Californians have plenty of reasons to dislike utility companies besides having to write them checks every month: nuclear power plants that don’t work; gas lines that explode; rates that only go up, environmental insensitivity, impediments to alternative energy; monopolistic behavior. The list goes on.

If Ben Davis, Jr. has his way, voters will have a chance to change all that.

Davis received permission from California Secretary of State Debra Bowen last week to circulate a petition to place on the ballot a proposition that would replace investor-owned Southern California Edison (SCE), Pacific Gas & Electric (PG&E) and San Diego Gas & Electric (SDG&E) with a public California Electrical Utility District. He needs 504,760 signatures by July 1 to qualify.

The proposal is so vast in scope that the state Legislative Analyst’s Office couldn’t put a dollar value on the initiative’s effect if it passes, although the analyst was pretty certain it “would result in a substantial net change in state and local finances.” But that’s about all he knew. “Given that the measure grants such potentially broad authority and discretion, the full scope of the changes this measure would put in place is highly uncertain,” he concluded.

The initiative would create a new district, governed by an 11-member board of directors. It would have the authority to set electricity rates, enforce electricity regulations and contracts, condemn privately held property for public use, and issue bonds. Other publicly-owned utilities, like the Los Angeles Department of Water and Power, would not be affected. They could, however, choose to join the district.

Although the Legislative Analyst was not specific about changes the measure would engender, Southern California Edison could easily disappear. PG&E and SDG&E would still be managing gas distribution but would see a big chunk of their business vanish.

The ramifications of such a change would be felt throughout the energy industry and beyond, including solar and wind energy developers with existing contracts.

Davis, the initiative author, is widely credited with leading the successful campaign to shut down the Rancho Seco Nuclear Generating Station near Sacramento in 1989. He is currently circulating another initiative for signatures that would close the Diablo Canyon and San Onofre plants. A similar signature campaign failed last year.

Two lawmaker-approved measures and one that went the signature route have already been certified for the next statewide ballot in November 2014. The Legislature OK’d a massive water bond measure that has been punted from ballots twice because of its controversial nature, and a proposition that restricts placing initiatives on ballots to the general elections in November of even-numbered years. 

The third measure, which was certified by the secretary of state last August, requires approval of the California insurance commissioner before health insurance rate changes can take effect. It also limits health, auto and homeowner insurers from making decisions based on prior coverage or credit history of applicants.

–Ken Broder

To Learn More:

California Ballot Prop Would Force State Takeover of Utilities (by Chris Clarke, KCET)

Initiative for Public Statewide Electricity Utility OK'd for Signature-Gathering (Santa Clarita Valley Signal)

Initiatives and Referenda Cleared for Circulation (California Secretary of State’s Office)