Sacramento, CA – Responding to PG&E’s threat not to spend approximately $2 billion it has been authorized to spend on infrastructure upgrades unless it gets a Sacramento bailout, Consumer Watchdog wrote the California Public Utilities Commission calling on it to act against the utility for not spending money it is already collecting from ratepayers.
“Ratepayers are paying for these investments with a generous return on investment built into their rates,” wrote Consumer Watchdog President Jamie Court. “PG&E needs to make these investments or give the ratepayers their money back…. The Commission has approved billions of dollars in capital expenditures through General Rate Case proceedings and has granted interim rate relief based upon findings that these investments are reasonable, necessary, and in the public interest…. PG&E appears to be engaged in a ‘capital strike,’ where it withholds paid-for-services in exchange for a political result.”
Consumer Watchdog made the request for an order to show cause, calling on the company to answer within 48 hours, regarding PG&E’s public announcement. Read the letter (opens in new tab).
“The legislature should not respond to blackmail by PG&E,” said Court. “This is not the first time the company has engaged in a ‘capital strike,’ which it tried during the electricity crisis at the turn of the century. The John Burton-led Senate told them no bailout then and held the line against a legislative bailout in the face Wall Street pandering by Gray Davis and Assembly Speaker Bob Hertzberg. California’s regulators should require PG&E to spend the money ratepayers are giving it or take action against the utility with fines and a return of ratepayer funds.”
