Report: Calif. to issue $11 B in bonds

Brulte authored the Bill. But Steve Peace was the one who took charge of it as chairman of his Senate Committee on Deregulation, and chairman of the of conference committee that hammered out differences between the Assembly and Senate. He had no problem with being called "The Achitect of California Deregulation" until it blew up in his face.

Deregulation fiasco shines unwanted light on Peace

By Jon Matthews
Bee Capitol Bureau
(Published Aug. 6, 2000)

Four years ago, a determined state Sen. Steve Peace stood in the Capitol and urged the Legislature to approve a sweeping plan to deregulate electricity in California.

Today, after lawmakers did what Peace asked, electric bills have more than doubled in Peace's home area of San Diego and threaten to skyrocket across the entire state. Critics have called the situation an unfolding economic disaster.

One of the state's most aggressive and intelligent policy wonks, Peace is now among those on center stage as millions of California consumers watch government and industry wrestle with the energy troubles.

Politicians at all levels are well aware that the arcane fine print of deregulation could explode into voter backlash unless the lights remain on and consumer bills are brought under -- or kept under -- control.

"One Mexican restaurant in San Diego has seen its electric bill go from $1,000 a month to $4,000. This is the stuff that can put people out of business," said consumer advocate Harvey Rosenfield, an opponent of the current deregulation scheme.

Peace is an influential -- and sometimes controversial -- policy leader in the Capitol who has been mentioned as a potential candidate for secretary of state in 2002.

But he also was a key architect -- if not the key architect -- of the complex deregulation law of 1996 that was widely supported at the time by other lawmakers for its promise to modernize the electricity market and reduce business and residential bills.

While the law had broad backing at the time from both Democrats and Republicans, Peace was singled out by former Republican Gov. Pete Wilson during the bill-signing ceremony for "a special word of thanks" for leading hearings on the measure.

With deregulation leaving consumers in an uproar four years later, Rosenfield calls the situation an "economic catastrophe" that has allowed soaring electric industry profits. Peace, he said, "is properly shouldering the blame."

Under the terms of deregulation law, San Diego consumers are the first to feel many of its full effects. Peace also has been receiving attention in San Diego for his receipt of campaign contributions from electric industry sources, his business ties and other issues.

But Peace, in a recent telephone interview, said neither he nor the Legislature is to blame for the energy mess, but rather that fault rests with a "wholesale (electricity) market that is broken."

Asked about the situation in San Diego, he said, "None of these issues are raised by the legislation.

"Power prices are up in Arizona, Nevada, Montana; there are people shutting down manufacturing plants. Those states are regulated, but what is not regulated is the wholesale market. What is at issue here is volatility and profiteering inside that market."

Nonetheless, Peace is scrambling to help bring consumers' bills back in line and stabilize an electric system that has seen shortages and pleas for conservation. Last week, he was among those arguing that the California Independent System Operator should lower the cap it pays for certain wholesale purchases of electricity -- an action the agency took and which may bring some relief to residents of San Diego.

The Legislature also may hold hearings on the energy troubles when it returns later this month from summer recess, according to several members. If the past is any guide, Peace may have a major, vocal role.

Elected to the state Assembly in 1982 and to the Senate in 1993, controversy and public attention are nothing new to the 47-year-old father of three. After all, this is the guy who helped produce -- and appeared in -- the cult horror movie spoof, "Attack of the Killer Tomatoes."

Just about everybody agrees that Peace is a very smart person. He also can be very vocal, confrontational, mercurial and, at times, rebellious. The question is whether he can now help reverse the current mess or -- as some critics demand -- help restore at least some regulation to the market.

Although he once had a reputation as former Assembly Speaker Willie Brown's "man to see" in San Diego, Peace later joined with four other rebel Assembly Democrats in a 1980s "Gang of Five" that challenged Brown's leadership and cast many relatively conservative votes.

While some say he has matured in more recent years, Peace, especially in his younger days in the Capitol, was known for outbursts and verbal confrontations. The stories are legion, and one writer once labeled him the enfant terrible of the Senate.

In one 1995 incident, then-Sen. Diane Watson, D-Los Angeles, complained on the Senate floor about what she called "ranting and raving" against a piece of legislation she was backing. Within moments, Peace -- the apparent target of her remarks -- rushed into the Senate, yelled, "Ranting and raving!" and then promptly turned around and left.

But Peace, who chairs the powerful Senate Budget and Fiscal Review Committee, also is known for his willingness to tackle complicated issues such as workers compensation, government finance and deregulation. Among other things, he is pushing a controversial plan to create a regional government authority for San Diego.

"I think he has been willing over the years to take on the toughest issues," said Sen. Deirdre Alpert, a Coronado Democrat who represents a neighboring district. "It is hard to find people to take on some of those issues."

Indeed, Peace seems at his prime when appointed to one of the Legislature's freewheeling conference committees that hammer out complicated deals and send the product straight to the Senate and Assembly floors for an up-or-down vote without amendments.link

"we had Republican governors for 16 consecutive yrs during that period (Wilson for 8 of them)....where were they?"

They had their hands legislatively tied. Governors can do nothing to stop frivolous environmental lawsuits. Wilson did try to get legislation passed that would put an end to some of them, but it was defeated in the state legislature, controlled, as you know, by the Dems (as it has been for quite a long time).

Even a cursory look at the record will show how many generating plants have been kept off-line, or from even breaking ground due to endless lawsuits by environmentalists. Even reservoir projects that provide both hydro-electric and drinking water have been repeatedly shot down by environmentalist who invariable find some endangered toad or spider in the area they are planned for (five or six such projects that I know of).

The De-regulation plan, which was signed by Wilson, but passed by the legislature and the people of the state Would have worked fine had not Davis mucked with it. Prices will always spike after regulations are taken off if supply is short. Davis should have bought the long-term contracts when they were offered before the de-regulation took effect. But they're such brilliant economist they knew better than everyone else. That is how we got into the mess we are in.

The Deregulation plan was not perfect, as Wilson said, but it was a far sight better than have the state grow while the energy infrastructure remained stagnant. At least now that log jam is broken. People realize we need more generating capacity. They also realize that they need to build that capacity where they live, NIMBY's be damned.

The one who needs to do their homework is you. And reading the LA Times does not count. Those idiots couldn't find thier asses using with both hands and flashlight, coming up with facts is waybeyond their ability.

P.S. How do you like paying for nuclear power plant that was built and put out of business by environmentalists days before it went on line? How about paying for San Onofre Nuclear powerplant which, in the middle of the crisis was being taken off-line for the same reason. Both those plants operating at full capacity could have prevented the entire crisis. Thank to Environmentalist, we are still paying for the construction of those plants and are not getting our money's worth out of them.

The one who needs to do their homework is you. And reading the LA Times does not count.

I don't read the LA times unless it's an article posted on FR....And we can't post articles from the LA Times....so I nust not read it.

Since you're so well versed maybe you can tell me where I can find what YOU call the truth (as opposed to your opinion) and then point out all the falacies of THE QUOTES I posted...do that for me will you?

The Deregulation plan was not perfect, as Wilson said, but it was a far sight better than have the state grow while the energy infrastructure remained stagnant.

Here's some excerpts from the same article to answer your contradiction:

Back then, the regulated power industry found itself with a 30 percent power surplus, yet with prices far higher than most other states, partly due to bad investments that the utilities passed on to consumers.
Officials from dozens of other states had launched an aggressive raid on California. Competition would bring lower prices and smooth the economic recovery.
The concern: how to manage oversupply and help PG&E recover its government-imposed investments in a free market. If anyone suggested a future power shortage, it sounded like a bleat.

I've done my homework and yours.

Davis should have bought the long-term contracts when they were offered before the de-regulation took effect. .....When was Davis sworn in and when did "deregulation take effect.

Do you in fact read anything at all? Wilson's "deregulation" had a regulation not allowing long term contracts....Again an excerpt from the same article:

Forcing the utilities to sell off their power plants while prohibiting them from locking in favorable long-term rates with the suppliers who bought the plants.

We can all sit back and point our fingers at environmentalists or liberals all we want...but who's going to do anything about it?...Republicans?... HA!...Where's the proof of that little white lie?

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