PG&E recruited speakers to state hearing
| Tuesday, Jun 01 2010 05:32 PM
Last Updated Tuesday, Jun 01 2010 08:03 PM
Melissa Iger thought she had been asked to tell the City Council what a generous partner Pacific Gas and Electric Co. had been to her nonprofit organization, the Tree Foundation of Kern.
But when she showed up and learned what was really going on inside City Hall Council Chambers Thursday, she was "a little bit shocked" and immediately changed the speech she had planned to deliver.
"I have to remain kind of apolitical when it comes to things like this," Iger said.
"I didn't want anybody to be upset with us."
She and representatives of several other local nonprofits that receive money from PG&E had been recruited by the company to speak in its support during Thursday's state hearing to consider the utility's request for a $4.2 billion, 30 percent revenue increase over the next three years. Rates paid by customers will go up depending on how much of that money the state Public Utilities Commission thinks is justified.
In most if not all cases, the nonprofit representatives did not say whether they supported PG&E's revenue hike. Local PG&E spokesman Denny Boyles said the company left that up to them.
"We're not going to be telling people, 'Here's a script.' We don't do that," he said.
But people PG&E recruited to the hearing said company representatives did ask them to help show the company in a good light.
"They said you didn't need to say anything about what, what was, you know, in regards to what was happening at the hearing, but just be there for support. So that's what we were there for," said Cathy Butler, president of the Downtown Business and Property Owners Association.
Common practice
There are no rules against utilities recruiting people to speak in their support at state hearings, according to the utilities commission, which organized last week's meeting in Bakersfield. But it indicated the people speaking must not be a formal party to the proceeding.
Also, administrative law judges who conduct the hearings have no system for tabulating, or "scoring," public comments for and against the utility or its revenue request, a commission spokesman wrote in an e-mail.
It's actually common for utilities to get people to speak up for them at these hearings, said a spokeswoman for The Utility Reform Network, a San Francisco-based consumer advocacy organization. She said utilities essentially use grants to foster a mutually beneficial relationship.
"PG&E gives (charitable groups) money to establish a relationship and then calls in their chips in times of need like this," spokeswoman Mindy Spatt wrote in an e-mail.
Community contributions
PG&E does a lot for local organizations, and the utility's employees even donate time to local causes.
Last year, the company donated more than $19 million of its shareholder money to charitable organizations across Central and Northern California. That sum represents more than 1 percent of PG&E's pre-tax earnings, the company said. It expects to top $19 million in grants and donations again this year.
According to the company's website, projects that may qualify for grants include efforts related to sustainable communities, air quality, natural resources, climate change and renewable energy, and environmental education.
In Kern County specifically, PG&E said it handed out some $100,000 in grants and other contributions last year.
Butler, with the downtown business group, said Friday that PG&E has donated an electric vehicle to her organization and otherwise supported downtown safety, community events and various other programs.
Iger, executive director of the tree foundation, said Tuesday that PG&E has donated $25,000 over the last three years in support of the group's efforts to plant trees around the county, and that company employees volunteer to help with the planting.
"They really do try to jump in and participate," she said. "They're good to us."
Debbie Moreno, president and CEO of the Greater Bakersfield Chamber of Commerce, also spoke in support of PG&E at last week's hearing. She said Tuesday that PG&E has contributed to various initiatives promoting local economic development. She said these include a youth leadership program and other educational activities, as well as an annual energy and clean air expo.
While the chamber does not usually disclose how much individual contributors give the chamber, Moreno said PG&E is a "significant sponsor" of the organization. It has been a chamber member for 90 years.
The Kern Economic Development Corp. also sent a speaker to the hearing, and that person explained how PG&E had contributed to its activities. The speaker and the head of KEDC could not be reached for comment.
Other speakers were less complimentary of PG&E. Many asked the commission to deny the utility's request for additional revenues.
