Sticker shock

There’s no doubt that Pacific Gas and Electric Co.’s annual investments in repairing and upgrading its electricity transmission system should be subject to greater oversight.

The repair and upgrade projects cost PG&E hundreds of millions of dollars every year. But they fall into an unusual regulatory gray zone.

The California Public Utilities Commission, which oversees most aspects of PG&E’s operations, has no jurisdiction over the utility’s repairs and system upgrades.

Meanwhile, the Federal Energy Regulatory Commission sets PG&E’s transmission rates, and it has the power to look at upgrades — but its regulatory role in the spending on those projects is limited. The federal commission asks for details on the projects when PG&E requests a new transmission rate. It also does occasional audits, but not until PG&E has already spent the money.

So the California Public Utilities Commission, along with San Francisco city officials, filed a complaint with the federal government arguing the spending for those projects should be subject to state review.

More oversight is certainly needed, as last week’s San Francisco blackout showed.

PG&E may be happy with the current situation — spokeswoman Nicole Liebelt described the minimal federal oversight as offering the utility the “flexibility” it needs to serve customers — but PG&E’s near-monopolistic power in the Bay Area means that it should be subject to more oversight than a regular business.

Ideally, the federal commission would play a full oversight role. But in the real world, where utilities have the resources to lobby against national change, the California Public Utilities Commission may be the best hope for consumers. You deserve to know what’s in your electric bill.