Accusations Of Conflict Of Interest in CPUC
ABC TV-7 KGO (San Francisco)
Why did the Public Utility Commission choose the industry-backed Telecom Users’ Bill of Rights over the proposal wanted by consumer activists?
When the California Public Utilities Commission chose education over regulation, consumer advocates didn’t much like it and they are still complaining.
Cell phone users will have more protection against outright fraud, but less protection against common frustrations – like dropped calls.
This version of the Bill of Rights was backed by commission president Michael Peevey, and sets up a consumer protection unit educating consumers without adding new regulations.
Michael Peevey, President, Public Utilities Commission: “Simply creating a new rule could cause more harm than good.”
Supporters of the competing consumer-backed proposal say educating consumers is ineffective if you can’t enforce their rights.
Dian Grueneich, Public Utilities Commissioner: “Because we can’t back it up with being able to go to the companies and making that a reality.”
The vote may be over, but the fight continues. Consumer activists accuse the governor of working behind the scenes to set aside consumer complaints so he can gather telecom cash.
Carmen Balber, The Foundation for Taxpayer and Consumer Rights: “Governor Schwarzenegger has collected, over the last three years, over $370,000 from the telecommunication industry.”
The governor’s office acknowledges there have been donations but calls the concept of being bought “ridiculous”, pointing out the governor spent more than $7 million dollars of his own money on the campaign.
Before Susan Kennedy was the governor’s Chief of Staff, she was a PUC commissioner and fought hard for the industry backed Bill of Rights.
During that fight she was also paid as a member of the governor’s campaign staff.
“Governor Schwarzenegger paid Susan Kennedy $25,000 as a member of his campaign staff while she was still a member of the Public Utility Commission.”
A payment made within weeks, the foundation says, of the governor receiving a telecom contribution of $25,000.
“That’s just money laundering plain and simple. It’s a huge conflict of interest.”
The governor’s press office calls it old news, saying the governor addressed state employees moonlighting for his campaign more than a year ago.
Gov. Arnold Schwarzenegger: “There will be no conflict of interest. We always will make sure that we represent the people of California.”
Consumer groups don’t want to let go of this one. It was a long battle and losing it was tough. At this point, with this PUC commission, there’s little left they can do. However, when the make-up of the commission changes, look for consumer groups to gear up again.
