3 weeks ago
California lawmakers connected Monday rejected a connection aimed astatine cracking down connected really immoderate of nan nation's largest utilities walk customers' money.
California's investor-owned utilities can't usage money from customers to salary for things for illustration advertizing their marque aliases lobbying for legislation. Instead, they’re expected to usage money from backstage investors to salary for those things.
Consumer groups opportunity utilities are uncovering ways astir those rules. They impeach them of utilizing money from customers to money waste and acquisition groups that lobby legislators and for TV ads disguised arsenic nationalist work announcements, including immoderate caller ads by Pacific Gas & Electric.
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A measure in nan authorities Legislature would person expanded nan definitions of prohibited advertizing and governmental power to see things for illustration regulators’ decisions connected rate-setting and franchises for electrical and state corporations. It would besides let regulators to good utilities that break nan rules.
Monday, nan measure grounded to walk a legislative committee for nan 2nd clip successful nan look of aggravated guidance from utilities, including Pacific Gas & Electric.
"We’ve seen excessively galore examples of nan blatant misuse of ratepayer costs crossed nan state," said Democratic authorities Sen. Dave Min, who authored nan measure that grounded to walk connected Monday. "I cognize that consumers are outraged by this."
A Pacific Gas and Electric unit buries powerfulness lines successful Vacaville, California, connected Oct. 11, 2023. California lawmakers rejected a connection aimed astatine cracking down connected really investor-owned utilities walk money from their customers. (AP Photo/Jeff Chiu, File)
PG&E opposed nan measure because it said it would return distant nan powerfulness of authorities regulators to analyse inferior companies’ costs and determine whether it is "just aliases reasonable″ for customers to salary for them.
Plus, PG&E lobbyist Brandon Ebeck said it’s due for customers to salary for nan company’s rank fees that spell to various manufacture associations because they use customers. He noted those groups coordinate emergency consequence and wildfire training. When nan warfare successful Ukraine started, nan Edison Electric Institute — a nationalist relation representing investor-owned utilities — sought to find surplus instrumentality that could beryllium sent to Ukraine.
"There’s a batch of benefits to customers," Ebeck said.
The measure was portion of a larger backlash against nan rising costs of energy successful California. Power is costly successful California successful portion because of nan activity required to support and upgrade electrical instrumentality to trim nan consequence of wildfires successful a authorities pinch long, barren summers.
As rates person continued to climb, utilities for illustration Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric person faced expanding scrutiny from user groups complete really they walk nan money they cod from customers.
Matt Vespa, elder lawyer astatine nan biology defense group Earthjustice, said Monday's ballot was "incredibly disappointing." He said nan existent rules for utilities "incentivizes them to spot what they tin get distant with."
As an example, Min and user groups noted PG&E spent up to $6 cardinal successful TV ads to tout its scheme to hide powerfulness lines to trim wildfire risk, a scheme that immoderate user groups opposed because it accrued customers’ bills.
The ads first aired successful 2022 and characteristic CEO Patti Poppe successful a company-branded difficult chapeau while saying nan institution is "transforming your hometown inferior from nan crushed up."
The inferior recorded nan expenses for those ads to travel from a customer-funded relationship that is dedicated to reducing wildfire risk, arsenic first reported by nan Sacramento Bee. PG&E spokesperson Lynsey Paulo said nan institution has not yet asked regulators to reappraisal that expense. The California Public Utilities Commission will determine whether customer costs tin salary for nan ads.
Paulo noted authorities regulators let utilities to usage money from customers to salary for information communications connected television.
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"Our customers person told america they want to cognize really we are investing to amended information and reliability," Paulo said. "We besides usage integer and email communications, but immoderate customers do not person net aliases email access, truthful we usage methods including tv spots to pass pinch each of our customers."
Some user groups opportunity nan ads person crossed nan line.
"Only astatine PG&E would (Poppe’s) attempts astatine marque rehabilitation beryllium considered a ‘safety message,’" said Mark Toney, executive head of nan Utility Reform Network. "This blatant misuse of ratepayer costs is precisely why we request SB 938 and its clear rules and required disclosures for advertizing costs."
