You have been hearing promotional radio and television media advertising that Proposition 16 will give taxpayers the right to vote before their local governments can incur public debt or spend public tax monies to get into the electricity business.
Also, in California a two-thirds voter approval will be required for any special tax or bond decision to create or expand electrical public utilities service.
Sounds good, especially in these times when our state's government spending is out of control, but Pacific Gas and Electric customers beware.
Writing as president of the Merced Irrigation District board of directors, it is my opinion that PG&E's Proposition 16 has a hidden agenda, as explained here.
Proposition 16, originally called the "Voter Right to Know Act," was conceived 100 percent by PG&E. But the state attorney general made PG&E change that name to "The New Two-Thirds Requirement for Local Public Electricity Providers Act."
But I believe that too is the wrong name; it should be referred to as the "PG&E Voter Deception Act," for it has nothing to do with the voter's right to know.
In fact, it is just a scam to make the voters think they are in control of their public spending, while what it really does is allow for PG&E to maintain a monopoly by eliminating local public utility competition.
Electrical utility companies are classified as either a nonprofit Public Owned Utility (POU), such as MID, or an Investor Owned Utility (IOU), as PG&E, whose sole purpose is to make a profit for its investors and stockholders.
The more profit PG&E shows, the more stock it sells.
In fact, last year PG&E showed a profit of $1.2 billion. California PG&E customers are the fourth highest utility ratepayers in the nation, according to the U.S. Department of Energy.
To think, just nine short years ago PG&E filed for bankruptcy, and the state of California bailed out.
The thanks we got for this help were higher rates and now Proposition 16.
Proposition 16 is solely sponsored by PG&E and never was vetted by the Assembly or Senate in Sacramento.
With its arrogance and size, PG&E chose to bypass the legislative process and go straight to the voters with a state constitutional amendment. PG&E's playing card is to stir up voters' emotions by the use of inflammatory phrases like "The voters deserve to have the final say about how public monies are spent."
In comparison do present PG&E customers know that their very own utility company will spend $35 million of its customers' money on a campaign to help eliminate its competition?
Conversely, by state law MID as a public utility cannot spend one dime of its customers' money to defend its position because such an expenditure is not appropriate use of public funds.
PG&E knows this campaign disadvantage will be a factor in getting Proposition 16 passed.
Furthermore, the two-thirds voting restriction proposed by Proposition 16 does not include or even affect PG&E. When, in fact, what is really going on is that utility customers will no longer have a choice in buying electricity at lower costs without a two-thirds super majority vote.
If Proposition 16 is passed, the scenario will go like this: Suppose a new business or resident moves into town. Before a public owned utility such as MID can have the privilege of making them a customer, there must first be an election with two-thirds voter approval.
In reality, we all know that potential customers will not wait for the uncertainty of an election before making their utility provider choice. And so does PG&E. Herein lies the "Voter Deception" and hidden agenda of this is proposed initiative.
If Proposition 16 passes, citizens and businesses will no longer have a choice on who provides their power. Their right to shop for lower prices will be taken away. Proposition 16 will also make it easy for PG&E to raise rates even higher, causing the customer to further be at its mercy.
Moreover, Proposition 16 will not allow for public utilities to grow or expand their businesses, which could eventually lead to the elimination of all state public utility providers.
Even now, PG&E has applied to the Public Utilities Commission for yet another rate increase. PG&E knows it cannot compete one-on-one with publicly owned utilities' lower rates. So, PG&E is asking you, the voter, to help eliminate its competition at the "ballot box."
What an ingenious plan.
Public Utilities like MID are the only other state electrical providers; even though small, they do help keep PG&E honest.
Wil Hunter is president of the board of directors of the Merced Irrigation District.
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