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CPUC Stuck In Culture of Corruption
OCT. 17, 2011 It is shameful to punish the puppy when the pack leader is at fault. It is no different in the workplace and the corporate world — failure and corruption are usually the fault of the top dogs. Two recent examples are Pacific Gas & Electric and the California Public Utility Commission. The utility company and the state regulator have talented employees, but problematic corporate big-dogs. In fact, the entire utility regulatory system in California needs a new pack leader. The first in line for the overhaul is Michael Peevey, the president of the CPUC since 2002. Politically well connected, Peevey is a former senior executive with Southern California Edison. His wife is State Sen. Carol Liu, D-La Canada-Flintridge.
It was on Peevey’s watch that a succession of deadly events took place, including the horrific 2010 San Bruno gas pipeline explosion, which killed eight, injured more than 100 and destroyed 38 homes (pictured at right). Peevey was CPUC President when a gas line exploded in Rancho Cordova on Christmas Eve 2008, destroying a home and killing the occupant, as well as the very recent September pipeline explosion at a Cupertino condominium, which did not receive much press coverage. After years of approving rate increases earmarked for the San Bruno pipeline upgrades, the CPUC never followed up to make sure that PG&E actually did the work. Instead, PG&E pocketed the rate increases, shined on the pipeline upgrades and kept going back to the CPUC trough for additional rate increase approvals. ‘Culture of Complacency’Post-explosion investigations by the National Transportation Safety Board, as well as by the CPUC, found irrefutable evidence of wanton negligence by PG&E — but also by the CPUC. Peevey’s arrogance during the investigations was staggering. He even admitted a “culture of complacency,” and a pattern of just “checking the boxes” by his own utility regulatory agency.
But Peevey still has his job. In fact, no one has paid for the gross negligence and lack of oversight by the CPUC and PG&E other than ratepayers and innocent San Bruno and Rancho Cordova residents. PG&E received a $26 million fine for the Rancho Cordova explosion. For a utility company worth nearly $15 billion, that’s like fining a guy who makes $50,000 a year, $5.00. The next question on ratepayers’ minds is: Who is going to pay for the fines, repairs and upgrades to PG&E’s pipelines? Ratepayers have already been charged several times over. Perhaps if PG&E’s shareholders had to reach into their own pockets to foot the bill, they would pay closer attention to the unholy relationship between PG&E and the CPUC. Who Audits The CPUC?The Senate Office of Oversight and Outcomes, a committee created in 2008 by Sen. Pres. Pro Tem Darrell Steinberg, D-Sacramento, has done great work. But thus far it has not reeled in the CPUC. The committee has done a good job exposing the CPUC and telecommunications industry issues, but needs to take a close look at the tainted relationship between the CPUC and PG&E. Then the Legislature needs to act. The San Francisco Examiner did a recent analysis of utility rate-hike documents. It found, “PG&E customers had been charged multiple times for at least two dozen natural-gas improvement projects that had not been implemented. Customers were asked to pay more than $320 million for the projects in 2008, and then were asked to pay another $313 million for those same projects in 2011.” InvestmentsPG&E has an 11.35 percent rate of return. “Pacific Gas & Electric enjoys a near monopoly over 70,000 square miles of Northern and Central California, with 15 million customers,” the New York Times recently reported. “The California Public Utilities Commission allows the company to charge rates 30 percent higher than the national average. As a regulated utility, the publicly traded company’s shareholders benefit from a guaranteed 11.35 percent return on equity, which is also above the industry average of about 10.5 percent.” But when PG&E is derelict, sloppy or just lax, people die and ratepayers get handed the bill. Without competition, PG&E and the CPUC together appear to decide what policies to follow. The tail is wagging the dog. Perhaps it is time for the Legislature to review PG&E’s franchise, along with the CPUC’s Rules of Practice and Procedure. Passing Along the AccountabilityThe estimates PG&E has provided for the San Bruno pipeline repairs and updates are only for one phase of the improvement plan — approximately $2.2 billion. The cost increase to ratepayers is estimated to be about 4 percent, or about $1.93 each month to the average PG&E bill. And, if PG&E’s multi-year pipeline modernization plan, recently filed with the CPUC, receives approval, business customers will be facing outrageous rate hikes. It is ironic that not only is the CPUC dishing out the fines to PG&E for the San Bruno explosion, but the regulator, which failed to prevent the San Bruno explosion, is responsible for approving PG&E’s upgraded safety plan. Who will fine and hold the CPUC accountable for failing so miserably at its job? Perhaps the place to start is with the top dog and his unruly pack. This culture of corruption, built around the top dogs, is the fox guarding the henhouse. – KATY GRIMES
Tags: California, California Legislature, CPUC, darrell Steinberg, Katy Grimes, PG&E, rate increases, regulations, waste Comments(13) |
June 19, 2013
Katy, you are so on the money. This “system” is so corrupt yet no one seems to be doing anything about it. If you know of any groups that are organized to further the dismantle of these two entities please forward them on to me.
Kurt Danziger
Katy, just one more amazing story you have written. How can a govt. agency that is funded with our tax dollars have so much power, but yet not use it to protect the tax payers. The system is broken and who will fix it? I wish I knew the answer to the question. Good luck trying to talk to Gov. Brown. To this date, I have not received ONE reply (not even a robo message) from the numerous emails, letters, or faxes I have sent. I thought these people are suppose to work for US…..apparently NOT! I keep seeing a clear picture of someone’s head stuck in the sand……
A really great start to upgrading their image would be for the CPUC to recognize the wrong decision they made in allowing SCE to mutilate Chino Hills before we become San Bruno Two. We see a glimmer of hope that Mr. Peevey is showing some signs of possible change……the difficult part for us is while we hold out hope for the CPUC to stop to this travesty, at moment SCE is constructing a power pole that will stand 285 high in the backyards and neighborhoods of our community! The power lines when strung will hang over homes and a church. Did you read that….285FT in a neighborhood??? That is NOT a typo!!!
My fear is we are simply being pacified and we need these Monster’s re-routed immediately. This is the next Monster Disaster to happen. I don’t want to be right. I do not want our children to end up sick. I do not want our community to end up being a ghetto when everyone simply gives up and walks away from their homes. We can only remain optimistic for so long but will hold out hope that the CPUC will re-think this plan and make SCE re-route these Monster Power Poles or Bury the Lines.
This article could not be more spot on. The City of Chino Hills was a city people wanted to live in. Homes were in demand and even under our current economic downturn prices in Chino Hills remained fairly stable. It is understood that no where in the U.S. have towers like the one’s being erected for the TRTP project been built to carry 500,000 volts of electricity. Chino Hills and its citizens are guinea pigs for this project and if allowed to continue it will effect countless other communities and states. The city of Chino Hills spent 2.5 million to fight this in court most of us felt that was money well spent. CPUC was given alternate routes for the towers which would not have impacted any people but they refused to look at them. It is thought that the reason this was not taken into consideration is that there is some $663 million dollars of federal money to be given to SCE if the job is complete by Dec. 2011. SEC was quick to point out their concern for public safely when we were protesting and asked us to keep their driveways clear. Interesting they have no problem destroying our community and people’s health with the monster towers!! It is time to right this wrong. GREEN ENERGY SHOULDN’T HURT and it is DESTROYING LIVES in Chino Hills!!
Thanks for another great article. Keep up the good work.
Hi Katy,
Thank you for exposing the truth…again. We need more people in the media, and politics like you to see and expose the dark side of the energy industry. The TRTP project going through Chino Hills next to homes is appalling beyond words. As you have suggested, the only way the SCE has been getting away with this atrocity is that is it being supported by a corrupt CPUC, state and federal government driven by reckless greed. How can be the high voltage towers in Chino Hills be considered safe when FHA loans cannot even be approved for homes that lie within the “fall zone” of the towers. Where is the accountability?!!! Your article hit the target.
The only option to resolve the corruption and incompetence at the CPUC is to have elected Commissioners instead of governor appointees. At this moment, the Commissioners are not accountable to the people, but their boss (the governor).
Thanks Katie, for headlining the article, “CPUC Stuck In Culture of Corruption.”
A couple of months after the San Bruno disaster, the FBI contacted me, asking about the “corruption at the CPUC.”
I have first hand experience with the corruption at the CPUC. In 2001, I filed a Formal Complaint, in part, because the company now known as AT&T, was knowingly using defective phone lines to my business.
AT&T Answered the Complaint, denying there were problems in the underground infrastructure. A few days later, 5 phone company trucks showed up on my street. I photographed the documents the technicians were using. The documents proved that AT&T was knowingly using defective phone lines on my street, and also, to my residence.
The CPUC refused to acknowledge the existence of the documents I photographed.
After the San Bruno disaster, I contacted the Executive Director of the CPUC, requesting to meet with him about problems at the CPUC. About ten days later, the State Police showed up at my front door. I have posted the Police report on this link:http://www.aphonenumberforthepresident.com/phonenumberforpresident-33.html
Afterwards, the FBI contacted me, asking about the “corruption at the CPUC.” I believe the State Police contacted the FBI on my behalf.
After I made it clear to the CPUC that the FBI contacted me, the Executive Director agreed to talk to me. On August 22, 2011, the Executive Director agreed to look at some documents I provided, which proved AT&T committed perjury to conceal problems in its underground infrastructure.
When I asked the Executive Director if he was involved in sending the State Police to my house, he told me he did not want to discuss it. He said, “Oh, I’m not going to talk about — anything that we might have done over the last year or so. I’m offering to look through the documents that you sent me.”
These are the links to the documents I sent to the Executive Director:
http://mikeandmabell.com/FBI/History-Fictional-Number.html
http://mikeandmabell.com/FBI/History-WetCable.html
If the CPUC Executive Director were to acknowledge that AT&T lied to the Commission in a Formal Complaint, AT&T could be fined over $200 million, all of which would go to the California State General Fund. This money could be used to prevent laying off teachers, firefighters, police officers and other vital employees of the State.
After I spoke to the Executive Director, I received an email from Commissioner Michael Peevey’s Office, which stated,
” Hello Mr. Knell:
President Peevey has been informed by Executive Director Clanon that you and Mr. Clanon are working/communicating now on your issues and President Peevey is confident that this is the best avenue for you to pursue at this time.
Executive Director Clanon will keep President Peevey and the rest of the commissioners up to date on your issues and any progress made.
Thank you,
Carol Brown”
As of today, October 19, 2011, I have not heard back from the Executive Director. It is my hope that the FBI is actively investigating the corruption at the CPUC.
Yeah and Public commissions that won’t let Chino Hills City Council take over Edison easments and use State Park land for utility easements must be corrupt, uhh and the newspapers show that 2 of the Chino Hills City Councilmembers owned property that adjoins the easements that Chino Hills paid 2.5 million in legal fees to try to get donated to the city.
SMART METER PRIVACY VIOLATIONS.
1. Must-See 4-minute youtube video on Smart meters
http://www.youtube.com/watch?feature=player_embedded&v=8JNFr_j6kdI
SMART METER HEALTH PROBLEMS AND CANCER.
2. The WORLD HEALTH ORGANIZATION on May 31 2011 placed the Non-ionizing radiation coming from Wireless smart meters (and some other wireless devices) on the Class 2-B Carcinogen List.
http://www.iarc.fr/en/media-centre/pr/2011/pdfs/pr208_E.pdf
3. The NATIONAL INSTITUTE OF HEALTH Feb 2011 found biological changes in the brain after only minutes of exposure to non-ionizing radiation.
http://jama.ama-assn.org/content/305/8/808.abstract
4. LABORATORY SCIENTISTS have observed (1) Human Cell Damage (2) DNA Chain Breaks (3) Breaches in the Blood-Brain Barrier from levels of non-ionizing radiation lower than emitted by WIRELESS Smart meters.
http://electromagnetichealth.org/electromagnetic-health-blog/cc-video/
5. INSURANCE COMPANIES Hired Independent Laboratory Scientists and these scientists also observed Cell Damage and DNA Chain Breaks and now the Insurance Companies will NOT Insure Liability damage from Wireless Smart meters and other wireless devices. TV Video (3 minutes)
http://eon3emfblog.net/?p=382
Cell Phone use and other devices are Voluntary and can be shut off at the user’s discretion, but Smart meters mounted on homes are emitting radiation 24/7 and can not be shut off.
6. WIRELESS SMART METERS – 100 TIMES MORE RADIATION THAN CELL PHONES. Video Interview: Nuclear Scientist, Daniel Hirsch, (5 minutes)
http://stopsmartmeters.org/2011/04/20/daniel-hirsch-on-ccsts-fuzzy-math/
7. WIRELESS SMART METERS – CANCER, NERVOUS SYSTEM DAMAGE, ADVERSE REPRODUCTION AFFECTS. Video Interview: Dr. Carpenter, New York Public Health Department, Dean of Public Health, (2 minutes)
http://emfsafetynetwork.org/?p=3946
8. THE KAROLINSKA INSTITUTE IN STOCKHOLM (the University that gives the Nobel Prizes) ISSUES GLOBAL HEALTH WARNING AGAINST WIRELESS SMART METERS. 2-page Press Release
http://www.scribd.com/doc/48148346/Karolinska-Institute-Press-Release
9. RADIATION MEASURED FROM SMART METER MOUNTED ON A HOME (once active in the utility system) SHOWS RADIATION TRANSMISSION PULSES APPROXIMATELY ONCE EVERY FOUR SECONDS 24 HOURS PER DAY traveling through the bodies and brains of the inhabitants of that home. Youtube Video (6 minutes, 1st minute is sufficient)
http://www.youtube.com/watch?v=uRejDxBE6OE
NOTE: many of the tests on non-ionizing radiation (the type of radiation emitted by smart meters) have been done using instruments other than smart meters because smart meters have only been in people’s homes for a very short time.
But as a Wireless smart meter emits 100 times more radiation than a cell phone, it is not difficult to project. If a machine gun (smart meter) fires 100 bullets in the same time that a pistol (cell phone) fires one bullet, it is not difficult to project the harm that the machine gun can inflict, even if the tests were done with the pistol.
CUSTOMER UTILITY BILLS AFTER SMART METERS INSTALLED.
10. Skyrocketing Utility Bills after installation
TV News Video (3 minutes)
http://www.bakersfieldnow.com/news/63581287.html?tab=video
11. Systemic Smart Meter Billing Errors Over 200% Uncovered in Australia
TV News Video (7 minutes)
http://au.news.yahoo.com/today-tonight/money/article/-/10241945/power-scandal-exposed/ – video
NATIONAL SECURITY RISKS DUE TO SMART METERS.
12. CIA Director James Woolsey calls Smart grid “Stupid” due to National Security problems caused by so-called smart meters.
News Video (1 minute)
http://www.energynow.com/video/2011/08/10/preview-mix-james-woolsey
MUST-SEE 4-minute youtube video on Smart meters:
http://www.youtube.com/watch?feature=player_embedded&v=8JNFr_j6kdI
Great article!
I’d also like to bring attention to President Peevey’s collusion with PG&E and absolute unaccountability over the deployment of radio frequency radiation (RF)”smart meters” which are costing us money, privacy, health and safety.
The EMF Safety Network filed a CPUC application in April of 2010 (http://docs.cpuc.ca.gov/published/proceedings/A1004018.htm), asking for hearings and Peevey and his sidekick ALJ Sullivan dismissed our case in December 2010 stating it was unreasonable and we should take it to the FCC. In the mid 90′s the CPUC investigated the health impacts of RF and could not prove it was safe- they ordered more hearings, which were never held. The World Health Organization has now classified RF as a 2B carcinogen, same as DDT and lead.
Peevey has ruled over and controlled all the CPUC Smart Meter proceedings and repeatedly denied the public hearings on RF health impacts. The CPUC has received thousands of RF health complaints. Instead of placing a moratorium on the roll out he has allowed the Utilities to continue to deploy and they have done so with stealth and deception.
people are getting sick: http://emfsafetynetwork.org/?page_id=2292
meters are overcharging: http://emfsafetynetwork.org/?page_id=1223
meters are catching on fire:http://emfsafetynetwork.org/?page_id=1280
security is unresolved:http://www.powermag.com/blog/index.php/2011/08/14/ex-cia-chief-slams-smart-grid/
and privacy is threatened:http://emfsafetynetwork.org/?p=5008
Governor Brown needs to remove Peevey asap. We need to put real regulation back into the CPUC and hold public hearings on the health and safety of RF.
Thank You.
Sandi Maurer
http://www.emfsafetynetwork.org
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