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Commission Rejects Gas Bank Proposal

IN BRIEF / ENERGY

July 24, 2003|Elizabeth Douglass

The California Energy Commission rejected a proposal that would have created a state gasoline bank to blunt price spikes, citing fears that the bank could make things worse for consumers.

The bank would have been available during gasoline shortages, but its supplies would also have been auctioned daily to lessen the major oil companies' hold on California's fuel supply.


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Opponents said the bank would trigger unintended reactions in the market that could increase instead of decrease retail gas prices.

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