Electricity, Aerospace, Small Business Outages in the South Bay

On Sunday, September 15, the South Bay suffered another regional power outage. On average, the Southern California region from Manhattan Beach to Palos Verdes experiences twenty-five power outages a year, some of which have caused electrical fires. In many instances, drivers must detour from their original destinations on heavy thoroughfares throughout the region, and businesses large and small lose time and money preparing their goods and services.  During these untimely setbacks, local police and fire stations must rely on generators to maintain their stations, then follow up on public safety away from their daily duties. These shortages even affected ExxonMobil in Torrance, where earlier this year the entire workforce was forced to evacuate in case of fires or explosions following the power outages.

Coincidentally, Assemblyman Al Muratsuchi (D-South Bay) submitted Assembly Bill 66, which would require California’s electric stations to submit information following power outages. The legislation passed with only one “no” vote, and awaits Governor Brown’s signature. This bill would require electricity providers to report to the California Public Utilities Commission (CPUC), and this agency would then document and enforce investigation and reforms for utility providers following the frequency of these problems.

Instead of documenting the power outages, the state legislature should investigate why they have been occurring for the past four years. Southern California Edison has a monopoly on electrical energy in the region. The service has become dismal and abysmal over the past four years, yet legislators have done nothing to permit competition and accountability from these utilities. 

Some investigation into the lasting impact of Cap and Trade legislation, signed into law by the previous administration, would also spur discussion on the proper role of the state in regulating energy markets. So far, no one has turned up the lights on this matter, but the carbon tax did increase energy prices and increase pollution where instituted in other countries. Who knows how this abortive legislation is harming and hindering South Bay energy needs?

Besides the frustration, as well as loss of time and money for the South Bay business community, what other outages should spark outrage in the South Bay?

After two attempts, I finally contacted Muratsuchi’s office regarding the fate of the Aerospace Industry in the South Bay, one of the crucial businesses in the region still hard-hit by the sluggish economy. Murastuchi hosted a forum for the aerospace industry, whose diminished power stems from the detrimental taxes and regulations on California’s small businesses.

During the August 9^th forum, business executives and leading aerospace entrepreneurs singled out a number of issues which the Assemblyman and his legislative colleagues need to address.

1.       The high cost of doing business in California is hurting industrial investors. From high employee costs to high energy prices, potential business entrepreneurs often seek other venues for expansion. Governor Brown just raised the minimum wage, a move which small businesses throughout the state oppose. Assemblyman Muratsuchi’s AB 66legislation may increase costs since regulations and reporting alone will only increase the red tape instead of cut prices, tying up energy production in the state.

2.       Worker’s compensation premiums are higher in California, also discouraging future investment and employment. There is nothing wrong with expecting companies to provide and protect their employees from workplace accidents. Yet with the rising costs, the ample legislation fit for a lawsuit feast, and the ongoing workers’ comp fraud, businesses look elsewhere for a fair opportunity to expand and profit.

3.       California’s state debt  continues to discourage investment. In spite of tax increases, in spite of promises for more frugal spending, Governor Brown’s promises of a balanced budget and an end to the wall of debt have gone unfulfilled. The tax revenues have decreased in the state of California since the passage of Prop 30. Even local schools still struggle to balance budgets. Local school officials do not know how much money they will receive this year, nor can count on stable and continuous funding.

Raytheon is moving one of its headquarters to Texas, and other businesses are moving to Orange County. A local law firm advertises services on how to leave their businesses! Not just power outages, but businesses going out should alarm Sacramento legislators.

Regarding these power outages in the South Bay, why doesn’t Assemblyman Muratsuchi investigate the effects of taxes, spending, and regulations like Cap and Trade on California’s economy? European energy markets have already endured the havoc of that terrible carbon-trading scheme, and voters in the South Bay and throughout the state of California are wondering how much longer the taxpayers will endure paying for not only the energy bills, but also the upkeep for a statehouse dependent on union-hall lobbying and special interest infiltration.

The South Bay power outages in electricity, aerospace, and small businesses will end when voter outrage in the region resurges and resists these outrageous policies. Residents elected a moderate legislator to represent a moderate role for government in the South Bay. Despite his lead on requiring reports of power outages, when will Muratsuchi resist California’s higher taxes and regulations, all of which are tying up businesses and forcing away potential investments?