Proposition 16: New Two-Thirds Requirement for Local Public Electricity Providers Act

From Mobilize the Immigrant Vote

What is Proposition 16 - The New Two-Thirds Requirement for Local Public Electricity Providers Act?

If approved, Prop 16 will require 2/3 voter approval before local governments can choose an alternative energy provider. Utilities owned by municipalities will also need permission to expand services into new territories. Pacific Gas & Electricity (PG&E), the initiator of Prop 16, says it will protect taxpayers from taking a loss on the volatile energy market.

MIV Analysis

PG&E has already spent $28.5 million to market this measure as a good governance issue. But environmental groups and several municipalities argue that PG&E is really looking to prevent competition, retain its market share, and prevent green energy enterprises from entering the market. Since getting a 2/3 vote on any issue before taxpayers is extremely difficult to obtain, Prop 16 really exists to protect and expand the profits of PG&E, the almost exclusive funder of the proposition. Prop 16 will leave all communities, particularly immigrants and low-income communities, more vulnerable to rate increases from private electricity companies and without access to greener energy.

Key Supporters & Opponents

Supporters include PG&E, the California Chamber of Commerce, and the California Taxpayers Association.

Opponents include the Utility Reform Network, the Palo Alto City Council, the Modesto Irrigation District, and State Senators Darrell Steinberg, Mark Leno, Jenny Oropeza, Lois Wolk, Christine Kehoe, Alan Lowenthal, Gilbert Cedillo and Dean Florez.

Recommended Vote

NO