July 5, 2025 Breaking News, Latest News, and Videos

Utility Regulators Creating A Banana Republic?:

Banana republics got their appellation during the 1920s, when dictators ruling countries like Honduras and Guatemala made decisions on the say-so of banana growing companies, strictly for the profit of those companies – and usually at the expense of the local citizenry.

Now it is the California Public Utilities Commission that’s threatening to make a major area of state policy-making into a new variety of banana republic. For in decision after decision since former utility company chieftain Michael Peevey took over as its president in 2002, the commission has taken care of big utilities and power producers at the expense of ordinary citizens, called “ratepayers” in utility parlance.

One odious example is the PUC’s order forcing customers to pay most of the bill for fixing the pipelines of California’s biggest natural gas company, hopefully ensuring there are no replays of the 2010 explosion that killed eight persons in San Bruno – even though Pacific Gas & Electric Co. took “responsibility” for the blast.

 

          Another was the decision to let a Spanish company build the 250-megawatt Mojave Solar power project near Barstow – far outside PG&E’s service area – to provide electricity for that company. At the hearing approving this project, strongly backed by Peevey, commissioners openly asserted that Mojave Solar electricity will cost at least double the price of kilowatts from gas-fired plants.

PG&E will also profit: Money from its customers will build transmission lines to carry that energy to existing lines in the San Joaquin Valley, with PG&E guaranteed profits of about 12 percent per year for 40 years on whatever those lines cost.

Now the commission is at it again, apparently about to make another decision detrimental to customers but a boon to power producers.

This time it’s a “peaker” electric generating plant in San Diego, not far from the Mexican border tenatively due for an approval vote on March 21. As always, the Peevey-led commission has a pretext for approving this 300-megawatt natural gas-fired plant, which would operate only when other power plants don’t provide enough juice for the region. (One megawatt supplies at least 750 homes.)

The pretext here is uncertainty over when – or if – the San Onofre Nuclear Generating Station will restart. The problem is that the PUC’s own administrative law judge found no need for this new plant after a lengthy proceeding.

“It is not reasonable…when there is no need for incremental local capacity until (at least) 2018…” said the administrative judge’s decision.

One reason the plant is unneeded: By late summer, even without San Onofre, Southern California will have excess generating capacity of 30 percent, and Northern California nearly 40 percent excess. Three new gas-fired generating plants – all within 80 miles of San Onofre and with a total output close to San Onofre’s maximum 2,350 megawatts – are due to come online this summer.

On reading the ALJ’s proposed decision and a similar one from fellow PUC Commissioner Mark Ferron, who supervised the PUC’s work on the case, former Southern California Edison Co. President Peevey asked the head of the state Energy Commission to back his claim that there is a pressing need for the new plant, to be named Pio Pico and to cost ratepayers $80 million to $90 million yearly over 20 years (about $30 per residential customer yearly).

In a December email to a staffer, Energy Commission Chairman Robert Weisenmiller said “Peevey wants a letter from me.”

Weisenmiller quickly sent one claiming Pio Pico is needed. The trouble is that during Energy Commission hearings in July in Chula Vista, that commission’s lawyer advised that “the (Energy) Commission doesn’t do a needs-based analysis in our – in our licensing process.” So there was no evidentiary basis for much of what Weisenmiller obligingly wrote to Peevey.

Also during the Energy Commission hearings on Pio Pico, then-Energy Commissioner Carla Peterman declared – with no evidence to back her – that approval was justified because “we need to keep the lights on (with Pio Pico).”

Former Rhodes Scholar Peterman is now a PUC commissioner, named to a six-year term by Gov. Jerry Brown in December. She at first recused herself from the PUC’s Pio Pico vote because she was involved with the plant’s environmental approval. But she now plans to vote.

In an email, Peevey stopped short of explaining why he’s trying to overturn both Ferron and the administrative law judge on Pio Pico. “The PUC and other state agencies…work together on energy policy and implementation…,” he said. “The …Energy Commission some time ago approved…the Pio Pico facility… Weisenmiller told me he thought the plant was needed in San Diego, given the uncertainty surrounding…San Onofre… I told him to send the PUC a letter telling us why he thinks it is needed…”

There is, thus, no evidence of any need, only conjecture, no facts. Which makes this look like another arbitrary PUC action benefiting big companies at the expense of customers, done in classic banana republic style.

in Opinion
<>Related Posts

SM.a.r.t.Column: Happy Fourth of July 

July 2, 2025

July 2, 2025

SMart (Santa Monica Architects for a Responsible Tomorrow) hopes you are enjoying a great 3-day weekend as part of your...

SM.a.r.t Column: Cities That Never Shut Up – The Roaring Cost of Urban Noise

June 26, 2025

June 26, 2025

In today’s cities, silence isn’t golden—it’s extinct. From sunrise to insomnia, we’re trapped in a nonstop symphony of shrieking car...

SM.a.r.t Column: Santa Monica Needs to See the Light

June 19, 2025

June 19, 2025

How Santa Monica’s Growing Light Pollution Is Eroding Human Health, Safety, and Sanity There was a time when our coastal...

SM.a.r.t Column: California’s Transit Death Spiral: How Housing Mandates Are Backfiring

June 15, 2025

June 15, 2025

California’s ambitious housing mandates were supposed to solve the affordability crisis. Instead, they’re creating a vicious cycle that’s killing public...

SM.a.r.t. Column: A City Dying by a Thousand Cuts

June 5, 2025

June 5, 2025

Santa Monica, once celebrated for its blend of coastal charm and progressive ideals, is slowly bleeding out — not from...

SM.a.r.t Column: Oops!! What Happened? And What Are You Going to Do About It?

May 29, 2025

May 29, 2025

Our Santa Monica Architects for a Responsible Tomorrow (SMa.r.t) articles have, over the past 12 years, collectively presented a critical...

SM.a.r.t Column: Why Santa Monica Might Need a Desalination Plant, and Maybe Even Nuclear Power

May 22, 2025

May 22, 2025

Santa Monica is known for its ocean views, sunny skies, and strong environmental values. But there’s a challenge on the...

SM.a.r.t Column: SMO (So Many Options) Part 3: “Pie in the Sky”

May 17, 2025

May 17, 2025

SMO: Fantasy, Fact, and the Fog of Wishful ThinkingBy someone who read the fine print Every few months, a headline...

SM.a.r.t. Column: Owner Occupancy Protects Against Corporate Over-Development

May 2, 2025

May 2, 2025

This week SMa.r.t. will have as guest columnist Mark Borenstein. Mark is a long-time Santa Monica resident, a retired attorney,...

Opinion: Declaration of Economic State of Emergency in Malibu & Pacific Palisades: A Direct Result of the Devastating Impact of the Palisades Fire

April 27, 2025

April 27, 2025

Malibu and Pacific Palisades Request Emergency Financial Measures By Ramis Sadrieh, Chairperson, Malibu Pacific Palisades Chamber of Commerce    On behalf...

SM.a.r.t Column: The World’s Happiest Cities

April 27, 2025

April 27, 2025

Almost every year, we see new cities, regions, and countries that make the list(s) of our planet’s happiest and healthiest...

SM.a.r.t Column: A City for Everyone

April 20, 2025

April 20, 2025

Santa Monica dazzles with its ocean views, sunshine, and laid-back charm. But beyond the postcard image lies a more complicated...

SM.a.r.t Column: Part II: Rebuilding Resilient Communities: Policy and Planning After the Fires

April 13, 2025

April 13, 2025

The January 2025 wildfires that devastated Pacific Palisades and Altadena left an indelible mark on Los Angeles County. Beyond the...

SM.a.r.t Column: Innovative Materials for Fire-Resistant Rebuilding After the LA Fires

April 6, 2025

April 6, 2025

In the aftermath of the devastating 2025 Los Angeles wildfires, homeowners face the daunting task of rebuilding their lives and...

Opinion: Supervisor Lindsey P. Horvath Community Column Regarding a More Accountable Homeless Services System

April 3, 2025

April 3, 2025

By Lindsay Horvath, Los Angeles Board of Supervisors This week marks a significant milestone in our fight to end homelessness...