Quantcast
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

SDG&E takes another shot at picking your pocket

Wants ratepayers to chip in $379 million for 2007 fires

Downtown San Diego skyline during the 2007 wildfires
Downtown San Diego skyline during the 2007 wildfires

In recent years, the words “California Public Utilities Commission” have come to mean one thing: corruption. The commission has concentrated on boosting profits of the investor-owned utilities — Sempra Energy, Edison International, and Pacific Gas & Electric — at the expense of ratepayers. The rates of those utilities are among the highest in the nation. San Diego Gas & Electric, a unit of Sempra Energy, may well have the highest rates in the United States.

The commission does not regulate the municipally owned utilities, such as the Los Angeles Department of Water and Power and the Sacramento Municipal Utility District. Their rates can be half as high as San Diego Gas & Electric’s. And the service is generally comparable.

Aftermath of the San Bruno pipeline explosion, 2010

Think of the regulatory/utility corruption that customers of the investor-owned utilities have faced in recent years: the Aliso Canyon gas leak caused by Southern California Gas, a Sempra unit; the shifting of most of the costs of the San Onofre decommissioning to ratepayers, who had nothing to do with the mismanagement afflicting the nuclear plant; the burying of nuclear waste on the San Diego County coast; the San Bruno explosion, which was the result of poor maintenance; the attempt by San Diego Gas & Electric to get ratepayers to pay for uninsured costs of the 2007 San Diego fires, which were caused by the local utility, according to utilities commission investigators.

One of the 2007 wildfires (downtown San Diego in foreground)

San Diego Gas & Electric itself said, “In investigative reports issued in the aftermath of the 2007 wildfires, the California Department of Forestry and Fire Protection (Cal Fire) and the commission’s Consumer Protection and Safety Division attributed the ignition of three of these wildfires — the Witch, Guejito, and Rice Fires — to SDG&E power lines.”

Michael Peevey

While all this was going on, the stocks of the three investor-owned utilities did well. That’s because the commission was spending its time entertaining Wall Street securities analysts, who had a direct line to Michael Peevey, the former commissioner who is now under investigation for his role in arranging the “rape of the ratepayer” at San Onofre.

Now there is a new scandal surfacing — very quietly. There is a history behind it. In 2012, San Diego Gas & Electric tried to get the California Public Utilities Commission to make ratepayers pick up the uninsured costs of the 2007 fires, which the utility caused, according to commission investigators. But one of the commissioners tried a dirty trick. The commission was voting on two matters, neither of which was related to the 2007 fires. This commissioner — no longer there — changed the wording of the issue so that ratepayers would have to pick up those uninsured costs from the 2007 fires.

Michael Aguirre

Local attorney Michael Aguirre caught and exposed the caper, and the commission had to erase the duplicity. San Diego Gas & Electric was turned down. I remember that in 2012 a former commission staffer told me, “They [the commission and the utility] will try to sneak it back in. That’s how they operate.” Sure enough, SDG&E — possibly with the commission’s assistance — is trying to get that money again. “They are back for another bite at the apple,” says April Rose Sommer, executive director of the Protect Our Communities Foundation, a watchdog group. The utility has filed to have ratepayers shell out $379 million to pay for the uninsured fire costs, “and now they are asking ratepayers to pay legal fees.”

San Diego Gas & Electric “wants to be paid for something they caused,” says Aguirre. The local utility had “repeatedly been warned by the City of San Diego that brush-clearing was super-important. San Diego was facing a high risk of a catastrophic fire.” Then the three fires came, investigators blamed the utility’s power lines, and the company tried to pick ratepayers’ pockets. To add insult to injury, San Diego Gas & Electric “wouldn’t give the [utilities commission’s] investigators critical documents.”

“The rationale for SDG&E getting any money is non-existent,” says Aguirre, who was punished for his alertness: the commission wouldn’t give him or his partner any money (called “intervenor fees”) for their work that caught the caper and thwarted it.

Ray Lutz

There is another brouhaha in San Diego County. Regulators and utilities want to bury nuclear waste not far from the water near San Onofre. That could be a disaster. “Aguirre, [his partner] Maria Severson, and I went to the [state] coastal commission,” says Ray Lutz of Citizens’ Oversight. “I would like to move [the waste] three miles up the coast on land already owned by the government and guarded by the military. It would be much better than on the beach. But nobody wants to touch it.” The utilities commission and Nuclear Regulatory Commission are among the regulators that would like to pass on the hot potato, although it is their responsibility.

Michael Picker

A big question is whether the California Public Utilities Commission is any better under Michael Picker, the current president, than under the departed Peevey. “No,” says Bill Powers of Powers Engineering, who founded the Protect Our Communities Foundation. “The problem is the same: the fundamental commitment to facilitating the utilities’ financial objectives.”

Bill Powers

Powers’s worry is Picker’s “concern about the financial objectives of the utilities.” For example, Sempra’s Southern California Gas is putting a 36-inch pipeline into San Diego County. The purposes of the oversize pipe might be “to open up more alternatives: gas going to China, Japan, Korea. Exporting gas would put another burden on American consumers: the potential for gas prices to shoot through the roof,” says Powers. “Why the hell should we be in the business of exporting finite resources because of domestic abundance?” he asks.

California boasts that it is a national leader in clean energy. But the utilities commission continues to permit the investor-owned utilities to build gas-fired plants, thus exacerbating the pollution problem, notes Powers.

Some important people in the state legislature have plans to reform the commission and perhaps do away with it altogether. But there is “not much of a chance” that will happen, says Powers. The legislature has already passed some “softball” measures, but he doesn’t expect much more. “The [commission] works well for utilities. Their political power remains tremendous,” he says. As bad as the situation is, it might be worse for consumers after a wholesale housecleaning at the commission.

Agrees Lutz, “If they abolish the [commission] and reorganize, the utilities would take control. The utilities have so much money, they have everybody in their pockets.”

Here's something you might be interested in.
Submit a free classified
or view all

Previous article

Moved to tears by Dave’s Hot Chicken

Nashville hot chicken ranges from no spice, to hot, to the indemnified “reaper”
Next Article

“I Come From the Andromeda Galaxy”

Alfred Howard, James Brady, Me, Myself and Eye, Orchid Mantis, Puttin’ on the Fritz
Downtown San Diego skyline during the 2007 wildfires
Downtown San Diego skyline during the 2007 wildfires

In recent years, the words “California Public Utilities Commission” have come to mean one thing: corruption. The commission has concentrated on boosting profits of the investor-owned utilities — Sempra Energy, Edison International, and Pacific Gas & Electric — at the expense of ratepayers. The rates of those utilities are among the highest in the nation. San Diego Gas & Electric, a unit of Sempra Energy, may well have the highest rates in the United States.

The commission does not regulate the municipally owned utilities, such as the Los Angeles Department of Water and Power and the Sacramento Municipal Utility District. Their rates can be half as high as San Diego Gas & Electric’s. And the service is generally comparable.

Aftermath of the San Bruno pipeline explosion, 2010

Think of the regulatory/utility corruption that customers of the investor-owned utilities have faced in recent years: the Aliso Canyon gas leak caused by Southern California Gas, a Sempra unit; the shifting of most of the costs of the San Onofre decommissioning to ratepayers, who had nothing to do with the mismanagement afflicting the nuclear plant; the burying of nuclear waste on the San Diego County coast; the San Bruno explosion, which was the result of poor maintenance; the attempt by San Diego Gas & Electric to get ratepayers to pay for uninsured costs of the 2007 San Diego fires, which were caused by the local utility, according to utilities commission investigators.

One of the 2007 wildfires (downtown San Diego in foreground)

San Diego Gas & Electric itself said, “In investigative reports issued in the aftermath of the 2007 wildfires, the California Department of Forestry and Fire Protection (Cal Fire) and the commission’s Consumer Protection and Safety Division attributed the ignition of three of these wildfires — the Witch, Guejito, and Rice Fires — to SDG&E power lines.”

Michael Peevey

While all this was going on, the stocks of the three investor-owned utilities did well. That’s because the commission was spending its time entertaining Wall Street securities analysts, who had a direct line to Michael Peevey, the former commissioner who is now under investigation for his role in arranging the “rape of the ratepayer” at San Onofre.

Now there is a new scandal surfacing — very quietly. There is a history behind it. In 2012, San Diego Gas & Electric tried to get the California Public Utilities Commission to make ratepayers pick up the uninsured costs of the 2007 fires, which the utility caused, according to commission investigators. But one of the commissioners tried a dirty trick. The commission was voting on two matters, neither of which was related to the 2007 fires. This commissioner — no longer there — changed the wording of the issue so that ratepayers would have to pick up those uninsured costs from the 2007 fires.

Michael Aguirre

Local attorney Michael Aguirre caught and exposed the caper, and the commission had to erase the duplicity. San Diego Gas & Electric was turned down. I remember that in 2012 a former commission staffer told me, “They [the commission and the utility] will try to sneak it back in. That’s how they operate.” Sure enough, SDG&E — possibly with the commission’s assistance — is trying to get that money again. “They are back for another bite at the apple,” says April Rose Sommer, executive director of the Protect Our Communities Foundation, a watchdog group. The utility has filed to have ratepayers shell out $379 million to pay for the uninsured fire costs, “and now they are asking ratepayers to pay legal fees.”

San Diego Gas & Electric “wants to be paid for something they caused,” says Aguirre. The local utility had “repeatedly been warned by the City of San Diego that brush-clearing was super-important. San Diego was facing a high risk of a catastrophic fire.” Then the three fires came, investigators blamed the utility’s power lines, and the company tried to pick ratepayers’ pockets. To add insult to injury, San Diego Gas & Electric “wouldn’t give the [utilities commission’s] investigators critical documents.”

“The rationale for SDG&E getting any money is non-existent,” says Aguirre, who was punished for his alertness: the commission wouldn’t give him or his partner any money (called “intervenor fees”) for their work that caught the caper and thwarted it.

Ray Lutz

There is another brouhaha in San Diego County. Regulators and utilities want to bury nuclear waste not far from the water near San Onofre. That could be a disaster. “Aguirre, [his partner] Maria Severson, and I went to the [state] coastal commission,” says Ray Lutz of Citizens’ Oversight. “I would like to move [the waste] three miles up the coast on land already owned by the government and guarded by the military. It would be much better than on the beach. But nobody wants to touch it.” The utilities commission and Nuclear Regulatory Commission are among the regulators that would like to pass on the hot potato, although it is their responsibility.

Michael Picker

A big question is whether the California Public Utilities Commission is any better under Michael Picker, the current president, than under the departed Peevey. “No,” says Bill Powers of Powers Engineering, who founded the Protect Our Communities Foundation. “The problem is the same: the fundamental commitment to facilitating the utilities’ financial objectives.”

Bill Powers

Powers’s worry is Picker’s “concern about the financial objectives of the utilities.” For example, Sempra’s Southern California Gas is putting a 36-inch pipeline into San Diego County. The purposes of the oversize pipe might be “to open up more alternatives: gas going to China, Japan, Korea. Exporting gas would put another burden on American consumers: the potential for gas prices to shoot through the roof,” says Powers. “Why the hell should we be in the business of exporting finite resources because of domestic abundance?” he asks.

California boasts that it is a national leader in clean energy. But the utilities commission continues to permit the investor-owned utilities to build gas-fired plants, thus exacerbating the pollution problem, notes Powers.

Some important people in the state legislature have plans to reform the commission and perhaps do away with it altogether. But there is “not much of a chance” that will happen, says Powers. The legislature has already passed some “softball” measures, but he doesn’t expect much more. “The [commission] works well for utilities. Their political power remains tremendous,” he says. As bad as the situation is, it might be worse for consumers after a wholesale housecleaning at the commission.

Agrees Lutz, “If they abolish the [commission] and reorganize, the utilities would take control. The utilities have so much money, they have everybody in their pockets.”

Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Building paradise in San Diego

Mission Valley, Tijuana gardens, Otay Mesa, downtown skyscrapers, One Paseo, Rancho Santa Fe mansion
Next Article

Music follows nature – the Moldau, Central Asia's steppes, the Alps, the Appian Way , cliffs of Cornwall

We find Siegfried resting under a linden tree
Comments
12

Thank you for your continued excellent reporting Don. As you have stated in your columns, one big reason that allowing utilities to pass on costs of disasters to consumers is the "moral hazard" inherent in such an arangement. By allowing a utility to avoid paying the costs of a disaster there is little incentive for the utility to pay for maintainence and upgrades which help prevent disasters.

Nov. 24, 2016

ImJustABill. It is worse than you state. Actually, the state's investor-owned utilities are permitted to fatten their profits when they screw up. Examples: Pacific Gas and Electric in San Bruno, and EDison at the nuclear plant. BEst, Don Bauder

Nov. 24, 2016

Hail Anderson. I will swap an award for a new CPUC. BEst, Don Bauder

Nov. 24, 2016

Clemente Orozco. RAte payers always get the shaft. BEst, Don Bauder

Nov. 24, 2016

Ed Harris. AMen. BEst, Don Bauder

Nov. 24, 2016

Jack Wilhelm: Telecom wires the villain? Possible. Best, Don Bauder

Nov. 30, 2016

Roger Herried; The CPUC was supposed to be a reform effort. Apparently not. Best, Don Bauder

Nov. 30, 2016

Alpine Mike: Are you certain SDG&E is doing its job now? Best, Don Bauder

Nov. 30, 2016

Alpine Mike: Yes, the investor-owned utilities are working to thwart solar. Best, Don Bauder

Nov. 30, 2016

Mike Murphy: Maybe they will wear disguises. Best, Don Bauder

Nov. 30, 2016

Laurel Kaskurs: Yes, the CPUC permits the building of too many gas plants. And it tries to block solar power, which is the solution. Best, Don Bauder

Nov. 30, 2016

Sign in to comment

Sign in

Art Reviews — W.S. Di Piero's eye on exhibits Ask a Hipster — Advice you didn't know you needed Best Buys — San Diego shopping Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits City Lights — News and politics Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Excerpts — Literary and spiritual excerpts Famous Former Neighbors — Next-door celebs Feast! — Food & drink reviews Feature Stories — Local news & stories From the Archives — Spotlight on the past Golden Dreams — Talk of the town Here's the Deal — Chad Deal's watering holes Just Announced — The scoop on shows Letters — Our inbox [email protected] — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Of Note — Concert picks Out & About — What's Happening Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Pour Over — Grab a cup Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer News — Inside San Diego suds SD on the QT — Almost factual news Set 'em Up Joe — Bartenders' drink recipes Sheep and Goats — Places of worship Special Issues — The best of Sports — Athletics without gush Street Style — San Diego streets have style Suit Up — Fashion tips for dudes Theater Reviews — Local productions Theater antireviews — Narrow your search Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Waterfront — All things ocean Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close