Taming the deregulation beast

Article Abstract:

An innovative legislation to reform the Californian electricity industry will allow the municipal utilities (munis) to compete with the investor-owned utilities (IOUs) in the free market. However, the success of munis hinges on their ability to move away fast from the conventional tax-exempt debt financing to better financial options, such as depreciation and equity funding. The problems of munis stems from their important role in the local social-service delivery mechanism as they provide free energy and associated services to the fire and police departments.

Evaluation, Finance, Reports, Corporations, Electric power distribution, Corporate finance, Municipal services

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Unintended consequences

Article Abstract:

The passage of Proposition 218 has created problems for California cities, counties, special districts and other institutions who will be affected by the proposition. They do not understand and are not fully aware of the meaning and scope of Proposition 218. The proposition sets the signature requirement to qualify a local revenue repeal. It also intends to stop the backdoor method of imposing taxes.

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