California Election Results: Insurance, Electricity Initiatives Backed By Major Corporations Are Rejected

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California voters rejected the two initiatives put on Tuesday’s
ballot by major corporations — Proposition 16, requiring voter approval
before cities can get into the electricity business, and Proposition
17, giving auto insurance companies more leeway in setting rates.

With most of the vote counted Wednesday morning, both measures trailed
by more than 150,000 votes — margins that, for all practical purposes,
are insurmountable.

Pacific Gas and Electric Co. spent $46 million on its campaign for
Proposition 16, which would have required local government agencies to
obtain approval of two-thirds of voters before providing electricity
service to new customers.

The measure also would have called for a
two-thirds vote before the expansion of service beyond current coverage
areas if public funds or bonds were used.

The measure was opposed by several groups, including Consumer Watchdog,
which said PG&E was protecting its turf and electricity customers
would suffer.

Proposition 17 would have allowed automobile insurance companies to base
their prices in part on a driver’s history of insurance coverage,
authorizing discounts for those who have kept their coverage even if
they changed insurance companies.

The measure, on which Mercury Insurance spent $16 million, would have
allowed companies to increase the cost of insurance for drivers who have
not maintained continuous insurance coverage.

Consumer Watchdog
Consumer Watchdog
Providing an effective voice for American consumers in an era when special interests dominate public discourse, government and politics. Non-partisan.

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