Editorial, THE VENTURA COUNTY STAR
Propositions 16 and 17 on the June 8 ballot might be compared to the sound of glass breaking at 3 a.m. on a dark night. The outcome isn’t entirely predictable, but it’s more likely to be bad than good for you.
These two initiatives deal with separate issues — electricity and car insurance — but they have something in common. Each was put on the ballot by a business seeking its own advantage and willing to provide virtually all of the initiative’s support at a cost of millions of dollars.
Proposition 16 is constitutional amendment for the self-protection of Pacific Gas and Electric Co., which operates in Northern California. Southern California Edison has not taken a position on it.
Proposition 16 would make it harder for communities to exercise their right to set up electricity-buying cooperatives known as “community choice aggregation,” which can provide residents with an alternative to their local power company. It’s been done in Marin County to promote renewable energy sources.
Proposition 16 would impose a new requirement — approval by two-thirds of voters. Two-thirds approval also would be required before a publicly owned utility could expand its service territory — something PG&E has fought at the ballot box.
Consumers won’t benefit from either of those proposed changes. Members of electricity-buying coops already have the right to opt out at no cost during the first five months, and consumers stand to benefit more without the straightjacket of a two-thirds vote for municipal-utility expansion.
Proposition 17 received the overwhelming portion of its funding from its sponsor, Mercury Insurance Co.
State law allows car-insurance companies to give their longtime customers a “persistency” discount, and Proposition 17 would let consumers transfer it if they switch to a competing insurance company. The problem is that car-insurance rates are a zero-sum game, so Proposition 17 automatically would cause surcharges to be levied on other customers, according to an analysis by the state Department of Insurance.
Critics also are skeptical of promises of new discounts by Mercury Insurance as the Department of Insurance last month accused it of overcharging customers.
The warning signs are evident with Propositions 16 and 17. We recommend voting no on both.
Tags: big corporations, contributions, Editorial, Mercury, overcharges, Prop 17, voters
