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PG&E Strike Force

by: Brian Leubitz

Fri Mar 19, 2010 at 10:15:00 AM PDT


Yesterday, the PUC heard a debate about Prop 16, PG&E's attempt to buy itself a brand new supermajority law. The PUC has, in the past, taken positions on initiatives in areas that it regulates.  It should join every editorial board that has looked at the measure and say NO! to PG&E's power-play.

But, today there was some bigger news.  A group of municipalities sued to take Prop 16 off the ballot:

The City and County of San Francisco today joined with public entities from throughout California in a lawsuit to strike the controversial PG&E-funded initiative constitutional amendment, Proposition 16, from the June 8, 2010 statewide ballot for being wholly false and misleading, and for concealing its true nature and purpose from voters. Dubiously self-entitled the "Taxpayers Right to Vote Act" by its proponents, despite having no bearing on taxation or government spending, the California Attorney General recently re-entitled the measure, "New Two-Thirds Vote Requirement for Local Public Electricity Providers." The proposed amendment would impose a new super-majority vote threshold before public entities in California would be allowed to pursue virtually any energy services programs intended to benefit ratepayers or the environment.
*** **** ***
"Despite what its proponents would have us believe, Prop 16 doesn't help taxpayers and doesn't empower voters-in fact, it does the exact opposite," said San Francisco City Attorney Dennis Herrera. "Enabling a one-third minority to hold the will of the majority hostage has been a disaster for our state budget process in Sacramento. Now, Prop 16 would impose that recipe for deadlock on California's energy future. State law enables courts to remove initiatives that misrepresent and conceal their true nature and purpose. If our elections laws are to have meaning, the court should strike this deceptive amendment from the ballot." (Press Release)

Of course, the pro-Prop 16 Consultant Strike Force (paid out of PG&E's ratepayer-funded political slush fund) immediately flew into action. This is from Robin Swanson, a Democratic consultant:

Opponents would rather file lawsuits behind closed doors and use legal maneuvers to try and stop people from voting than talk to the voters of California in the open forum of an election.

Ironically, Proposition 16 was put on the ballot simply to guarantee voters the right to vote before local governments borrow or spend public dollars to take over electric utilities. Particularly in these tough economic times, we need to make sure we can use our vote to hold the politicians accountable.

But, as evidenced from today's actions, it's clear that the opponents don't want voters to have a say on this issue at all.(Press release - Robin Swanson)

To say this is deceptive would be a grand understatement.  Let's put this in perspective.

  • PG&E plans on spending $35 million on this measure. That is a ton of money for a June primary or any election for a statewide measure.  PG&E isn't trying to "give voters their choice" they are trying to buy compliance from a duped public being fed propaganda on TV.
  • PG&E is spending ratepayer money on this measure. On the flip side, many of the interest groups that oppose the measure, municipal utilities, are prohibited from spending ratepayers money on a campaign to oppose the measure. Not only is PG&E going to beat up on their opponents, they are going to make sure they are tied up as they do it.
  • The other opponents of Prop 16 are either underfunded public interest groups, such as The Utility Reform Network (TURN) or politicians. This is a classic case of concentrated interests (PG&E) versus diffuse (the public). Thus the spending difference.
  • And finally, PG&E is going to give anybody lectures about voting when they are trying to institute a supermajority requirement? It's ludicrous on its face.  But, that's why they are going after the supermajority requirement.  Even a 50% vote of the people is ridiculous after they previously agreed to support communities who wanted to embark upon community choice aggregation.

    In the end, this is just bad policy. It's why editorial boards across the state are panning this awful measure:

    Pacific Gas and Electric spent $3.5 million to collect more than a million signatures to qualify what it calls the Taxpayers Right to Vote Act for California's June ballot. The title makes it sound like motherhood and apple pie. It's just the opposite. If voters approve the scam, it will protect PG&E from dissatisfied customers angry about bad service and high costs. (Fresno Bee, 1/20/2010)

    The point isn't to protect taxpayers' rights. It's to protect the profits of a monopoly utility - both from ambitious clean-power schemes in San Francisco and from modest annexations in Redding. This is one measure where voters will need to look past the catchy slogan and see who really stands to benefit.(The Redding Record Searchlight 1/16/2010)

    It is unusual for The Bee to come out against a ballot measure before the campaign has really started. The PG&E initiative deserves special attention. It's that bad.(Sacramento Bee, 1/192010)

    Californians must stand up to this effort to pass a monopolistic measure with our own money.

    Brian Leubitz :: PG&E Strike Force
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    PG&E Strike Force | 11 comments
    SMUD (0.00 / 0)
    Sacramento Municipal Utility District is always under attack by PG&E.  It is proof that utilities do not need to be run-away profit machines for the world-wide wealthy elites.  

    Supermajority (0.00 / 0)
    This is a classic example of why here needs to be a requirement that any initiative that would impose a supermajority must be passed by the same supermajority.

    Vote this Turkey down... (0.00 / 0)
    My Family and Me will vote NO on this insulting powergrab by this Turkey of an amendment.(no pun intended)

    Robin Swanson (0.00 / 0)
    With corporatist Democrats like that, who needs corporatist Republicans?

    Sad.


    I think it's worth pointing out (0.00 / 0)
    that she's done some really great work on behalf of K-12 education.

    IIRC, she also did a lot of work for the Alliance for a Better California in that 2005 butt-kicking of Schwarzenegger.

    I think?


    [ Parent ]
    I'm voting no. (0.00 / 0)
    PGE is running a deceptive campaign, but the initiative is not quite as evil as it is made out to be.  PGE is a distribution company as a public utility.  When it disributes gas and electricity to large areas of the state, it can do so more efficiently if there are not pockets of municipal distribution systems within their territory.  When the efficiency goes down, the cost for the rest of us goes up.

    I don't like the idea of prohibiting the creation of municipal districts -- if that's what a city wants to do, its ok with me.  But requiring a 2/3 vote is essentially prohibiting municipal districts.  If we were talking about a simple majority vote, I might have a different conclusion.

    Is Prop 16 deceptive?  Yes.  Is a 2/3 vote good public policy? No.  Is Prop 16 written by Satan?  No.


    From the Bee (5.00 / 1)
    Finally, the PG&E ballot measure is another troubling example of the initiative process going dangerously awry in California,  of a powerful special interest seizing the initiative process for its own narrow benefit. The measure the utility is bankrolling is not a simple statute. It is a constitutional amendment. If it passes, it enshrines unfair protections against competition for PG&E, one of the richest, most powerful corporations in the state, into the California Constitution.

    It is unusual for The Bee to come out against a ballot measure before the campaign has really started. The PG&E initiative deserves special attention. It's that bad.

    Read more: Sac Bee

    Even more problematic is the fact that the law could end up (intentionally or not) requiring municipal utilities to get a vote of the people to even hook up a new building in their jurisdiction.

    I think the important part of this isn't the vote threshhold, it's another piece of legislation that moves us further away from a representative democracy into some kind of neo-Athenian mess.  California is just too big for us to have to be voting on every decision that comes up.  That's why we hire these elected officials, they should be making these decisions. Voters don't have the time to stay up on all of these issues, so we end up just voting for whichever side has more money. It's ridiculous.

    I think?


    [ Parent ]
    Why is it our job to make PG&E "efficient"? (5.00 / 1)
    I take issue with your claim that "pockets of municipal distribution systems" make it difficult to efficiently deliver power.

    In Washington State, most power distribution systems are publicly owned. Some of these are quite large, such as Seattle City Light or Snohomish County PUD. Some are quite small, such as Mason County PUD #3 (which serves the portion of the Puget Sound where my in-laws live). There are dozens and dozens of these PUDs across the state, they've been there for 70+ years, and they work just fine.

    Power is distributed primarily by the publicly-owned Bonneville Power Administration, a federal agency. Seattle has some of its own power generation, so does Tacoma, so does Snohomish County, so do a few others. It may resemble a patchwork, but it works very well and delivers power efficiently and cheaply. In fact, there's no place in the nation with power rates as cheap as in Washington State.

    PG&E is basically a private BPA that also owns some of the local distribution. Yet PG&E's rates are much higher. Public ownership of the local distribution (i.e. municipal power, as LA and Sacramento have) would absolutely bring down the cost. Even better would be public ownership of the generation.

    In any case, there's no reason at all why we as voters should feel any need whatsoever to protect PG&E's monopoly from public competition. Eventually more and more cities will create public power districts - Davis very nearly annexed themselves to SMUD in 2006, and SF probably will finally do it one of these days. PG&E knows this, and sees a 2/3rds vote as their only way of blocking it.

    You can check out any time you like but you can never leave


    [ Parent ]
    A fair point. (0.00 / 0)
    BTW, are you in favor of building as much hydro electric capacity as Washington has?  Do you think that might have something to do with the low cost in Washington or is it purely the distribution system?

    [ Parent ]
    It's a bit of both (0.00 / 0)
    The Columbia River had 1/3rd of the total potential hydropower in the entire country, even before the dams were built. California couldn't reproduce that if we tried.

    It's not just hydropower that makes Washington's power cheap - it's the fact that the federal government sells it at cost, and that under the terms of the 1937 Bonneville Power Act, the publicly-owned utilities get first dibs on that power.

    You can check out any time you like but you can never leave


    [ Parent ]
    this is in response to yolo county (5.00 / 1)
    coming very close to leaving PG&E and joining SMUD, even with SMUD  forbidden from campaigning and PG&E flooding the airwaves and stuffing our mailboxes with millions of dollars of misleading ads (and this in a county with less than 200,000 people).

    they nearly lost a rigged fight, so they've got to rig it tighter for the next time.


    PG&E Strike Force | 11 comments
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