–Windfall Profits Tax Nears Defeat on Assembly Floor–
Thursday, 5:30pm — With the spotlight turned on the East Coast, lawmakers are siding with Edison and energy generators in eleventh hour legislative deal-making.
An outline of new Edison bailout legislation to be heard by a Senate committee this evening, less than 24 hours before the Legislature is scheduled to adjourn, would require residential and small business ratepayers to pay tens of billions in higher energy prices and, if passed by the Senate, would represent a devastating capitulation which would enrich Edison and the energy generation companies which have held California hostage.
Separately, a bill to impose a windfall profits tax on the out-of-state energy companies that have gouged California this year is nearing defeat. SB1xx, now being voted on, needs 41 votes; at present, it is on call and failing 27-27.
(SEE ATTACHED CHART)
Analysis of Proposed Senate Bailout Bill
Item – Business bailout — “Direct Access” (Political quid pro quo for bailout). Exact details unknown. Largest industrial users want to bail out of long-term contracts negotiated by Davis, negotiate own deals with generators; leaves small ratepayers to pay off inflated contracts.
Impact – $50 billion+ on residential/small business ratepayers.
Item – Assets in exchange for bailout: 20,000 acres of land and option to buy transmission at twice what its worth.
Impact – $1.2 Billion. Edison gets bailout with no requirement of repayment in exchange; no requirement if state exercises transmission option.
Item – Environmental Disguise. Mandates renewable portfolio standard as political cover for Democrats voting for bailout.
Impact – As political cover for politicians , worthless. Sticking RPS in bailout won’t protect them.