Still waiting
PG&E hasn't followed through on promise to refute city study's finding that public power is cheaper

By Matthew Hirsch

A representative of Pacific Gas and Electric Co. verbally agreed last month to cooperate with San Francisco officials and a Sacramento-based energy consultant while the city's Local Agency Formation Commission looks at plans to purchase PG&E's electricity system.

If PG&E is to uphold its agreement, the company will have to produce records from an extensive data request submitted Oct. 9 by the consulting firm R.W. Beck.

An R.W. Beck report, ordered by LAFCo and made public one month ago, said purchasing the PG&E transmission and distribution system could bring San Francisco an average of $245 million a year. It estimated the system to be worth between $600 million and $1.4 billion and recommended that LAFCo proceed with a detailed appraisal of PG&E's equipment (see "Report Pushes Public Power," 10/8/03).

Matthew Lonner, PG&E public affairs representative, attacked nearly every element of the report at a commission meeting Oct. 3, down to its basic assumptions. At one point, Lonner suggested the report's figures might be more than $2 billion off the mark. He also said future reductions in PG&E rates were not part of the study.

In response, Michael Bell, R.W. Beck client services director, sent PG&E a letter asking for details to back up its critique. Bell's request included rates and energy usage for the utility's customers, extensive revenue and expenditure reports, and an estimated cost for decommissioning the Hunters Point power plant and fair market value for all electric facilities in San Francisco – figures the company has traditionally been reluctant to disclose.

Lonner, on behalf of PG&E, responded to the R.W. Beck request Oct. 20 with a request of his own. He asked Bell to explain three specific areas of the firm's analysis and its assumption about government taxes and fees. He also asked Bell to name any cities or public agencies that formed an electric utility as a result of findings that are similar to those of the R.W. Beck report for San Francisco.

Bell told the Bay Guardian he was in the process of preparing a response for PG&E at press time.

Correspondence between R.W. Beck and PG&E can be viewed at www.sfgov.org/lafco.

The next LAFCo hearing on the R.W. Beck report is Nov. 14, 2 p.m., City Hall, room 263. The commission is also accepting public comment on the study until Dec. 5. Contact LAFCo by phone at (415) 554-7702, by e-mail at lafco@sfgov.org, or at City Hall, 1 Dr. Carlton B. Goodlett Place, Room 244, S.F., CA 94102.

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