CALIFORNIA
FOCUS
FOR RELEASE: FRIDAY, OCTOBER 18, 2019 OR THEREAFTER
BY THOMAS D. ELIAS
FOR RELEASE: FRIDAY, OCTOBER 18, 2019 OR THEREAFTER
BY THOMAS D. ELIAS
“SIGNS
THAT NOTHING WILL CHANGE AT THE CORRUPT PUC”
“Meet
the new boss; same as the old boss,” went the refrain in the 1971 hit record
“Won’t Get Fooled Again” by The Who. It’s also a pretty fair description of
today’s situation at the California Public Utilities Commission, now staffed
partly by new commissioners not present during most of the agency’s debacles of
this decade.
Things
look very different on the surface in part because the five-member commission
now has four female members for the first time since its founding more than 100
years ago.
The
trouble is, things really are not very different. This agency, which regulates
prices and practices at most of the state’s electric, natural gas, water and
some telephone operations, has been caught favoring and colluding with electric
and gas companies repeatedly. Many see its rate-setting proceedings
as charades akin to a Japanese kabuki dance that features lots of
activity, but a predetermined outcome.
The
process in the commission’s first major proceeding with two freshly minted
members appointed by new Gov. Gavin Newsom, including the agency president,
appears pretty much like it’s been during decades of male domination.
The
PUC’s newest responsibility is to determine whether customers of California’s
three big privately-owned electric companies should pay a monthly fee of about
$1.50 each for the next 15 years to put $10.5 billion into the new state
Wildfire Fund for payment of utility liabilities in future big fires. In
effect, this would continue a charge consumers have paid since 2002 for
electricity the state bought during the energy crunch early this century. That
charge was supposed to disappear this year. Now it will continue.
Beneficiaries include Pacific Gas &
Electric Co., the Southern California Edison Co. and San Diego Gas &
Electric Co., all found responsible for starting massive wildfires in recent
years.
The
legal rub here is that before customers can be dunned, state law requires the
PUC to conduct a proceeding to decide whether any new charge is “just and
reasonable.”
Yet,
the state went ahead and provided a loan of $2 billion to the new fund from
money saved up by the California Earthquake Commission via quake insurance
premiums paid by policy holders. How earthquake claims would be paid if a major
temblor hits during the year or two before that money is repaid by utility
customers is a great unknown, but the money nevertheless quickly came out of
the state’s Surplus Money Investment Fund.
That transfer pretty much coincided with
the PUC setting a date for its required proceeding, and long before any
determination that the fee is just and reasonable. In fact, no evidence has
even been collected so far aside from governor’s office reports on wildfire
costs and liability, which are neither sworn testimony nor other legal evidence
of the sort needed in a PUC proceeding.
Essentially, the commission decided before
its required proceeding to let the Wildfire Fund have the money and then take
it back from electric customers. But it did that without any evidence
justifying the move.
This amounts to legally
premature “pre-decisional decision-making,” says consumer attorney Michael
Aguirre, who recently won back more than $1 billion in consumer funds the PUC
had awarded SoCal Edison to pay for decommissioning its defunct San Onofre Nuclear
Generating Station.
The seemingly illegal move came after
Commissioner Clifford Rechtschaffen, in charge of the required (but apparently
greased) proceeding, determined there was no need for evidentiary hearings over
the new 15-year charge to consumers.
Aguirre, a former elected San Diego city
attorney, argued this demonstrated bias by Rechtschaffen and demanded he be
disqualified from the ratemaking proceeding on the new charge. The other
commissioners unanimously denied Aguirre’s motion and Rechtschaffen stays in
charge of what now looks like the newest PUC kabuki dance.
Essentially, the commission held that
because Rechtschaffen has no financial interest in any utility, he should stay.
He may have no formal utility stake, but he has a long history of favoring the
companies over their customers, including memos he authored on the San Onofre
case while still an advisor to ex-Gov. Jerry Brown.
It
all adds up to business as usual at the scandal-ridden PUC, despite pledges to
change its culture and clean up its act.
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Email
Thomas Elias at tdelias@aol.com. His book, "The Burzynski Breakthrough:
The Most Promising Cancer Treatment and the Government’s Campaign to Squelch
It," is now available in a soft cover fourth edition. For more Elias
columns, visit www.californiafocus.net