(July 19, 2006) On Monday, California experienced record peak demand of 46,500 megawatts of electricity, primarily from the state’s investor-owned utilities, according to California’s Independent System Operator (Cal ISO).

Concerned about the adequacy of our energy supply, the Governor visited Cal ISO, urged Californians to conserve power and directed state agencies to do the same. The state ended the day with 7,000 megawatts to spare, according to The Sacramento Bee.

People worried about California having sufficient electricity should know that California Chamber of Commerce-opposed AB 32 (Núñez; D-Los Angeles) very likely will lead to a reduction in the state's available energy supply. In fact, one potential outcome is the loss of 17,000 megawatts of electricity currently generated by plants built before 1977 that may have to be taken off the grid to meet the requirements of AB 32.

Combine that loss of electricity supply with another heat wave and California could easily be experiencing blackouts again- or mandatory curbs on electricity use. Which industry sector will the government have to turn off? High-tech? Financial? Health care?

AB 32 is a lose-lose for California - it will increase consumer costs and drive jobs to neighboring states, and may actually make the environment worse. Instead of spending time on proposals that will hurt the economy and the environment, the Chamber encourages policymakers to focus on alternative approaches that can help stimulate the economy while actually having an impact on this global problem.

Join Opposition

The Chamber-led coalition Sustainable Environment and Economy for California (SEE California) is seeking new business members to join its effort to stop AB 32. For more information on joining SEE California, visit, www.seeca.org.

Staff Contact: Dominic DiMare and Moira Topp