California and Massachusetts voters oppose Prop 9
Voters in California last month voiced their opposition to Proposition 9, a ballot initiative that would have repealed the state`s 1996 electric restructuring law. Similar results were seen in a referendum held in Massachusetts at the same time.
The ballot results have reinforced the public support for the restructuring of the US electricity industry. Prop 9, opposed the 1996 restructuring legislation that allows the utilities to recoup their transition costs from customers.
Prop 9 promised a 20 per cent price cut for California`s consumers and would have prevented the utilities from recovering stranded costs. It would have negated $6bn in bonds sold late last year to finance a ten per cent rate cut for residential and commercial customers, agreed as part of the 1996 legislation.