By Kevin Tripp, KABC
The plan sets up a 21-billion dollar fund for disasters caused by utilities. Companies can pay victims from the fund if they pay in. Mindy Spatt from the Utility Reform Network is a power company critic. She says their financial problems could have been avoided.
”One that their own mismanagement, negligence and incompetence has caused.”
But, with the companies facing a crisis, she thinks this is the best avenue for consumers. That’s because, without the fund, Wall Street fears the companies have more exposure to big loses. That can lead to more credit downgrades, thus raising borrowing costs – passed on to all of us. Under the new plan, rate payers continue paying an existing monthly fee of two-fifty.