Ten Tools for Defeating Government Takeovers
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TABLE
1
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| RECENT
GOVERNMENT TAKEOVER ACTIVITIES Municipalization activities have occurred in twelve states, but have been especially intense in California, Florida, and Oregon. Reasons for the efforts range from rate concerns to franchise renewals. Several of them involved referendums. |
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Location
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Utility
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Reason
for attempt
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Outcome
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CALIFORNIA
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Coachella
Valley |
Southern
California Edison
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Rates,
2001 crisis
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Votes
in December 2002 and May 2003 resulted in Indian Wells and Palm Desert
setting up paper utilities. Rancho Mirage may also take action.
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Corona
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Southern
California
Edison |
Rates,
2001 crisis
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A
city council vote in December 2002 resulted in decision to condemn SCE
distribution assets and an offer to purchase system for $70.2 million.
Plan dropped in May 2003.
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Davis
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Pacific
Gas & Electric
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Rates,
SMUD, 2001 crisis
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A
city council vote in October 2002 was unanimous to ask SMUD to annex areas
now served by PG&E.
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Irvine
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Southern
California Edison
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Rates,
2001 crisis
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A
city council vote in July 2003 created a "wilderness center"—a
nonexistent muni—in order to beat a PUC decision deadline on charging
exit fees for customers that switch to a municipal utility.
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San
Francisco
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Pacific
Gas & Electric
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Politics,
2001 crisis
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A
vote on Proposition D in November 2002—to create a public power entity
in San Francisco—was defeated by a 53-47 margin. A vote was also
taken in 2000 and defeated.
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FLORIDA
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Casselberry
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Florida
Progress
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Outage-related
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The
November 2002 election resulted in pro-takeover candidates' victory.
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Longwood
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Florida
Progress
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Outage-related
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The
November 2002 election resulted in pro-takeover candidates' victory and
the resignation of an anti-takeover mayor.
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Oviedo
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Progress
Energy
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Franchise
renewal
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Franchise
renewed in July 2002.
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Winter
Park
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Progress
Energy
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Outage-related
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Referendum
scheduled for early September 2003; city council voted in June 2002, arbitrator
determined a $32 million-$42 million cost for takeover.
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OREGON
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Hermiston
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Portland
General Electric/Pacificorp
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Enron,
state law allowing formation
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Full
government takeover passed, resulting in an $8-million cost for 4,000
customers.
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Multnomah
County
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Portland
General Electric/Pacificorp
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Enron,
2001 crisis
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Vote
scheduled for September 16, 2003. Voters can ask to set up a public utility
district, which essentially is a takeover in Oregon.
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Portland
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Portland
General Electric
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Enron
sale of PGE,
2001 crisis |
Feasibility
study of PGE purchase started in late 2002. City proposed a draft condemnation
proposal in June 2003, but status depends on Enron bankruptcy proceedings.
City is also working on a buyout plan.
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