In the state plagued by catastrophic blazes started by strong winds knocking down power lines, large investor-owned utilities have been aggressively shutting off power for millions of customers ahead of windstorms.
Utility companies cite public safety for the practice but also do it to protect their bottom line.
State Sen.
The bill would require investor-owned utilities to reimburse customers and local governments for some costs associated with blackouts. It would require an electric company's shareholders — not its customers — to put money into a fund to reimburse customers within two weeks of a blackout. It would also ban electric companies from raising rates to cover losses from a blackout.
The
If the penalties had been in effect last fall,
“It's about giving utilities an incentive to use planned blackouts as a scalpel and not as a sledgehammer,” Wiener said.
Others worry the bill would spook electric companies into being too cautious with blackouts, thus increasing the risk of deadly wildfires.
“I believe it gives perverse incentives that could harm people,” said state Sen.
The bill passed the
In a letter to committee members on Wednesday,
However, Flemings said the bill “would put customers and communities in a very dangerous position by penalizing the utilities for deploying a public safety power shutoff.”
Wiener said the bill would not ban planned blackouts, saying “they can save lives and property.” Instead, he said it is to “incentivize the right behavior.”
“Those costs are real,” Wiener said. “For a lot of people, if you lose your refrigerator contents, that's your food for the month.”
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