Proposal to crack down on Calif. utilities rejected

SACRAMENTO, Calif. — California lawmakers on Monday rejected a proposal aimed at cracking down on how some of the nation’s largest utilities spend customers’ money.

California’s investor-owned utilities can’t use money from customers to pay for things like advertising their brand or lobbying for legislation. Instead, they’re supposed to use money from private investors for those things.

Consumer groups say utilities are finding ways around those rules. They accuse them of using money from customers to fund trade groups that lobby legislators and for TV ads disguised as public service announcements, including recent ads by Pacific Gas & Electric.

A bill in the state Legislature would have expanded the definitions of prohibited advertising and political influence to include things like regulators’ decisions on rate-setting and franchises for electrical and gas corporations. It would also allow regulators to fine utilities that break the rules.

On Monday, the bill failed to pass a legislative committee for the second time in the face of intense opposition from utilities, including PG&E.

“We’ve seen too many examples of the blatant misuse of ratepayer funds across the state,” said Democratic state Sen. Dave Min, who authored the bill that failed to pass. “I know that consumers are outraged by this.”

PG&E opposed the bill because it said it would take away the power of state regulators to examine utility companies’ costs and decide whether it is “just or reasonable” for customers to pay for them.

The bill was part of a larger backlash against the rising cost of electricity in California. Power is expensive in part because of the work required to maintain and upgrade electrical equipment to reduce the risk of wildfires.