Former Edison exec Michael Peevey
On March 26, 2013, an executive of California Edison, Stephen Pickett, had a clandestine meeting with Michael Peevey, then president of the California Public Utilities Commission, at a hotel in Warsaw, Poland.
At this meeting, Peevey sketched out a strategy for Edison (majority owner of the now-shuttered San Onofre power plant) and San Diego Gas & Electric (minority owner) by which they could pass on the decommissioning costs of closing San Onofre to ratepayers, who had nothing to do with the mismanagement that led to the shutdown. Later, the commission approved a deal, which was very similar to what Peevey had suggested in Warsaw: ratepayers would pick up the tab for a whopping $3.3 billion. (Edison and SDG&E already had among the highest utility rates in the nation.)
California Democratic attorney general Kamala Harris
The state attorney general's office investigated and recovered the notes from that Warsaw meeting. Those notes were a smoking gun for obstruction of justice. But skeptics guffawed: attorney general Kamala Harris was running for the U.S. Senate. She wouldn't dare cross Peevey pal and fellow Democratic governor Jerry Brown — whose sister Kathleen has been on Sempra Energy's board of directors since 2013. (Sempra is the parent company of SDG&E.) The skeptics doubted that Harris would actually pursue a prosecution.
Jerry and Kathleen Brown
The skeptics were right.
Last month, the three-year period of the statute of limitations ran out. Unless the attorney general's office investigates another angle on this case, Peevey, Edison, and Brown will skate. Harris did the same in the case against San Bruno, which suffered the destruction of a neighborhood and several deaths from an explosion that Pacific Gas & Electric will have to throw some money in the pot for. At least, in the San Bruno case, federal investigators have moved in. But "the feds are missing in action" on San Onofre, says San Diego attorney Mike Aguirre.
"For her to let the statute go is malpractice," says Aguirre.
Harris has not put anything close to sufficient firepower on the case, as she has stalled it to advance her own political career. Since that Warsaw meeting, the legislature has passed bills to reform the utilities commission. Brown vetoed them.
Meanwhile, Aguirre and his law partner Maria Severson are fighting the San Onofre battle and have not been able to get copies of emails that are essential to the case.