CALIFORNIA FOCUS
FOR RELEASE: FRIDAY, APRIL 19, 2024 OR THEREAFTER
BY THOMAS D. ELIAS
“AT LONG
LAST, ACTION POSSIBLE ON PUC CONFLICTS”
For more
than half a century, as California’s electric and natural gas rates rose to
some of the highest levels in America, conflicts of interest have abounded
among the state’s top utility regulators.
Former
members and presidents of the California Public Utilities Commission moved over
to become top executives of the state’s largest privately-owned electric
companies. One former president of the Southern California Edison Co., the
state’s second biggest power provider, served more than a decade as president
of the PUC – under two governors.
Time and
again, the big electric companies got their way on issues from rooftop solar
and price increases to being allowed to stay in business after being convicted
of criminal negligence and manslaughter when wildfires and an explosion they
caused killed many dozens of citizens.
Until
now, there’s been little hope of positive change. That’s because unlike the
federal government, this state has no laws preventing the kinds of conflicts
that have been so common. Commission members cannot be fired, even by the
governors who name them to six-year terms.
There is no ”cooling off”
period between when commissioners leave their posts and when they can be hired
by the utilities they’ve been supervising. Nothing to stop corporate bosses
from becoming top regulators, as onetime SCE President Michael Peevey did under
both Gov. Gray Davis and his successor, Gov. Arnold Schwarzenegger. No way to
tell whether their decisions are dictated by secret deals with regulated
monopoly companies.
This has
all been true under both Republican and Democratic governors, most of whom have
gotten huge campaign contributions from big utilities. Example: current Gov.
Gavin Newsom has received more than $10 million in donations from just one
utility, San Francisco-based Pacific Gas & Electric.
But now
there is hope at last. It comes in the form of Assembly Bill 2054, sponsored by
Democratic Assemblywoman Rebecca Bauer Kahan of San Ramon.
Given the
lobbying power of companies like Edison, PG&E and San Diego Gas &
Electric, the fate of this bill is far from certain, both in the Legislature
and at the hands of Newsom, who would have to sign off before it can become
law.
But the
bill offers a lot of positives, most prominently a 10-year waiting period
before any PUC member can accept a job at any regulated company.
Said
Bauer Kahan in a statement, “With California’s electricity rates consistently
the highest in the nation, it is crucial to safeguard against potential
conflicts of interest and undue industry influence on (regulation). AB 2054 is
a crucial step toward restoring faith in our regulatory process and ensuring
that regulators act solely in the public interest.”
The bill
would clearly be a big step, but it’s still far from perfect, as it does not
prevent former PUC members from becoming lobbyists and consultants for the
companies. Those jobs can be at least as lucrative as high corporate posts, and
create similar potential conflicts of interest.
Currently,
the two most recent former PUC presidents are in just such slots. Michael
Picker, PUC chief for most of ex-Gov. Jerry Brown’s last two terms, became a
partner in a consulting firm called Caliber Strategies, which lists clients
like the huge Blackstone investment and holding company and Portland General
Electric, which serves 44 percent of Oregon residents.
Picker,
who led the PUC and consistently refused media interview requests during the
first years of California’s long siege of massive utility-sparked wildfires,
describes himself as an expert on how utilities should handle fire situations.
Meanwhile,
Marybel Batjer, PUC president for two years after Picker left and previously a
Newsom adviser on how to keep PG&E going through its wildfire disasters,
went to the lobbying firm California Strategies. That outfit bills itself as
“the state’s preeminent government relations, public affairs and campaign
consultancy.”
But just
because AB 2054 is not perfect does not mean it should be rejected. Its waiting
period would still be a vast improvement over the current scene, which
essentially sees no limits on secret deals between regulators and big
utilities.
So this
is a must-pass measure, and voters should carefully note whether their
legislators resist the blandishments of the big utilities trying to kill it.
-30-
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