PG&E watch: The rate hike, the LNG pipeline and the $82 million corporate giveaway

Pub date July 24, 2009
WriterRebecca Bowe
SectionPolitics Blog

By Rebecca Bowe

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Image courtesy of TURN

Pacfic Gas & Electric Co. collected $82 million from the state last year as a reward for running energy-efficiency programs, even though an independent verification report conducted by the California Public Utilities Commission showed that the utility failed to reach target goals for curbing power usage.

In addition to the $82 million bonus, PG&E and other utilities received millions in ratepayer dollars to administer the energy-saving programs. But under utility management, large portions of these energy efficiency funds go to administrative costs, leaving less for actual energy-reducing measures. The funds are derived from fees on ratepayers’ utility bills. And despite its past failure to meet the goals, PG&E is asking for even more money on the next round.

Groups like The Utility Reform Network (TURN) and Women’s Energy Mattters (WEM) have long advocated for independent administration of energy-efficiency programs, citing evidence that nonprofits have had better performance at the helm, with lower administrative costs and greater success at curbing electricity consumption.

On Tuesday, members of the public — who foot the bill for these programs — will get a rare opportunity to weigh in on how their money is spent.

A “Public Participation Hearing” (PPH) will be held at the California Public Utilities Commission (CPUC) in San Francisco to discuss energy efficiency spending. The meeting is scheduled for 2 p.m. on July 28th at the California Public Utilities Commission, located at 505 Van Ness Ave. in the Auditorium.