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California | Environment & Forest Defense

PG&E Mandatory Rate Hikes Fund Shady Lobbying Against Community Choice
by Aliza Wasserman ( alizawas(at)yahoo.com )
Thursday Mar 15th, 2007 4:53 PM
This speech was read as public comment at the March 15, 2007 California Public Utilities Commission (CPUC) hearing regarding PG&E's $1.6 billion rate hike proposal. It delves into the line item fees that go towards maintaining PG&E's monopoly.
I’m a member of the Green Guerrillas Against Greenwash.  

 As a ratepayer and a citizen, I am saddened by this rate hike Settlement - b/c it forces me to pay PG&E for its lobbying and misleading PR – which directly oppose the public’s freedom to choose cleaner, greener, and cheaper energy.   

 This rate hike includes fees for PG&E’s lobbying-  

o    with Over $30 million for its swarm of lawyers.

o    with a fee hike for the Area Public Affairs – that explicitly works to OPPOSE PUBLIC POWER.

o    And with $136,000 for PG&E’s membership in business associations that lobby

 In the Settlement, the CPUC admits that these lobbying membership fees are “somewhat ambiguous” – since it is illegal to use ratepayer money to lobby - but it allows the cost anyway – stating that the amount is negligible and we will assume that it doesn’t get used for lobbying activities… I guess we should assume that all these lobbyists have very expensive stationary.
 
 But even so - why should we pay for this stationary – and more importantly - why should we so easily dismiss the negative impacts of this lobbying - when it is well established that PG&E spends millions lobbying against the public interest each year.

 Just this past year, PG&E spent more money than has ever been spent on a local ballot measure in US history – to oppose Yolo County’s interest in joining SMUD.  With an $11.3 million misinformation and lobbying campaign it kept the public from joining a utility that offers far more renewable energy AND 30% lower cost.  

 This type of irresponsible behavior is encourage by this very rate hike – which funds PG&E’s Customer Retention and Economic Development program – whose stated goal is to prevent customers from choosing other energy providers – by flooding regions with short-term subsidies and advertising campaigns.  We are forced to fund this $4.35 million program.

 Of this, $320,000 is earmarked for “regulatory” i.e. lobbying activities to prevent freedom of choice.

 Yet this settlement merely asks PG&E to demonstrate that this program succeeded in retaining customers.

 But demonstrating retention of PG&E customers – does not demonstrate retention of the public benefit.

 The public is not served by forcing us to pay for misleading ad campaigns and lobbying.

 The public is not served by preventing communities from understanding and acting on the real choice for a renewable energy infrastructure at rates that meet or beat PG&E’s.

We therefore call on the Commissioners to reconsider the rate hike and:
 
1)    Revoke authorization of the Customer Retention & Economic Development program;

2)    Revoke and AUDIT, all of PG&E’s lobbying & PR activities.

3)    And Strongly consider the state-wide movement towards Community Choice Aggregation –  especially when evaluating all long-term investments in nuclear and LNG

Thank you for your attention to the burgeoning public demand for affordable, safe and serious climate solutions.