Let's get our SmartMeter timing straight
Rate increases to fund PG&E's SmartMeter program clearly fall at the foot of the California Public Utilities Commission. The Legislature plays no particular role in setting electricity rates.
All rates and rate cases are settled by the PUC, which is made up of commissioners who are appointed by the sitting governor.
During the energy crisis about eight years ago, the Legislature did freeze the first two tiers of electric rates, thus not allowing rates in these tiers to rise at all -- they are still frozen as of today.
I don't accept the premise that SmartMeters were the result of any particular laws requiring utilities to use renewable energy to generate power. I never heard of this being the case as a justification for SmartMeters and I do not recall PG&E ever saying so.
But I have seen where the PUC approved rate increases to pay for SmartMeters, and I have seen where PG&E was sitting on over $400 million for over-billing for the cost of natural gas to run their power plants.
Consumers have yet to receive any real benefit out of SmartMeters, with an investment of $2 billion so far, and who knows how many more rate increases ahead.
With respect to renewable energy, in 2002, utilities were given a deadline of having at least 20 percent of their energy generated by renewable energy sources by 2017, and this deadline was shortened in 2006 to 2010. It's not 2010 yet, so how could the increases have come from the Legislature?
DEAN FLOREZ
Senate Majority Leader
Shafter
