Controversies Pacific Gas and Electric Company

1 controversies

1.1 metcalf sniper attack
1.2 smart meters
1.3 proposition 16
1.4 tax dodging , lobbying
1.5 restatements
1.6 rates

controversies
metcalf sniper attack

on morning of april 16, 2013 team of gunmen opened fire rifles on metcalf transmission substation, severely damaging 17 transformers.

smart meters

in middle of 2010, pg&e rolled out new electronic meters replaced traditional analog electric meters. customers meters replaced smart meters reported seeing energy bills spike multiple-folds , accused company of deliberately inflating bills, along questioning accuracy of meters. complaints of pg&e s failing honor customer s refusal of upgrading meters surfaced. although contractor installed meters honor these requests, pg&e come out , replace them despite objections. subsequently, california public utilities commission conduct investigation , find of 613 smart meter field tests, 611 meters tested , 100% passed average registration accuracy. 1 meter found have serious errors , malfunctioning on arrival, while found have serious event errors upon installation. these meters were, therefore, excluded testing.

proposition 16

in 2010, pg&e accused of attempting stifle competition proposition 16, mandated approval two-thirds of voters start or expand local utility. critics argued make harder local governments create own power utilities, giving pg&e monopoly. company rebuked supplying $46 million support ballot measure when opponents raised $100,000 in campaign. proposition voted down 52.5% in opposition , 47.5% in favor.

tax dodging , lobbying

in december 2011, non-partisan organization public campaign criticized pg&e spending $79 million on lobbying , not paying taxes during 2008–2010, instead getting $1 billion in tax rebates, despite making profit of $4.8 billion , increasing executive pay 94% $8.5 million in 2010 top 5 executives.

restatements

on february 28, 2002, after collapse of enron, used dubious accounting , partnerships hide debt, pg&e announced restate results dating 1999, show leases related power plant construction had been kept off balance sheet.

on june 27, 2003, pg&e national energy group, unit of pg&e corporation revised 2002 form 10-k/a reclassify offsetting revenues , expenses, net zero. pg&e revised 2002 form 10-k/a accordingly reflect change.

rates

the pg&e , other investor owned utilities granted monopoly status in california guaranteed negotiated fair rate of return on equity (roe). pg&e s roe rate set @ 10.4% , return on rate base (ror) set @ 8.06% cpuc in december 2012. pg&e electricity rates among highest in united states. in 2013 paper jonathan cook of uc davis energy efficiency center, described unique factors explain why pg&e s rates higher other utilities in california. according cook, pg&e procures 60% of electricity supply 3rd party generators , 40% nuclear, fossil fuel , hydroelectric power plants. many of dams produce pg&e s hydroelectric power built in 1900s , require high maintenance. cost of hydroelectric power maintenance estimated rise $28 million in 2012 $48 million. pg&e current , near-term capital expenditures dominated diablo canyon , hydroelectric system. operations , maintenance (o&m) expenses expected rise new regulations in place after fukushima accident. pg&e uses less natural gas competitors , expected experience slower price growth rates particularly if there high emission allowance prices.