Mayor Lee and PG&E

He calls the megalith "a great corporation that gets it" -- yikes

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EDITORIAL Pacific Gas and Electric Company is the number one corporate criminal in San Francisco. The company's malfeasance caused the deaths of eight people and destroyed an entire neighborhood in San Bruno last year. The National Transportation Safety Board, in a report issued August 30, denounced PG&E's "integrity management program without integrity" and blasted the company's efforts to "exploit weakness in a lax system of oversight."

That doesn't even address the fact that PG&E has been operating an illegal monopoly in San Francisco for more than 80 years, engaging in an ongoing criminal conspiracy to violate the federal Raker Act. Or the fact that the utility spent $50 million of ratepayer money on a ballot initiative aimed at eliminating consumer choice in the electricity market.

So why was Mayor Ed Lee out at a PG&E public relations event Sept. 1 praising the "great local corporation" as a "great company that gets it?"

Well, the mayor's campaign press spokesperson, Tony Winnicker, says that PG&E was at the event to donate $250,000 to a program for at-risk youth, and that the mayor was only recognizing that, for all its flaws, the utility "also [does] something good for our public schools and low-income kids."

That's not enough, and that's not acceptable — and the mayor should apologize to the residents of San Francisco, San Bruno and everyplace else in California where the giant corporation has done serious and lasting damage.

It's nice that PG&E gave a contribution to a program that helps Soma kids learn to read and to play baseball. We support the RBI program and its goals. Never mind that the $250,000 is about 0.005 percent of the money that the utility spent trying to block public power in California. Never mind that PG&E pays such a low franchise fee that it robs of city of millions of annual tax dollars that could fund programs like this one. It still sounds like a large sum, and to the nonprofit program at Bessie Charmichael School, it is.

But there's a reason PG&E gives money to community groups and programs like this all over town — it's a way to buy support and respect. Corporate largess of this sort is a relatively cheap public relations strategy — and for the mayor not to see that is embarrassing.

It's a particularly notable conflict of interest, too — Lee's top patron and biggest political supporter, Willie Brown (who knows a bit about corruption himself) has been on PG&E's payroll as a private attorney for the past several years, earning about $200,000 a year.

Most of the candidates for mayor have been taking a gentle approach to Lee, and that makes a certain amount of sense — in a ranked-choice voting environment, negative campaigning often backfires. But there's nothing inappropriate about saying that the mayor of San Francisco has damaged his own reputation and the reputation of the city by allowing himself to be used at a PR tool by PG&E. Remember: He didn't just show up and thank the utility for the money. He called PG&E a "great local corporation," which is, quite simply, false. This ought to become an issue in the race, and Lee should be forced to explain his position on public power, his ties to Brown and PG&E and his willingness to put aside years of malfeasance in the name of a small contribution.

Comments

"That doesn't even address the fact that PG&E has been operating an illegal monopoly in San Francisco for more than 80 years, engaging in an ongoing criminal conspiracy to violate the federal Raker Act."

Bold face lie.

Posted by Guest Joe on Sep. 08, 2011 @ 1:40 pm

Where did that $250,000 come from that PG&E is giving away? Are those ratepayer dollars they are handing out? If PG&E has an extra quarter of a million dollars to give away, maybe we are paying them too much for our electricity.

How about if we lower the amount PG&E can charge customers for electricity. Why should our electric utility be using our excess payments to make charitable contributions? Give us our money back and focus on providing electricity and SAFE gas service.

Posted by Guest Fred on Sep. 16, 2011 @ 11:32 am

fund the Republicans, does it make ANY sense to say they are using "your" money?

Once you buy an item in WalMart, it's their money, not yours. You lose any rights to it when you hand it over,

Posted by PaulT on Sep. 16, 2011 @ 11:44 am

The easy solution is to not buy products from WalMart. Not so easy with PG&E, as PG&E has a government sanctioned monopoly on a life essential set of commodities.

Posted by marcos on Sep. 16, 2011 @ 12:08 pm

license to serve you to the exclusion of others does not imply that any money you give them remains somehow "yours". Same goes for phone companies, transit companies, trash disposal and so on.

Their rates may have to be agreed with the city, but that doesn't mean that you own any rights to that money once they receive it.

If you want a say in that, buy some PG&E stock and go to their AGM.

Posted by PaulT on Sep. 16, 2011 @ 12:19 pm

Part of the reason monopolies are regulated is that they are in a uniquely strong position to inflate profits and use some of those inflated revenues to manipulate the political system in order to leverage even -further- inflated profits.

And in any case, your screed does nothing to counter the reality that we could keep $200 million more per year locally in our economy if we took over the monopoly.

The only reason a feigned pro-capitalist type like you would oppose such an obvious boon to the local free market, is that you are being paid directly by PG&E, and/or you are a complete fool who believes every bit of the propaganda that PG&E spews out on this stuff.

In fact, when we fought PG&E's Prop 16 last year a -lot- of local Chambers of Commerce took our side and opposed it as well, specifically because they understand the economic benefit that would come from direct -free market- competition with PG&E.

So you're not a free marketeer at all, you are in fact a corporate protectionist - the -worst- anti-thesis to free market capitalism of them all.

Posted by Eric Brooks on Sep. 16, 2011 @ 1:28 pm

And so I agree with you that the city and it's voters should have some say in the rates charged, and the profits made, from the city's residents.

Where I disagree with you is on whether that gives us any say on what PG&E do with the profits that we agree they are allowed to make. It seems entirely reasonable to me that they should devote some of those profits to seeking to secure a continuance of their revenue stream.

And the only people who have a say in whether or not they can do that are their shareholders, not us.

Finally, using net present value analysis, the purchase price of an entity making a billion a year, at 2% interest rates, is probably 30 to 40 billion. Where do you propose we find that money? Let me guess - tax the rich?

Posted by PaulT on Sep. 16, 2011 @ 1:43 pm

To repeat. We need to protect specifically against monopolies inflating profits to use them to further leverage even higher profits.

To you second question:

Apparently you do not know what revenue bonds are. Look it up.

Posted by Eric Brooks on Sep. 16, 2011 @ 2:28 pm

about union dues going to public employees that then go to politics?

Posted by meatlock on Sep. 16, 2011 @ 5:34 pm

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