http://www.californiaprogressreport.com/site/?q=node/7741
PG&E wrote Prop 16 and contributed $34.6 million to win its passage.
The flood of Prop 16 TV ads don’t mention that the initiative was written to guarantee that PG&E’s high priced electricity monopoly will never be challenged.
Prop 16 makes it nearly impossible for locally elected officials to bypass PG&E and use the purchasing power of hundreds of thousands of local residents to negotiate discounts from independent power generation companies.
Prop 16 rewrites a 2002 law that PG&E supported at the time. The law allowed municipalities to contract for direct purchases of electricity (known as "community choice aggregation") at a future time, much as large business purchasers of electricity (factories, hospitals and the like) had been allowed to negotiate bulk purchase discounts before the energy deregulation debacle of 2000- 2001 brought direct access purchasing to a temporary halt.
That moratorium is nearing an end. San Francisco and a group of cities in Marin County are gearing up to negotiate bulk electric discounts for their residents.
PG&E decided it better stop municipal purchasing in its tracks before its customers acquire a taste for lower electric rates.