opinion: The price of power by medea benjamin SFBG News | July 26, 2000 | The price of power THE GREEN PARTY has continuously offered testimony and evidence to prove that in this era of nearly unchecked corporate greed, "deregulation" will inevitably lead to outrageous prices. This is especially true in regard to the dirty business of energy production. To the dismay of 1.2 million San Diego Gas and Electric (SDG ) customers, who are the first in the nation to pay unregulated prices for power, SDG has proven the Greens absolutely right. The situation in San Diego is so serious that former Mayor Maureen O'Connor has called for the adoption of a declaration of economic disaster, fearing that people might jeopardize their health by cutting back on power during Summer heat waves. On July 20, the price of SDG's wholesale power hit 20.5 cents per kilowatt-hour, astronomically increasing every person and businesses electricity costs virtually overnight. The companies that sold San Diego its power, such as Arizona's Pinnacle West Capital Corporation, publicly boasted of their windfall from gouging the people of San Diego. Sempra, the parent company of SDG, even has the gall to speculate that it will gain financially from this disaster. When ratepayers (and some politicians who had an expedient change of heart about deregulation) revolted, SDG suddenly "found" $100 million to help take the edge off the rate hikes. Compare this with the situation of the residents of Sacramento, who chose the path the Green Party recommends - Municipal Utility Districts. Publicly-owned utilities such as the Sacramento Municipal Utility District (SMUD) are driven by public service, not profits. SMUD is managed by community-elected boards which have strong incentives to keep customers happy with lower electricity bills. According to recent studies, SMUD's average rate is a low 7.7 cents/kilowatt-hour, less than one-third of what SDG peaked at on Wednesday. San Francisco and other cities are currently debating the merits of this system. One reason that SMUD's rates are lower is that people in Sacramento they were able to correct the mistake of being seduced by the nuclear genie, a power source that was supposed to be too cheap to meter, but has turned out to be too expensive to sell. SMUD shut down its Rancho Seco nuclear reactor on June 6, 1989, the first community in America to close a nuclear plant due to a public vote. They haven't suffered financially or from power outages. On hot summer days when the demand for electricity is peaking, energy efficiency programs help SMUD manage the load. Participation in the energy efficiency programs in the past 10 years has reduced the demand on SMUD's system by 240 Megawatts; as much energy as a typical power plant produces and when consumers participate in SMUD energy efficiency programs, they spend less for energy and also help the local economy. A new study conducted by the Real Estate and Land Use Institute at CSU Sacramento found that SMUD's programs will result in $129 million in direct economic benefits through lower electric bills, which it then can pass on to its customers. For the first time in Sacramento, environmentalists and electricity providers are working hand-in-hand to meet that region's energy needs. Compare that to the current sentiment in San Diego. The San Diego Union Tribune reported recently (San Diegans See Bumps Ahead, But Want To Stay, 7/19) that in a wide-ranging telephone poll by the nonpartisan Public Policy Institute of California, while most residents feel the region's quality of life is fine now, few believe that in 10 years San Diego County will be a better place to live. Almost 90 percent stated that if there is a single root cause, it's government. The duopoly government of the Democrats/Republicans that makes these backroom deals and stick it to the public on issues like power deregulation. There is another, saner way. The Greens know that California can quickly meet its energy needs while eliminating nuclear energy, river-killing dams and gas-spewing coal and petroleum plants. The blueprints for a new energy society have circulated amongst universities, the think tanks and the Greens for years. But thanks to the sweetheart deals of both the Democrats and the Republicans, only the megalithic power consortiums get the contracts from the City or County Councils to provide the electricity to us, and those other, wiser plans linger on the shelves. Community control over our utilities is a start. Other steps include more domestic natural gas and solar power, so California can transition away from the most polluting energy technologies. Existing, but lesser used alternatives -- such as wind, surf, biomass, hydrogen, and micro-hydroelectric (dam-free river) power -- should be phased-in, allowing us to meet all current and expected energy use levels. It is NOT more expensive. Less intense resource use means less cost and fewer engineering problems. Diverse, small, community energy production means no one single event can crash the whole system, as is happening in San Diego right now. But if you vote Democrat or Republican, you will never see this happen. Its not a pipe dream, it's the way to run society. The greatest good for the greatest number, not just the gain of a few. The Green Party is ready to implement this new vision and believe that most Californians are ready for this kind of change. Apparently, about 89% of San Diego, while not yet totally convinced that every single one of them is going Green (yet), at least know that government the way it is right now -- of the corporations, by the corporations, and for the corporations -- isn't working for them. California deserves better. Medea Benjamin is an internationally-known human rights advocate, a former staff member of the United Nations Food and Agricultural Organization, and the Green Party candidate for U.S. Senate in California. [http://www.sfbg.com/searchit.html]