The Western States Petroleum Association (WSPA) last week asked California's Public Utilities Commission (PUC) to deny a request by four major utilities for $600 million in subsidies for vehicles powered by electricity and natural gas.
WSPA said there is a more effective, equitable way to improve California's air quality,
"I want to make it clear that our industry does not oppose introduction of electric and natural gas powered vehicles," said Douglas F. Henderson, WSPA executive director.
"We are intervening in this process because it is unfair and inequitable to require homeowners and businesses to subsidize profit making programs for utility companies while our utility, rates are, on average, 50% higher than the rest of the country.
The proceeding before the PUC was brought by four of California's major utilities. They seek permission to require their customers to pay for new equipment and services to put them into the profit making alternative fuels business.
Requests include subsidies to build fueling infrastructures, funds to give rebates to some for the purchase of new vehicles and batteries, and administrative and marketing costs, among others.
INDUSTRY OPPOSITION
In filing about 500 pages of testimony opposing the utility rate increases, Henderson noted that the oil and gas industry is spending $5-7 billion of its own money in construction and equipment costs to produce the cleanest burning gasoline in the world to meet the California Air Resources Board's emission reduction goals by 1996.
"If the utilities want to get into the alternative fuel vehicle business, that's their right," Henderson said. "But they should do it with their stockholders' money".
He cited studies that showed the combination of cleaner burning gasoline and new automotive technology is a much less costly and more reliable method of meeting clean air goals quickly. Moreover, he said, this cleaner gasoline will have an immediate effect on air quality because it will be used in all cars and light trucks in 1996 without requiring new vehicles.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
