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egulations evenly, and appears to have allowed the largest utilities to get
away with gross negligence.
Whose charity?
PG&E not only pays counties hefty property taxes. The utility also
makes charitable contributions to local food banks, chambers of
commerce, health programs, and “underserved communities.”
In 2011, PG&E made more than $23 million in charitable
contributions. According to PG&E, “More than 75 percent of PG&E’s
community investments provided assistance to underserved communities
in 2010. This funding supported projects and organizations assisting
people with low incomes, communities of color, women, veterans, senior
citizens, people with disabilities, and members of the lesbian, gay,
bisexual and transgender community.”
“[PG&E] officers sit on the boards of a diverse group of nonprofits,
such as California State Parks Foundation, United Negro College
Fund and Leadership California.”
Also, “We worked with the Association of Bay Area
Governments, Association of Monterey Bay Area Governments, Great
Valley Center and Sierra Business Council to help compile greenhouse
gas inventories for more than 60 local governments. These are expected to
be completed in 2011 and we plan to get started on roughly 60 more.”
The counties become news when agencies spoke out in favor of
PG&E’s corporate interests. But ratepayers shouldn’t have to fund any of
PG&E’s charitable or political spending. Ratepayers can choose to make
such contributions on their own.
Ratepayers pay
PG&E has argued that the shareholders pay for these expenditures.
But all of PG&E’s revenues first come from ratepayers. Shareholders
make their money off of the ratepayers.
The CPUC looked at PG&E’s last rate hike request and apparently
had a difficult time with the justification, according to one utility expert
who asked to remain anonymous. He said the dividends paid to
shareholders should be closer to 5 to 7 percent, as for most utilities, not
more than 11 percent.