PG&E

Editorial: Stopping PG&E’s fraudulent initiative

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Every elected official, city council, board of supervisors, and utility agency in the state needs to immediately come out publicly in opposition to the initiative and start organizing to defeat it. San Francisco elected officials, including City Attorney Dennis Herrera, need to lead the charge since San Francisco is the only city in the U.S. mandated by federal law to have public power (which it doesn’t have, thanks to PG&E’s corrupting influence through the decades.)

EDITORIAL A ballot measure that could spell the end of public power in California is headed for either the spring or fall 2010 ballot — and so far, the opposition is missing in action. This is a profoundly important issue, and every elected official, city council, board of supervisors, and utility agency in the Bay Area needs to immediately come out in opposition and start organizing to defeat it.

The source of the proposition, of course, is Pacific Gas and Electric Co. PG&E is facing political wildfires all over the state as communities rebel against bad service and high rates. In Marin County, a community choice aggregation (CCA) plan is moving along, full speed. In San Francisco, CCA is a little slower, but still on track. These efforts could turn two of PG&E’s most profitable territories into public power beachheads. Meanwhile, in San Joaquin County, a public power movement is trying to take over part of PG&E’s service area, and PG&E just spent millions of dollars fighting a similar effort in Davis.

PG&E resigns from US Chamber over climate change dispute

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By Steven T. Jones

While we’ve regularly criticized Pacific Gas & Electric for its corrupting political influence and for not doing enough on climate change, but we were happy to hear the company has resigned from the U.S. Chamber of Commerce over the business association’s scurrilous campaign to dispute that climate change is real and caused by human activity.

“An intellectually honest argument over the best policy response to the challenges of climate change is one thing; disingenuous attempts to diminish or distort the reality of these challenges is quite another,” PG&E CEO Peter Darbee wrote to the Chambers, according to the company.

The recent efforts by conservatives and corporations to turn back the clock on our understanding of climate change (which even the San Francisco Examiner is promoting) are disgraceful and should have no place in honest political debate. After a weird summer of right-wing Red-baiting, gun-toting, epithet-spewing antics, it’s an indication of how low the political discourse in this country has fallen when PG&E is calling out corporate America.

Public power fights back

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By Rebecca Bowe

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Which would you rather have: $11.6 million in cash, or a pile of Monopoly money?

Pacific Gas & Electric Co. stands to lose 40,000 meters to a public power district, which says it can deliver electricity service that’s cheaper, more reliable, and more accountable to ratepayers than what the private utility offers.

In a unanimous 5-0 vote yesterday, the South San Joaquin Irrigation District Board — a public utility agency — voted unanimously to approve an application to the San Joaquin Local Agency Formation Commission (LAFCo) to provide electricity service to some 40,000 customers who are now served by PG&E. The service territory spans the South San Joaquin County communities of Manteca, Escalon, and Ripon.

The move came after years of careful planning and extensive studies, SSJID General Manager Jeff Shields told us. An economic study concluded that switching from PG&E service to public power would save ratepayers $11.6 million annually — cash that would stay in the community rather than lining the pockets of a private, monopolistic utility.

Shields said between 70 and 90 people turned out for a public hearing held yesterday before the Board voted to approve the application. “Everybody that spoke against it was paid by PG&E,” he noted. “Everyone else was in favor.”

Esto es ridículo

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By Steven T. Jones

OK, this is sooooo irritating. As we’ve repeatedly pointed out, Mayor Gavin Newsom regularly refuses to comply with city law and release his detailed daily schedule, denying us the right to know who he’s meeting with and whether he’s doing any work for the city. Most days, the required public schedule simply says he “has no public events” or is “to conduct meetings in City Hall.”

But now that he’s off in Mexico on a PG&E-sponsored trip that has nothing to do with San Francisco, his taxpayer-paid Office of Communications issues the most detailed itinerary of Newsom’s day that I’ve ever seen. These people are shameless. No wonder nobody likes them.

Mirant plant to close

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news@sfbg.com

GREEN CITY City Attorney Dennis Herrera’s office struck a deal with Mirant Potrero LLC on Aug. 13 to shutter its polluting Potrero power plant no later than Dec. 31, 2010. The settlement agreement represents a major victory for San Francisco and the broad array of elected officials and environmental-justice advocates who’ve been railing against the hazardous byproducts of the 40-year-old fossil fuel-fired facility for years.

The agreement also requires Mirant to pay the city $1 million, which will be put toward addressing childhood asthma and supporting neighborhood beautification.

"It’s a great result for the city, but in particular for the southeast sector," said Herrera, who has opposed the plant since 1999. "A lot of folks deserve a lot of credit for this."

Residents living in southeast San Francisco and Bayview-Hunter’s Point, where asthma rates are higher than average, have borne the brunt of toxic emissions spewing from the plant’s brick smokestack nearly 24 hours a day.

"It’s been a long haul," Sup. Sophie Maxwell, who represents the neighborhoods adversely affected by the pollution, said at a press conference. "Our community [has] some of the highest rates of asthma, the highest rates of cancer. We have babies being born in this community every day — and so we cannot keep our eye off the prize."

Maxwell’s vow to continue pushing even with the signed agreement in hand may prove wise considering that the California Independent System Operator (Cal-ISO) — a body that oversees the state’s power grid and determines capacity requirements — has yet to grant its blessing to the deal. Under the terms of the agreement, Mirant must declare to Cal-ISO that it will not continue operation beyond the shutdown date. The utility also agreed not to pursue renewal of its "reliability must-run" (RMR) contract with Cal-ISO, which has required the plant to run against the wishes of elected officials in San Francisco for years.

Cal-ISO left open the question of whether it would agree to release Mirant from the RMR requirement. "The ISO will continue to require local measures to be available at the level necessary to ensure that San Francisco reliability is consistent with that of other major metropolitan areas in California and the nation," spokesman Gregg Fishman noted in a statement.

The battle to shutter San Francisco’s dirty power plant might not be over — but for the first time Mirant will now be aligned with the city and at odds with Cal-ISO. "I’ve got to give credit where credit’s due," Herrera told the Guardian. "[Mirant] ultimately did step up here with the settlement and make an unprecedented commitment."

What’s in it for Mirant? The city attorney dropped a lawsuit against Mirant that sought compliance with codes requiring seismic upgrades to old brick buildings on the site. The city also will give priority to any redevelopment plans for the company-owned site.

Chip Little, a Mirant spokesperson, said the company doesn’t have a particular vision in mind. "At this time, we have no redevelopment plans for the site," he said. Mirant does have other projects in the works outside San Francisco, however. "We responded to a [request for offer] that PG&E issued last year for new capacity," Little told us. Mirant has applied for licenses to build a 930 MW natural gas-fired plant near Antioch, and a 550 MW natural gas-fired facility at the Pittsburg power plant site.

The TransBay Cable, an undersea power line that will transfer electricity from Pittsburg power sources to San Francisco, is expected to go live in March. The cable will negate the need for most of the electricity supplied by the 350 MW Potrero plant, but there will still be a 25 MW generation gap.

"That’s really a rather small amount," Ed Harrington, director of the San Francisco Public Utilities Commission, told reporters during the press conference. "We believe it could be met by underwriting other projects that PG&E is working on and by … cutting back when there’s a peak."

When a battle was waged last year over proposed construction of city-owned power plants to replace Mirant, many thought a solution that didn’t involve new in-city generation was impossible. One year later, this new accord with the City Attorney’s Office rests on the idea that shutting down Mirant with no new fossil fuel is not just possible, but within reach in the near future.

Cecile Lepage contributed to this report.

The blackout factor

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news@sfbg.com

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This chart shows how customers of Pacific Gas and Electric Co. face far more power outages than customers of any of the public power agencies in the Bay Area

Noel Birbeck makes signs. In a low, nondescript building tucked into a south of Market side street, a printing machine spits out personal greetings and corporate messages in all colors, shapes, and sizes.

Until the power goes out.

"We print things that are up to 50 feet long," said Birbeck, the business manager of Budget Signs. "If the power goes out at foot 35, we have to start the printing process all over and throw out all that time and money that went into the initial printing."

And that, unfortunately, has been happening far too often. In fact, a Guardian review of available data shows that customers of Pacific Gas and Electric Co. lose power much more frequently than customers of municipally-owned and operated utilities.

That costs money and harms the local business climate.

"[Any disruption] is a huge deal," Birbeck said. "If we’re in the middle of a deadline and a customer expects something at a certain time, that can cost Budget Signs a huge amount of money. No one is going to pay you for something that is only kinda done."

The last major outage cost Budget Signs more than $300 in employee and company time as Birbeck and her workers waited for the power to return. It’s a manageable amount, but she insists she can’t put a price on the inconvenience, the uncertainty, and the potential loss of business.

Reliable power is a basic requirement of most businesses. Restaurants and markets need refrigeration, factories need to power production lines, office buildings run large computing systems, retailers need to run cash registers, lights, and credit card machines. An unexpected power outage can cost San Francisco businesses thousands of dollars.

A 2001 study by the Electric Power Research Institute estimates the cost of power disruptions to California businesses is between $11.5 million and $17.8 million annually.

No utility can guarantee year-round power without disruptions, surges, brownouts, or severe weather-related outages. But reliability varies widely among California utilities.

PG&E breaks its service area into districts, and, according to reports it submits annually to the California Public Utilities Commission, San Francisco customers experienced an average of two hours of non-weather-related outages per year over the last six years. (Weather-related incidents are not reported at the district level.)

That’s better than the three-hour average across PG&E’s entire California service area. Still, PG&E customers in San Francisco lose power, on average, 2.5 times as often as customers of other Bay Area utilities.

The Palo Alto Utilities Department, Silicon Valley Power in Santa Clara, Alameda Municipal Power, and the Sacramento Municipal Utility District have dramatically better records, ranging from 82 minutes a year of outage time in Sacramento to only 16 minutes in Santa Clara — and these numbers include all weather-related events.

In other words, the municipal utilities deliver power more consistently and at considerably lower rates — even before factoring in PG&E’s impending rate hike of 3.3 percent to 5.4 percent.

"We consider any widespread blackout a major event," said Larry Owens, division manager at Silicon Valley Power. "Systems can be managed to minimize storm related events — we do [that]."

MONEY FOR MAINTENANCE


There are a number of reasons why these public power sources are more reliable than PG&E: size of the service area, age of the infrastructure, administration of the organization.

"The general concept is that the more complex the topography is and the older the urban areas are … the more unreliable the system is going to be," said Mark Loy, a ratepayer advocate at the CPUC.

"For PG&E there are negative powers of scale," he continued. "They are so large and spread out that being bigger actually makes things more difficult for them to fix. In San Francisco, the circuitry PG&E uses hasn’t even been mapped out in some places, so it is all haphazard and harder to keep on top of."

Public power agencies also have more incentive to invest in maintaining their infrastructure.

Patrick Valath, manager of electric engineering at the Palo Alto Utilities Department, attributes his city’s annual average of only 65 minutes of power disruption to an "aggressive and sustained infrastructure replacement program that is spread over many years."

Alameda Municipal Power’s Alan Hangar said the annual average of only 25 minutes of outage in that city is due to years of building stability and redundancy into the system.

Santa Clara is by far the most reliable utility company in the area, Owens said, and is often ranked second in the nation. "Our current operating philosophy is to load the system with only half of what it is capable of carrying," he said. "That allows us to switch a customer to another circuit quickly, so we restore their power and make repairs on our time, not their time."

He also noted that the vast majority of Santa Clara’s power lines are underground, making them far less susceptible to damage from storms, accidents, and other interference.

Municipal utilities have more freedom than investor-owned companies like PG&E to shift the focus away from profits, revenue, and shareholder returns toward quality and customer satisfaction.

"We are customer-driven," Owens said. "They repeatedly tell us that reliability is the No. 1 priority. The cost of power is second. We have some customers who say they lose $1 million a minute in an outage, and that by far trumps the cost they pay for energy."

THE RIPPLE EFFECT


Business owners don’t need studies to tell them they are losing money because of PG&E.

Arienne Landry, owner of Just for You Café in San Francisco’s Dogpatch neighborhood, faced a blackout during lunch service at her café several months ago.

"The power was out for four or five hours," she said. "During that time I’m paying people to work, but I can’t serve customers without power. I probably lost a couple of grand in sales. It’s not a severe loss, but it takes a little while to catch up."

Birbeck of Budget Signs remembers a power disruption that occurred when she was in the middle of two large printing jobs. She and an employee returned to the shop at 10:30 p.m. after a neighbor alerted her that the power had returned. She said they worked through the night to complete the jobs on deadline.

"They were our two largest jobs for our two largest companies at the time," she said. "Both jobs were over $10,000. Potential loss of either or both of these companies would have been disastrous to a small company. I really couldn’t even put a price on it."

And the cost of an outage doesn’t stop at that initial business. If the power goes out at Birbeck’s sign shop and a sign doesn’t get finished and a deadline isn’t met, Birbeck might lose money or even a client. But that client might have needed that sign for a business event, and that business event may have needed that client … and the losses can go on and on.

Those ripples are larger and go farther in many high tech industries. Larry Owens of Silicon Valley Power said that consistent, reliable power is especially important for the high tech firms located in Santa Clara, including Applied Technologies, Inc., McAfee, Inc., and Intel Corp.

"There are some processes that require a 21-day burn in," he said. "If there is a power outage, they have to start all over again. An outage can cause a company to lose market share or dominance or preferred vendor status. It ripples out a long way."

Some companies have such sensitive systems that a drop in voltage for a mere fraction of a second can shut them down and require rebooting.

"Our customers have become power-quality sensitive," Larry Owens said. "It doesn’t take an outage to harm a business. A fault on a transmission line causes the whole system to dip, a voltage dip. If you have a heavy load, it knocks the voltage down for milliseconds. If it drops enough, companies’ systems drop out."

State Sen. Mark Leno is intimately familiar with the problem — he owns Budget Signs. And he has called on the California Public Utilities Commission to investigate the problem.

"As a San Francisco small business owner, I am personally aware of the lost business I experience as a result of PG&E’s performance failures," Leno said in a press release. A June 18 letter Leno sent to the CPUC noted: "As the commission considers PG&E’s request to upgrade its grid, I would ask you to include both an investigation of these problems and PG&E’s proposed solutions to them."

Almost a month later Michael R. Peevey, president of the CPUC, responded, arguing that PG&E’s reliability rate in 2008 was better in the previous few years. He also pointed out that the utility has a formal process for filing claims and that the commission has no authority over system reliability.

That, Leno said, is unacceptable. "From reading that letter, one would never know that the mission of the California PUC is to be the protector of the ratepayer," he told us. "The ratepayers are being badly served by PG&E and the CPUC."

FILING A CLAIM


In theory, state law requires PG&E to reimburse businesses for losses caused by blackouts. A business owner or manager can find the claim form on PG&E’s Web site or can call the claims office. Each case is assigned to one of the 21 claims investigators who cover the utility’s service area. With the help of supporting documents, investigators look into the occurrence, determine PG&E’s liability and the degree of monetary loss, and compensate the business accordingly. All, according the Web site, within an average of 30 days.

Emily Mitra, owner of Dosa, which operates Indian restaurants in the Mission District and the Fillmore District followed this process — and it wasn’t that simple.

On Dec. 18, 2008, a PG&E transformer blew and both locations of Dosa lost power. Mitra had to contend with food spoilage, staff costs, down equipment, lost business, all of which added up to about $12,000.

"We filed claims, but it was a long process," she said. "A check came for the Valencia Street location immediately but for the Fillmore location, PG&E didn’t even have record of an outage."

After three months of badgering PG&E to no avail, Mitra said she contacted Sup. Ross Mirkarimi’s office and the Small Business Commission.

"I was ready to sue them," she said. "I had dozens of witnesses, but that didn’t seem to faze them. It could have been a coincidence that they found the data right after we talked to the Small Business Commission. But it was a pretty quick turnaround after that."

A check arrived for the full amount of the claim. But Mitra couldn’t claim compensation for the time, energy, and frustration the claims process cost her over its three-month duration.

Birbeck told us PG&E never informed her that there was a formal claims process. "No one ever mentioned a claim to me — that has never been offered at all," she said. That’s a common complaint — although the forms are on PG&E’s Web site, the utility doesn’t widely promote or advertise that fact.

PG&E also asks business owners to provide a slew of paperwork ranging from tax records and bank statements to payroll records, revenue and expense statements, and sales receipts.

"We had to give them a lot of data," Mitra said. Because Dosa’s records are mostly digital and automated, supplying them to PG&E was the least of her problems. But, she conceded, "if you don’t run your business in a way that keeps all that data, it would be a pain in the ass."

Of course, the claims process does nothing to address issues of reliability. Neither does it guarantee that Mitra’s refrigerators won’t fail without notice, leaving her without food to serve.

It is, however, another reminder that San Francisco is not being well-served by its private utility monopoly.

Fixing PG&E’s blackout problem

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EDITORIAL The electricity that San Franciscans buy from Pacific Gas and Electric Co. isn’t just expensive — it’s unreliable. That’s what figures from the California Public Utilities Commission show (see "The blackout factor, page 8). In fact, PG&E has more blackouts than any of the public power agencies in the Bay Area.

That has a significant impact on local businesses — but neither City Hall nor the small business community is paying much attention to a multimillion dollar problem.

During the worst days of the California energy crisis, rolling blackouts were a regular event, and the press and public talked constantly about the impact of power outages on businesses and the economy. Now that the worst of that crisis is over, many blackouts get no news media attention at all. But the problem is still serious: reliable power is critical to most business in the Bay Area, and even short-term outages can hit the bottom line.

That’s why public power agencies like Silicon Valley Power in Santa Clara and Palo Alto’s municipal utility put substantial resources into infrastructure upgrades and repairs. PG&E, which as a private company seeks to keep costs down to fatten profits and reward highly paid executives, has fallen far behind on its system upgrades. That’s why, for example, underground explosions keep happening in San Francisco, shorting out power systems and plunging neighborhoods like the Tenderloin into blackouts.

State law requires PG&E to pay claims for economic damage caused by system failures. Restaurants that lose frozen food, for example, can fill out a form, go through a cumbersome process of proving the extent of the losses, and get reimbursed. But PG&E rarely advertises or promotes that program, and lots of small businesses know nothing about it or never manage to file claims.

And even the claim process doesn’t cover lost business, lost customers, and the loss of reputation.

State Sen. Mark Leno, who owns a small sign shop (and has suffered from blackouts) has asked the California Public Utilities Commission to investigate PG&E’s reliability and mandate that the company meet basic standards for keeping the lights on. But so far, that agency is ducking. Leno has promised legislation if he gets no results from the CPUC, and he should proceed with a bill that would set minimum reliability standards for private utilities and provide significant penalties for failing to meet those targets.

San Francisco needs to take action on the local level, too. The supervisors should hold hearings on electricity reliability and demand that PG&E executives explain the reason system failures are so much higher here than in other Bay Area communities with public power systems. The Small Business Commission should set up (and publicize) a process for filing complaints about PG&E and include information about filing claims in its outreach material.

And as the city continues to wallow in budgetary disaster, city officials (and small business groups) should take note of the lesson here. Public power is not only cheaper — it’s more reliable. And that means it’s good for business and the San Francisco economy. *

Editorial: Fixing PG&E’s blackout problem

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State law requires PG&E to pay claims for economic damage caused by system failures.

EDITORIAL The electricity that San Franciscans buy from Pacific Gas and Electric Co. isn’t just expensive — it’s unreliable. That’s what figures from the California Public Utilities Commission show (see “The blackout factor, page 8). In fact, PG&E has more blackouts than any of the public power agencies in the Bay Area.

That has a significant impact on local businesses — but neither City Hall nor the small business community is paying much attention to a multimillion dollar problem.

During the worst days of the California energy crisis, rolling blackouts were a regular event, and the press and public talked constantly about the impact of power outages on businesses and the economy. Now that the worst of that crisis is over, many blackouts get no news media attention at all. But the problem is still serious: reliable power is critical to most business in the Bay Area, and even short-term outages can hit the bottom line.

PG&E employees to receive $17.25 million in overtime case

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By Rebecca Bowe

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It’s payday for about 700 Pacific Gas & Electric employees – and for some, the check will cover long hours they put in more than a decade ago.

As part of a settlement in a class-action lawsuit, PG&E must fork over $17.25 million in unpaid overtime going back, in some cases, to 1996. The settlement, approved by a San Francisco Superior Court judge on July 30, is the final conclusion of Conley, et al. v. Pacific Gas & Electric Company, a legal battle that wore on for nine years. It requires the utility giant to hand over back pay and attorneys’ fees for roughly 700 current and former employees who alleged that they were improperly classified as exempt from overtime and denied overtime compensation.

John Conley, who is still employed by the utility, worked as a Senior New Business Representative at PG&E when he and three other coworkers filed the lawsuit in March of 2000. “Some of us were working ten-plus hours a day, and one day on the weekend for four to six hours,” Conley said.

Will SF sue PG&E?

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By Tim Redmond

The San Francisco Local Agency Formation Commission met last week in a rare closed session, and the Board of Supervisors Goverment Audit and Oversight Committee will meet next week in closed session to discuss the possibility of litigiation against Pacific Gas and Electric Company over it’s anti-public=power ballot initiative.

I don’t know the legal strategy and Sup. Ross Mirkarimi, who chairs both LAFCO and GAO, can’t comment on it. But I do know that the state law authorizing the creation of Community Choice Aggregation programs in California cities bars PG&E from interfering with local governments and trying to undermine CCAs. So it’s at least arguable that the utility is breaking the law by trying to make it nearly impossible to enact CCAs or any other public-power projects in the state.

I assume, and hope, that the City Attorney’s Office is looking at every possible strategy here. Because if this gets on the ballot, with PG&E’s unlimited cash resources, it’s going to be a huge, expensive campaign.

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

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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.

Nip it in the bud

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rebeccab@sfbg.com

GREEN CITY Imagine if San Franciscans had the choice of sending the check for their monthly electricity fees to one of two places. Option A is a massive private utility company, serving up fossil fuel-fired and nuclear-powered energy, presided over by a CEO who got paid nearly $9 million last year. Option B is a publicly-owned program run by local government that offers a substantial percentage of green electricity from sources such as wind, solar, and tidal power. In San Francisco, which one would people be more likely to pick?

The intent behind community choice aggregation (CCA) programs, which in San Francisco is known as Clean Power SF, is to make Option B a reality. If successful, the program would signify not just a major advance on the green front, but a dent in Pacific Gas & Electric Co.’s longstanding monopoly in the Bay Area.

The program development is inching along under the direction of the San Francisco Public Utilities Commission and the Local Agency Formation Commission (LAFCo). Sup. Ross Mirkarimi, who chairs LAFCo, has poured a tremendous amount of time and energy into the city’s fledgling CCA program.

So when a proposed state ballot initiative surfaced that threatens to thwart statewide CCA programs before they launch, Mirkarimi came out swinging hard.

Titled the "Taxpayers Right to Vote Act," the proposed initiative would require that any effort to create or fund a CCA program be ratified by two-thirds of the voters. The measure would erect an almost impossibly high barrier to CCA development around the state, effectively snuffing out PG&E’s would-be competition and sullying local governments’ plans to embrace publicly-owned, cleaner energy alternatives.

Mirkarimi wasted no time in drafting a resolution against the measure and submitting it to the Board of Supervisors, telling his colleagues that the utility’s proposal undermines years of effort "to allow municipalities to go ahead and chart their own energy destiny so they don’t have to be on the syringe of fossil fuel-driven corporations like PG&E."

He also took issue with the name of the proposal, calling it deceptive and misleading. "The point is that we should not be manipulated by measures such as this, where voters would be required to have a two-thirds vote on something the state Legislature has already allowed us to pursue," Mirkarimi said. "It’s our own right, and corporate special interests shouldn’t dictate otherwise." The state law that grants local governments the right to pursue community choice aggregation, which was sponsored by then-Sen. Carole Migden, specifically prohibits actions that impede the progress of a CCA.

PG&E’s name does not appear anywhere on the ballot-initiative proposal, but a spokesperson for the initiative confirmed that the utility had paid the submission fee. The law firm listed as a contact for the proposal, meanwhile, has been enlisted by PG&E before. And Robert Lee Pence, who is named as the proponent of the initiative, has teamed up with PG&E ally Townsend, Raimundo, Besler and Usher on campaign measures in the past. That Sacramento-based political consulting firm describes its strategic consulting services online with this brazen slogan: "Moving opinions is what we do best."

PG&E did not return calls for comment.

At the June 30 Board of Supervisors meeting, supervisors approved Mirkarimi’s resolution on a 10 to 1 vote, with Sup. Michela Alioto-Pier voting no. And while a resolution does little more than create a formal record of the board’s position on a matter, Mirkarimi seemed to suggest that it was only the start of a battle mounting against this proposal. "Don’t be surprised [if] a number of municipalities align themselves in potential litigation against this," he said.

Sup. David Campos, an attorney who also sits on LAFCo, hinted that the city could enter into litigation on the issue. "I hope the city is carefully looking at legal issues that might be raised by the actions of PG&E," he noted at the June 30 Board meeting. "I think that there are legal protections we need to avail ourselves of, and I hope the City Attorney’s Office, working with the Board of Supervisors, can make sure that the city takes all steps that it needs to take to protect its legal rights."

Campos later told the Guardian that he had not yet spoken with the City Attorney’s Office about it.

When asked about pursuing legal action, the City Attorney’s Office would only say that "we’re aware of it, and we’re evaluating what we will be doing," according to spokesperson Jack Song.

Barbara Hale, general manager for power at the San Francisco Public Utilities Commission, told the Guardian, "We have certainly been talking with other cities about the initiative." But Hale added that the agency hadn’t taken a formal position yet because it is so early in the process. "It hasn’t actually been placed on any ballots yet."

Since the initiative was submitted, public power activists across the state have taken notice. Jeff Shields, general manager of the South San Joaquin Irrigation District, has gone toe-to-toe with PG&E on public power issues before. One of the most memorable battles occurred when a political consulting firm hired by PG&E hacked into SSJID’s computers in the midst of a tug-of-war over control of the area’s electricity infrastructure — only to get caught by the FBI and publicly denounced by PG&E. "Obfuscation is PG&E’s middle name," Shields says. "I know there are lots of people looking at this initiative, but I don’t know that there’s a specific organizational effort against it at this time."

Jerry Jordan, executive director of the Sacramento-based California Municipal Utilities Association — a statewide organization representing 70 public utilities — told the Guardian that CMUA would oppose the initiative. However, "we may wait until it qualifies," Jordan said. The initiative is still in its earliest stages, and the attorney general has yet to certify it as legal to the secretary of state.

Meanwhile, efforts to move forward with the CCA model in other regions are floundering in these tough fiscal times. The San Joaquin Valley Power Authority voted June 25 to temporarily suspend its CCA, an effort in the works for years that had a goal of offering electricity to customers at lower and more stable rates.

Spokeswoman Cristel Tufenkjian said the greatest obstacle was a contract with CitiGroup’s energy branch that was marred by tight credit markets. "When things started to go south with the markets, CitiGroup said it could not execute that contract," Tufenkjian explained. She also added, "We are opposed to the initiative."

The SJVPA bid to create a CCA was also hindered by opposition from PG&E. "For the last few years, PG&E has continually placed roadblocks in front of our program in an attempt to stop us from implementing community choice and ultimately not providing residents and businesses the opportunity to have a choice about who will provide them electrical energy," said Ron Manfredi, city manager of Kerman and chair of the San Joaquin Valley Power Authority.

The Board of Supervisors’ resolution against the ballot initiative condemns such roadblocks and vows to push through this one. "PG&E has a history of acting to maintain its monopoly in its service region, including opposing public power initiatives at the ballot and lobbying officials of California cities [and] counties against community choice aggregation in apparent violation of the provisions [of state law]," the text of the resolution reads.

As this ballot initiative moves through the approval process, it’s clear that a battle is going to heat up very quickly. "I think we have to fight this as hard as we can," Campos told us. "PG&E has been unsuccessful in killing [CCA] here in San Francisco, but they have certainly delayed it. Now they’re trying to make sure it doesn’t happen anywhere else."

PG&E

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Fixing PG&E’s blackout problem: State law requires PG&E to pay claims for economic damage caused by system failures

Guardian Editorial

EDITORIAL The electricity that San Franciscans buy from Pacific Gas and Electric Co. isn’t just expensive — it’s unreliable. That’s what figures from the California Public Utilities Commission show (see story below). In fact, PG&E has more blackouts than any of the public power agencies in the Bay Area.

That has a significant impact on local businesses — but neither City Hall nor the small business community is paying much attention to a multimillion dollar problem.
Click here to continue reading editorial.

The blackout factor: PG&E’s poor reliability record costs businesses millions
By Megan Rawlins

Noel Birbeck makes signs. In a low, nondescript building tucked into a south of Market side street, a printing machine spits out personal greetings and corporate messages in all colors, shapes, and sizes.

Until the power goes out.

“We print things that are up to 50 feet long,” said Birbeck, the business manager of Budget Signs. “If the power goes out at foot 35, we have to start the printing process all over and throw out all that time and money that went into the initial printing.”
Click here to continue reading.

Classes for sale

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By Tim Redmond

So City College is going to start selling naming rights to its classes. From the Chronicle story, it looks as if the chancellor, Don Griffin, has the whole thing planned out — he told the paper where to send checks for $6,000 and exactly how to make sure your name gets in the books.

There’s a minor problem, though: He never mentioned any of this to the Community College Board.

“When I read about it in the paper, that was the first I’d heard of it,” board member John Rizzo told me.

It’s not as simple a fundraising scheme as it seems. Besides the tacky factor (which doesn’t trump the desperate need for money) there’s the potential for conflicts, both real and imagined.

“What if PG&E wants to buy a class — or maybe ten of them?” asked Rizzo. What if big pharma companies want to sponsor chemistry classes? What if big agricultural congomerates want to sponsor nutrition classes? This could get ugly fast.

“I have a lot of serious concerns about it, and it’s certainly a new policy,” Rizzo noted. “I’m amazed that the chancellor never even mentioned this to the board.”

PUC nomination delayed

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By Tim Redmond

The nomination of Anson Moran for a seat on the San Francisco Public Utilities Commission was delayed today after Sup. David Campos asked for more time to review Moran’s record.

We’ve argued against the nomination, as have many public-power advocates. There is, of course, the argument that Moran is better than some of the turkeys Mayor Newsom might put forward and at least has some qualifications for the job. But on balance, this is someone who, when he had a chance as the agency’s general manager, did his best to sabotage public power.

After the jump is an excerpt from a detailed chronology of the PG&E/Raker Act scandal that we did back in 1997. The entire chronology — the most detailed history of the scandal every published, as far as I know, is available here.

PG&E attacks consumer choice

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rebeccab@sfbg.com

A ballot initiative backed by Pacific Gas and Electric Co. could amount to a death sentence for community choice aggregation (CCA) and expanded public power in California.

Dubbed the Taxpayers Right to Vote Act, the proposed initiative would require a two-thirds majority vote at the ballot before any local government could establish a CCA program, use public funding to implement a plan to become a CCA provider, or expand electric service to new territory or new customers.

The new hurdle would make it very difficult for a local government to move forward with a CCA, while at the same time making it much easier for a utility to defeat public power at the ballot.

Signed into state law in 2002, CCA allows local governments to buy up blocks of power to sell to residents, making it possible for cities and counties to set up alternatives to private utilities such as PG&E and, in many cases, to offer electricity generated by clean, renewable power sources.

The initiative is in its earliest stages, and it likely would not be placed on the state ballot until the June 2010 election. At this point, "it’s unclear how much of a campaign it’s going to be," according to Greg Larsen of the Sacramento public relations firm Larsen Cazanis, a spokesperson for the effort. "It’s a long way off."

That hasn’t stopped local CCA supporters from sounding alarm bells. "Urgent/Bad! PG&E State Ballot Measure To Kill Public Power & CCA," public power activist Eric Brooks wrote in the subject line of a widely disseminated e-mail last week. "It’s red alert time boys and girls," he wrote, saying the proposal "will kill all new Public Power and Community Choice Aggregation projects statewide."

Brooks isn’t alone: everyone the Guardian spoke with who is involved in the creation of San Francisco’s CCA voiced concern that the proposal could kill any future community choice efforts.

The proposed initiative was submitted to the California Attorney General’s office May 28 with the contact listed as the Sacramento law firm Nielsen, Merksamer, Parrinello, Mueller & Naylor, a powerful player with a long history of working with PG&E on ballot initiatives. Larsen confirmed that PG&E had provided the $200 filing fee, the only amount spent so far on the embryonic proposal.

The official proponent of the initiative is Robert Lee Pence, apparently the same person who was listed as an opponent of Proposition 80, a 2005 ballot measure that dealt with utility regulation. Opposition to Prop. 80 was heavily funded by PG&E and other utilities, and the initiative failed by a wide margin.

Pence’s group, Californians for Reliable Electricity, listed Steve Lucas as a contact on 2005 campaign documents. Lucas is also listed as the point person at Nielsen, Merksamer, Parrinello, Mueller & Naylor for questions regarding the Taxpayers Right to Vote Act.

The address listed for the organization is the same as that of Townsend, Raimundo, Besler and Usher — a Sacramento political consulting firm that also has a long history of working with PG&E on political campaigns. When asked about the PR firm’s role in the Taxpayer Right to Vote Act, Larsen acknowledged that they "may be involved as the campaign goes forward," but cautioned that any discussion so far has been preliminary.

The rationale behind the initiative is to protect taxpayers, Larsen said, because CCA programs "are major issues that communities undertake and require millions or billions of public dollars." The proposed initiative, he said, seeks to "ensure that voters — and frankly, their descendents — who will wind up being responsible for these programs have a say." If the measure passes, Larsen added, voters could still approve CCA programs — but with two-thirds of the vote, a supermajority that he contends is "staying in line with many other California requirements."

California Sen. Mark Leno, however, has a very different opinion. "I would hope that Californians would have come to understand that two-thirds vote thresholds are probably more responsible for damage to the state of California in the past 30 years than any other single factor," he said. "To hand a small minority controlling power is anti-democratic. This must be defeated." Leno also said he believes that the initiative would have drastic consequences for CCA programs if it passes.

Meanwhile, local CCA supporters say there is more to this than merely sticking up for taxpayers’ rights. If programs like Clean Power SF — the CCA initiative currently being developed in San Francisco — are fully implemented, then PG&E, which makes good money from its monopoly status, would face some actual competition. Naturally, the powerful utility would have an incentive to eliminate the alternative altogether.

Under the current system, PG&E "has to rely on the elected officials to kill CCA, and its much harder … to do that," says John Rizzo of the San Francisco Bay Chapter of the Sierra Club. But if the Taxpayers Right to Vote Act is enshrined in state law, "they could just pour in money and spread propaganda. Particularly the two-thirds requirement is just outrageous — it basically makes it impossible" to secure approval for any step toward CCA implementation.

"It’s a nasty ballot initiative," Mike Campbell, director of San Francisco’s CCA at the Public Utilities Commission, told us. "I think it’s clearly aimed at the heart of CCA." Campbell added that while he has been in discussion with SFPUC staff and others involved in hammering out Clean Power SF, he wasn’t at liberty to discuss a strategy for fighting the proposed initiative just yet.

Ross Mirkarimi, who chairs the city’s Local Agency Formation Commission — the body tasked with working in tandem with the SFPUC to implement San Francisco’s CCA — called the proposal "heinous — and yet I expect nothing less from PG&E.

"They can try to win by well-funded misinformation blitzkrieg," Mirkarimi noted. "If they’re able to spend $10 million without blinking here in San Francisco [on defeating a public power measure], they’re poised to spend tens of millions on this. As a state battleground, this elevates the fight that much more. We have to act in solidarity with other municipalities. We should be well-armed in repudiation of this effort."

There may be ways to attack the initiative in advance. The CCA legislation bars private utilities from seeking to undermine local CCA efforts. Assembly Member Tom Ammiano told us that the Legislature should look at how PG&E could be blocked from mounting a statewide effort to kill CCAs. "I think there’s some potential there," he said.

Julian Davis, who chaired the Prop. H campaign for public power last year, said he found the proposal very worrisome. "If you shut down community choice, you’re shutting down one of the major vehicles for clean energy," he said. To Davis, the initiative highlights "a disturbing trend of corporate America finding ever-more clever ways of tying the hand of local government in general. You know they’ll dump millions into this," he added. "The ultimate irony here is that none of us have the right to vote on anything PG&E does. None of us has a seat at the PG&E board table. It’s doublespeak."

Rachel Buhner contributed to this report.

Editor’s Notes

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Tredmond@sfbg.com

In the midst of all that is bleak in the state of California and the City and County of San Francisco, I am having fun specuutf8g about what will happen when Gavin Newsom is no longer mayor.

It’s a fascinating exercise — and trust me, I am by no means the only person engaging in it.

The broad outline is that the race to replace Newsom at this point bears no relation to the dynamic that brought him into office. Back in 2003, the race was the progressives against downtown; Tom Ammiano, Matt Gonzalez, and Angela Alioto were competing for the progressive vote, and Newsom was downtown’s darling, running on a platform of taking welfare money away from homeless people. The Newsom-Gonzalez runoff was about as clear and stark a choice over political vision as the city could ask for.

Six years later, I can count four people who are getting ready to run, and none is much like either Newsom or Gonzalez.

Sup. Bevan Dufty, who is sometimes with the progressives and sometimes with the mayor, told me last week that he’s definitely running. He’s part of the board’s moderate wing, but isn’t the downtown call-up vote that Newsom was and clearly isn’t counting on the big-business world for most of his support. Assessor-Recorder Phil Ting has made no secret of his political ambitions and is putting himself in the limelight with high-profile statements about Proposition 13 and taxing the Catholic Church. He sounds pretty liberal these days, although his chief political consultant is Newsom (and PG&E) operative Eric Jaye.

Just about everyone in local politics assumes City Attorney Dennis Herrera will be in the mix. He’s had the advantage of not having to take stands on local measures and candidates (as the city attorney, he’s not allowed to endorse), and while some progressives see him as the most appealing choice, he’s not Ammiano or Gonzalez. And then there’s state Sen. Leland Yee, who is utterly unpredictable, sometimes great on the issues and sometimes awful — and is almost certainly going to run.

And right now, other than Sup. Ross Mirkarimi, who might or might not run and isn’t putting together any kind of a pre-campaign operation, there’s no obvious progressive candidate in the race. If Mirkarimi’s serious, he needs to be moving.

But wait: There’s more.

Assume for a moment — and whatever you may think about the guy, it’s not a crazy assumption — that Gavin Newsom is the next governor of California. (How? He beats Jerry Brown in the primary by running future vs. past, then beats any Republican, who will be saddled with the Schwarzenegger mess. He isn’t remotely ready for the job, but that’s politics.)

Gov. Newsom would be sworn in Jan. 4, 2011. David Chiu, president of the Board of Supervisors, would be acting mayor — until he convenes the board and somebody gets six votes to finish Newsom’s term. That decision could be made by the current supes, who hold office until Jan. 8, 2011, if they can meet and decide in four days, or by the new supes — and we don’t know who they will be.

The person appointed doesn’t have to be a supervisor. Could be anyone. Could be Chiu. Could be Mirkarimi. Could be Dufty. Could be …. Aaron Peskin. Just takes six votes. And then that person could run as the incumbent.

Don’t go thinking any of this is just idle chatter. There are political consultants all over town having the same discussions, today. *

Stop PG&E’s alarming ballot measure

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EDITORIAL One of the greatest threats to public power in a generation is quietly working its way toward the California ballot.

As Rebecca Bowe reports on page 12, a proposed initiative that would require two-thirds of the voters to approve any sort of public electricity measure, including community choice aggregation (CCA), has been submitted to the state attorney general’s office. And Pacific Gas and Electric Co.’s fingerprints are all over it.

There’s no doubt whatsoever that this measure is designed to derail successful CCA efforts in places like Marin County and San Francisco, where the supervisors are moving forward to set up the equivalent of a buyer’s co-op for electricity. A San Francisco CCA would offer lower costs and much greener power — and would give the city far more control over its energy future.

The measure could also hamper the efforts of existing public power agencies to expand their territories or offer service to new customers.

The state Legislature approved a bill back in 2002 allowing California cities to replace private utility service with CCAs — and the bill included language barring PG&E and the other giant electricity companies in the state from spending money to undermine CCA efforts. In other words, it’s illegal for PG&E to use its immense resources and lobbying clout to try to block San Francisco’s efforts.

And PG&E has spent tens of millions of dollars in San Francisco, Davis, and elsewhere trying to block public-power programs.

So now the utility is going to the state ballot, where a campaign with enough money on an issue that’s sufficiently complicated can often pass. The law firm that filed the initiative papers, Neilsen Merksama (a political powerhouse that represents, among others, PG&E) won’t divulge much about the funding sources — except to say that the filing fee came from … PG&E. So there’s little doubt the measure will have the funds it needs to gather more than 600,000 signatures and mount a campaign of lies and disinformation.

That’s why supporters of CCAs and public power need to rally, now, to start planning to defeat this thing.

Mustering a two-thirds majority at the ballot for almost anything is difficult. Even in liberal San Francisco, bond measures requiring a two-thirds vote often pass only narrowly — and that’s if there’s no opposition. Even the most popular sorts of measures — say, for funding schools or libraries — can go down to defeat if anyone mounts serious opposition.

And PG&E, with its unlimited resources, would have the ability to kill the current CCA plans — or anything in the future that threatens the company’s illegal monopoly.

The two-thirds majority requirement is undemocratic and has paralyzed state government. Two-thirds mandates for new tax measures have made it almost impossible for cities and counties in this state to raise new revenue, even in desperate times like these.

The San Francisco supervisors need to immediately pass a resolution opposing the measure. Assembly Member Tom Ammiano and state Sen. Mark Leno have told us they oppose it, and they should see if there’s any way the Legislature can add language to the CCA bill to bar regulated utilities from spending money to undermine public power statewide. The San Francisco Public Utilities Commission should be talking to public power agencies all over the state and helping organize the opposition. If the measure makes it onto the ballot, the Sacramento Municipal Utility District, the Los Angeles Department of Water and Power, and every other municipal utility agency in the state will need to raise money — millions — and marshal forces against it.

This is a very serious threat, and the time to start defusing it is now. *

P.S.: Mayor Newsom has nominated Anson Moran, the former general manager of the San Francisco Public Utilities Commission, for a seat on the commission. This is a terrible idea. Moran had a notoriously anti-public power record when he was running the agency. In fact, in 1994, he tried to stop the city from bidding on the lucrative contract to supply electricity to the Presidio, saying that going up against PG&E would be "too political." And although he later said he would be willing to bid on the contract, he privately urged then-Mayor Frank Jordan to veto then-Sup. Angela Alioto’s measure pushing for public power at the Presidio. With all the battles over CCA and public power, the last thing the city needs is a PG&E call-up vote on the PUC. The Rules Committee hears the nomination June 18, and should vote to reject him.

PG&E’s new attacks on public power

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B3: ON guard! PG&E is quietly moving on several fronts to lock up its illegal private power monopoly in San Francisco and keep San Francisco from generating its own public power and moving to enforce the public power mandates of the federal Raker Act. Rebecca Bowe reports on PG&E’s ballot initiative that could kill community choice aggregation (cca) and kill public power moves in San Francisco Meanwhile, Mayor Gavin Newsom, who is running as the PG&E candidate for governor, put up Anson Moran, a callup vote for PG&E, to the San Francisco Public Utilities Commission. And the PUC is working with PG&E and Mirant to bring more dirty fossil fuel power into San Francisco on the Transbay Cable.

Tip: pin down Newsom and pin down the supervisors and everybody who is running for mayor on these critical PG&E moves. After all, in this budget crisis, public power is the largest potential source of new revenue for San Francisco (upwards of $300 million a year) and public power would stop the enormous financial drain of PG&E’s expensive private power (PG&E yanks upwards of $650 million a year out of the local economy in high rates.)

PG&E’s new attacks on public power

The ability of cities to switch to public power could be eliminated if a proposed state ballot initiative moves forward

By Rebecca Bowe
rebeccab@sfbg.com

A ballot initiative backed by Pacific Gas and Electric Co. could amount to a death sentence for community choice aggregation (CCA) and expanded public power in California.

Dubbed the Taxpayers Right to Vote Act, the proposed initiative would require a two-thirds majority vote at the ballot before any local government could establish a CCA program, use public funding to implement a plan to become a CCA provider, or expand electric service to new territory or new customers.

Click here to continue reading.

Editorial SOS: Stop PG&E’s alarming ballot measure

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And stop Anson Moran, a PG&E callup vote, from getting a Mayor Newsom appointment to the San Francisco Public Utilities Commission. (See footnote) And scroll down to see the Rebecca Bowe story disclosing how the Transbay Cable would bring dirty PG&E power from a PG&E substation in Pittsburg to a PG&E substation at Potrero Hill.

EDITORIAL
One of the greatest threats to public power in a generation is quietly working its way toward the California ballot.

As Rebecca Bowe reports, a proposed initiative that would require two-thirds of the voters to approve any sort of public electricity measure, including community choice aggregation (CCA), has been submitted to the state attorney general’s office. And Pacific Gas and Electric Co.’s fingerprints are all over it.

There’s no doubt whatsoever that this measure is designed to derail successful CCA efforts in places like Marin County and San Francisco, where the supervisors are moving forward to set up the equivalent of a buyer’s co-op for electricity. A San Francisco CCA would offer lower costs and much greener power — and would give the city far more control over its energy future.

Which kind of poison?

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rebeccab@sfbg.com

GREEN CITY The push from city leaders to shut down Mirant’s aging Potrero power plant advanced another step June 2 when the San Francisco supervisors approved an ordinance sponsored by Sophie Maxwell and Michela Alioto-Pier that urges closing the entire facility by the end of 2010 and directs the San Francisco Public Utilities Commission to update a plan charting the city’s energy future.

But the current city proposal for closing the Mirant plant appears to rely entirely on replacing that power with the output of other private fossil fuel plants — in someone else’s backyard.

The city is following the same script as Pacific Gas and Electric Co., which wants to upgrade and expand the lines bringing its own private power into the city — instead of San Francisco generating power of its own.

In fact, Mayor Gavin Newsom has introduced legislation to sell four city-owned combustion turbines that are currently collecting dust in storage in Houston. Obtained as part of a 2003 lawsuit settlement, the turbines were almost employed last year to build four small city-owned power plants to fully replace the Mirant facility — but that plan was ultimately shot down.

The California Independent System Operator (Cal-ISO), a federally regulated body that oversees grid reliability, currently requires Mirant’s dirty San Francisco facility to stay in service to provide in-city generation capacity in case of catastrophic power grid failure. But city officials now say a new underwater power cable from the East Bay could replace Mirant Unit 3, which spews fumes into the Bayview-Hunters Point neighborhood.

Last month, Newsom, Board of Supervisors President David Chiu, City Attorney Dennis Herrera, SF Public Utilities Commission General Manager Ed Harrington and Sups. Sophie Maxwell and Michela Alioto-Pier sent a letter to Cal-ISO making the case that with the installation of the TransBay Cable — which would link the city with generating facilities in Pittsburg — and other planned system upgrades, the entire Mirant facility could be retired by next year.

Maxwell’s ordinance references that letter, and urges PG&E to "develop expeditiously" its transmission-upgrade projects to pave the way for the plant’s closure. Cal-ISO spokesman Gregg Fishman says that so far, it hasn’t reviewed PG&E’s plans.

Joe Boss, a longtime member of the city’s power plant task force, says he has little confidence that Mirant can be shut down without being replaced with new in-city electricity generation. He told us he believes it’s a bad move to sell off the publicly owned combustion turbines.

The TransBay Cable is essentially a 10-inch thick extension cord that would connect a PG&E substation in Pittsburg with another PG&E substation in Potrero Hill. It’s being bankrolled by the Australian investment firm Babcock & Brown, which ran into serious financial trouble during the economic downturn, and its San Francisco branch was bought out last month. Currently under construction, the cable project is being built in tandem with the Pittsburg power company, a municipal utility that would retain ownership of the cable and converter stations. PG&E customers will ultimately pay for power transmitted over the line.

The way the theory goes, once the cable goes live next March, Potrero’s Unit 3 — a natural-gas fired generator that runs about 20 hours a day — could finally be shut down. "But the question is, is it just going to bring dirty power to SF?" asks Sierra Club Energy Board chair Aaron Israel.

Near the Pittsburg end of the cable, there are two gas-fired Mirant-owned power plants, operating since 1972 and 1964.

There are proposals for two new Mirant natural-gas fired power plants in that area as well, plus a 530 MW plant called Gateway owned by PG&E that became operational this year.

So the future looks like this: San Francisco gets rid of a pollution source, and shifts the problem to a poor community 40 miles away. And PG&E and Mirant retain their hegemony over the city’s electricity supplies.

"’Which poison would you like?’ is kind of where the debate is," says Greenaction for Environmental Health & Justice Executive Director Bradley Angel. "We’ve got to keep advocating for a dramatic increase in renewable energy, here and elsewhere," Angel says. But that’s not going to happen with PG&E and Mirant calling the shots.

PG&E’s latest malevolence

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By Steven T. Jones
shameonpge.jpg
Image of environment justice protest from Greenaction.org

As the Bay Guardian has documented for over 40 years, Pacific Gas & Electric Company has a sordid history of malevolent actions, including illegally cheating San Franciscans out of public power (from its initial violation of the federal Raker Act to its record-setting sums spent to defeat public power initiatives), corrupting local politics, lobbying against higher clean energy standards and consumer empower measures at all levels of government, greenwashing its dirty power portfolio (including the state’s largest nuclear power plant), transferring billions in ratepayer money to its parent company just before its utility declared bankruptcy (the lawsuit over which was recently dropped by Attorney General Jerry Brown, to his shame), screwing the city and ratepayers and then aggressively fighting the myriad resulting lawsuits, and on and on.

But now, we can add to the list mistreatment of its own employees. PG&E has reportedly ended negotiations with its Engineers and Scientists of California Local 20 labor union and announced its intention to unilaterally implement its final offer. The move has enraged both that union and its brothers and sisters on the larger House of Labor, which will be rallying and picketing outside PG&E headquarters at 77 Beale Street tomorrow at noon.