Let's face it - being 'green' is the new cool. But sometimes an ulterior, industry-driven motive lurks behind the 'green halo' that we trust in so-called environmental organizations. This blog is dedicated to keeping individuals and organizations who claim to be for clean, renewable energy accountable.

Monday, October 13, 2008

Sempra adds $2 Mil - Total utility spending now $29.5 million

Looks like PG&E and Southern Cal Edison were feeling like they were carrying the entire financial burden in defeating Proposition 7. Until now, these two utility-giants had each contributed over $13 million to defeat Proposition 7, while Sempra kicked in just over $100,000.

With Election Day just three weeks away, and most of their war chest already spent on television ads, Sempra has thrown down an additional $2 million dollars to defeat Prop 7, bringing the Big Utilities’ total spent, so far, to $29.5 million. They must be really scared.

$2 million dollars is just enough for a state-wide ad buy. It will be interesting what the Big Utilities come out with next. They’ve been hiding behind environmental front groups and running non-stop smear commercials for months now, and yet they’ve refused to release the results of a single poll.

Stay tuned.

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Wednesday, September 24, 2008

Freeman takes on Cavanagh

David Freeman and Ralph Cavanagh went toe-to-toe in a radio interview on 89.3 KPCC FM, and Freeman ran circles around Cavanagh. This campaign is getting good. Listen through KPCC’s website here and read my analysis below.

Host Larry Mantle asked Cavanagh “What is your opposition?” Cavanagh’s responses were:

“CA’s leading environmental groups all oppose Prop 7. If our good friend Dave Freeman had written the initiative, I am sure we would all be for it.”

Huh?? Isn’t David Freeman that other voice on the radio telling you you’re wrong on Prop 7?

“This initiative locks in two new pages of mandatory excuses for the utilities that will let them off the hook.

WHAT? Then why are they spending 27½ million dollars to defeat it? Is Cavanagh actually saying with a straight face that the utilities would invest $27.5 million dollars to kill a measure that had no provisions to enforce its requirements? Or that the utilities want to scare people about an initiative that would actually make skirting the law legal for them?? In actuality, Prop 7 strengthens existing law by making FINES mandatory and prohibiting the utilities from passing them on to consumers. That's why the utilities are spending $27.5 million to defeat Prop 7.

“Can’t change it without a 2/3rds vote.”

This is a blatant manipulation of the law on Cavanagh’s part. CA election law already states that the ONLY WAY to amend an initiative is…..THROUGH ANOTHER INITIATIVE. That’s right, the default mechanism to changing any provisions of a successful ballot measure is to PUT UP ANOTHER INITIATIVE. True story, check it out for yourself, in the California Constitution (apparently not a very important part of Ralph Cavanagh’s analysis of Prop 7). What the authors of Prop 7 did, and I think this was pretty clever, was include a provision that allows it to be amended in the Legislature. The 2/3 vote requirement is key to protecting the integrity of the initiative (and thus the will of the voters), while giving the Legislature the flexibility to adjust the measure as needed. Most initiatives include just such a provision to make them easier to amend but not too easy so special interests can simply gut them. It’s a common sense, smart way to write an initiative. Cavanagh’s a Yale educated lawyer. He knows the law, but hopes you don’t. This is what his strategy actually is.

Highlights from David Freeman’s response:

“What Ralph is missing is the huge opportunity for California to stake out a leadership role. The problems Ralph has with this are nit picking. They are relatively minor.”

“The Legislators don’t like it because it points out their existing failures, the agencies don’t like it because it points out that they aren’t getting this done. It’s time for the people to speak.”

“This is a charge (the size restriction issue) that is being made that just doesn’t hold water. The last time Ralph, you and the PUC got together on something with the utilities, you brought deregulation to the state. The judgment of the PUC and the environmental organizations is not impeccable. The issue is, do we take a risk in staking out CA as the leader in renewable energy?”

Thank you David Freeman for bringing some common sense to the Prop 7 debate.

Listen to the whole thing here.

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Monday, September 22, 2008

PG&E, Edison & Sempra Enabler Exposed

The only funding for the No on Prop 7 campaign is the jaw-dropping $27 million from PG&E, So Cal Edison, and Sempra. So I was of course interested in the revelation that Southern California Edison was fined $146 million for violations associated with rigged customer satisfaction surveys and falsified safety data. The Pasadena Star News reports that:

“Edison employees and management manipulated and submitted false customer satisfaction data that was used to determine Performance Based Ratemaking customer satisfaction rewards during the period from 1997 to 2003.

Edison was ordered to refund to its ratepayers all $28 million in rewards it has received and to forgo an additional $20 million in rewards the utility has requested. Thursday's decision also finds that Edison submitted false and misleading health and safety data - a move that likewise resulted in an order for the utility to refund to ratepayers all $20 million in PBR health and safety rewards it has received and to forgo another $15 million in rewards it has requested.

The commission additionally ordered Edison to refund to consumers $32,714,000, the portion of its 2003-2005 revenue requirement related to the utility's results-sharing program that was affected by fraudulent data.

Lastly, Edison was ordered to pay a fine of $30 million to the state's general fund for violations of the Public Utilities Code.”This is only the most recent time that California’s Big Utilities have been busted for ripping off consumers."

TURN, a utility watchdog, has provided a neatly detailed list of shenanigans by Big Utilities and their enablers. As I was perusing the press releases, however, I noted a recurring theme – that the California Public Utilities Commission often acts as a Big Utilities enabler.

Why is that relevant? The CPUC also made news this week when it came out with a less-than-positive review of Prop. 7. The CPUC is dominated by Schwarzenegger appointees who support deregulation of CA’s electricity market. According to TURN, the Big Utilities foremost enabler of ripping off Californians is the CPUC itself. Here are some highlights of the Big Utilities ripping off Californians, with and without the help of CPUC:

December 20, 2007: California Public Utilities Commission gives “Christmas gift” to Big Utilities: The California Public Utilities Commission today bucked a national trend toward lower profits for regulated utilities, guaranteeing inflated profits for PG&E, Edison and SDG&E. Instead of grabbing the opportunity to lower electric bills throughout California, under today's decision PG&E and Edison will continue to receive profits far above other utilities, and SDG&E will begin collecting inflated profits as well. Says TURN Executive Director Bob Finklestein: "There is no justification for awarding windfall profits that come out of the pockets of hard-working Californians. The CPUC is out of touch with the national trend toward lower guaranteed profits, and is also out of touch with the struggles many Californians already face to afford essentials like heat, light and hot water." Read the rest here.

April 18, 2007: PG&E ordered to return $23 million in illegal back bills to customers: A judge found that over 3,400 customers had their power shut-off for nonpayment of illegal back-bills. PG&E should pay reconnection fees and credits to customers shut off between 75 and 150 days of receiving illegal back-bills. Over 225,000 customers received illegal back bills during the time in question. All customers illegally back billed by PG&E suffered harm, and shareholders should pay illegally billed customers refunds of $23 million. Read the rest here.

March 15, 2007: $170 million from CPUC to PG&E shareholders: The California Public Utilities Commission (CPUC) today granted Pacific Gas and Electric Company (PG&E) a rate increase of $213 million per year, despite strenuous objections from consumer groups that believe PG&E rates are already much too high. "The CPUC could have reduced rates simply by saying PG&E shareholders don't need another $43 million per year on top of rates that are already among the highest in the nation," said Bob Finkelstein, TURN's executive director. "Instead they opted to let the utility siphon tens of millions more each year out of consumers' pockets, knowing these amounts flow directly to shareholders." Read the rest here.

October 31, 2005: Deregulated companies’ tricks cost Californians billions: Sempra Energy goes on trial for manipulating CA electricity prices to cause the energy crisis: Sempra, the parent company of Southern California Gas and SDG&E, is defending itself against anti-trust charges that could cost the company as much as $23 billion.Sempra is accused by California and a coalition of local governments of conspiring to manipulate the gas market in order to drive up prices. Read more here.

December 18, 2000: Backroom Utility Deal Between CPUC and PG&E: Published reports have revealed that state officials are negotiating rate increases with the utilities absent any notice to the public or opportunity for public comment. "This is a gross violation of basic concepts of due process and fair play. If not halted, these discussions could lead to a California Public Utilities Commission decision permitting rate increases as early as this Thursday," said Nettie Hoge, executive director of TURN, The Utility Reform Network. Hoge called on the governor and CPUC president Loretta Lynch to immediately halt private discussions with the utilities and comply with laws requiring public notice and comment. "Utility rates in this state are supposed to be determined via a public process, not through backroom deals between politicians and the utilities," Hoge stated. Read more here.

Apparently, CPUC has a documented history of giving the Big Utilities substantial leeway to force California consumers to fork over more of what’s in their wallet to PG&E, Sempra, and Edison. And while all this is going on, the Big Utilities honestly think (or desperately hope?) that if they greenwash their campaign against Proposition 7 by throwing the names and faces of environmentalists (that they fund) at voters, then CA will overlook the rate hikes, rip-offs, and the environmental degradation that the Big Utilities are most appropriately known for. But this really just harkens back to the point I made in my last post. When you have politically/financially interested parties vs. disinterested Nobel Laureate-winning physicists and scientists, who do you go with? Call me crazy, but I’m still going with the scientists.

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Sunday, September 14, 2008

Just In: S. David Freeman Testifies for Prop 7

As this blog has detailed at great length, the No on Prop 7 opponents largely have political and financial interests in opposing Prop 7, with many of the “environmental” groups taking hundreds of thousands of dollars from the Big Utilities funding the No campaign and having overlapping board memberships.

Outside of the political hubbub, however, you find that scientists, lawyers, and industry experts support proposition 7. On Wednesday, S. David Freeman testified in support of Proposition 7 at the Joint Legislative informational hearing on the measure.

David Freeman is no lightweight.

“Known as the "Green Cowboy,” … President Carter appointed Freeman to chair the board of the Tennessee Valley Authority and he would later head other major electrical utilities, such as the Lower Colorado River Authority, the Sacramento Municipal Utility District, the New York Power Authority and the Los Angeles Department of Water and Power."

Wow! This guy must know what he’s talking about! See this interview:

In his distinguished forty-year career of public service, Mr. Freeman has been "present at the creation," shaping our public awareness, helping design governmental institutions, and writing the laws that define the framework for U.S. environmental and energy policy. He has served as an advisor on energy and the environment to Presidents Johnson, Nixon, and Carter. He was Chairman of the Tennessee Valley Authority during the Carter administration, and has run many of the most important public power utilities in the country.

But here’s the punch line: Freeman is also credited with helping to get CA out of the 2001 energy crisis. So now you’ve got the Big Utilities and their allies in the NRDC, who caused the 2001 energy crisis, trying to scare voters into voting no on Proposition 7, versus the guy who actually got us OUT of the energy crisis telling us he’s voting for the measure.

Hmmmmmmmm. I’ll let you do with that bit of info what you may. In the mean time, for your reading pleasure, here is what S. David Freeman had to say to the committee on Wednesday:

Mr. Chairman, Honorable Members, ladies and gentlemen.

First, I want to be clear that my views are purely personal; and I do not speak for the Port of Los Angeles, the City of Los Angeles, the ICFT, or anyone else. I appear as an uncompensated individual.

I testify as a lawyer and engineer, with 30 years experience as a chief executive of large electric utilities, including those serving Sacramento and Los Angeles, where I advanced the use of renewable energy used efficiently.

I also testify as a former State of California energy official. And, more recently as an author who has explained how we can shift from fossil fuels and nuclear power to renewable energy, used efficiently; and why doing so rapidly is a survival issue for this high energy civilization in which we live.

I studied the text of Proposition 7 without any preconceived opinions. My considered judgment is that it clearly meshes with existing law in California to achieve two rather basic and very necessary goals.

It doubles the rate at which we shift from the fuels that poison our environment to renewable energy – from 1 % per year to 2 %. per year.

It also streamlines and shortens the approval process for projects that don’t pose serious threats to the environment so the utilities will have better opportunities to achieve the necessary goal of 50 % renewable energy by 2025.

It is important that the People of California know what the contents of this Proposition actually provides. If Proposition 7 is enacted, it will:

(1). Require that, by 2025, 50% of California’s electricity be generated from renewable resources as presently defined in existing law.

(2). Require annual additions of renewable resources at a rate of at least 2 percent per year.

(3). Apply these renewable energy standards to the municipal utilities, now exempt, that provided 25% of California’s electricity, and which today are the most intensive users of carbon-rich coal.

(4). Provide greater flexibility to the utilities and, and greater value to the consumers, in acquiring renewable energy by:

(a). Permitting direct negotiations without the delay of the current complicated RFP process;
(b). Requiring 20 year contracts so consumers will get the long-term benefits of renewable projects that are virtually inflation proof.

(c). Providing a realistic price that will enable most projects to be automatically approved.

(5). Strengthens the penalties on utilities for failing to meet the targets by removing the current ceiling on penalties; and, by law, forbidding that the fine be paid by consumers.

(6). Consolidates the permitting process, and shortens the time-frame at the Energy Commission – but only for projects that do not pose serious environmental concerns.

There is no longer a debate in California over whether we need to shift to renewables. Nor can anyone successfully say that 50% renewable by 2025 is too ambitious. Al Gore says we need to do 100% by 2018.

Mother Nature is the one that will really call the shots, and the best experts say that the tipping point on global warming will be less than a decade away.

The lack of desired progress to date by the electric utility industry in this State makes it clear that we need to raise the bar. Proposition 7 does just that in a realistic, well-thought-out manner.

I have considered the objections to Proposition 7, and find most of them to be conclusions without any factual basis in the language of Proposition 7.

The utility opponents are running TV ads saying again and again that small renewable producers below 30 megawatts would be excluded by Prop. 7. That is just plain wrong. Prop. 7 changes absolutely nothing about which size facility can qualify. The opponents fail to distinguish between “facilities” which count towards the Renewable Portfolio Standard without any size limitations, and “plants” over 30 megawatts which – for siting purposes only – will be approved by the Energy Commission. The opponents have either deliberately or sloppily failed to recognize that the 30 megawatt or lower distinction applies to plants which do not need an Energy Commission permit in the first place; and has nothing what so ever to do with which facilities qualify for the Renewable Portfolio Standard.

Today, both large and small producers qualify for the RPS. Tomorrow, if Proposition 7 passes, the same producers, both large and small would qualify for the Renewable Portfolio Standard.

Another complaint is that the Commissioners are given authority to excuse the fine for non-compliance in any year if there has been a good faith effort to comply. Please note that the commission, not the utilities, must make the findings. And, I would have trouble defending a law that fined a utility for a failure that was in fact beyond their control.

The opponents are saying Proposition 7 is both too tough and too easy. Perhaps it is just right.

We need more renewable electricity not just for today’s uses, but to power hybrid and all-electric cars. Proposition 7 can provide us the carbon-free domestic energy that will drive our nation’s vehicles for less than $1 a gallon gasoline equivalent.

Yes we can reach 50% renewable by 2025 or sooner.
Indeed, I say yes we must.


Now that, my friends, is good stuff.

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