South San Joaquin Irrigation District (SSJID) General Manager Jeff Shields testified at a March 17 California Public Utilities Commission (CPUC) hearing addressing the District's concerns with the Pacific Gas & Electric (PG&E) funded Proposition 16 initiative on the June ballot which would require a publicly-owned electric utility to obtain a two-thirds voter approval prior to expending funds to provide or expand electric delivery service.
Last month, SSJID's board of directors joined AARP, League of Cities, League of Women's Voters and many other utilities and irrigation districts who have passed resolutions opposing Proposition 16 including: the Northern California Power Authority, and the Cities of Palo Alto, Lompoc and Redding.
All this while PG&E is proposing one of the largest general rate increases in the history of California – an increase of more than one billion dollars for 2011 and more than four billion dollars for the three years 2011 to 2013 in their general rate case filings.
SSJID has intervened in this proceeding to protect its ratepayers from usurious electricity rates.
"The increase PG&E is proposing in its general rate case is functionally equivalent to a huge tax increase that PG&E is seeking to impose without any review or approval by the Legislature or the voters," said Shields.
Included among the major points Shields made in his testimony to the CPUC and that SSJID plans to detail in PG&E's General Rate Case proceedings:
- PG&E has used and is continuing to use utility assets and ratepayer dollars in political advocacy against municipalization and community choice aggregation (CCA) and in support of Proposition 16.
- The CPUC should address the issue of PG&E Corp./Company spending ratepayer money on Proposition 16 in PG&E's next General Rate Case, and to consider reducing PG&E's return on equity by the 9 cents per share PG&E Corp./Company is spending on Proposition 16.
- Elimination of PG&E Corp. (the holding company formed in 1997 to allow PG&E to compete during deregulation) will save PG&E Ratepayers Money. The Commission should rescind its Final Decision authorizing the formation of the PG&E Holding Company, which has allowed PG&E Corp. to spend ratepayer funds without CPUC oversight. No additional benefit to ratepayers flows from the holding company structure and simply permits PG&E utility to fund PG&E corp. activities with ratepayer funds.
"The Commission has clear legal authority under Public Utilities Code section 1708 to rescind, alter or amend any order or decision it issues. The Commission itself said, 'To the extent that the holding company structure results in two layers of senior officers providing the same or similar functions formerly provided by Company officers alone, we are concerned that there is significant potential for duplication of effort that should not be reflected in Company rates.'"
Earlier this year, SSJID submitted an application to the San Joaquin Local Agency Formation Commission for the approval of providing electricity to the residents of Manteca, Ripon and Escalon to cut retail electricity bills in its service territory by 15% across the board.
For more information go to www.ssjid.com and www.savewithssjid.com
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Contacts:
South San Joaquin Irrigation District
Jeff Shields, 209-249-4600
jshields@ssjid.com