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Dealers: California ‘Shoots Itself’ in Foot

December 10, 2009 By Stephen Silver
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Most of the CE industry knew the California Energy Commission would pass stringent new energy regulations on televisions, which it did in mid-November. But that hasn’t done much to quill the outrage felt by retailers in the wake of the vote.

“I don’t think you can print it,” Leon Soohoo, president and CEO of Sacramento-based Paradyme, said when asked for his reaction. “I think California continues to shoot itself in the foot. We’re a broke state and we continue to do things that hurt our own population.”

Steve Caldero, COO of Ken Crane’s Home Entertainment, agreed. “Everybody’s fighting to stay in business, fighting to do business, trying to deliver value products to customers,” he said. “This does nothing to help the economy of California.”

The regulations, which will go into effect on Jan. 1, 2011, would limit power usage for televisions while in on-mode, and also require a one-watt maximum power usage in standby mode. An even more stringent requirment will go into effect two years later, with 182-Watt on-mode power usage limit dropping to 175 watts for 42-inch TVs.

CEC did agree to exempt 58-inch-and-larger TVs, but there were no changes from prior to the public comment period.

Caldero and Soohoo and other industry experts say existing Energy Star standards are good enough.

“They did not take into consideration Energy Star, which was already in place,” Caldero said. “The CEA and the retailers involved kept saying, ‘Why can’t we use what’s in place? We’re using it in stores [as a selling point] today. It’s working, so why do we need this?’”
Dealers said there’s little they can do for now to adjust to the regulations.

“I’m at the mercy of what manufacturers do,” Soohoo said.

Caldero agreed. “What will the energy performance of TVs be in 2011?,” he said. “I don’t know what the manufacturers are going to do. They’re not going to make TVs just for California.

“If the standards were enforced today,” he added, “20 to 25-percent of what we sell, we couldn’t sell.”

CEA opposed the regulations from the beginning, lobbying the commission and filing a 91-page comment that forced the CEC to delay its vote for two weeks. But the group seemed resigned to the commission’s decision.

 

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