Schwarzenegger's solar plan could burn CA consumers

The Governor's "One Million Solar Bulidings" by 2018 initiative has run into a slight snag, funding for promised rebates.

"Schwarzenegger is expected to finalize a detailed solar program early next year and put it into what would likely become one of the highest-profile bills during next year's legislative session.

The legislation will undoubtedly attract a major battle among many of the most entrenched special interests in Sacramento. Expected is a key fight pitting trade unions against the building industry over whether the program will trigger a law requiring builders of solar homes to pay union-level wages.

The most notable issue, however, is how to foot the bill for the rebates. An effort introduced by Schwarzenegger late in the last legislative session was killed amid concerns that the solar push will require an electricity rate increase in a state still paying for the 2000-01 energy crisis.

"Our rates are very high now and this is potentially a very expensive program,'' said Dorothy Rothrock, vice president of government relations for the California Manufacturers and Technology Association, which has substantial clout in Sacramento.

Administration officials have yet to propose how they will fund the program. Last year, Schwarzenegger's bill could have led to a rate increase that some estimated would have raised $1 billion over 10 years by adding 30 to 50 cents a month to most residents' electric bills. That increase would provide rebates of more than $2,500 to homeowners."