Friday, September 18, 2009

Start a Fire and Charge the Rate Payers

San Diego Gas and Electric, often referred to as San Diego Gouge and Extort, has come up with yet another way to shift the burden away from their shareholders and on to the backs of their customers. Charge them for the costs of the lawsuits they lost as a result of their alleged negligence in the huge wildfires in San Diego County! My God, man, isn't that akin to an arsonist charging you for the cost of their matches?

I realize they didn't start the fires intentionally, and that SDG&E are not arsonists, but both Cal-Fire and the California Public Utilities Commission has determined that three of the worst fires, the Witch, Guejit0 and Rice Fires, were caused by SDG&E's power lines malfunctioning during Santa Ana winds. Those malfunctions caused destruction of thousands of acres of wildland and over a thousand homes.

So, now we receive word that SDG&E and Southern California Gas Company, Pacific Gas & Electric and Southern California Edison are asking for a rate increase, called the Wildfire Claims Cost Recovery, that will allow them to recoup uninsured costs associated with wildfires. Even as a result of their own alleged negligence? Isn't that sweet? Here's what their bill insert says:

"In the face of a potential insurance crisis that may limit the utilities' ability to obtain insurance coverage, the application asks for CPUC to approve for each utility to establish a Wildfire Expense Balancing Account (WEBA) to record for future recovery all uninsured costs arising from wildfires, including:


  1. Payments to satisfy wildfire claims, including any, co-insurance and deductible expense paid by the utilities;
  2. Outside legal costs incurred in the defense of wildfire claims;
  3. Premiums for insurance against wildfire claims;
  4. The cost of financing these amounts"
In my way of thinking, this is like asking a judge to allow a negligent or drunk driver to receive fees from the parties he hit in an accident, to pay for his increased insurance costs, and to pay for legal defense costs in the event he gets sued again for negligent or drunk driving! Only every ratepayer will be paying these fees, including those who lost their homes and property in past fires resulting from malfunctions in utility equipment or lines.

Sure they are getting nailed with increased insurance costs. If you are deemed negligent, insurance companies raise your premium, or find you an unacceptable risk and do not want you. That's the facts of life. So the utilities want the ratepayers to cover the big insurance costs because they screwed up? Is that part of this message? Once again, pass the guilt on to the people who rely upon you for services and have nowhere else to turn for the product.

And, what's this about the gas utilities joining in? What do they know that we don't know? Are they concerned that regulators and gas transmission lines will turn into blowtorches and incinerators in the event of a wildfire? If so, why not get off the dime and be sure that can't happen, rather than get the ratepayers to cover their costs for any losses they might incur.

What happened to big business standing the losses they incur? Don't tell me or any other ratepayer that SDG&E isn't making money. Pass the expenses on to the stockholders just like every other corporation does. You make some money, you lose some money. Most of the time you seem to be rolling in the dough and whenever you get a chance you're squeezing the ratepayer with some scheme to suck more money out of their pocket. Spending money stuffing the mail with energy saving tips while raising the rates. Shame on you.

Yup, San Diego Gouge and Extort hits it right on the nail head. What the hell happened when corporations had a conscience? Oh, wait, that was way back when the government lost theirs too....

Tha California Public Utilities Commission should say NO loud and clear to these utilities; tell them to grow up and stand on their own two feet. Cut payments to their shareholders. Let the fat cats in the big offices take a cut in salary; lay off some of the administrative help like the rest of the busineses have had to do. . And., maybe slow down the SDG&E trucks we see driving at 20 plus miles over the speed limit and save some fuel costs that could help keep our bills in check. And save wear and tear on the trucks too.

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