies and their special interest allies claim that Proposition 9 will cause a power system collapse, economic meltdown, school bankruptcies and taxpayer liability for utility bonds.

With their record of deception, who can believe them?

In fact, state law already prohibits taxpayer liability for the utilities' $6 billion bond debt. Only Proposition 9 will protect consumers and small businesses from being saddled with the utilities' debt. Proposition 9 holds utility companies and their investors--not consumers or taxpayers--responsible for their debts.

A preliminary analysis by the California Energy Commission estimates that Proposition 9 will lower electric rates by as much as 32%, saving public agencies and school districts hundreds of millions. Proposition 9 benefits California's economy because it puts billions of dollars back in the hands of consumers who live and work in California.

It's time utility companies stopped playing games with California's energy future. Californians want fair rates. A 20% real rate reduction. Reliable and safe energy choices. No bailout of nuclear power. No corporate welfare. No deception. On November 3, vote YES on Proposition 9.

RALPH NADER
Consumer Advocate DAVID BROWER
Founder, Friends of the Earth EUGENE P. COYLE, Ph.D.
Utility Economist