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Study: CPUC and Edison collaborated to scam ratepayers

SDG&E consumers got fleeced, too, over San Onofre costs

San Diego attorneys Mike Aguirre and Maria (Mia) Severson filed a report with the California Public Utilities Commission (CPUC) July 3 stating that Southern California Edison and CPUC bureaucrats schemed to double-whammy ratepayers. San Diego Gas & Electric (SDG&E) owns 20% of the now-shuttered San Onofre nuclear plant, and Edison owns almost 80%. Edison and the CPUC colluded to avoid legally mandated hearings, charges the study. The utilities and regulators intentionally suppressed evidence that would lower rates, charges the study. SDG&E, Edison and the CPUC bureaucrats unlawfully allowed rate increases without due process, according to the 23-page report. This means that ratepayers are paying for state-mandated profits for Edison and SDG&E and are additionally paying costs related to the failed San Onofre. Thus, customers are paying twice for electricity they use only once. (The head of the CPUC, Mike Peevey, is a former president of Edison.)

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San Diego attorneys Mike Aguirre and Maria (Mia) Severson filed a report with the California Public Utilities Commission (CPUC) July 3 stating that Southern California Edison and CPUC bureaucrats schemed to double-whammy ratepayers. San Diego Gas & Electric (SDG&E) owns 20% of the now-shuttered San Onofre nuclear plant, and Edison owns almost 80%. Edison and the CPUC colluded to avoid legally mandated hearings, charges the study. The utilities and regulators intentionally suppressed evidence that would lower rates, charges the study. SDG&E, Edison and the CPUC bureaucrats unlawfully allowed rate increases without due process, according to the 23-page report. This means that ratepayers are paying for state-mandated profits for Edison and SDG&E and are additionally paying costs related to the failed San Onofre. Thus, customers are paying twice for electricity they use only once. (The head of the CPUC, Mike Peevey, is a former president of Edison.)

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Comments
26

donbauder, Who performed this "study" and what is the source of their information?

July 5, 2013

danfogel: I guess I didn't make it clear. The study, filed with the CPUC, was done by Severson and Aguirre. It sources other documents. Best, Don Bauder

July 5, 2013

This is only the tip of the San☢ money iceberg...

How about this 3/4 of a Billion Dollars:

The $742 Million Question, http://decommission.sanonofre.com/2013/06/the-742-million-question.html

Now the next phase of eliminating San Onofre has begun, we need to hold SCE's feet to the fire and urge the CPUC to not only put San Onofre's Multi-Billion dollar decommissioning out for public bid but to start issuing rebates for SCE's replacement steam generator debacle now, to offset their new energy increases.

The questions all utility ratepayers should now be asking is,

Where are my rebates (including interest) and who is holding them up?

July 5, 2013

CaptD: My guess is that the CPUC is involved in the holdup of those funds. Best, Don Bauder

July 5, 2013

holdup = Stellar word choice! Salute!

July 5, 2013

CaptD: The double entendre was intentional. Best, Don Bauder

July 5, 2013

It should be noted that SCE has passed along TOO many millions of dollars in Senior Officials expenses to ratepayers while the replacement steam generator debacle was happening, expenses that allow them to promote for keeping SCE's San Onofre in operation!

Edison employees rack up millions in business expenses

The highest-paid 10 percent of Southern California Edison employees earned at least $418.8 million in combined total compensation during 2011, and charged at least $11.8 million to their expense accounts, according to a report the public utility filed with the state.

This practice of using ratepayer money to promote for the Utilities best interest instead of the ratepayers best interest is yet another item that needs to be fully examined during the "reasonableness investigation" that the CPUC is now conducting!

It is no wonder that SoCal has the most expensive electricity in the USA, since the CPUC is really enabling SCE's shareholders to enjoy record profits at ratepayers expense!

July 5, 2013

CaptD: For many, many years, SDG&E had the highest electric rates in the nation. Edison has passed it recently, but SDG&E is still third. Best, Don Bauder

July 5, 2013

Both Energy Hogs are feeding at the same trough, which ratepayers have no control over, thanks to the CPUC.

July 6, 2013

Damned utilities! They shoddily build a nuclear power plant with transient stoned laborers, at Pacific Ocean's edge in an earthquake zone. When their aging reactors leak a little radioactive steam into the atmosphere, they try to jury-rig repairs. Now that the operation is finally shuttered for good, they want to gouge ratepayers for SoCal Edison/SDGE mistakes. I want my refund! And thank you, Mike Aguirre!

July 5, 2013

monaghan: Good thoughts, but you won't get your refund until the CPUC shows signs that it is protecting consumers -- its mandate -- and not boosting utility profits. Best, Don Bauder

July 5, 2013

Don, Brown must act immediately to stop the CPUC and Edison from scamming ratepayers any longer or he is a failure as a governor.

The problems with CPUC and utilities are actually much worse than just scamming as usual, Brown has done nothing to protect Californians from unacceptable long-term threats to quality of life due to escalating climate changes from out of control CO2 pollution, causing increasing drought conditions, degrading water supplies and reductions in quality food sources.

Our institutions appear to be creating zombies that can't even protect themselves because far too few people are demanding that our leaders take action now.

Thus we have no leaders that the majority can respect anymore, including Brown who refuses to take decisive action.

July 5, 2013

Anon92107: You have put your finger on the problem: far too few people are interested in change. That means they are not interest in improvement in their own pocketbooks. As long as they can drink beer and watch TV, they seem to be happy. Best, Don Bader

July 5, 2013

I am glad that Mike Aguirre and Mia Severson filed the Motion with the CPUC this week, which contains the "report" you reference, Don. This Motion builds upon fillings made by several Intervenors in this CPUC Investigation into the San Onofre Outage since the CPUC launched it late last year; as well as the cross-examinations and statements made by those of us who participated in the CPUC's first round of Evidentiary Hearings in mid-May. Mike and Mia are adding their voices to those of the grassroots Coalition to Decommission San Onofre, which I and Ray Lutz represent, as well as Women's Energy Matters, the Division of Ratepayer Advocates, the Alliance for Nuclear Responsibility, TURN and World Business Academy. We all filed Opening Briefs on July 28th which the Aguirre/Severson Motion amplify, and the Division of Ratepayer Advocates filed a Motion on June 25th calling for immediate removal from rate base of San Onofre Plant costs; our Coalition filed a Reply in support of this Motion this past Monday, and added additional demands to streamline the CPUC's process and focus on reducing the ratepayers' burden for this SCE mgt debacle, in which SDG&E is complicit as minority owner. Good to see Mike and Mia weighing in, too.

July 5, 2013

sullivanms: I wrote about the Division of Ratepayer Advocates calling for immediate removal of San Onofre costs from the rate base. Best, Don Bauder

July 5, 2013

Mike Aguirre and Mia Severson have a track record of winning big because they not only know the law but they tend to submit expert testimony that the Judge cannot dismiss because it is relevant to the case at hand; which is why when Mike Aguirre and Mia Severson hold a press conference they attract media attention in a big way.

I'm sure everyone that is interested in this CPUC investigation is looking forward to reading this study closely in order to learn how much and in what ways our ratepayers money has been manipulated.

July 6, 2013

CaptD: I agree that Aguirre and Severson do thorough jobs. There are others involved in this fight, too. Best, Don Bauder

July 6, 2013

The effort that led to decommissioning San☢ (aka San Onofre) was fought on many fronts which encouraged an ever increasing number of people to get involved, which resulted in the matter becoming not only a political nuclear H☢T potato but also one that highlighted all the technical reasons that restarting SanO was nothing short an nuclear experiment, which is illegal.

As a spokesperson for DAB Safety Team, this would have been much more difficult, if not impossible if we had not had all the nuclear experts (who for various reasons, choose to remain anonymous) helping us every step of the way.

I'd like to especially salute DecommissionSanOnofre http://decommission.sanonofre.... who allowed us to post all our technical documents (under a tab called: DAB Safety Team Documents) on their website, from which, we could then share them with the NRC and the World!

The real battle, deciding who is going to foot the bill for all the decommissioning money not yet collected ($743 Million) is still ahead, much more on that will be coming out very soon!

Stay Tuned for that and much more...

July 6, 2013

the gradual decommissioning of the plant sounds like another gravy train for edison and its contractors.

will they be audited during all phases of the process, or just take what info they choose to release ?

July 6, 2013

Murphyjunk: I would hope the CPUC will make sure Edison is audited. Will my hope come true? I have my doubts. Best, Don Bauder

July 6, 2013

Many of us push for the Decommissioning job to be put our for public bid instead of "GIVEN" to SCE.

Why should SCE be given control of a Multi-Billion Dollar fund to manage after causing the San Onofre Engineering Debacle?

If your gardener killed your lawn, would you reward him with a raise and then pay him to install a new lawn or get another Gardner ASAP?

July 6, 2013

CaptD: Good points. Why entrust the viilain with the cleanup? Remember that Mike Peevey, president of the CPUC, was once president of Southern California Edison. Best, Don Bauder

July 6, 2013

The very latest SDG&E Energy Jive: SDG&E Warns of Higher Electric Bills After San Onofre Closure

SDG&E has stayed out of the San Onofre Debacle Limelight allowing SCE to get egg all over its face for their replacement steam generator design debacle that led to shutting down San Onofre.

Now SDG&E is trying to position themselves to avoid as much ratepayer anger as possible, yet the truth is that they and their shareholders have made huge profits over the last few years all at ratepayers expense, so now it is their turn to rebate their portion of what ratepayers have already paid them for energy never collected...

NOTE: Ratepayers in SoCal are still paying about $70 million a month for San Onofre and will continue to do so until the CPUC orders the Utilities to issue refunds...

Since San Onofre started leaking on 01/31/12, we have paid to date that $70 Million for about 17 months which equals about 1.2 BILLION Dollars, which has nothing to do with all the other monies that we are still owed!

To bad Mr. Knight did not step up and tell ratepayers that SDG&E made a huge mistake and will start issuing its customers credit on their next bill, instead of trying to explain away yet another rate increase with his Energy JIVE.

July 6, 2013

CaptD: On June 24, Jessie Knight Jr., chairman and chief executive of SDG&E, wrote customers. In the second paragraph he noted that "the closure of San Onofre Nuclear Generating Station has created an untimely reduction in our region's energy resources." In the fourth paragraph, he said that someone whose bill is typically around $100 a month will see an increase of $15. Those with a bill of $250 a month will see an increase of $75. He must have meant that these increases were each month. So he was tying bill increases to the closing of San Onofre. Best, Don Bauder

July 7, 2013

Don, you keep reminding us that current CPUC head Mike Peevey is the ex-President of SoCal Edison. You seem to suggest that his old alliance distorts his willingness/ability to represent the rate-paying public first and foremost.

Does Peevey hold this job with the Governor's blessing? Is Peevey the main problem? The sole problem? Should people be petitioning Governor Brown to remove Peevey and appoint someone who will act on behalf of the public's interest?

It seems to me that Aguirre is establishing the record, but there may be additional ways to pressure the CPUC to protect consumers.

July 6, 2013

monaghan: Yes, I believe that his former positions at Edison are definitely behind his overwhelming interest in jacking up utility profits instead of serving consumers fairly. Yes, he holds the job with the governor's blessing. Peevey is not the only problem. Brown appointees have been disappointing. Best, Don Bauder

July 7, 2013

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