The Foundation for Taxpayer and Consumer Rights called the compromise on a utility rate freeze announced this afternoon by Governor Davis only a temporary a repair of a broken dam, which is likely to only delay the deluge of unnecessary corporate charges ratepayers will incur later as a result of electricity deregulation’s failure.

“The legislature should approve no deal that puts the interests of the energy conglomerates over those of the ratepayers and this deal seems to because ratepayers may have to pay back any lost corporate profits,” said Doug Heller, consumer advocate with FTCR. “A serious investigation will likely find profiteering by Sempra, parent company of San Diego Gas & Electric, but that still may not stop the company from passing on the cost of its lost profits to consumers due to the nature of this credit card scheme. This state must end deregulation. ”

Consumer groups have called for a plan which freezes rates at July 1999 levels, repays consumers for this summer’s overcharges and ensures that ratepayers will not be forced to pay back energy conglomerates.

“Govenor Davis should be promising to make ratepayers whole not the companies that have excessively profited off their pain.”