Nuclear Regulatory Commission to Conduct Inspection After 'Near-Miss' at San Onofre
San Onofre Nuclear Waste May Go to New Mexico, Instead of 100 Feet From the Beach
Former Judge Accuses CPUC of Wrongful Termination, Racial Bias
Inside the Deal That Shaped San Diego County’s Power Picture
State Regulators to Reconsider San Onofre Settlement
Critics Unhappy With Kamala Harris' Approach to San Onofre Probe
Southern California Utility Faces Big Fine for 'Improper' Talks With Regulators
Calls to Overturn San Onofre Settlement Intensify Amid PUC Revelations
Nuclear Shutdown Means More Greenhouse Gas Emissions
Sponsored
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They will review what happened when a canister loaded with radioactive spent fuel got stuck while being lowered into a storage vault. It narrowly avoided being dropped 18 feet.\u003c/p>\n\u003cp>The near-accident was revealed during a community engagement panel by safety inspector David Fritch.\u003c/p>\n\u003cp>\"There were gross errors on the part of two individuals that are inexplicable,\" said Fritch.\u003c/p>\n\u003cp>Tom Palmisano, chief nuclear officer of Southern California Edison, called the event “a serious near miss.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The NRC said it will interview personnel, review corrective actions and find out if Edison has a plan to lift a canister back out of the storage vault to see if it is damaged.\u003c/p>\n\u003cp>After a previous mishap involving a broken pin inside one of the storage vaults, Palmisano said no one has ever had to take a canister back out of the vault and return it to the fuel pools to check for problems.\u003c/p>\n\u003cp>Southern California Edison said it has moved 29 of 73 canisters loaded with spent nuclear fuel out of cooling ponds and into dry cask storage. Another 50 canisters of spent fuel are already stored on site.\u003c/p>\n\u003cp>The company said it has stopped loading the fuel rods from the pools into storage near the beach until the inspection is concluded.\u003c/p>\n\u003cp>The NRC said the review will decide if the inspection should be elevated to an Augmented Inspection Team, or AIT. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The NRC previously launched an AIT in 2012 when San Onofre’s recently installed steam generators developed a radioactive leak that ultimately resulted in the permanent closure of the plant.\u003c/p>\n\n","blocks":[],"excerpt":"A team of inspectors will review what happened when a canister loaded with radioactive spent fuel got stuck while being lowered into a storage vault. 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They will review what happened when a canister loaded with radioactive spent fuel got stuck while being lowered into a storage vault. It narrowly avoided being dropped 18 feet.\u003c/p>\n\u003cp>The near-accident was revealed during a community engagement panel by safety inspector David Fritch.\u003c/p>\n\u003cp>\"There were gross errors on the part of two individuals that are inexplicable,\" said Fritch.\u003c/p>\n\u003cp>Tom Palmisano, chief nuclear officer of Southern California Edison, called the event “a serious near miss.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The NRC said it will interview personnel, review corrective actions and find out if Edison has a plan to lift a canister back out of the storage vault to see if it is damaged.\u003c/p>\n\u003cp>After a previous mishap involving a broken pin inside one of the storage vaults, Palmisano said no one has ever had to take a canister back out of the vault and return it to the fuel pools to check for problems.\u003c/p>\n\u003cp>Southern California Edison said it has moved 29 of 73 canisters loaded with spent nuclear fuel out of cooling ponds and into dry cask storage. Another 50 canisters of spent fuel are already stored on site.\u003c/p>\n\u003cp>The company said it has stopped loading the fuel rods from the pools into storage near the beach until the inspection is concluded.\u003c/p>\n\u003cp>The NRC said the review will decide if the inspection should be elevated to an Augmented Inspection Team, or AIT. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The NRC previously launched an AIT in 2012 when San Onofre’s recently installed steam generators developed a radioactive leak that ultimately resulted in the permanent closure of the plant.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11689367/nuclear-regulatory-commission-to-conduct-inspection-after-near-miss-at-san-onofre","authors":["byline_news_11689367"],"programs":["news_72"],"categories":["news_19906","news_457","news_8","news_356"],"tags":["news_1069","news_20913","news_4486","news_1067"],"affiliates":["news_7054"],"featImg":"news_11689384","label":"source_news_11689367"},"news_11656012":{"type":"posts","id":"news_11656012","meta":{"index":"posts_1591205157","site":"news","id":"11656012","score":null,"sort":[1521144202000]},"guestAuthors":[],"slug":"san-onofre-nuclear-waste-may-go-to-new-mexico-instead-of-100-feet-from-the-beach","title":"San Onofre Nuclear Waste May Go to New Mexico, Instead of 100 Feet From the Beach","publishDate":1521144202,"format":"audio","headTitle":"The California Report | KQED News","labelTerm":{},"content":"\u003cp>The Nuclear Regulatory Commission has begun a technical review of a license for an interim storage site for nuclear waste in New Mexico -- and that's a hopeful sign for those fighting to find an alternative to burying spent nuclear fuel 100 feet from the beach at the now-closed San Onofre nuclear plant, in northern San Diego County.\u003c/p>\n\u003cp>\u003ca href=\"http://www.sseb.org/wp-content/uploads/2010/05/Eddy-Lea-Energy-Alliance.pdf\">The Eddy-Lea Energy Alliance\u003c/a>, a coalition of cities and counties in the southeast corner of New Mexico, is ready and willing to accept nuclear waste — for a price. \u003ca href=\"https://holtecinternational.com/2017/11/28/update-on-the-subterranean-used-fuel-storage-system-hi-storm-umax-and-the-universal-transport-package-hi-star-190/\">Holtec, the company that designed the latest waste storage at San Onofre,\u003c/a> applied for a license last spring to build an interim storage site on 1,000 acres purchased by the alliance.\u003c/p>\n\u003cp>Now, the NRC has agreed to consider it.\u003c/p>\n\u003cp>John Heaton, chair of the Eddy-Lea Energy Alliance, said there are more than 30 states around the nation waiting for a safer place to store nuclear waste. Current federal priorities are to move the oldest nuclear waste first. But Heaton said if this license is granted, Holtec, a private company, could have a say in which nuclear waste gets priority, and San Onofre should be high on the list.\u003c/p>\n\u003cp>“You are on the oceanfront, you are also in a very seismically unstable area, as well as being in a high-density population area,” he said. “Those things, I think, would play into the decision-making about which fuel goes first.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Heaton said Congress has refused to consider interim storage sites like the one in New Mexico and refused to release billions of dollars in a fund originally intended for a stalled permanent storage site at Yucca Mountain.\u003c/p>\n\u003cp>“We think that the reality is that if Congress sees that a facility is in fact licensed and ready to operate, it may, in fact, change their mind,” he said.\u003c/p>\n\u003cp>Whether Congress changes its mind or not, Heaton said, ratepayers and taxpayers are paying for the storage of nuclear waste. The federal government has failed in its obligation to find a long-term storage site, and utilities are suing the U.S. Treasury for the costs of storing waste on site, he said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>A key issue is the liability for any future problems with the waste, which remains radioactive for thousands of years. Holtec said in an email that it is willing to take title to the fuel, provided appropriate contracting conditions are in place.\u003c/p>\n\n","blocks":[],"excerpt":"The Nuclear Regulatory Commission has begun a technical review of a license for an interim storage site for nuclear waste in New Mexico.\r\n\r\n","status":"publish","parent":0,"modified":1521152393,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":11,"wordCount":413},"headData":{"title":"San Onofre Nuclear Waste May Go to New Mexico, Instead of 100 Feet From the Beach | KQED","description":"The Nuclear Regulatory Commission has begun a technical review of a license for an interim storage site for nuclear waste in New Mexico.\r\n\r\n","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11656012 https://ww2.kqed.org/news/?p=11656012","disqusUrl":"https://ww2.kqed.org/news/2018/03/15/san-onofre-nuclear-waste-may-go-to-new-mexico-instead-of-100-feet-from-the-beach/","disqusTitle":"San Onofre Nuclear Waste May Go to New Mexico, Instead of 100 Feet From the Beach","source":"KPBS","sourceUrl":"http://www.kpbs.org/","audioUrl":"https://www.kqed.org/.stream/anon/radio/tcr/2018/03/NuclearWasteStorageSt.mp3","nprByline":"\u003cstrong>\u003ca href=\"http://www.kpbs.org/staff/alison-st-john/\">Alison St John\u003c/a>\u003c/strong>","path":"/news/11656012/san-onofre-nuclear-waste-may-go-to-new-mexico-instead-of-100-feet-from-the-beach","audioDuration":92000,"audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>The Nuclear Regulatory Commission has begun a technical review of a license for an interim storage site for nuclear waste in New Mexico -- and that's a hopeful sign for those fighting to find an alternative to burying spent nuclear fuel 100 feet from the beach at the now-closed San Onofre nuclear plant, in northern San Diego County.\u003c/p>\n\u003cp>\u003ca href=\"http://www.sseb.org/wp-content/uploads/2010/05/Eddy-Lea-Energy-Alliance.pdf\">The Eddy-Lea Energy Alliance\u003c/a>, a coalition of cities and counties in the southeast corner of New Mexico, is ready and willing to accept nuclear waste — for a price. \u003ca href=\"https://holtecinternational.com/2017/11/28/update-on-the-subterranean-used-fuel-storage-system-hi-storm-umax-and-the-universal-transport-package-hi-star-190/\">Holtec, the company that designed the latest waste storage at San Onofre,\u003c/a> applied for a license last spring to build an interim storage site on 1,000 acres purchased by the alliance.\u003c/p>\n\u003cp>Now, the NRC has agreed to consider it.\u003c/p>\n\u003cp>John Heaton, chair of the Eddy-Lea Energy Alliance, said there are more than 30 states around the nation waiting for a safer place to store nuclear waste. Current federal priorities are to move the oldest nuclear waste first. But Heaton said if this license is granted, Holtec, a private company, could have a say in which nuclear waste gets priority, and San Onofre should be high on the list.\u003c/p>\n\u003cp>“You are on the oceanfront, you are also in a very seismically unstable area, as well as being in a high-density population area,” he said. “Those things, I think, would play into the decision-making about which fuel goes first.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Heaton said Congress has refused to consider interim storage sites like the one in New Mexico and refused to release billions of dollars in a fund originally intended for a stalled permanent storage site at Yucca Mountain.\u003c/p>\n\u003cp>“We think that the reality is that if Congress sees that a facility is in fact licensed and ready to operate, it may, in fact, change their mind,” he said.\u003c/p>\n\u003cp>Whether Congress changes its mind or not, Heaton said, ratepayers and taxpayers are paying for the storage of nuclear waste. The federal government has failed in its obligation to find a long-term storage site, and utilities are suing the U.S. Treasury for the costs of storing waste on site, he said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>A key issue is the liability for any future problems with the waste, which remains radioactive for thousands of years. Holtec said in an email that it is willing to take title to the fuel, provided appropriate contracting conditions are in place.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11656012/san-onofre-nuclear-waste-may-go-to-new-mexico-instead-of-100-feet-from-the-beach","authors":["byline_news_11656012"],"programs":["news_72"],"categories":["news_19906","news_457","news_8","news_356"],"tags":["news_1029","news_20913","news_4486","news_1067","news_17286"],"affiliates":["news_7054"],"featImg":"news_11656018","label":"source_news_11656012"},"news_11617652":{"type":"posts","id":"news_11617652","meta":{"index":"posts_1591205157","site":"news","id":"11617652","score":null,"sort":[1505858903000]},"guestAuthors":[],"slug":"former-judge-accuses-cpuc-of-wrongful-termination-racial-bias","title":"Former Judge Accuses CPUC of Wrongful Termination, Racial Bias","publishDate":1505858903,"format":"standard","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>A former California Public Utilities Commission administrative judge announced Tuesday afternoon that she is filing a legal complaint with the State Personnel Board alleging wrongful termination of a whistleblower and systemic racial bias.\u003c/p>\n\u003cp>The CPUC oversees privately owned electric, gas and transportation companies. Administrative judges hear cases in a court-like setting that determine everything from your electric bill to ride-hailing app regulations and utility investigations.\u003c/p>\n\u003cp>But the regulatory agency has been under fire for a \u003ca href=\"https://ww2.kqed.org/news/2015/12/17/jerry-brown-and-the-cpuc-a-mixed-record-on-reforming-utility-regulator/\">series of scandals\u003c/a> and mishaps since 2010, when a gas pipeline owned by PG&E exploded in San Bruno, \u003ca href=\"http://ww2.kqed.org/news/2015/09/08/five-years-after-deadly-san-bruno-explosion-are-we-safer\">killing eight people\u003c/a> and laying bare the agency's failure to adequately police utilities.\u003c/p>\n\u003cp>The investigation into the San Bruno explosion revealed, in tens of thousands of emails, the \u003ca href=\"http://ww2.kqed.org/news/2015/06/19/10-emails-detail-pges-cozy-relationship-with-its-regulators\" target=\"_blank\" rel=\"noopener noreferrer\">cozy relationships\u003c/a> between CPUC officials and the companies they oversee. Those emails revealed that CPUC staff and three PG&E executives communicated about which administrative law judge should handle a rate case.\u003c/p>\n\u003cp>The emails also led to another scandal: While agents from the state attorney general’s office were searching a former CPUC president's home, they found notes containing the outline of a settlement related to the shutdown and decommissioning of San Onofre.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The final deal saddled ratepayers with a $3.3 billion bill. That settlement is now \u003ca href=\"http://ww2.kqed.org/news/2015/10/26/southern-california-utility-faces-big-fine-for-improper-talks-with-regulators/\">under fire\u003c/a> because of questions over whether it was influenced by a secret Warsaw meeting, which under state law should have been disclosed at the time by the utility company.\u003c/p>\n\u003cp>Beginning in 2014, former chief administrative law judge Karen V. Clopton worked with state and federal investigators to determine whether any laws were broken by the communications between PG&E and members of the commission. She instructed all of the judges on her staff to cooperate with these investigations.\u003c/p>\n\u003cp>Clopton also removed now-former CPUC \u003ca href=\"http://www.cpuc.ca.gov/florio/\">Commissioner Michael Florio\u003c/a> from the San Onofre proceeding after emails from the San Bruno investigation showed his ties to utility executives.\u003c/p>\n\u003cp>Now, Clopton has filed a complaint against the agency alleging unlawful termination and systematic racial discrimination against black judges. She claims that she was fired in retaliation for speaking out against the commission's \"unethical conduct\" and communications with PG&E.\u003c/p>\n\u003cp>“All of us, as officers of the court, both lawyers and judges, as public servants, we owe the American public an educated, unbiased and independent judiciary,\" she said at a press conference in front of the CPUC building Tuesday.\u003c/p>\n\u003cp>Clopton became the first black chief administrative law judge at the agency in 2009. In her role she managed a staff of more than 100 people, including 40 judges. She also oversaw several prominent cases. In addition to weighing in on the PG&E and San Onofre scandals, \u003ca href=\"https://ww2.kqed.org/news/2015/07/15/california-regulators-hit-uber-with-7-3-million-fine-and-a-threat/\">she oversaw the case in which commissioners fined Uber $7.3 million\u003c/a> for refusing to give regulators information on the company's business practices. She was removed from her position in August.\u003c/p>\n\u003cp>As part of her complaint Clopton also alleges that there is systemic racial discrimination at the agency.\u003c/p>\n\u003cp>In her former role, Clopton recommended that CPUC Executive Director Timothy Sullivan not appoint Michael Colvin as an administrative law judge based on his relationship with PG&E employees. The complaint alleges that emails show that Colvin wrote to PG&E staff about issues pending before the commission and disparaged black administrative judges.\u003c/p>\n\u003cp>The complaint also alleges that the agency's mandated training program for all supervisors and managers included \"archaic debunked racist theories of white supremacy.\" Clopton says she fought against racial bias at the agency by conducting implicit bias trainings for judges and discussing her concerns about racial discrimination.\u003c/p>\n\u003cp>“That’s why I’m in trouble, you know. Because I talk back, I speak out, I stand up. And I’m going to continue to do it,\" she said.\u003c/p>\n\u003cp>Agency staff raised concerns about \u003ca href=\"https://ww2.kqed.org/news/2015/12/17/jerry-brown-and-the-cpuc-a-mixed-record-on-reforming-utility-regulator/\">gender discrimination\u003c/a> with KQED two years ago.\u003c/p>\n\u003cp>The CPUC wrote in a statement that they \"dismissed Karen Clopton for cause, and will vigorously defend its decision as necessary. The CPUC’s adverse employment action clearly stated the reasons for her dismissal and the allegations put forward today are completely baseless. We will provide no further comment on this personnel action.\"\u003c/p>\n\u003cp>\u003cstrong>Read the Complaint\u003c/strong>\u003c/p>\n\u003cp>[documentcloud url=\"https://www.documentcloud.org/documents/4056196-Complaint-of-Whistleblower-Retaliation-Racial\" notes=\"true\" text=\"true\" search=\"true\" sidebar=\"true\" pdf=\"true\" responsive=\"true\" page=\"1\"]\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Arielle Swedback contributed to this report.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"The state regulator's former top judge filed a whistleblower retaliation complaint Tuesday afternoon.","status":"publish","parent":0,"modified":1618878013,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":22,"wordCount":759},"headData":{"title":"Former Judge Accuses CPUC of Wrongful Termination, Racial Bias | KQED","description":"The state regulator's former top judge filed a whistleblower retaliation complaint Tuesday afternoon.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11617652 https://ww2.kqed.org/news/?p=11617652","disqusUrl":"https://ww2.kqed.org/news/2017/09/19/former-judge-accuses-cpuc-of-wrongful-termination-racial-bias/","disqusTitle":"Former Judge Accuses CPUC of Wrongful Termination, Racial Bias","templateType":"standard","featuredImageType":"standard","path":"/news/11617652/former-judge-accuses-cpuc-of-wrongful-termination-racial-bias","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>A former California Public Utilities Commission administrative judge announced Tuesday afternoon that she is filing a legal complaint with the State Personnel Board alleging wrongful termination of a whistleblower and systemic racial bias.\u003c/p>\n\u003cp>The CPUC oversees privately owned electric, gas and transportation companies. Administrative judges hear cases in a court-like setting that determine everything from your electric bill to ride-hailing app regulations and utility investigations.\u003c/p>\n\u003cp>But the regulatory agency has been under fire for a \u003ca href=\"https://ww2.kqed.org/news/2015/12/17/jerry-brown-and-the-cpuc-a-mixed-record-on-reforming-utility-regulator/\">series of scandals\u003c/a> and mishaps since 2010, when a gas pipeline owned by PG&E exploded in San Bruno, \u003ca href=\"http://ww2.kqed.org/news/2015/09/08/five-years-after-deadly-san-bruno-explosion-are-we-safer\">killing eight people\u003c/a> and laying bare the agency's failure to adequately police utilities.\u003c/p>\n\u003cp>The investigation into the San Bruno explosion revealed, in tens of thousands of emails, the \u003ca href=\"http://ww2.kqed.org/news/2015/06/19/10-emails-detail-pges-cozy-relationship-with-its-regulators\" target=\"_blank\" rel=\"noopener noreferrer\">cozy relationships\u003c/a> between CPUC officials and the companies they oversee. Those emails revealed that CPUC staff and three PG&E executives communicated about which administrative law judge should handle a rate case.\u003c/p>\n\u003cp>The emails also led to another scandal: While agents from the state attorney general’s office were searching a former CPUC president's home, they found notes containing the outline of a settlement related to the shutdown and decommissioning of San Onofre.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The final deal saddled ratepayers with a $3.3 billion bill. That settlement is now \u003ca href=\"http://ww2.kqed.org/news/2015/10/26/southern-california-utility-faces-big-fine-for-improper-talks-with-regulators/\">under fire\u003c/a> because of questions over whether it was influenced by a secret Warsaw meeting, which under state law should have been disclosed at the time by the utility company.\u003c/p>\n\u003cp>Beginning in 2014, former chief administrative law judge Karen V. Clopton worked with state and federal investigators to determine whether any laws were broken by the communications between PG&E and members of the commission. She instructed all of the judges on her staff to cooperate with these investigations.\u003c/p>\n\u003cp>Clopton also removed now-former CPUC \u003ca href=\"http://www.cpuc.ca.gov/florio/\">Commissioner Michael Florio\u003c/a> from the San Onofre proceeding after emails from the San Bruno investigation showed his ties to utility executives.\u003c/p>\n\u003cp>Now, Clopton has filed a complaint against the agency alleging unlawful termination and systematic racial discrimination against black judges. She claims that she was fired in retaliation for speaking out against the commission's \"unethical conduct\" and communications with PG&E.\u003c/p>\n\u003cp>“All of us, as officers of the court, both lawyers and judges, as public servants, we owe the American public an educated, unbiased and independent judiciary,\" she said at a press conference in front of the CPUC building Tuesday.\u003c/p>\n\u003cp>Clopton became the first black chief administrative law judge at the agency in 2009. In her role she managed a staff of more than 100 people, including 40 judges. She also oversaw several prominent cases. In addition to weighing in on the PG&E and San Onofre scandals, \u003ca href=\"https://ww2.kqed.org/news/2015/07/15/california-regulators-hit-uber-with-7-3-million-fine-and-a-threat/\">she oversaw the case in which commissioners fined Uber $7.3 million\u003c/a> for refusing to give regulators information on the company's business practices. She was removed from her position in August.\u003c/p>\n\u003cp>As part of her complaint Clopton also alleges that there is systemic racial discrimination at the agency.\u003c/p>\n\u003cp>In her former role, Clopton recommended that CPUC Executive Director Timothy Sullivan not appoint Michael Colvin as an administrative law judge based on his relationship with PG&E employees. The complaint alleges that emails show that Colvin wrote to PG&E staff about issues pending before the commission and disparaged black administrative judges.\u003c/p>\n\u003cp>The complaint also alleges that the agency's mandated training program for all supervisors and managers included \"archaic debunked racist theories of white supremacy.\" Clopton says she fought against racial bias at the agency by conducting implicit bias trainings for judges and discussing her concerns about racial discrimination.\u003c/p>\n\u003cp>“That’s why I’m in trouble, you know. Because I talk back, I speak out, I stand up. And I’m going to continue to do it,\" she said.\u003c/p>\n\u003cp>Agency staff raised concerns about \u003ca href=\"https://ww2.kqed.org/news/2015/12/17/jerry-brown-and-the-cpuc-a-mixed-record-on-reforming-utility-regulator/\">gender discrimination\u003c/a> with KQED two years ago.\u003c/p>\n\u003cp>The CPUC wrote in a statement that they \"dismissed Karen Clopton for cause, and will vigorously defend its decision as necessary. The CPUC’s adverse employment action clearly stated the reasons for her dismissal and the allegations put forward today are completely baseless. We will provide no further comment on this personnel action.\"\u003c/p>\n\u003cp>\u003cstrong>Read the Complaint\u003c/strong>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"documentcloud","attributes":{"named":{"url":"https://www.documentcloud.org/documents/4056196-Complaint-of-Whistleblower-Retaliation-Racial","notes":"true","text":"true","search":"true","sidebar":"true","pdf":"true","responsive":"true","page":"1","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Arielle Swedback contributed to this report.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11617652/former-judge-accuses-cpuc-of-wrongful-termination-racial-bias","authors":["199"],"programs":["news_6944","news_72"],"categories":["news_6188","news_8","news_13"],"tags":["news_1066","news_140","news_1067"],"featImg":"news_11617751","label":"news_72"},"news_11000237":{"type":"posts","id":"news_11000237","meta":{"index":"posts_1591205157","site":"news","id":"11000237","score":null,"sort":[1466866813000]},"guestAuthors":[],"slug":"inside-the-deal-that-shaped-san-diego-countys-power-picture","title":"Inside the Deal That Shaped San Diego County’s Power Picture","publishDate":1466866813,"format":"standard","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>San Diegans probably remember little about how they got the two massive stations in Escondido and Otay Mesa that are now their biggest sources of electricity. But more than a dozen energy experts interviewed by \u003cem>inewsource \u003c/em>remember it well.\u003c/p>\n\u003cp>The year was 2003. California had recently gone dark repeatedly as traders colluded to ratchet up power prices and some operators shut down and held back their power. Silicon Valley manufacturers lost \u003ca href=\"http://commdocs.house.gov/committees/bank/hba73595.000/hba73595_0f.htm\">$100 million in a single day\u003c/a> because of the outages.\u003c/p>\n\u003cp>Now, with concerns about electric adequacy front and center, San Diego was going to build its first significant new power plant in years. San Diego Gas & Electric asked companies that build power stations to submit offers for enough to light some 300,000 homes.\u003cbr>\n[contextly_sidebar id=\"NzTmz20QUWvajECsCYAY2NjJVYvxVroW\"]\u003cbr>\nThat would have cost about $200 million, according to averages from the power plant rush at the time. Instead, San Diego bought four times that much power at a cost of $1.4 billion.\u003c/p>\n\u003cp>Some say all that electricity turned out to be needed nearly a decade later, when overnight 2,200 megawatts that pulsed from the beach near the Orange County line into high-voltage lines over Interstate 5 were lost as the San Onofre Nuclear Generating Station went down in 2012.\u003c/p>\n\u003cp>But many believe the deal for the Palomar and Otay Mesa power plants was dirty, and some believe it set the stage for years of similarly sullied agreements that helped determine what San Diego County residents pay — or overpay — for power to this day. Some say it also established a pattern for over-reliance on natural gas — something energy decision-makers are discussing today in the wake of a natural gas storage disaster in Los Angeles County.\u003c/p>\n\u003cfigure id=\"attachment_11000274\" class=\"wp-caption aligncenter\" style=\"max-width: 768px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/California-Public-Utilities-Commission.jpg\">\u003cimg class=\"size-full wp-image-11000274\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/California-Public-Utilities-Commission.jpg\" alt=\"The California Publicly Utilities Commission may be the most powerful regulatory agency in the state. It has authority over privately owned electricity, natural gas, telecommunications, water, railroad, and passenger transportation.\" width=\"768\" height=\"480\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/California-Public-Utilities-Commission.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/California-Public-Utilities-Commission-400x250.jpg 400w\" sizes=\"(max-width: 768px) 100vw, 768px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The California Publicly Utilities Commission may be the most powerful regulatory agency in the state. It has authority over privately owned electricity, natural gas, telecommunications, water, railroad, and passenger transportation. \u003ccite>(Megan Wood/inewsource)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The deal shows that the California Public Utilities Commission, responsible for regulating corporate utilities, dictated winners and losers, toying with decisions that should be based on who can provide reliable electricity at least cost. And it reveals that Michael Peevey, who was then the commission’s president, was out of bounds long before the actions that triggered the current criminal investigation of him by the California Attorney General’s Office.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The deal set a “horrific precedent” for future power plant decisions, said Loretta Lynch, a former utility commissioner. In the wake of the energy crisis, “This was one of the first cases where the PUC failed, and they failed because President Peevey from the start was engaged in backroom, secret deals that produced premium prices, premium profits for the utilities.”\u003c/p>\n\u003cp>\u003cstrong>SDG&E Powers Up After Blackouts\u003c/strong>\u003c/p>\n\u003cp>In the aftermath of that, “regulators were focused on stemming the hemorrhaging,” said Scott Anders, director of the Energy Policy Initiatives Center at the University of San Diego School of Law. Their most pressing concern, he said: “‘How do we keep the lights on?’”\u003c/p>\n\u003cp>Many regulators and energy officials thought the answer was more power plants. And in May 2003, the San Diego utility, now allowed to build again, made its first move to stock up on power post-crisis.\u003c/p>\n\u003cp>The utility invited \u003ca href=\"http://www.power-eng.com/articles/2003/05/sdge-seeks-bids-to-meet-energy-needs-starting-in-2005.html\">bids\u003c/a> for 291 megawatts of electricity to meet the region’s needs from 2005 to 2007.\u003c/p>\n\u003caside class=\"alignright\">\n\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe width=\"400\" height=\"1950\" frameborder=\"0\" scrolling=\"no\" style=\"overflow-y:hidden;\" src=\"https://magic.piktochart.com/embed/14547498-cpu-timeline\" class=\"iframe-class\">\u003c/iframe>\u003cbr>\n\u003c/aside>\n\u003cp>Twenty-two proposals flowed in, 13 of which seemed to qualify. Some were for smaller power projects, including renewables, while others were for power generated in large, modern natural gas-fired plants.\u003c/p>\n\u003cp>One of the companies was seemingly prohibited from making its offer because it is a sister company of San Diego Gas & Electric. Both are owned by Sempra Energy. Such transactions are usually banned. But the utilities commission allowed Sempra Energy Resources to offer to sell its 555 megawatt Palomar plant in Escondido.\u003c/p>\n\u003cp>Another large bid came from Calpine Corp. to sell power from a 570 megawatt power plant it was already building in Otay Mesa.\u003c/p>\n\u003cp>As the round of bidding closed, the San Diego utility \u003ca href=\"https://www.documentcloud.org/documents/2891204-SDG-amp-E-Motion-to-Enter-Into-Contracts.html\">asked the commission\u003c/a> for permission to ink deals with six bidders — including Sempra Energy Resources and Calpine. Altogether, the contracts would generate enough electricity to power 1.2 million homes — four times as much power as the company originally said it needed.\u003c/p>\n\u003cp>“We were stunned,” said Matt Freedman, staff attorney for The Utility Reform Network, a San Francisco-based consumer advocacy group, recalling his reaction to the utility’s request.\u003c/p>\n\u003cp>\u003cstrong>An Ultimatum\u003c/strong>\u003c/p>\n\u003cp>Freedman suspected something amiss in the bidding and thought it might be revealed in the notebook of James Boothe.\u003c/p>\n\u003cp>Boothe was an economist at a private law firm, and in August 2003, the San Diego utility hired him as a watchdog to make sure its sister company, Sempra Energy Resources, didn’t get special treatment. He found it did not.\u003c/p>\n\u003cp>“SDG&E conducted the negotiations in an impartial, arms-length manner,” he wrote in a \u003ca href=\"https://www.documentcloud.org/documents/2760986-Boothe-Report.html\">report to the commission\u003c/a>. He “detected no trace of favoritism or bias” in the company’s negotiations with its affiliate.\u003c/p>\n\u003cp>But Freedman’s organization and another consumer group, the San Diego-based Utility Consumers’ Action Network, wanted to know more. They requested handwritten notes taken during the negotiations from San Diego Gas & Electric. Then they matched those notes with private meetings between Peevey and Calpine officials.\u003c/p>\n\u003cp>A troubling narrative soon emerged. In the meetings, San Diego Gas & Electric was rejecting Calpine’s offer of Otay Mesa power, saying it was overpriced. Yet the notes showed California’s regulatory agency “repeatedly pushed” the utility to include Otay Mesa as part of the package.\u003c/p>\n\u003cp>“That’s when we decided we had to oppose these deals,” Freedman said.\u003c/p>\n\u003cp>Boothe, the hired watchdog, said in his long utility career what he witnessed in this case stands out.\u003c/p>\n\u003cp>He remembered a negotiating session at San Diego Gas & Electric headquarters. Calpine was there. So was an emissary representing Peevey.\u003c/p>\n\u003cp>He was “very blatant in saying to San Diego that he was there to make sure that a deal got done with Otay Mesa,” recalled Boothe, who now works at the commission, in the water division. “I was a little shocked. I just didn’t see that as the role of the commission to be weighing in on picking a particular project.”\u003c/p>\n\u003cp>Boothe grappled with whether he should notify the commission that Peevey was dictating the outcome of a power plant deal. But after consulting with colleagues at his law firm, he concluded he should focus on the impartiality of the San Diego utility, not the behavior of a government official.\u003c/p>\n\u003cp>Another key individual was witness to Peevey’s intervention. Sempra Energy Resources attorney Kelly Foley, in \u003ca href=\"https://www.documentcloud.org/documents/2891194-Kelly-Foley-Testimony.html\">written testimony\u003c/a> submitted to the state Senate last year, remembered a conference call in the summer of 2003. Representatives from Sempra Energy Resources, Calpine, San Diego Gas & Electric and the utilities commission were on the line.\u003c/p>\n\u003cp>Peevey ran the call. He opened with an ultimatum: “If SDG&E wanted to buy Palomar from its affiliate, SDG&E would also need to make a deal with Calpine for Otay Mesa,” Foley said. Otherwise, the utilities commission “would not approve the proposal to acquire Palomar.”\u003c/p>\n\u003cp>As other companies were rejected from consideration, many also sensed something was improper, even if they were unaware of the extent of Peevey’s involvement.\u003c/p>\n\u003cp>\u003cstrong>A Costly, Unnecessary Power Plant\u003c/strong>\u003c/p>\n\u003cp>A chorus of filings from companies, including \u003ca href=\"https://www.documentcloud.org/documents/2891187-Intergen-amp-Coral-Power-Comments-to-CPUC.html\">Coral Power LLC\u003c/a>; \u003ca href=\"https://www.documentcloud.org/documents/2891182-Dynegy-May-2004-Comments-to-CPUC.html\">Dynegy Marketing and Trade\u003c/a> and InterGen Services Inc., sounded alarms about the proposed deal for Palomar and Otay Mesa in late 2003 and early 2004. They stressed to commissioners that the Otay Mesa project was poorly located and had no connection to the grid. It would require more than $150 million of new transmission lines to bring the power up from South County.\u003c/p>\n\u003cp>Several companies raised one point: San Diego Gas & Electric had tossed out bids on the grounds that they wouldn’t be up and running soon enough — by 2007 — yet Otay Mesa wasn’t expected to be ready until the following year.\u003c/p>\n\u003cp>One of the bids eliminated was a 727 megawatt gas-fired plant at the Miramar Marine Corps Air Station. The bidder, Enpex Corp. of Del Mar, offered a lower-cost alternative to the Palomar and Otay Mesa projects.\u003c/p>\n\u003cp>“The prices being proposed for the two large combined cycle power plants by SDG&E are significantly in excess of today’s fair market price,” Enpex president Richard Hertzberg wrote the commission in October 2003, creating “unnecessary costs to San Diego ratepayers.”\u003c/p>\n\u003cfigure id=\"attachment_11000276\" class=\"wp-caption aligncenter\" style=\"max-width: 768px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Otay-Mesa-Energy-8.jpg\">\u003cimg class=\"size-full wp-image-11000276\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Otay-Mesa-Energy-8.jpg\" alt=\"Transmission lines to connect Otay Mesa Energy Center to the grid cost more than $200 million, a cost borne by ratepayers.\" width=\"768\" height=\"499\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/Otay-Mesa-Energy-8.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/Otay-Mesa-Energy-8-400x260.jpg 400w\" sizes=\"(max-width: 768px) 100vw, 768px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Transmission lines to connect Otay Mesa Energy Center to the grid cost more than $200 million, a cost borne by ratepayers. \u003ccite>(Megan Wood/inewsource)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The Office of Ratepayer Advocates, within the utilities commission, is a sizeable section of about 150 analysts and engineers devoted, as its name suggests, to the defense of ratepayer interests. It concluded that the Otay Mesa deal was unnecessary. It said so bluntly to CPUC Commissioner Geoffrey Brown during one meeting, filings show. Otay Mesa “is not needed, not urgent and will not serve any of the needs SDG&E claimed in this proceeding,” officials from the ratepayer office told Brown, \u003ca href=\"https://www.documentcloud.org/documents/2891176-Office-of-Ratepayer-Advocates-March-2004-Meeting.html\">according to a summary\u003c/a> of one meeting.\u003c/p>\n\u003cp>The Utility Reform Network and the Utility Consumers’ Action Network also detailed their concerns in a \u003ca href=\"https://www.documentcloud.org/documents/2891235-TURN-and-UCAN-Response-to-SDGE-Motion.html\">nearly 100-page filing\u003c/a>. They cited exorbitant costs for Otay Mesa’s electricity, Peevey’s involvement in negotiations and a bidding process that was not competitive.\u003c/p>\n\u003cp>“The rush to approve this motion without serious consideration of ratepayer interests could set a very poor precedent” for future power deals, the consumer groups wrote.\u003c/p>\n\u003cp>Most of the documents cited in this story, which are not available online, were retrieved by \u003ci>inewsource\u003c/i> in paper copy from the Public Utilities Commission records room in San Francisco.\u003c/p>\n\u003cp>To respond to what was looking like a done deal, The Utility Reform Network and the Utility Consumers’ Action Network filed a motion seeking to have President Peevey recused, citing his improper role. Peevey himself \u003ca href=\"https://www.documentcloud.org/documents/2747724-Peevey-ACR-Denying-Motion.html\">denied the motion\u003c/a>.\u003c/p>\n\u003cp>The groups “have failed to show that I have a closed mind with regard to the outcome” of the Otay Mesa agreement, he said.\u003c/p>\n\u003cp>In June 2004, the commission approved the deal in a 3-2 vote. Peevey voted with the majority.\u003c/p>\n\u003cp>Peevey did not respond to multiple requests from \u003cem>inewsource\u003c/em> for comment on this story.\u003c/p>\n\u003cp>\u003cstrong>A ‘Bulldog’ of a President\u003c/strong>\u003cbr>\nPeevey came to the utility commission from a career in the private sector. A former president of Southern California Edison, he was appointed to the five-member panel in 2002 and months later elevated to president by Gov. Gray Davis.\u003c/p>\n\u003cp>His former colleagues remember him as an aggressive leader with a penchant for deal-making and a distaste for public process.\u003c/p>\n\u003cp>“He was a bulldog of an individual,” said fellow Commissioner Brown. “Once he made up his mind, that was the way it was gonna be.”\u003c/p>\n\u003cp>Most of the people interviewed for this story — even Peevey’s vocal critics — don’t suggest he profited from the Otay Mesa deal. Instead, they say he was driven by a responsibility to restore financially strapped power companies to health and aggressively \u003ca href=\"http://www.sfgate.com/news/article/New-push-to-deregulate-energy-Schwarzenegger-2583238.php\">power up\u003c/a> California — the latter a mandate handed down from \u003ca href=\"http://www.c-span.org/video/?161656-1/california-state-state-address\">Davis\u003c/a> and \u003ca href=\"https://www.gov.ca.gov/news.php?id=2428\">Gov. Arnold Schwarzenegger\u003c/a> after the energy crisis.\u003c/p>\n\u003cp>“He was hoping they’d build a bust of him and put it in the courtyard of the PUC because he was the guy who got things done,” said Freedman with The Utility Reform Network. “While Rome burned, he wasn’t fiddling. He was actually trying to put out the fire.”\u003c/p>\n\u003cp>Boothe, the economist hired by SDG&E to monitor negotiations, suggested Peevey may have acted to help Calpine, which had gambled big during deregulation and already sunk millions into the Otay Mesa project. Calpine was in need of help — a customer willing to buy its power so it could borrow and complete the power plant. It won this but filed for Chapter 11 bankruptcy anyway in late 2005.\u003c/p>\n\u003cp>Calpine did not respond to requests from \u003cem>inewsource\u003c/em> for comment.\u003c/p>\n\u003cp>\u003cstrong>An Insurance Policy\u003c/strong>\u003c/p>\n\u003cp>Despite the furor, commissioners Peevey, Brown and Susan Kennedy approved Otay Mesa as an insurance policy for the San Diego region.\u003c/p>\n\u003cp>“Our approval of the Otay Mesa [agreement] will allow a clean, new and efficient generator to be built within SDG&E service territory,” the decision said. Both of the new plants were combined cycle, the most efficient type of gas-fired power plant.\u003c/p>\n\u003cp>Two plants are better than one, they reasoned, calling all those in opposition “minimalist.”\u003c/p>\n\u003cfigure id=\"attachment_11000278\" class=\"wp-caption alignleft\" style=\"max-width: 455px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Otay-Mesa-Energy-10-1024x602.jpg\">\u003cimg class=\"size-full wp-image-11000278\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Otay-Mesa-Energy-10-1024x602.jpg\" alt=\"The Calpine power plant in Otay Mesa.\" width=\"455\" height=\"267\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/Otay-Mesa-Energy-10-1024x602.jpg 455w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/Otay-Mesa-Energy-10-1024x602-400x235.jpg 400w\" sizes=\"(max-width: 455px) 100vw, 455px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The Calpine power plant in Otay Mesa. \u003ccite>(Megan Wood/inewsource)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Palomar and Otay Mesa did have supporters. The Coalition of California Utility Employees, and California Unions for Reliable Energy said adding the two plants would help the San Diego region replace power generation from older, dirtier plants and result in a “substantial reduction” in air pollution.\u003c/p>\n\u003cp>San Diego Gas & Electric called both plants cost effective and environmentally sound.\u003c/p>\n\u003cp>Larry Chaset, the attorney who attended negotiations in San Diego on behalf of the commission president , disputed that Peevey overstepped his authority. “Peevey’s involvement was simply — and was nothing more than — an effort to get the two sides to talk with each other so that they could reach a deal between themselves,” Chaset wrote in an email to \u003cem>inewsource\u003c/em>. He declined to be interviewed.\u003c/p>\n\u003cp>Commissioner Brown did acknowledge concerns about Peevey’s “‘behind-the-scenes’ meddling.” But, he wrote, “I believe the public and the business community in the San Diego area are willing to pay a little extra for insurance [so] that the past will not be repeated.”\u003c/p>\n\u003cp>But the plan was to close down older, dirtier plants in the region regardless of which company won this bid. And any large investment in electricity can be viewed as insurance, said Jan Reid, an energy consultant who formerly worked in the state ratepayer advocate office. “That’s what they say. ‘It’s an insurance policy,’ but what’s it going to cost us?”\u003c/p>\n\u003cp>Hard numbers for the actual cost of this deal are not something you can simply Google. Filings with the Public Utilities Commission often have “public” versions in which the figures — the cost to the public — are blacked out. \u003cem>inewsource\u003c/em>asked the commission how much ratepayers will pay in total for the Otay Mesa contract. The request was routed to the legal department. The answer: between $670 million and $720 million. The Utility Reform Network estimates $739 million over the 10-year contract.\u003c/p>\n\u003cfigure id=\"attachment_11000281\" class=\"wp-caption alignright\" style=\"max-width: 456px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Palomar-Power-Plant-1024x619.jpg\">\u003cimg class=\"size-full wp-image-11000281\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Palomar-Power-Plant-1024x619.jpg\" alt=\"Palomar Energy Center, Escondido\" width=\"456\" height=\"276\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/Palomar-Power-Plant-1024x619.jpg 456w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/Palomar-Power-Plant-1024x619-400x242.jpg 400w\" sizes=\"(max-width: 456px) 100vw, 456px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Palomar Energy Center, Escondido \u003ccite>(Megan Wood/inewsource)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Add to that $209 million for new transmission lines to bring that electricity into the San Diego network plus $494 million for the Palomar Escondido plant, according to the commission, for a total of $1.4 billion.\u003c/p>\n\u003cp>Some commissioners and renewable energy experts believed that committing the San Diego region to gas, or fossil-fueled power in excess of what the company had said was needed, would have a chilling effect on renewable energy in the coming years. It may have slowed renewables.\u003c/p>\n\u003cp>But the newest figures show San Diego Gas & Electric now gets \u003ca href=\"http://inewsource.org/2016/06/13/san-diego-utility-35-percent-renewable/\">35 percent\u003c/a> of its power from clean sources, putting it well ahead of state requirements. It has had large year-over-year increases in the share of its power that is clean each year going back to 2009.\u003c/p>\n\u003cp>Bill Powers, a mechanical engineer and power plant expert who appears as a witness before the commission, said the real effect of this deal and subsequent ones is not that it edged out renewable energy. It’s what that energy costs. California law mandates renewables. But the commission still keeps approving gas-fired plants as well.\u003c/p>\n\u003cp>“Our rates are among the highest in the country and people like to say, ‘Oh, it’s because California has all these different special requirements.’ But not true,” Powers said. “It’s just that we have a compliant PUC that basically finds a way to approve all of these projects that are unnecessary projects and is conducting us along a renewable energy path that the utilities have blessed.”\u003c/p>\n\u003cp>Blessed because building more plants and putting up more transmission lines is the way utilities make money. They don’t earn it by how much electricity they sell. They earn a guaranteed return on their invested capital — 10.3 percent, according to the commission. (The utility requested 11.65 percent on Palomar, but the commission rejected that.)\u003c/p>\n\u003cp>“SDG&E supported approval of the Otay Mesa PPA because the price was fair,” Stephanie Donovan, a spokeswoman for the utility, said in an email. “History has proven that both the Otay Mesa and Palomar Energy Centers have helped SDG&E meet our customers’ energy needs and maintain a reliable electrical system over the past decade.”\u003c/p>\n\u003cp>\u003cstrong>Setting a Precedent\u003c/strong>\u003c/p>\n\u003cp>The biggest cost may have been to the democratic process.\u003c/p>\n\u003cp>Some argue that the deal for Palomar and Otay Mesa set the stage for the corruption scandals that have rocked the California Public Utilities Commission and are prompting calls for reform or even a breakup of this powerful agency.\u003c/p>\n\u003cp>Peevey’s critics say his early success in brokering this deal in the face of widespread criticism emboldened him.\u003c/p>\n\u003cp>“This is an important case,” Freedman said, “because it helps you to understand that this was the way he operated throughout his tenure.”\u003c/p>\n\u003cp>It took more than a decade for Peevey’s deal-making to finally catch up with him and the agency he led.\u003c/p>\n\u003cp>State and federal prosecutors have launched investigations into the commission’s handling of the 2010 San Bruno pipeline explosion and the 2012 closure of the San Onofre nuclear power plant. Both of those probes center on the agency’s cozy relationships with utility executives and how they may have cost California ratepayers billions of dollars.\u003c/p>\n\u003cp>In the case of San Onofre, a raid on Peevey’s home turned up notes showing he and an executive from Southern California Edison sketched out the terms of a $4.7 billion settlement during a private meeting in 2013 in Warsaw, Poland.\u003c/p>\n\u003cp>State lawmakers are demanding changes. They passed six bills to reform the commission last year, but Gov. Jerry Brown vetoed all of them. Three of those bills were authored by Anthony Rendon, D-Lakewood, who is now the Assembly speaker, meaning agency reform is a priority for one of the state’s most powerful politicians.\u003c/p>\n\u003cp>\u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160SB660\">Another\u003c/a> sponsored by Democratic state Sens. Mark Leno of San Francisco and Ben Hueso of San Diego would have restricted private communications between utility officials and state regulators and made it easier to recuse biased commissioners — two issues that tainted the process leading to the approval of Palomar and Otay Mesa. A slightly modified version of that \u003ca href=\"http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160SB215\">bill\u003c/a> is again making its way through the Legislature.\u003c/p>\n\u003cp>Two weeks after the veto of the six reform bills last fall, the Aliso Canyon gas well disaster began in Los Angeles County, adding new voices to those calling for reform, including a re-examination of reliance on natural gas.\u003c/p>\n\u003cp>This month, the state Senate passed a bill that pushes the commission to require more battery storage, which allows more reliance on sun and wind, to “better diversify the state’s energy supply.”\u003c/p>\n\u003cp>Also this month, the Assembly overwhelmingly passed a proposal that would bypass the governor, change the California Constitution and potentially lead to the disassembling of the commission’s broad responsibilities over utilities, communications, rail and even ride-hailing companies.\u003c/p>\n\u003cp>Looking back, former Commissioner Carl Wood wonders why the calls for change didn’t come sooner. He recently reviewed the \u003ca href=\"https://www.documentcloud.org/documents/2891256-Loretta-Lynch-and-Carl-Wood-Dissenting-Opinion.html\">opinion he co-wrote\u003c/a> with Lynch challenging the 12-year-old deal for the Palomar and Otay Mesa plants.\u003c/p>\n\u003cp>“It looked like it could have been written yesterday, in terms of describing the corruption of the process,” Wood said. “It’s remarkable that this didn’t become a scandal at that time.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/ATT00001..png\">\u003cimg class=\"alignleft size-full wp-image-11000300\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/ATT00001..png\" alt=\"ATT00001.\" width=\"311\" height=\"310\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001..png 311w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-32x32.png 32w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-50x50.png 50w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-64x64.png 64w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-96x96.png 96w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-128x128.png 128w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-150x150.png 150w\" sizes=\"(max-width: 311px) 100vw, 311px\">\u003c/a>\u003cbr>\n\u003cem>This story was produced by inewsource, an investigative news organization in San Diego. If you have a tip, please email \u003ca href=\"mailto:chrisyoung@inewsource.org\">chrisyoung@inewsource.org\u003c/a>.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"The California Public Utilities Commission wields enormous power, shaping the state’s energy mix. It also determines the bills sent to millions of individuals, businesses and schools.","status":"publish","parent":0,"modified":1466816404,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":85,"wordCount":3501},"headData":{"title":"Inside the Deal That Shaped San Diego County’s Power Picture | KQED","description":"The California Public Utilities Commission wields enormous power, shaping the state’s energy mix. It also determines the bills sent to millions of individuals, businesses and schools.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11000237 http://ww2.kqed.org/news/?p=11000237","disqusUrl":"https://ww2.kqed.org/news/2016/06/25/inside-the-deal-that-shaped-san-diego-countys-power-picture/","disqusTitle":"Inside the Deal That Shaped San Diego County’s Power Picture","nprByline":"\u003cStrong>\u003ca href=\"https://twitter.com/bychrisyoung\">Chris Young\u003c/a> and \u003ca href=\"https://twitter.com/yeyelobet\">Ingrid Lobet\u003c/a>\u003cbr />inewsource\u003c/strong>","path":"/news/11000237/inside-the-deal-that-shaped-san-diego-countys-power-picture","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>San Diegans probably remember little about how they got the two massive stations in Escondido and Otay Mesa that are now their biggest sources of electricity. But more than a dozen energy experts interviewed by \u003cem>inewsource \u003c/em>remember it well.\u003c/p>\n\u003cp>The year was 2003. California had recently gone dark repeatedly as traders colluded to ratchet up power prices and some operators shut down and held back their power. Silicon Valley manufacturers lost \u003ca href=\"http://commdocs.house.gov/committees/bank/hba73595.000/hba73595_0f.htm\">$100 million in a single day\u003c/a> because of the outages.\u003c/p>\n\u003cp>Now, with concerns about electric adequacy front and center, San Diego was going to build its first significant new power plant in years. San Diego Gas & Electric asked companies that build power stations to submit offers for enough to light some 300,000 homes.\u003cbr>\n\u003c/p>\u003cp>\u003c/p>\u003cp>\u003cbr>\nThat would have cost about $200 million, according to averages from the power plant rush at the time. Instead, San Diego bought four times that much power at a cost of $1.4 billion.\u003c/p>\n\u003cp>Some say all that electricity turned out to be needed nearly a decade later, when overnight 2,200 megawatts that pulsed from the beach near the Orange County line into high-voltage lines over Interstate 5 were lost as the San Onofre Nuclear Generating Station went down in 2012.\u003c/p>\n\u003cp>But many believe the deal for the Palomar and Otay Mesa power plants was dirty, and some believe it set the stage for years of similarly sullied agreements that helped determine what San Diego County residents pay — or overpay — for power to this day. Some say it also established a pattern for over-reliance on natural gas — something energy decision-makers are discussing today in the wake of a natural gas storage disaster in Los Angeles County.\u003c/p>\n\u003cfigure id=\"attachment_11000274\" class=\"wp-caption aligncenter\" style=\"max-width: 768px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/California-Public-Utilities-Commission.jpg\">\u003cimg class=\"size-full wp-image-11000274\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/California-Public-Utilities-Commission.jpg\" alt=\"The California Publicly Utilities Commission may be the most powerful regulatory agency in the state. It has authority over privately owned electricity, natural gas, telecommunications, water, railroad, and passenger transportation.\" width=\"768\" height=\"480\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/California-Public-Utilities-Commission.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/California-Public-Utilities-Commission-400x250.jpg 400w\" sizes=\"(max-width: 768px) 100vw, 768px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The California Publicly Utilities Commission may be the most powerful regulatory agency in the state. It has authority over privately owned electricity, natural gas, telecommunications, water, railroad, and passenger transportation. \u003ccite>(Megan Wood/inewsource)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The deal shows that the California Public Utilities Commission, responsible for regulating corporate utilities, dictated winners and losers, toying with decisions that should be based on who can provide reliable electricity at least cost. And it reveals that Michael Peevey, who was then the commission’s president, was out of bounds long before the actions that triggered the current criminal investigation of him by the California Attorney General’s Office.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The deal set a “horrific precedent” for future power plant decisions, said Loretta Lynch, a former utility commissioner. In the wake of the energy crisis, “This was one of the first cases where the PUC failed, and they failed because President Peevey from the start was engaged in backroom, secret deals that produced premium prices, premium profits for the utilities.”\u003c/p>\n\u003cp>\u003cstrong>SDG&E Powers Up After Blackouts\u003c/strong>\u003c/p>\n\u003cp>In the aftermath of that, “regulators were focused on stemming the hemorrhaging,” said Scott Anders, director of the Energy Policy Initiatives Center at the University of San Diego School of Law. Their most pressing concern, he said: “‘How do we keep the lights on?’”\u003c/p>\n\u003cp>Many regulators and energy officials thought the answer was more power plants. And in May 2003, the San Diego utility, now allowed to build again, made its first move to stock up on power post-crisis.\u003c/p>\n\u003cp>The utility invited \u003ca href=\"http://www.power-eng.com/articles/2003/05/sdge-seeks-bids-to-meet-energy-needs-starting-in-2005.html\">bids\u003c/a> for 291 megawatts of electricity to meet the region’s needs from 2005 to 2007.\u003c/p>\n\u003caside class=\"alignright\">\n\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe width=\"400\" height=\"1950\" frameborder=\"0\" scrolling=\"no\" style=\"overflow-y:hidden;\" src=\"https://magic.piktochart.com/embed/14547498-cpu-timeline\" class=\"iframe-class\">\u003c/iframe>\u003cbr>\n\u003c/aside>\n\u003cp>Twenty-two proposals flowed in, 13 of which seemed to qualify. Some were for smaller power projects, including renewables, while others were for power generated in large, modern natural gas-fired plants.\u003c/p>\n\u003cp>One of the companies was seemingly prohibited from making its offer because it is a sister company of San Diego Gas & Electric. Both are owned by Sempra Energy. Such transactions are usually banned. But the utilities commission allowed Sempra Energy Resources to offer to sell its 555 megawatt Palomar plant in Escondido.\u003c/p>\n\u003cp>Another large bid came from Calpine Corp. to sell power from a 570 megawatt power plant it was already building in Otay Mesa.\u003c/p>\n\u003cp>As the round of bidding closed, the San Diego utility \u003ca href=\"https://www.documentcloud.org/documents/2891204-SDG-amp-E-Motion-to-Enter-Into-Contracts.html\">asked the commission\u003c/a> for permission to ink deals with six bidders — including Sempra Energy Resources and Calpine. Altogether, the contracts would generate enough electricity to power 1.2 million homes — four times as much power as the company originally said it needed.\u003c/p>\n\u003cp>“We were stunned,” said Matt Freedman, staff attorney for The Utility Reform Network, a San Francisco-based consumer advocacy group, recalling his reaction to the utility’s request.\u003c/p>\n\u003cp>\u003cstrong>An Ultimatum\u003c/strong>\u003c/p>\n\u003cp>Freedman suspected something amiss in the bidding and thought it might be revealed in the notebook of James Boothe.\u003c/p>\n\u003cp>Boothe was an economist at a private law firm, and in August 2003, the San Diego utility hired him as a watchdog to make sure its sister company, Sempra Energy Resources, didn’t get special treatment. He found it did not.\u003c/p>\n\u003cp>“SDG&E conducted the negotiations in an impartial, arms-length manner,” he wrote in a \u003ca href=\"https://www.documentcloud.org/documents/2760986-Boothe-Report.html\">report to the commission\u003c/a>. He “detected no trace of favoritism or bias” in the company’s negotiations with its affiliate.\u003c/p>\n\u003cp>But Freedman’s organization and another consumer group, the San Diego-based Utility Consumers’ Action Network, wanted to know more. They requested handwritten notes taken during the negotiations from San Diego Gas & Electric. Then they matched those notes with private meetings between Peevey and Calpine officials.\u003c/p>\n\u003cp>A troubling narrative soon emerged. In the meetings, San Diego Gas & Electric was rejecting Calpine’s offer of Otay Mesa power, saying it was overpriced. Yet the notes showed California’s regulatory agency “repeatedly pushed” the utility to include Otay Mesa as part of the package.\u003c/p>\n\u003cp>“That’s when we decided we had to oppose these deals,” Freedman said.\u003c/p>\n\u003cp>Boothe, the hired watchdog, said in his long utility career what he witnessed in this case stands out.\u003c/p>\n\u003cp>He remembered a negotiating session at San Diego Gas & Electric headquarters. Calpine was there. So was an emissary representing Peevey.\u003c/p>\n\u003cp>He was “very blatant in saying to San Diego that he was there to make sure that a deal got done with Otay Mesa,” recalled Boothe, who now works at the commission, in the water division. “I was a little shocked. I just didn’t see that as the role of the commission to be weighing in on picking a particular project.”\u003c/p>\n\u003cp>Boothe grappled with whether he should notify the commission that Peevey was dictating the outcome of a power plant deal. But after consulting with colleagues at his law firm, he concluded he should focus on the impartiality of the San Diego utility, not the behavior of a government official.\u003c/p>\n\u003cp>Another key individual was witness to Peevey’s intervention. Sempra Energy Resources attorney Kelly Foley, in \u003ca href=\"https://www.documentcloud.org/documents/2891194-Kelly-Foley-Testimony.html\">written testimony\u003c/a> submitted to the state Senate last year, remembered a conference call in the summer of 2003. Representatives from Sempra Energy Resources, Calpine, San Diego Gas & Electric and the utilities commission were on the line.\u003c/p>\n\u003cp>Peevey ran the call. He opened with an ultimatum: “If SDG&E wanted to buy Palomar from its affiliate, SDG&E would also need to make a deal with Calpine for Otay Mesa,” Foley said. Otherwise, the utilities commission “would not approve the proposal to acquire Palomar.”\u003c/p>\n\u003cp>As other companies were rejected from consideration, many also sensed something was improper, even if they were unaware of the extent of Peevey’s involvement.\u003c/p>\n\u003cp>\u003cstrong>A Costly, Unnecessary Power Plant\u003c/strong>\u003c/p>\n\u003cp>A chorus of filings from companies, including \u003ca href=\"https://www.documentcloud.org/documents/2891187-Intergen-amp-Coral-Power-Comments-to-CPUC.html\">Coral Power LLC\u003c/a>; \u003ca href=\"https://www.documentcloud.org/documents/2891182-Dynegy-May-2004-Comments-to-CPUC.html\">Dynegy Marketing and Trade\u003c/a> and InterGen Services Inc., sounded alarms about the proposed deal for Palomar and Otay Mesa in late 2003 and early 2004. They stressed to commissioners that the Otay Mesa project was poorly located and had no connection to the grid. It would require more than $150 million of new transmission lines to bring the power up from South County.\u003c/p>\n\u003cp>Several companies raised one point: San Diego Gas & Electric had tossed out bids on the grounds that they wouldn’t be up and running soon enough — by 2007 — yet Otay Mesa wasn’t expected to be ready until the following year.\u003c/p>\n\u003cp>One of the bids eliminated was a 727 megawatt gas-fired plant at the Miramar Marine Corps Air Station. The bidder, Enpex Corp. of Del Mar, offered a lower-cost alternative to the Palomar and Otay Mesa projects.\u003c/p>\n\u003cp>“The prices being proposed for the two large combined cycle power plants by SDG&E are significantly in excess of today’s fair market price,” Enpex president Richard Hertzberg wrote the commission in October 2003, creating “unnecessary costs to San Diego ratepayers.”\u003c/p>\n\u003cfigure id=\"attachment_11000276\" class=\"wp-caption aligncenter\" style=\"max-width: 768px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Otay-Mesa-Energy-8.jpg\">\u003cimg class=\"size-full wp-image-11000276\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Otay-Mesa-Energy-8.jpg\" alt=\"Transmission lines to connect Otay Mesa Energy Center to the grid cost more than $200 million, a cost borne by ratepayers.\" width=\"768\" height=\"499\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/Otay-Mesa-Energy-8.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/Otay-Mesa-Energy-8-400x260.jpg 400w\" sizes=\"(max-width: 768px) 100vw, 768px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Transmission lines to connect Otay Mesa Energy Center to the grid cost more than $200 million, a cost borne by ratepayers. \u003ccite>(Megan Wood/inewsource)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The Office of Ratepayer Advocates, within the utilities commission, is a sizeable section of about 150 analysts and engineers devoted, as its name suggests, to the defense of ratepayer interests. It concluded that the Otay Mesa deal was unnecessary. It said so bluntly to CPUC Commissioner Geoffrey Brown during one meeting, filings show. Otay Mesa “is not needed, not urgent and will not serve any of the needs SDG&E claimed in this proceeding,” officials from the ratepayer office told Brown, \u003ca href=\"https://www.documentcloud.org/documents/2891176-Office-of-Ratepayer-Advocates-March-2004-Meeting.html\">according to a summary\u003c/a> of one meeting.\u003c/p>\n\u003cp>The Utility Reform Network and the Utility Consumers’ Action Network also detailed their concerns in a \u003ca href=\"https://www.documentcloud.org/documents/2891235-TURN-and-UCAN-Response-to-SDGE-Motion.html\">nearly 100-page filing\u003c/a>. They cited exorbitant costs for Otay Mesa’s electricity, Peevey’s involvement in negotiations and a bidding process that was not competitive.\u003c/p>\n\u003cp>“The rush to approve this motion without serious consideration of ratepayer interests could set a very poor precedent” for future power deals, the consumer groups wrote.\u003c/p>\n\u003cp>Most of the documents cited in this story, which are not available online, were retrieved by \u003ci>inewsource\u003c/i> in paper copy from the Public Utilities Commission records room in San Francisco.\u003c/p>\n\u003cp>To respond to what was looking like a done deal, The Utility Reform Network and the Utility Consumers’ Action Network filed a motion seeking to have President Peevey recused, citing his improper role. Peevey himself \u003ca href=\"https://www.documentcloud.org/documents/2747724-Peevey-ACR-Denying-Motion.html\">denied the motion\u003c/a>.\u003c/p>\n\u003cp>The groups “have failed to show that I have a closed mind with regard to the outcome” of the Otay Mesa agreement, he said.\u003c/p>\n\u003cp>In June 2004, the commission approved the deal in a 3-2 vote. Peevey voted with the majority.\u003c/p>\n\u003cp>Peevey did not respond to multiple requests from \u003cem>inewsource\u003c/em> for comment on this story.\u003c/p>\n\u003cp>\u003cstrong>A ‘Bulldog’ of a President\u003c/strong>\u003cbr>\nPeevey came to the utility commission from a career in the private sector. A former president of Southern California Edison, he was appointed to the five-member panel in 2002 and months later elevated to president by Gov. Gray Davis.\u003c/p>\n\u003cp>His former colleagues remember him as an aggressive leader with a penchant for deal-making and a distaste for public process.\u003c/p>\n\u003cp>“He was a bulldog of an individual,” said fellow Commissioner Brown. “Once he made up his mind, that was the way it was gonna be.”\u003c/p>\n\u003cp>Most of the people interviewed for this story — even Peevey’s vocal critics — don’t suggest he profited from the Otay Mesa deal. Instead, they say he was driven by a responsibility to restore financially strapped power companies to health and aggressively \u003ca href=\"http://www.sfgate.com/news/article/New-push-to-deregulate-energy-Schwarzenegger-2583238.php\">power up\u003c/a> California — the latter a mandate handed down from \u003ca href=\"http://www.c-span.org/video/?161656-1/california-state-state-address\">Davis\u003c/a> and \u003ca href=\"https://www.gov.ca.gov/news.php?id=2428\">Gov. Arnold Schwarzenegger\u003c/a> after the energy crisis.\u003c/p>\n\u003cp>“He was hoping they’d build a bust of him and put it in the courtyard of the PUC because he was the guy who got things done,” said Freedman with The Utility Reform Network. “While Rome burned, he wasn’t fiddling. He was actually trying to put out the fire.”\u003c/p>\n\u003cp>Boothe, the economist hired by SDG&E to monitor negotiations, suggested Peevey may have acted to help Calpine, which had gambled big during deregulation and already sunk millions into the Otay Mesa project. Calpine was in need of help — a customer willing to buy its power so it could borrow and complete the power plant. It won this but filed for Chapter 11 bankruptcy anyway in late 2005.\u003c/p>\n\u003cp>Calpine did not respond to requests from \u003cem>inewsource\u003c/em> for comment.\u003c/p>\n\u003cp>\u003cstrong>An Insurance Policy\u003c/strong>\u003c/p>\n\u003cp>Despite the furor, commissioners Peevey, Brown and Susan Kennedy approved Otay Mesa as an insurance policy for the San Diego region.\u003c/p>\n\u003cp>“Our approval of the Otay Mesa [agreement] will allow a clean, new and efficient generator to be built within SDG&E service territory,” the decision said. Both of the new plants were combined cycle, the most efficient type of gas-fired power plant.\u003c/p>\n\u003cp>Two plants are better than one, they reasoned, calling all those in opposition “minimalist.”\u003c/p>\n\u003cfigure id=\"attachment_11000278\" class=\"wp-caption alignleft\" style=\"max-width: 455px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Otay-Mesa-Energy-10-1024x602.jpg\">\u003cimg class=\"size-full wp-image-11000278\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Otay-Mesa-Energy-10-1024x602.jpg\" alt=\"The Calpine power plant in Otay Mesa.\" width=\"455\" height=\"267\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/Otay-Mesa-Energy-10-1024x602.jpg 455w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/Otay-Mesa-Energy-10-1024x602-400x235.jpg 400w\" sizes=\"(max-width: 455px) 100vw, 455px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The Calpine power plant in Otay Mesa. \u003ccite>(Megan Wood/inewsource)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Palomar and Otay Mesa did have supporters. The Coalition of California Utility Employees, and California Unions for Reliable Energy said adding the two plants would help the San Diego region replace power generation from older, dirtier plants and result in a “substantial reduction” in air pollution.\u003c/p>\n\u003cp>San Diego Gas & Electric called both plants cost effective and environmentally sound.\u003c/p>\n\u003cp>Larry Chaset, the attorney who attended negotiations in San Diego on behalf of the commission president , disputed that Peevey overstepped his authority. “Peevey’s involvement was simply — and was nothing more than — an effort to get the two sides to talk with each other so that they could reach a deal between themselves,” Chaset wrote in an email to \u003cem>inewsource\u003c/em>. He declined to be interviewed.\u003c/p>\n\u003cp>Commissioner Brown did acknowledge concerns about Peevey’s “‘behind-the-scenes’ meddling.” But, he wrote, “I believe the public and the business community in the San Diego area are willing to pay a little extra for insurance [so] that the past will not be repeated.”\u003c/p>\n\u003cp>But the plan was to close down older, dirtier plants in the region regardless of which company won this bid. And any large investment in electricity can be viewed as insurance, said Jan Reid, an energy consultant who formerly worked in the state ratepayer advocate office. “That’s what they say. ‘It’s an insurance policy,’ but what’s it going to cost us?”\u003c/p>\n\u003cp>Hard numbers for the actual cost of this deal are not something you can simply Google. Filings with the Public Utilities Commission often have “public” versions in which the figures — the cost to the public — are blacked out. \u003cem>inewsource\u003c/em>asked the commission how much ratepayers will pay in total for the Otay Mesa contract. The request was routed to the legal department. The answer: between $670 million and $720 million. The Utility Reform Network estimates $739 million over the 10-year contract.\u003c/p>\n\u003cfigure id=\"attachment_11000281\" class=\"wp-caption alignright\" style=\"max-width: 456px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Palomar-Power-Plant-1024x619.jpg\">\u003cimg class=\"size-full wp-image-11000281\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/Palomar-Power-Plant-1024x619.jpg\" alt=\"Palomar Energy Center, Escondido\" width=\"456\" height=\"276\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/Palomar-Power-Plant-1024x619.jpg 456w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/Palomar-Power-Plant-1024x619-400x242.jpg 400w\" sizes=\"(max-width: 456px) 100vw, 456px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Palomar Energy Center, Escondido \u003ccite>(Megan Wood/inewsource)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Add to that $209 million for new transmission lines to bring that electricity into the San Diego network plus $494 million for the Palomar Escondido plant, according to the commission, for a total of $1.4 billion.\u003c/p>\n\u003cp>Some commissioners and renewable energy experts believed that committing the San Diego region to gas, or fossil-fueled power in excess of what the company had said was needed, would have a chilling effect on renewable energy in the coming years. It may have slowed renewables.\u003c/p>\n\u003cp>But the newest figures show San Diego Gas & Electric now gets \u003ca href=\"http://inewsource.org/2016/06/13/san-diego-utility-35-percent-renewable/\">35 percent\u003c/a> of its power from clean sources, putting it well ahead of state requirements. It has had large year-over-year increases in the share of its power that is clean each year going back to 2009.\u003c/p>\n\u003cp>Bill Powers, a mechanical engineer and power plant expert who appears as a witness before the commission, said the real effect of this deal and subsequent ones is not that it edged out renewable energy. It’s what that energy costs. California law mandates renewables. But the commission still keeps approving gas-fired plants as well.\u003c/p>\n\u003cp>“Our rates are among the highest in the country and people like to say, ‘Oh, it’s because California has all these different special requirements.’ But not true,” Powers said. “It’s just that we have a compliant PUC that basically finds a way to approve all of these projects that are unnecessary projects and is conducting us along a renewable energy path that the utilities have blessed.”\u003c/p>\n\u003cp>Blessed because building more plants and putting up more transmission lines is the way utilities make money. They don’t earn it by how much electricity they sell. They earn a guaranteed return on their invested capital — 10.3 percent, according to the commission. (The utility requested 11.65 percent on Palomar, but the commission rejected that.)\u003c/p>\n\u003cp>“SDG&E supported approval of the Otay Mesa PPA because the price was fair,” Stephanie Donovan, a spokeswoman for the utility, said in an email. “History has proven that both the Otay Mesa and Palomar Energy Centers have helped SDG&E meet our customers’ energy needs and maintain a reliable electrical system over the past decade.”\u003c/p>\n\u003cp>\u003cstrong>Setting a Precedent\u003c/strong>\u003c/p>\n\u003cp>The biggest cost may have been to the democratic process.\u003c/p>\n\u003cp>Some argue that the deal for Palomar and Otay Mesa set the stage for the corruption scandals that have rocked the California Public Utilities Commission and are prompting calls for reform or even a breakup of this powerful agency.\u003c/p>\n\u003cp>Peevey’s critics say his early success in brokering this deal in the face of widespread criticism emboldened him.\u003c/p>\n\u003cp>“This is an important case,” Freedman said, “because it helps you to understand that this was the way he operated throughout his tenure.”\u003c/p>\n\u003cp>It took more than a decade for Peevey’s deal-making to finally catch up with him and the agency he led.\u003c/p>\n\u003cp>State and federal prosecutors have launched investigations into the commission’s handling of the 2010 San Bruno pipeline explosion and the 2012 closure of the San Onofre nuclear power plant. Both of those probes center on the agency’s cozy relationships with utility executives and how they may have cost California ratepayers billions of dollars.\u003c/p>\n\u003cp>In the case of San Onofre, a raid on Peevey’s home turned up notes showing he and an executive from Southern California Edison sketched out the terms of a $4.7 billion settlement during a private meeting in 2013 in Warsaw, Poland.\u003c/p>\n\u003cp>State lawmakers are demanding changes. They passed six bills to reform the commission last year, but Gov. Jerry Brown vetoed all of them. Three of those bills were authored by Anthony Rendon, D-Lakewood, who is now the Assembly speaker, meaning agency reform is a priority for one of the state’s most powerful politicians.\u003c/p>\n\u003cp>\u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160SB660\">Another\u003c/a> sponsored by Democratic state Sens. Mark Leno of San Francisco and Ben Hueso of San Diego would have restricted private communications between utility officials and state regulators and made it easier to recuse biased commissioners — two issues that tainted the process leading to the approval of Palomar and Otay Mesa. A slightly modified version of that \u003ca href=\"http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160SB215\">bill\u003c/a> is again making its way through the Legislature.\u003c/p>\n\u003cp>Two weeks after the veto of the six reform bills last fall, the Aliso Canyon gas well disaster began in Los Angeles County, adding new voices to those calling for reform, including a re-examination of reliance on natural gas.\u003c/p>\n\u003cp>This month, the state Senate passed a bill that pushes the commission to require more battery storage, which allows more reliance on sun and wind, to “better diversify the state’s energy supply.”\u003c/p>\n\u003cp>Also this month, the Assembly overwhelmingly passed a proposal that would bypass the governor, change the California Constitution and potentially lead to the disassembling of the commission’s broad responsibilities over utilities, communications, rail and even ride-hailing companies.\u003c/p>\n\u003cp>Looking back, former Commissioner Carl Wood wonders why the calls for change didn’t come sooner. He recently reviewed the \u003ca href=\"https://www.documentcloud.org/documents/2891256-Loretta-Lynch-and-Carl-Wood-Dissenting-Opinion.html\">opinion he co-wrote\u003c/a> with Lynch challenging the 12-year-old deal for the Palomar and Otay Mesa plants.\u003c/p>\n\u003cp>“It looked like it could have been written yesterday, in terms of describing the corruption of the process,” Wood said. “It’s remarkable that this didn’t become a scandal at that time.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/ATT00001..png\">\u003cimg class=\"alignleft size-full wp-image-11000300\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/06/ATT00001..png\" alt=\"ATT00001.\" width=\"311\" height=\"310\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001..png 311w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-32x32.png 32w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-50x50.png 50w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-64x64.png 64w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-96x96.png 96w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-128x128.png 128w, https://ww2.kqed.org/app/uploads/sites/10/2016/06/ATT00001.-150x150.png 150w\" sizes=\"(max-width: 311px) 100vw, 311px\">\u003c/a>\u003cbr>\n\u003cem>This story was produced by inewsource, an investigative news organization in San Diego. If you have a tip, please email \u003ca href=\"mailto:chrisyoung@inewsource.org\">chrisyoung@inewsource.org\u003c/a>.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11000237/inside-the-deal-that-shaped-san-diego-countys-power-picture","authors":["byline_news_11000237"],"programs":["news_72"],"categories":["news_8","news_13","news_356"],"tags":["news_19179","news_1067","news_17286","news_17041"],"featImg":"news_11000294","label":"news_72"},"news_10951477":{"type":"posts","id":"news_10951477","meta":{"index":"posts_1591205157","site":"news","id":"10951477","score":null,"sort":[1462908509000]},"guestAuthors":[],"slug":"state-regulators-to-reconsider-san-onofre-settlement","title":"State Regulators to Reconsider San Onofre Settlement","publishDate":1462908509,"format":"image","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>California regulators said Monday they will re-examine a \u003ca href=\"http://ww2.kqed.org/news/2015/04/29/calls-to-overturn-san-onofre-settlement-intensify-amid-puc-revelations\" target=\"_blank\">settlement\u003c/a> that made consumers responsible for covering some $3.3 billion in costs for closing the San Onofre nuclear power plant.\u003c/p>\n\u003cp>The Public Utilities Commission said parties involved in the case can submit briefs commenting on whether the deal reached in 2014 should be amended or is \"still reasonable,\" legal and in the public interest.\u003c/p>\n\u003cp>The decision by a commissioner and a PUC administrative law judge also bars the parties from having private communications with PUC \"decision-makers\" and advisers to commissioners.\u003c/p>\n\u003cp>That follows \u003ca href=\"http://ww2.kqed.org/news/2015/10/26/southern-california-utility-faces-big-fine-for-improper-talks-with-regulators\" target=\"_blank\">revelations\u003c/a> that an executive of Southern California Edison, the primary owner of the nuclear plant, held private discussions with then-PUC President Michael Peevey before the PUC adopted the agreement. Edison was \u003ca href=\"http://ww2.kqed.org/news/2015/10/26/southern-california-utility-faces-big-fine-for-improper-talks-with-regulators\" target=\"_blank\">fined $16.7 million\u003c/a> by the PUC last year for failing to report the back-channel talks.\u003c/p>\n\u003cp>Edison said it was reviewing the new order but continues to believe that the settlement \"remains in the public interest,\" a company statement said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The San Onofre twin-reactor plant, located between Los Angeles and San Diego, was shut down in 2012 after a small radiation leak led to the discovery of extensive damage to hundreds of tubes inside the virtually new generators.\u003c/p>\n\u003cp>[contextly_sidebar id=\"x4yg5vlVF2EzdEyS0BwusHJFLDKxLAC2\"]\u003c/p>\n\u003cp>The plant never produced electricity again. Edison closed San Onofre for good in 2013 amid a fight with environmentalists over whether the plant was too damaged to restart safely.\u003c/p>\n\u003cp>In 2014, the PUC approved a settlement between Edison and The Utility Reform Network, a consumer group better known as TURN, that had ratepayers paying $3.3 billion in costs stemming from the plant decommissioning, with shareholders of Edison and minority owner San Diego Gas & Electric covering $1.4 billion.\u003c/p>\n\u003cp>TURN staff attorney Matthew Freedman said the improper communications cast a pall over the settlement deal.\u003c/p>\n\u003cp>San Francisco-based TURN \"looks forward to the opportunity to fight for better results for consumers,\" Freedman \u003ca href=\"http://www.sandiegouniontribune.com/news/2016/may/09/san-onofre-reopened/2/#article-copy\" target=\"_blank\">told the San Diego Union-Tribune\u003c/a>.\u003c/p>\n\u003cp>\"This proves that when a small group of people come together to fight to the end, justice can be done,\" Michael Aguirre, an attorney who sued to overturn the agreement, told the paper.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"This will have to be done openly and on the record,\" he said. \"We can win a fair fight.\"\u003c/p>\n\n","blocks":[],"excerpt":"The CPUC will re-examine a settlement that put consumers on the hook for $3.3 billion in costs for closing the San Onofre nuclear power plant.","status":"publish","parent":0,"modified":1462908509,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":15,"wordCount":381},"headData":{"title":"State Regulators to Reconsider San Onofre Settlement | KQED","description":"The CPUC will re-examine a settlement that put consumers on the hook for $3.3 billion in costs for closing the San Onofre nuclear power plant.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"10951477 http://ww2.kqed.org/news/?p=10951477","disqusUrl":"https://ww2.kqed.org/news/2016/05/10/state-regulators-to-reconsider-san-onofre-settlement/","disqusTitle":"State Regulators to Reconsider San Onofre Settlement","nprByline":"Associated Press","nprStoryId":"477524634","path":"/news/10951477/state-regulators-to-reconsider-san-onofre-settlement","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>California regulators said Monday they will re-examine a \u003ca href=\"http://ww2.kqed.org/news/2015/04/29/calls-to-overturn-san-onofre-settlement-intensify-amid-puc-revelations\" target=\"_blank\">settlement\u003c/a> that made consumers responsible for covering some $3.3 billion in costs for closing the San Onofre nuclear power plant.\u003c/p>\n\u003cp>The Public Utilities Commission said parties involved in the case can submit briefs commenting on whether the deal reached in 2014 should be amended or is \"still reasonable,\" legal and in the public interest.\u003c/p>\n\u003cp>The decision by a commissioner and a PUC administrative law judge also bars the parties from having private communications with PUC \"decision-makers\" and advisers to commissioners.\u003c/p>\n\u003cp>That follows \u003ca href=\"http://ww2.kqed.org/news/2015/10/26/southern-california-utility-faces-big-fine-for-improper-talks-with-regulators\" target=\"_blank\">revelations\u003c/a> that an executive of Southern California Edison, the primary owner of the nuclear plant, held private discussions with then-PUC President Michael Peevey before the PUC adopted the agreement. Edison was \u003ca href=\"http://ww2.kqed.org/news/2015/10/26/southern-california-utility-faces-big-fine-for-improper-talks-with-regulators\" target=\"_blank\">fined $16.7 million\u003c/a> by the PUC last year for failing to report the back-channel talks.\u003c/p>\n\u003cp>Edison said it was reviewing the new order but continues to believe that the settlement \"remains in the public interest,\" a company statement said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The San Onofre twin-reactor plant, located between Los Angeles and San Diego, was shut down in 2012 after a small radiation leak led to the discovery of extensive damage to hundreds of tubes inside the virtually new generators.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>The plant never produced electricity again. Edison closed San Onofre for good in 2013 amid a fight with environmentalists over whether the plant was too damaged to restart safely.\u003c/p>\n\u003cp>In 2014, the PUC approved a settlement between Edison and The Utility Reform Network, a consumer group better known as TURN, that had ratepayers paying $3.3 billion in costs stemming from the plant decommissioning, with shareholders of Edison and minority owner San Diego Gas & Electric covering $1.4 billion.\u003c/p>\n\u003cp>TURN staff attorney Matthew Freedman said the improper communications cast a pall over the settlement deal.\u003c/p>\n\u003cp>San Francisco-based TURN \"looks forward to the opportunity to fight for better results for consumers,\" Freedman \u003ca href=\"http://www.sandiegouniontribune.com/news/2016/may/09/san-onofre-reopened/2/#article-copy\" target=\"_blank\">told the San Diego Union-Tribune\u003c/a>.\u003c/p>\n\u003cp>\"This proves that when a small group of people come together to fight to the end, justice can be done,\" Michael Aguirre, an attorney who sued to overturn the agreement, told the paper.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"This will have to be done openly and on the record,\" he said. \"We can win a fair fight.\"\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/10951477/state-regulators-to-reconsider-san-onofre-settlement","authors":["byline_news_10951477"],"programs":["news_72"],"categories":["news_8","news_356"],"tags":["news_19179","news_4486","news_1067","news_17286"],"featImg":"news_10951515","label":"news_72"},"news_10928651":{"type":"posts","id":"news_10928651","meta":{"index":"posts_1591205157","site":"news","id":"10928651","score":null,"sort":[1460617559000]},"guestAuthors":[],"slug":"critics-unhappy-with-kamala-harris-approach-to-san-onofre-probe","title":"Critics Unhappy With Kamala Harris' Approach to San Onofre Probe","publishDate":1460617559,"format":"image","headTitle":"Election 2016 | The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>When criminal investigators with the \u003ca href=\"https://oag.ca.gov/\">California Attorney General's Office\u003c/a> searched the home of a former top utility regulator early last year, they uncovered evidence that upended a story state officials and a major electric utility had been telling consumers about the deal to pay for the shutdown of the San Onofre Nuclear Generating Station.\u003c/p>\n\u003cp>This was big. And Attorney General Kamala Harris, now a \u003ca href=\"http://www.kamalaharris.org/\">candidate for U.S. Senate\u003c/a>, was hailed by consumer activists for her aggressive investigation.\u003c/p>\n\u003cp>The California Public Utilities Commission and Southern California Edison had claimed a settlement that left ratepayers with the \u003ca href=\"http://www.kpbs.org/news/2014/nov/20/cpuc-approves-controversial-san-onofre-settlement-/\">$3.3 billion bill\u003c/a> for the San Onofre Nuclear Generating Station’s closure was the product of hard-fought negotiations between ratepayer advocates and the power company.\u003c/p>\n\u003cp>But when Harris' investigators went through the La Cañada Flintridge home of former CPUC President Michael Peevey after obtaining a \u003ca href=\"http://www.sfgate.com/news/article/Agents-search-Michael-Peevey-s-home-in-PG-E-6047151.php\">search warrant\u003c/a>, a different story emerged.\u003c/p>\n\u003cp>Investigators \u003ca href=\"http://www.sandiegouniontribune.com/news/2015/apr/10/rsg-notes-hotel-bristol-stationery/\">found handwritten notes\u003c/a> that showed Peevey had met secretly with an Edison executive in Poland after the nuclear power plant sprang a radioactive leak and had to be closed. There, they came up with a framework for a San Onofre settlement that closely resembled the final public deal.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[contextly_sidebar id=\"xAeJ17jSowvjGd64z74rRec7ATDOjWsK\"]\u003c/p>\n\u003cp>“That was the most remarkable piece of investigative work that I’ve ever seen in the last 40 years,” said San Diego consumer attorney \u003ca href=\"http://www.amslawyers.com/\">Mike Aguirre\u003c/a>.\u003c/p>\n\u003cp>It was the kind of work, Aguirre said, that makes people fall in love with their leaders. But now he contends Harris is jilting her constituents.\u003c/p>\n\u003cp>“There was no follow-up,” he said.\u003c/p>\n\u003cp>Aguirre and other consumer activists contend Harris is failing to police state regulators and Edison. While her office's criminal probe launched with a punch when Peevey’s home was searched, the investigation is now dragging on without result, they said.\u003c/p>\n\u003cp>https://www.youtube.com/watch?v=xJ5F1yydMtY&feature=youtu.be\u003c/p>\n\u003cp>Harris declined to be interviewed for this story. Her office also declined to answer any questions about the inquiry into the San Onofre settlement. A statement released by her spokesman said, \"Criminal investigations are very serious. To protect the integrity of our investigations, we can’t comment on potential ongoing investigations.\"\u003c/p>\n\u003cp>\u003cstrong>More Search Warrants Issued\u003c/strong>\u003c/p>\n\u003cp>Six months after Harris’ investigators searched Peevey’s house, the attorney general obtained more \u003ca href=\"http://www.sandiegouniontribune.com/news/2015/jul/06/two-new-warrants-served-in-cpuc-case/\">search warrants\u003c/a>. This time they were for the centers of power in the San Onofre case — Edison and the offices of state regulators.\u003c/p>\n\u003cp>But the attorney general's investigators never went in, according to court documents. Instead, they served the search warrants to Edison and the CPUC and asked them to turn over all documents and communications related to the San Onofre settlement.\u003c/p>\n\u003cp>“You don’t drop it off at the front door and say, ‘Hey, gee, send me your records,’\" said Aguirre, a former federal prosecutor and San Diego city attorney. “That’s the whole point of a search warrant. ... You go in and you execute the search warrant and you seize the records, because you’re concerned they’re going to disappear.”\u003c/p>\n\u003cp>He said using the full power of the search warrant is essential if the public is ever to get the truth from state regulators and Edison over how the San Onofre settlement was reached.\u003c/p>\n\u003cp>“There’s so much momentum behind the unlawful conduct, the search warrant is the only device you can use, unless you can have some sort of wiretap,” Aguirre said.\u003c/p>\n\u003cp>\u003cstrong>CPUC Slow to Turn Over Records\u003c/strong>\u003c/p>\n\u003cp>Edison has turned over some records to the State Attorney General's Office. The CPUC, however, has \u003ca href=\"http://www.sandiegouniontribune.com/news/2015/aug/25/cpuc-warrant-return-no-records/\">withheld many of the documents\u003c/a> on grounds they don’t have enough resources to work on producing the documents. The agency also is claiming some of the records are privileged.\u003c/p>\n\u003cp>Harris hasn’t challenged the CPUC’s privilege assertion. \u003ca href=\"http://www.rgrdlaw.com/attorneys-Jason-A-Forge.html\">Jason Forge\u003c/a>, a former San Diego federal prosecutor, said the attorney general would likely prevail if she did.\u003c/p>\n\u003cp>“The PUC is the state, and so if the PUC is the state and the state is the client, that’s who controls the privilege. The person at the top of the state is Gov. (Jerry) Brown, and he could waive the privilege,” Forge said.\u003c/p>\n\u003cp>Brown’s own office has exchanged emails about San Onofre with the CPUC. The CPUC is refusing to release those emails as well.\u003c/p>\n\u003cp>Only Aguirre has \u003ca href=\"http://www.sandiegouniontribune.com/news/2015/nov/13/brown-san-onofre-emails/\">demanded\u003c/a> the CPUC make the communications public, not Harris.\u003c/p>\n\u003cp>He also successfully \u003ca href=\"http://www.sandiegouniontribune.com/news/2016/mar/09/kline-out/\">sought the removal\u003c/a> of appeals court Justice J. Anthony Kline from the case because Kline had gone to law school with Brown.\u003c/p>\n\u003cp>Aguirre said it’s puzzling that Harris hasn’t made the same efforts he has.\u003c/p>\n\u003cp>“She has no presence,” Aguirre said. “She has no involvement. She has no leadership. You have no sense of her being out there on the front saying we’re charging forward to do what’s right.\"\u003c/p>\n\u003cfigure id=\"attachment_10928706\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/04/MikeAguierre-800x449.jpg\" alt=\"Former San Diego City Attorney Mike Aguirre talks about his fight to overturn the San Onofre Nuclear Generating Station settlement in March, 2015.\" width=\"800\" height=\"449\" class=\"size-medium wp-image-10928706\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre-800x449.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre-400x225.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre-1180x663.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre-960x539.jpg 960w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Former San Diego City Attorney Mike Aguirre talks about his fight to overturn the San Onofre Nuclear Generating Station settlement in March, 2015. \u003ccite>(Katie Schoolov/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Harris has also remained silent on another part of the case. The CPUC’s law firm, \u003ca href=\"https://www.dlapiper.com/en/us/\">DLA Piper\u003c/a>, is representing the agency and its employees. Forge said the practice is frowned upon by prosecutors because it intimidates potential whistle-blowers.\u003c/p>\n\u003cp>“What happens is the individual employees do not have anyone to whom they can truly turn for legal advice, because they know the same person who is representing them is representing their supervisor, and their supervisor’s supervisor,” Forge said.\u003c/p>\n\u003cp>Harris could ask a court to require the CPUC to retain separate counsel. So far, she hasn’t.\u003c/p>\n\u003cp>\u003cstrong>Democratic Politics Could Be at Play\u003c/strong>\u003c/p>\n\u003cp>Consumer advocate \u003ca href=\"http://www.kpbs.org/news/2015/mar/04/consumer-advocates-question-state-regulators-role-/\">Charles Langley\u003c/a> said Harris may not want to pursue the San Onofre investigation to its end because the state’s Democratic hierarchy could be touched by it and that could affect her U.S. Senate bid.\u003c/p>\n\u003cp>“This is a scandal that will very likely implicate Gov. Jerry Brown, a powerful Democrat, and Michael Peevey, a powerful Democrat, and his wife, an elected powerful Democrat,” Langley said. “I think it’s very distressing to her when she’s running for U.S. Senate and going up against the Democratic Party structure.”\u003c/p>\n\u003cp>Peevey’s wife is state \u003ca href=\"http://sd25.senate.ca.gov/\">Sen. Carol Liu\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_10928713\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/04/AGHarris-800x1040.jpg\" alt=\"Attorney General Kamala Harris.\" width=\"800\" height=\"1040\" class=\"size-medium wp-image-10928713\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris-800x1040.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris-400x520.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris-1180x1533.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris-960x1248.jpg 960w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Attorney General Kamala Harris. \u003ccite>( Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As attorney general, Harris has established a record for fighting white-collar crime. She set up a mortgage fraud task force, and she \u003ca href=\"http://www.nytimes.com/2012/02/14/business/how-kamala-harris-finessed-a-foreclosure-deal-for-california.html?_r=0\">obtained\u003c/a> $18 billion from the nation’s biggest banks for their role in the foreclosure crisis.\u003c/p>\n\u003cp>She is also \u003ca href=\"http://www.latimes.com/business/la-fi-exxon-global-warming-20160120-story.html\">investigating\u003c/a> whether Exxon Mobil misled the public and shareholders on what it knew about climate change and whether that amounts to securities fraud.\u003c/p>\n\u003cp>So far, the questions surrounding Harris' handling of the San Onofre settlement investigation have not affected her standing with voters expected to cast ballots in the June primary. Harris has been the front-runner since she announced in January 2015 that she would run to replace Democratic Sen. Barbara Boxer, who is retiring.\u003c/p>\n\u003cp>In last month's \u003ca href=\"http://www.latimes.com/politics/la-pol-ca-latimes-senate-primary-poll-20160329-story.html\">USC Dornsife/Los Angeles Times poll\u003c/a>, Harris was leading her closest rival, Orange County congresswoman Loretta Sanchez, 28 percent to 19 percent. Both are Democrats. The top two vote-getters in June will compete in the November election, regardless of party. The poll showed about a third of those surveyed have yet to decide who they will vote for.\u003c/p>\n\u003cp>Copyright 2016 KPBS. To see more election coverage, visit \u003ca href=\"http://www.kpbs.org/\">www.kpbs.org\u003c/a>.\u003c/p>\n\u003cp>\u003cem>California Counts is a collaboration of KPBS, KPCC, KQED and Capital Public Radio to report on the 2016 election. The coverage focuses on major issues and solicits diverse voices on what’s important to the future of California.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"http://ww2.kqed.org/news/tag/cacounts\" target=\"_blank\">Read more in this series\u003c/a> and let us know your thoughts on Twitter using the hashtag \u003ca href=\"https://twitter.com/search?q=%23CACounts&src=typd\" target=\"_blank\">#CACounts\u003c/a>.\u003cbr>\n\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"Some consumer activists worry the attorney general's Democratic Party loyalties are influencing her office's criminal investigation into the 2013 closure of the San Onofre Nuclear Generating Station.","status":"publish","parent":0,"modified":1475873560,"stats":{"hasAudio":false,"hasVideo":true,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":42,"wordCount":1349},"headData":{"title":"Critics Unhappy With Kamala Harris' Approach to San Onofre Probe | KQED","description":"Some consumer activists worry the attorney general's Democratic Party loyalties are influencing her office's criminal investigation into the 2013 closure of the San Onofre Nuclear Generating Station.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"10928651 http://ww2.kqed.org/news/?p=10928651","disqusUrl":"https://ww2.kqed.org/news/2016/04/14/critics-unhappy-with-kamala-harris-approach-to-san-onofre-probe/","disqusTitle":"Critics Unhappy With Kamala Harris' Approach to San Onofre Probe","nprByline":"\u003cstrong>\u003ca href=\"http://www.kpbs.org/staff/amita-sharma/\">Amita Sharma\u003c/a>\u003cbr>KPBS\u003c/strong>","nprStoryId":"497090474","path":"/news/10928651/critics-unhappy-with-kamala-harris-approach-to-san-onofre-probe","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>When criminal investigators with the \u003ca href=\"https://oag.ca.gov/\">California Attorney General's Office\u003c/a> searched the home of a former top utility regulator early last year, they uncovered evidence that upended a story state officials and a major electric utility had been telling consumers about the deal to pay for the shutdown of the San Onofre Nuclear Generating Station.\u003c/p>\n\u003cp>This was big. And Attorney General Kamala Harris, now a \u003ca href=\"http://www.kamalaharris.org/\">candidate for U.S. Senate\u003c/a>, was hailed by consumer activists for her aggressive investigation.\u003c/p>\n\u003cp>The California Public Utilities Commission and Southern California Edison had claimed a settlement that left ratepayers with the \u003ca href=\"http://www.kpbs.org/news/2014/nov/20/cpuc-approves-controversial-san-onofre-settlement-/\">$3.3 billion bill\u003c/a> for the San Onofre Nuclear Generating Station’s closure was the product of hard-fought negotiations between ratepayer advocates and the power company.\u003c/p>\n\u003cp>But when Harris' investigators went through the La Cañada Flintridge home of former CPUC President Michael Peevey after obtaining a \u003ca href=\"http://www.sfgate.com/news/article/Agents-search-Michael-Peevey-s-home-in-PG-E-6047151.php\">search warrant\u003c/a>, a different story emerged.\u003c/p>\n\u003cp>Investigators \u003ca href=\"http://www.sandiegouniontribune.com/news/2015/apr/10/rsg-notes-hotel-bristol-stationery/\">found handwritten notes\u003c/a> that showed Peevey had met secretly with an Edison executive in Poland after the nuclear power plant sprang a radioactive leak and had to be closed. There, they came up with a framework for a San Onofre settlement that closely resembled the final public deal.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>“That was the most remarkable piece of investigative work that I’ve ever seen in the last 40 years,” said San Diego consumer attorney \u003ca href=\"http://www.amslawyers.com/\">Mike Aguirre\u003c/a>.\u003c/p>\n\u003cp>It was the kind of work, Aguirre said, that makes people fall in love with their leaders. But now he contends Harris is jilting her constituents.\u003c/p>\n\u003cp>“There was no follow-up,” he said.\u003c/p>\n\u003cp>Aguirre and other consumer activists contend Harris is failing to police state regulators and Edison. While her office's criminal probe launched with a punch when Peevey’s home was searched, the investigation is now dragging on without result, they said.\u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/xJ5F1yydMtY'\n title='//www.youtube.com/embed/xJ5F1yydMtY'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003cp>Harris declined to be interviewed for this story. Her office also declined to answer any questions about the inquiry into the San Onofre settlement. A statement released by her spokesman said, \"Criminal investigations are very serious. To protect the integrity of our investigations, we can’t comment on potential ongoing investigations.\"\u003c/p>\n\u003cp>\u003cstrong>More Search Warrants Issued\u003c/strong>\u003c/p>\n\u003cp>Six months after Harris’ investigators searched Peevey’s house, the attorney general obtained more \u003ca href=\"http://www.sandiegouniontribune.com/news/2015/jul/06/two-new-warrants-served-in-cpuc-case/\">search warrants\u003c/a>. This time they were for the centers of power in the San Onofre case — Edison and the offices of state regulators.\u003c/p>\n\u003cp>But the attorney general's investigators never went in, according to court documents. Instead, they served the search warrants to Edison and the CPUC and asked them to turn over all documents and communications related to the San Onofre settlement.\u003c/p>\n\u003cp>“You don’t drop it off at the front door and say, ‘Hey, gee, send me your records,’\" said Aguirre, a former federal prosecutor and San Diego city attorney. “That’s the whole point of a search warrant. ... You go in and you execute the search warrant and you seize the records, because you’re concerned they’re going to disappear.”\u003c/p>\n\u003cp>He said using the full power of the search warrant is essential if the public is ever to get the truth from state regulators and Edison over how the San Onofre settlement was reached.\u003c/p>\n\u003cp>“There’s so much momentum behind the unlawful conduct, the search warrant is the only device you can use, unless you can have some sort of wiretap,” Aguirre said.\u003c/p>\n\u003cp>\u003cstrong>CPUC Slow to Turn Over Records\u003c/strong>\u003c/p>\n\u003cp>Edison has turned over some records to the State Attorney General's Office. The CPUC, however, has \u003ca href=\"http://www.sandiegouniontribune.com/news/2015/aug/25/cpuc-warrant-return-no-records/\">withheld many of the documents\u003c/a> on grounds they don’t have enough resources to work on producing the documents. The agency also is claiming some of the records are privileged.\u003c/p>\n\u003cp>Harris hasn’t challenged the CPUC’s privilege assertion. \u003ca href=\"http://www.rgrdlaw.com/attorneys-Jason-A-Forge.html\">Jason Forge\u003c/a>, a former San Diego federal prosecutor, said the attorney general would likely prevail if she did.\u003c/p>\n\u003cp>“The PUC is the state, and so if the PUC is the state and the state is the client, that’s who controls the privilege. The person at the top of the state is Gov. (Jerry) Brown, and he could waive the privilege,” Forge said.\u003c/p>\n\u003cp>Brown’s own office has exchanged emails about San Onofre with the CPUC. The CPUC is refusing to release those emails as well.\u003c/p>\n\u003cp>Only Aguirre has \u003ca href=\"http://www.sandiegouniontribune.com/news/2015/nov/13/brown-san-onofre-emails/\">demanded\u003c/a> the CPUC make the communications public, not Harris.\u003c/p>\n\u003cp>He also successfully \u003ca href=\"http://www.sandiegouniontribune.com/news/2016/mar/09/kline-out/\">sought the removal\u003c/a> of appeals court Justice J. Anthony Kline from the case because Kline had gone to law school with Brown.\u003c/p>\n\u003cp>Aguirre said it’s puzzling that Harris hasn’t made the same efforts he has.\u003c/p>\n\u003cp>“She has no presence,” Aguirre said. “She has no involvement. She has no leadership. You have no sense of her being out there on the front saying we’re charging forward to do what’s right.\"\u003c/p>\n\u003cfigure id=\"attachment_10928706\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/04/MikeAguierre-800x449.jpg\" alt=\"Former San Diego City Attorney Mike Aguirre talks about his fight to overturn the San Onofre Nuclear Generating Station settlement in March, 2015.\" width=\"800\" height=\"449\" class=\"size-medium wp-image-10928706\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre-800x449.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre-400x225.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre-1180x663.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/MikeAguierre-960x539.jpg 960w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Former San Diego City Attorney Mike Aguirre talks about his fight to overturn the San Onofre Nuclear Generating Station settlement in March, 2015. \u003ccite>(Katie Schoolov/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Harris has also remained silent on another part of the case. The CPUC’s law firm, \u003ca href=\"https://www.dlapiper.com/en/us/\">DLA Piper\u003c/a>, is representing the agency and its employees. Forge said the practice is frowned upon by prosecutors because it intimidates potential whistle-blowers.\u003c/p>\n\u003cp>“What happens is the individual employees do not have anyone to whom they can truly turn for legal advice, because they know the same person who is representing them is representing their supervisor, and their supervisor’s supervisor,” Forge said.\u003c/p>\n\u003cp>Harris could ask a court to require the CPUC to retain separate counsel. So far, she hasn’t.\u003c/p>\n\u003cp>\u003cstrong>Democratic Politics Could Be at Play\u003c/strong>\u003c/p>\n\u003cp>Consumer advocate \u003ca href=\"http://www.kpbs.org/news/2015/mar/04/consumer-advocates-question-state-regulators-role-/\">Charles Langley\u003c/a> said Harris may not want to pursue the San Onofre investigation to its end because the state’s Democratic hierarchy could be touched by it and that could affect her U.S. Senate bid.\u003c/p>\n\u003cp>“This is a scandal that will very likely implicate Gov. Jerry Brown, a powerful Democrat, and Michael Peevey, a powerful Democrat, and his wife, an elected powerful Democrat,” Langley said. “I think it’s very distressing to her when she’s running for U.S. Senate and going up against the Democratic Party structure.”\u003c/p>\n\u003cp>Peevey’s wife is state \u003ca href=\"http://sd25.senate.ca.gov/\">Sen. Carol Liu\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_10928713\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/04/AGHarris-800x1040.jpg\" alt=\"Attorney General Kamala Harris.\" width=\"800\" height=\"1040\" class=\"size-medium wp-image-10928713\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris-800x1040.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris-400x520.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris-1180x1533.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/04/AGHarris-960x1248.jpg 960w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Attorney General Kamala Harris. \u003ccite>( Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As attorney general, Harris has established a record for fighting white-collar crime. She set up a mortgage fraud task force, and she \u003ca href=\"http://www.nytimes.com/2012/02/14/business/how-kamala-harris-finessed-a-foreclosure-deal-for-california.html?_r=0\">obtained\u003c/a> $18 billion from the nation’s biggest banks for their role in the foreclosure crisis.\u003c/p>\n\u003cp>She is also \u003ca href=\"http://www.latimes.com/business/la-fi-exxon-global-warming-20160120-story.html\">investigating\u003c/a> whether Exxon Mobil misled the public and shareholders on what it knew about climate change and whether that amounts to securities fraud.\u003c/p>\n\u003cp>So far, the questions surrounding Harris' handling of the San Onofre settlement investigation have not affected her standing with voters expected to cast ballots in the June primary. Harris has been the front-runner since she announced in January 2015 that she would run to replace Democratic Sen. Barbara Boxer, who is retiring.\u003c/p>\n\u003cp>In last month's \u003ca href=\"http://www.latimes.com/politics/la-pol-ca-latimes-senate-primary-poll-20160329-story.html\">USC Dornsife/Los Angeles Times poll\u003c/a>, Harris was leading her closest rival, Orange County congresswoman Loretta Sanchez, 28 percent to 19 percent. Both are Democrats. The top two vote-getters in June will compete in the November election, regardless of party. The poll showed about a third of those surveyed have yet to decide who they will vote for.\u003c/p>\n\u003cp>Copyright 2016 KPBS. To see more election coverage, visit \u003ca href=\"http://www.kpbs.org/\">www.kpbs.org\u003c/a>.\u003c/p>\n\u003cp>\u003cem>California Counts is a collaboration of KPBS, KPCC, KQED and Capital Public Radio to report on the 2016 election. The coverage focuses on major issues and solicits diverse voices on what’s important to the future of California.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"http://ww2.kqed.org/news/tag/cacounts\" target=\"_blank\">Read more in this series\u003c/a> and let us know your thoughts on Twitter using the hashtag \u003ca href=\"https://twitter.com/search?q=%23CACounts&src=typd\" target=\"_blank\">#CACounts\u003c/a>.\u003cbr>\n\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/10928651/critics-unhappy-with-kamala-harris-approach-to-san-onofre-probe","authors":["byline_news_10928651"],"programs":["news_72"],"series":["news_19101"],"categories":["news_19906","news_8","news_13","news_356"],"tags":["news_19217","news_61","news_1067","news_17286","news_17041","news_19379"],"affiliates":["news_7054"],"featImg":"news_10928662","label":"news_72"},"news_10734622":{"type":"posts","id":"news_10734622","meta":{"index":"posts_1591205157","site":"news","id":"10734622","score":null,"sort":[1445911515000]},"guestAuthors":[],"slug":"southern-california-utility-faces-big-fine-for-improper-talks-with-regulators","title":"Southern California Utility Faces Big Fine for 'Improper' Talks With Regulators","publishDate":1445911515,"format":"standard","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>Southern California Edison is facing a $16.7 million penalty for holding improper talks with utility regulators related to the now-closed San Onofre nuclear power plant.\u003c/p>\n\u003cp>The proposed penalty is the latest development tied to a dispute over a $4.7 billion settlement related to the shutdown of San Onofre. San Onofre was shut down in January 2012 after a small radiation leak led to the discovery of extensive damage to tubing inside virtually new steam generators. The plant never produced electricity again. Edison closed San Onofre permanently in June 2013.\u003c/p>\n\u003cp>Last November, commissioners approved a settlement over the closures -- in which ratepayers would shoulder about $3.3 billion of the costs, while Edison and the plant's minority owner, San Diego Gas & Electric Co., would cover $1.4 billion.\u003c/p>\n\u003cfigure id=\"attachment_10734777\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM.png\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM-800x880.png\" alt=\"Notes about the San Onofre shutdown settlement found in Peevey's home.\" width=\"800\" height=\"880\" class=\"size-medium wp-image-10734777\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM-800x880.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM-400x440.png 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM.png 815w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Notes about the San Onofre shutdown settlement found in Peevey's home.\u003c/figcaption>\u003c/figure>\n\u003cp>Consumer advocates and other critics have urged the commission to reopen the settlement, saying private conversations between the commission's then-president, Michael Peevey, and Edison gave the company an unfair advantage. The company has previously defended the 2014 deal, saying it is fair and was negotiated properly.\u003c/p>\n\u003cp>California Public Utilities Commission Administrative Law Judge Melanie Darling proposed the fine Monday for what she called misleading acts and omissions by the company.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>She found Edison officials held eight unreported, improper communications with one or more agency commissioners during that time.\u003c/p>\n\u003cp>Edison \"misled the commission, showed disrespect for the commission's rules and undermined public confidence in the agency,\" the judge wrote.\u003c/p>\n\u003cp>In 2013, then-Southern California Edison Executive Vice President Stephen Pickett and Peevey met at the luxury Bristol Hotel in Warsaw, Poland, for a business conference. Notes on Bristol letterhead about the proposed shutdown came out this year after state agents raided Peevey's Los Angeles home during an investigation into an \u003ca href=\"http://ww2.kqed.org/news/2015/06/19/10-emails-detail-pges-cozy-relationship-with-its-regulators\" target=\"_blank\">unrelated judge-shopping scandal\u003c/a>.\u003c/p>\n\u003cp>Utilities, and other parties, are supposed to file a notice of an \"ex parte communication\" when they speak with regulators about business. Edison did not file a notice of the communication until 686 days after the meeting. Peevey also did not disclose the meeting. However, he was not required to under current commission rules. A \u003ca href=\"http://ww2.kqed.org/news/2015/06/23/independent-study-condemns-system-of-communications-between-utilities-and-their-regulators\" target=\"_blank\">recent independent report\u003c/a> found that these private communications \"systematically favor the interests of utilities and we-funded parties.\"\u003c/p>\n\u003cp>Edison has said Peevey initiated a one-sided conversation about a possible framework for a settlement of a probe into San Onofre's rates and operations, according to the ruling.\u003c/p>\n\u003cp>The judge wrote the bulk of the penalty reflected Pickett's \"grossly negligent failure to accurately and timely report\" the private discussion, which triggered other misleading acts and omissions.\u003c/p>\n\u003cp>The commission is not expected to vote on the proposed penalty until December. Edison said it is reviewing the decision.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://www.scribd.com/embeds/287158604/content?start_page=2&view_mode=scroll&access_key=key-oloxs3z1NWUyiAMNxNCc&show_recommendations=true\" data-auto-height=\"true\" data-aspect-ratio=\"0.7729220222793488\" scrolling=\"no\" id=\"doc_81949\" frameborder=\"0\" width=\"100%\" height=\"500\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>This post includes reporting from Michael R. Blood of The Associated Press.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"CPUC judge proposes $16.7 million penalty against Southern California Edison for back-channel negotiations over closure of nuclear plant.","status":"publish","parent":0,"modified":1445911515,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":16,"wordCount":477},"headData":{"title":"Southern California Utility Faces Big Fine for 'Improper' Talks With Regulators | KQED","description":"CPUC judge proposes $16.7 million penalty against Southern California Edison for back-channel negotiations over closure of nuclear plant.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"10734622 http://ww2.kqed.org/news/?p=10734622","disqusUrl":"https://ww2.kqed.org/news/2015/10/26/southern-california-utility-faces-big-fine-for-improper-talks-with-regulators/","disqusTitle":"Southern California Utility Faces Big Fine for 'Improper' Talks With Regulators","path":"/news/10734622/southern-california-utility-faces-big-fine-for-improper-talks-with-regulators","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Southern California Edison is facing a $16.7 million penalty for holding improper talks with utility regulators related to the now-closed San Onofre nuclear power plant.\u003c/p>\n\u003cp>The proposed penalty is the latest development tied to a dispute over a $4.7 billion settlement related to the shutdown of San Onofre. San Onofre was shut down in January 2012 after a small radiation leak led to the discovery of extensive damage to tubing inside virtually new steam generators. The plant never produced electricity again. Edison closed San Onofre permanently in June 2013.\u003c/p>\n\u003cp>Last November, commissioners approved a settlement over the closures -- in which ratepayers would shoulder about $3.3 billion of the costs, while Edison and the plant's minority owner, San Diego Gas & Electric Co., would cover $1.4 billion.\u003c/p>\n\u003cfigure id=\"attachment_10734777\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM.png\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM-800x880.png\" alt=\"Notes about the San Onofre shutdown settlement found in Peevey's home.\" width=\"800\" height=\"880\" class=\"size-medium wp-image-10734777\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM-800x880.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM-400x440.png 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/10/Screen-Shot-2015-10-26-at-6.46.58-PM.png 815w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Notes about the San Onofre shutdown settlement found in Peevey's home.\u003c/figcaption>\u003c/figure>\n\u003cp>Consumer advocates and other critics have urged the commission to reopen the settlement, saying private conversations between the commission's then-president, Michael Peevey, and Edison gave the company an unfair advantage. The company has previously defended the 2014 deal, saying it is fair and was negotiated properly.\u003c/p>\n\u003cp>California Public Utilities Commission Administrative Law Judge Melanie Darling proposed the fine Monday for what she called misleading acts and omissions by the company.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>She found Edison officials held eight unreported, improper communications with one or more agency commissioners during that time.\u003c/p>\n\u003cp>Edison \"misled the commission, showed disrespect for the commission's rules and undermined public confidence in the agency,\" the judge wrote.\u003c/p>\n\u003cp>In 2013, then-Southern California Edison Executive Vice President Stephen Pickett and Peevey met at the luxury Bristol Hotel in Warsaw, Poland, for a business conference. Notes on Bristol letterhead about the proposed shutdown came out this year after state agents raided Peevey's Los Angeles home during an investigation into an \u003ca href=\"http://ww2.kqed.org/news/2015/06/19/10-emails-detail-pges-cozy-relationship-with-its-regulators\" target=\"_blank\">unrelated judge-shopping scandal\u003c/a>.\u003c/p>\n\u003cp>Utilities, and other parties, are supposed to file a notice of an \"ex parte communication\" when they speak with regulators about business. Edison did not file a notice of the communication until 686 days after the meeting. Peevey also did not disclose the meeting. However, he was not required to under current commission rules. A \u003ca href=\"http://ww2.kqed.org/news/2015/06/23/independent-study-condemns-system-of-communications-between-utilities-and-their-regulators\" target=\"_blank\">recent independent report\u003c/a> found that these private communications \"systematically favor the interests of utilities and we-funded parties.\"\u003c/p>\n\u003cp>Edison has said Peevey initiated a one-sided conversation about a possible framework for a settlement of a probe into San Onofre's rates and operations, according to the ruling.\u003c/p>\n\u003cp>The judge wrote the bulk of the penalty reflected Pickett's \"grossly negligent failure to accurately and timely report\" the private discussion, which triggered other misleading acts and omissions.\u003c/p>\n\u003cp>The commission is not expected to vote on the proposed penalty until December. Edison said it is reviewing the decision.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://www.scribd.com/embeds/287158604/content?start_page=2&view_mode=scroll&access_key=key-oloxs3z1NWUyiAMNxNCc&show_recommendations=true\" data-auto-height=\"true\" data-aspect-ratio=\"0.7729220222793488\" scrolling=\"no\" id=\"doc_81949\" frameborder=\"0\" width=\"100%\" height=\"500\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>This post includes reporting from Michael R. Blood of The Associated Press.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/10734622/southern-california-utility-faces-big-fine-for-improper-talks-with-regulators","authors":["199"],"programs":["news_6944","news_72"],"categories":["news_6188","news_8","news_13"],"tags":["news_1066","news_1067","news_17286","news_17041"],"featImg":"news_10734773","label":"news_72"},"news_10505948":{"type":"posts","id":"news_10505948","meta":{"index":"posts_1591205157","site":"news","id":"10505948","score":null,"sort":[1430336060000]},"guestAuthors":[],"slug":"calls-to-overturn-san-onofre-settlement-intensify-amid-puc-revelations","title":"Calls to Overturn San Onofre Settlement Intensify Amid PUC Revelations","publishDate":1430336060,"format":"image","headTitle":"The California Report | KQED News","labelTerm":{},"content":"\u003cp>Sorrentino's Pizza owner Patrick Quinn is tired of watching the energy bill at his San Diego restaurant go up each month.\u003c/p>\n\u003cp>\"In 2011, 2012, May or June, the bill ran $1,390 or $1,400,” Quinn said. “This past year, it was running $2,230, $2,250.\"\u003c/p>\n\u003cp>Quinn said he’s tried to cut his energy consumption by closing his Clairemont Mesa Boulevard restaurant from 3 p.m. to 4 p.m. each day. He turned off his ovens. He even shut down the pilot lights. But he said his energy bill actually increased — by a dollar.\u003c/p>\n\u003cp>\"What are you going to do?” he said. “We're slaves to the utility industry.\"\u003c/p>\n\u003cp>[soundcloud url=\"https://api.soundcloud.com/tracks/202950554\" params=\"color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false\" width=\"100%\" height=\"166\" iframe=\"true\" /]\u003c/p>\n\u003cp>The San Diego businessman’s rhetoric is stronger than most, but other consumers and advocates in San Diego also are frustrated with utility companies and their regulators. In recent weeks, investigations have turned up evidence of private deal-making between Southern California Edison and some members of the California Public Utilities Commission. The utility owns most of the San Onofre Nuclear Generating Station, which had to shut down one year after faulty steam generators at the plant caused a small radioactive leak.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The utility and the regulator struck a deal on a settlement. The result: no investigation into the failure of the steam generators at the San Onofre nuclear power plant, and ratepayers will pay for most of the \u003ca href=\"http://www.kpbs.org/news/2014/nov/20/cpuc-approves-controversial-san-onofre-settlement-/\">$4.7 billion settlement\u003c/a>. But that settlement is being questioned, now that details have emerged about its origins.\u003c/p>\n\u003cp>Restaurant owner Quinn calls that settlement illegitimate because the Public Utilities Commission allowed it without a full investigation of who was responsible for the plant’s failure and who should be held accountable.\u003c/p>\n\u003cfigure id=\"attachment_10506067\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/PizzaOwner.jpg\">\u003cimg class=\"size-medium wp-image-10506067\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/PizzaOwner-800x447.jpg\" alt=\"Patrick Quinn, owner of Sorrentino's Pizza in San Diego, talks about his energy bill.\" width=\"800\" height=\"447\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/04/PizzaOwner.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/PizzaOwner-400x224.jpg 400w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Patrick Quinn, owner of Sorrentino's Pizza in San Diego, talks about his energy bill. \u003ccite>(Nicholas McVicker/KPBS)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\"Where do we find accountability?” Quinn said. “The steam generators — why did they fail? These are simple questions that should be asked.”\u003c/p>\n\u003cp>The questions have been asked, but answers have been slow to come.\u003c/p>\n\u003cp>\u003cstrong>‘I’m not here to answer your questions’\u003c/strong>\u003c/p>\n\u003cp>Last May, former PUC President Michael Peevey was still a powerful bureaucrat unaccustomed to being challenged at regulatory hearings.\u003c/p>\n\u003cp>But attorney Mike Aguirre wanted to know just how did the PUC reach a $4.7 billion settlement with little public input.\u003c/p>\n\u003cp>Aguirre, San Diego’s former city attorney, asked Peevey at a meeting how many times he had talked privately with executives from San Onofre’s majority owner, Southern California Edison. Peevey, a former Edison executive, wasn’t having it.\u003c/p>\n\u003cp>“I’m not here to answer your goddamn questions,” Peevey yelled from the Public Utilities Commission dais. “Now shut up! Shut up!”\u003c/p>\n\u003cp>[youtube http://www.youtube.com/watch?v=204XX9YJJCY&w=800&h=400]\u003c/p>\n\u003cp>Recently, Aguirre reflected on Peevey’s outburst.\u003c/p>\n\u003cp>“He really blew up and, of course, now we know why,” said Aguirre, who in November \u003ca href=\"http://www.latimes.com/business/la-fi-san-onofre-lawsuit-20141115-story.html\">sued to have the settlement set aside\u003c/a>.\u003c/p>\n\u003cp>Peevey \u003ca href=\"http://www.sfgate.com/bayarea/article/CPUC-head-Michael-Peevey-to-step-down-5812009.php\">stepped down from the PUC\u003c/a> in December after the release of emails showing he maintained close contact with Pacific Gas and Electric executives following the 2010 gas pipeline explosion in San Bruno that killed eight people. In the emails, Peevey offered public relations counsel and discussed rate setting, among other topics.\u003c/p>\n\u003cp>\u003cstrong>The Poland conversation\u003c/strong>\u003c/p>\n\u003cp>One year before Peevey’s blowup, in 2013, he met with Southern California Edison executive Stephen Pickett at the opulent Hotel Bristol in Warsaw, Poland. There, they discussed a framework for a settlement agreement on San Onofre.\u003c/p>\n\u003cp>That Poland meeting came to light only this year, after state investigators found notes about San Onofre’s defective replacement steam generators on Hotel Bristol stationery during a search of Peevey’s home in January. PUC officials and utility executives are the target of federal and state probes for alleged inappropriate contact and possible influence-peddling.\u003c/p>\n\u003cp>Edison never reported the secret meeting to the PUC as required, until after \u003ca href=\"http://www.utsandiego.com/news/2015/feb/09/cpuc-warsaw-hotel-bristol-peevey-edison/\">U-T San Diego published a story\u003c/a> about the seized notes.\u003c/p>\n\u003cp>The company explained the 23-month delay by characterizing the Poland conversation as an “update” on San Onofre that was “permissible and not reportable.” But the company goes on to say it now appears Pickett may have crossed into substantive communication.\u003c/p>\n\u003cfigure id=\"attachment_10506933\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/HotelBristol.jpg\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/HotelBristol-800x717.jpg\" alt=\"The lobby of the opulent Hotel Bristol in Warsaw, Poland, where former PUC president Michael Peevey met with Southern California Edison executive Stephen Pickett in 2013.\" width=\"800\" height=\"717\" class=\"size-medium wp-image-10506933\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-800x717.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-400x358.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-1440x1290.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-1180x1057.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-960x860.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The lobby of the opulent Hotel Bristol in Warsaw, Poland, where former PUC president Michael Peevey met with Southern California Edison executive Stephen Pickett in 2013. \u003ccite>(JANEK SKARZYNSKI/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Aguirre’s take on Edison’s belated notice: “Once they were caught, they released it.”\u003c/p>\n\u003cp>Emails also show Peevey making plans to meet Edison officials for dinner and drinks in the months following the Poland meeting.\u003c/p>\n\u003cp>All told, PUC officials have had scores of private meetings and other contact with executives at Edison and minority owner San Diego Gas & Electric about San Onofre since the Poland meeting.\u003c/p>\n\u003cp>Consumer advocates did attend some of those meetings. Two months after the Poland talk, Edison invited Northern California consumer group The Utility Reform Network, known as TURN, to the secret settlement discussions. TURN spokeswoman Mindy Spatt said the closed-door chats were consistent with how other agreements with the PUC had been reached over the years.\u003c/p>\n\u003cp>Spatt said TURN endorsed a deal that forces customers to bear the brunt of San Onofre costs before a thorough inquiry because there was little choice.\u003c/p>\n\u003cp>\"It was unlikely that the PUC would go back in time and punish Edison for its bad behavior,” Spatt said. \"There was not a legal precedent to do that.\"\u003c/p>\n\u003cp>\u003cstrong>The effect of the Poland conversation\u003c/strong>\u003c/p>\n\u003cp>The launch of the Poland conversation and eventual $4.7 billion settlement effectively put an end to an investigation.\u003c/p>\n\u003cp>“It wasn't a settlement,” Aguirre said. “It was a plan to end an investigation.”\u003c/p>\n\u003cp>The PUC had promised a probe into who was responsible for San Onofre’s defective equipment and whether customers should still foot the bill for a plant no longer generating electricity.\u003c/p>\n\u003cp>The PUC's consultant, nuclear safety expert Robert Budnitz, urged an inquiry because he thought it important to learn what might have been done, by whom and at what stage, to avoid the equipment failure.\u003c/p>\n\u003cp>Records show \u003ca href=\"https://s3.amazonaws.com/s3.documentcloud.org/documents/347889/col-nrc-tech-paper.pdf\">Edison knew there were concerns about design flaws\u003c/a> with the new steam generators before deploying them. A radiation leak in one of those generators in 2012 ultimately forced the plant’s shutdown. Nuclear safety experts say Edison also failed to go through the proper licensing process with federal regulators to install the new equipment, according to federal documents. And Edison never got permission from the PUC to put the new $700 million steam generators into customer rates permanently.\u003c/p>\n\u003cfigure id=\"attachment_10506935\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/SanOnofre1.jpg\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/SanOnofre1-800x445.jpg\" alt=\"The San Onofre Nuclear Generating Station.\" width=\"800\" height=\"445\" class=\"size-medium wp-image-10506935\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-800x445.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-400x223.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-1440x801.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-1180x656.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-960x534.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-1038x576.jpg 1038w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The San Onofre Nuclear Generating Station. \u003ccite>(David McNew/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Taken together, Aguirre said the facts scream for accountability.\u003c/p>\n\u003cp>“This is one of the biggest white-collar crimes ever,” he said.\u003c/p>\n\u003cp>But PUC spokeswoman Terrie Prosper maintains that commissioners were not involved in the proposed settlement despite the Poland meeting.\u003c/p>\n\u003cp>Edison began revising its rules last year for private contacts with the PUC. The company now requires approval from its lawyers before an employee can communicate with regulators about a pending matter.\u003c/p>\n\u003cp>The company declined an interview request from KPBS. But in a court filing, Edison echoed the PUC's contention that the company and state regulators had to maintain contact for updates and to ensure reliable power supplies after a large nuclear plant went out of service.\u003c/p>\n\u003cp>\u003cstrong>Calls to reopen settlement deepen\u003c/strong>\u003c/p>\n\u003cp>State Sen. Jerry Hill (D-San Mateo) said the private contacts between Edison and the PUC following San Onofre's radiation leak went beyond regulators engaging with industry to be responsible leaders.\u003c/p>\n\u003cp>\"When commissioners are making billion-dollar deals with utilities behind closed doors, it's hard for them to say the public is served,” said Hill, who \u003ca href=\"http://www.mercurynews.com/san-bruno-fire/ci_17222004\">has called for more transparency\u003c/a> at the PUC. “The ratepayers are victims here. They shouldn't be the ones who have to pay for the mistakes for the utility. I think it throws into question the (San Onofre) agreement completely.\"\u003c/p>\n\u003cp>Meanwhile, Assemblyman Anthony Rendon (D-Lakewood) wants new PUC President Michael Picker to use the commission’s authority to force Edison to turn over all emails related to the San Onofre settlement and to investigate how the deal was reached.\u003c/p>\n\u003cp>Rendon is chairman of the Utilities and Commerce Committee, which has held oversight hearings into alleged wrongdoing at the PUC.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Picker has pledged to reform the regulatory agency, but there is no word yet on whether the PUC will comply with Rendon's request.\u003c/p>\n\n","blocks":[],"excerpt":"'This is one of the biggest white-collar crimes ever,' says San Diego's former city attorney.","status":"publish","parent":0,"modified":1430336060,"stats":{"hasAudio":false,"hasVideo":true,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":49,"wordCount":1500},"headData":{"title":"Calls to Overturn San Onofre Settlement Intensify Amid PUC Revelations | KQED","description":"'This is one of the biggest white-collar crimes ever,' says San Diego's former city attorney.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"10505948 http://ww2.kqed.org/news/?p=10505948","disqusUrl":"https://ww2.kqed.org/news/2015/04/29/calls-to-overturn-san-onofre-settlement-intensify-amid-puc-revelations/","disqusTitle":"Calls to Overturn San Onofre Settlement Intensify Amid PUC Revelations","source":"KPBS","sourceUrl":"http://www.kpbs.org/news/2015/mar/31/calls-overturn-san-onofre-settlement-intensify-ami/","nprByline":"Amita Sharma","path":"/news/10505948/calls-to-overturn-san-onofre-settlement-intensify-amid-puc-revelations","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Sorrentino's Pizza owner Patrick Quinn is tired of watching the energy bill at his San Diego restaurant go up each month.\u003c/p>\n\u003cp>\"In 2011, 2012, May or June, the bill ran $1,390 or $1,400,” Quinn said. “This past year, it was running $2,230, $2,250.\"\u003c/p>\n\u003cp>Quinn said he’s tried to cut his energy consumption by closing his Clairemont Mesa Boulevard restaurant from 3 p.m. to 4 p.m. each day. He turned off his ovens. He even shut down the pilot lights. But he said his energy bill actually increased — by a dollar.\u003c/p>\n\u003cp>\"What are you going to do?” he said. “We're slaves to the utility industry.\"\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cdiv class='utils-parseShortcode-shortcodes-__shortcodes__shortcodeWrapper'>\n \u003ciframe width='100%' height='166'\n scrolling='no' frameborder='no'\n src='https://w.soundcloud.com/player/?url=https://api.soundcloud.com/tracks/202950554&visual=true&color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false'\n title='https://api.soundcloud.com/tracks/202950554'>\n \u003c/iframe>\n \u003c/div>\u003c/p>\u003cp>\u003c/p>\n\u003cp>The San Diego businessman’s rhetoric is stronger than most, but other consumers and advocates in San Diego also are frustrated with utility companies and their regulators. In recent weeks, investigations have turned up evidence of private deal-making between Southern California Edison and some members of the California Public Utilities Commission. The utility owns most of the San Onofre Nuclear Generating Station, which had to shut down one year after faulty steam generators at the plant caused a small radioactive leak.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The utility and the regulator struck a deal on a settlement. The result: no investigation into the failure of the steam generators at the San Onofre nuclear power plant, and ratepayers will pay for most of the \u003ca href=\"http://www.kpbs.org/news/2014/nov/20/cpuc-approves-controversial-san-onofre-settlement-/\">$4.7 billion settlement\u003c/a>. But that settlement is being questioned, now that details have emerged about its origins.\u003c/p>\n\u003cp>Restaurant owner Quinn calls that settlement illegitimate because the Public Utilities Commission allowed it without a full investigation of who was responsible for the plant’s failure and who should be held accountable.\u003c/p>\n\u003cfigure id=\"attachment_10506067\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/PizzaOwner.jpg\">\u003cimg class=\"size-medium wp-image-10506067\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/PizzaOwner-800x447.jpg\" alt=\"Patrick Quinn, owner of Sorrentino's Pizza in San Diego, talks about his energy bill.\" width=\"800\" height=\"447\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/04/PizzaOwner.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/PizzaOwner-400x224.jpg 400w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Patrick Quinn, owner of Sorrentino's Pizza in San Diego, talks about his energy bill. \u003ccite>(Nicholas McVicker/KPBS)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\"Where do we find accountability?” Quinn said. “The steam generators — why did they fail? These are simple questions that should be asked.”\u003c/p>\n\u003cp>The questions have been asked, but answers have been slow to come.\u003c/p>\n\u003cp>\u003cstrong>‘I’m not here to answer your questions’\u003c/strong>\u003c/p>\n\u003cp>Last May, former PUC President Michael Peevey was still a powerful bureaucrat unaccustomed to being challenged at regulatory hearings.\u003c/p>\n\u003cp>But attorney Mike Aguirre wanted to know just how did the PUC reach a $4.7 billion settlement with little public input.\u003c/p>\n\u003cp>Aguirre, San Diego’s former city attorney, asked Peevey at a meeting how many times he had talked privately with executives from San Onofre’s majority owner, Southern California Edison. Peevey, a former Edison executive, wasn’t having it.\u003c/p>\n\u003cp>“I’m not here to answer your goddamn questions,” Peevey yelled from the Public Utilities Commission dais. “Now shut up! Shut up!”\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/204XX9YJJCY'\n title='//www.youtube.com/embed/204XX9YJJCY'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Recently, Aguirre reflected on Peevey’s outburst.\u003c/p>\n\u003cp>“He really blew up and, of course, now we know why,” said Aguirre, who in November \u003ca href=\"http://www.latimes.com/business/la-fi-san-onofre-lawsuit-20141115-story.html\">sued to have the settlement set aside\u003c/a>.\u003c/p>\n\u003cp>Peevey \u003ca href=\"http://www.sfgate.com/bayarea/article/CPUC-head-Michael-Peevey-to-step-down-5812009.php\">stepped down from the PUC\u003c/a> in December after the release of emails showing he maintained close contact with Pacific Gas and Electric executives following the 2010 gas pipeline explosion in San Bruno that killed eight people. In the emails, Peevey offered public relations counsel and discussed rate setting, among other topics.\u003c/p>\n\u003cp>\u003cstrong>The Poland conversation\u003c/strong>\u003c/p>\n\u003cp>One year before Peevey’s blowup, in 2013, he met with Southern California Edison executive Stephen Pickett at the opulent Hotel Bristol in Warsaw, Poland. There, they discussed a framework for a settlement agreement on San Onofre.\u003c/p>\n\u003cp>That Poland meeting came to light only this year, after state investigators found notes about San Onofre’s defective replacement steam generators on Hotel Bristol stationery during a search of Peevey’s home in January. PUC officials and utility executives are the target of federal and state probes for alleged inappropriate contact and possible influence-peddling.\u003c/p>\n\u003cp>Edison never reported the secret meeting to the PUC as required, until after \u003ca href=\"http://www.utsandiego.com/news/2015/feb/09/cpuc-warsaw-hotel-bristol-peevey-edison/\">U-T San Diego published a story\u003c/a> about the seized notes.\u003c/p>\n\u003cp>The company explained the 23-month delay by characterizing the Poland conversation as an “update” on San Onofre that was “permissible and not reportable.” But the company goes on to say it now appears Pickett may have crossed into substantive communication.\u003c/p>\n\u003cfigure id=\"attachment_10506933\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/HotelBristol.jpg\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/HotelBristol-800x717.jpg\" alt=\"The lobby of the opulent Hotel Bristol in Warsaw, Poland, where former PUC president Michael Peevey met with Southern California Edison executive Stephen Pickett in 2013.\" width=\"800\" height=\"717\" class=\"size-medium wp-image-10506933\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-800x717.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-400x358.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-1440x1290.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-1180x1057.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol-960x860.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/HotelBristol.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The lobby of the opulent Hotel Bristol in Warsaw, Poland, where former PUC president Michael Peevey met with Southern California Edison executive Stephen Pickett in 2013. \u003ccite>(JANEK SKARZYNSKI/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Aguirre’s take on Edison’s belated notice: “Once they were caught, they released it.”\u003c/p>\n\u003cp>Emails also show Peevey making plans to meet Edison officials for dinner and drinks in the months following the Poland meeting.\u003c/p>\n\u003cp>All told, PUC officials have had scores of private meetings and other contact with executives at Edison and minority owner San Diego Gas & Electric about San Onofre since the Poland meeting.\u003c/p>\n\u003cp>Consumer advocates did attend some of those meetings. Two months after the Poland talk, Edison invited Northern California consumer group The Utility Reform Network, known as TURN, to the secret settlement discussions. TURN spokeswoman Mindy Spatt said the closed-door chats were consistent with how other agreements with the PUC had been reached over the years.\u003c/p>\n\u003cp>Spatt said TURN endorsed a deal that forces customers to bear the brunt of San Onofre costs before a thorough inquiry because there was little choice.\u003c/p>\n\u003cp>\"It was unlikely that the PUC would go back in time and punish Edison for its bad behavior,” Spatt said. \"There was not a legal precedent to do that.\"\u003c/p>\n\u003cp>\u003cstrong>The effect of the Poland conversation\u003c/strong>\u003c/p>\n\u003cp>The launch of the Poland conversation and eventual $4.7 billion settlement effectively put an end to an investigation.\u003c/p>\n\u003cp>“It wasn't a settlement,” Aguirre said. “It was a plan to end an investigation.”\u003c/p>\n\u003cp>The PUC had promised a probe into who was responsible for San Onofre’s defective equipment and whether customers should still foot the bill for a plant no longer generating electricity.\u003c/p>\n\u003cp>The PUC's consultant, nuclear safety expert Robert Budnitz, urged an inquiry because he thought it important to learn what might have been done, by whom and at what stage, to avoid the equipment failure.\u003c/p>\n\u003cp>Records show \u003ca href=\"https://s3.amazonaws.com/s3.documentcloud.org/documents/347889/col-nrc-tech-paper.pdf\">Edison knew there were concerns about design flaws\u003c/a> with the new steam generators before deploying them. A radiation leak in one of those generators in 2012 ultimately forced the plant’s shutdown. Nuclear safety experts say Edison also failed to go through the proper licensing process with federal regulators to install the new equipment, according to federal documents. And Edison never got permission from the PUC to put the new $700 million steam generators into customer rates permanently.\u003c/p>\n\u003cfigure id=\"attachment_10506935\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/SanOnofre1.jpg\">\u003cimg src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/04/SanOnofre1-800x445.jpg\" alt=\"The San Onofre Nuclear Generating Station.\" width=\"800\" height=\"445\" class=\"size-medium wp-image-10506935\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-800x445.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-400x223.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-1440x801.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-1180x656.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-960x534.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1-1038x576.jpg 1038w, https://ww2.kqed.org/app/uploads/sites/10/2015/04/SanOnofre1.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The San Onofre Nuclear Generating Station. \u003ccite>(David McNew/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Taken together, Aguirre said the facts scream for accountability.\u003c/p>\n\u003cp>“This is one of the biggest white-collar crimes ever,” he said.\u003c/p>\n\u003cp>But PUC spokeswoman Terrie Prosper maintains that commissioners were not involved in the proposed settlement despite the Poland meeting.\u003c/p>\n\u003cp>Edison began revising its rules last year for private contacts with the PUC. The company now requires approval from its lawyers before an employee can communicate with regulators about a pending matter.\u003c/p>\n\u003cp>The company declined an interview request from KPBS. But in a court filing, Edison echoed the PUC's contention that the company and state regulators had to maintain contact for updates and to ensure reliable power supplies after a large nuclear plant went out of service.\u003c/p>\n\u003cp>\u003cstrong>Calls to reopen settlement deepen\u003c/strong>\u003c/p>\n\u003cp>State Sen. Jerry Hill (D-San Mateo) said the private contacts between Edison and the PUC following San Onofre's radiation leak went beyond regulators engaging with industry to be responsible leaders.\u003c/p>\n\u003cp>\"When commissioners are making billion-dollar deals with utilities behind closed doors, it's hard for them to say the public is served,” said Hill, who \u003ca href=\"http://www.mercurynews.com/san-bruno-fire/ci_17222004\">has called for more transparency\u003c/a> at the PUC. “The ratepayers are victims here. They shouldn't be the ones who have to pay for the mistakes for the utility. I think it throws into question the (San Onofre) agreement completely.\"\u003c/p>\n\u003cp>Meanwhile, Assemblyman Anthony Rendon (D-Lakewood) wants new PUC President Michael Picker to use the commission’s authority to force Edison to turn over all emails related to the San Onofre settlement and to investigate how the deal was reached.\u003c/p>\n\u003cp>Rendon is chairman of the Utilities and Commerce Committee, which has held oversight hearings into alleged wrongdoing at the PUC.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Picker has pledged to reform the regulatory agency, but there is no word yet on whether the PUC will comply with Rendon's request.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/10505948/calls-to-overturn-san-onofre-settlement-intensify-amid-puc-revelations","authors":["byline_news_10505948"],"programs":["news_72"],"categories":["news_8","news_13"],"tags":["news_1066","news_140","news_4486","news_1067","news_17286"],"affiliates":["news_7054"],"featImg":"news_10505991","label":"source_news_10505948"},"news_103238":{"type":"posts","id":"news_103238","meta":{"index":"posts_1591205157","site":"news","id":"103238","score":null,"sort":[1373500861000]},"guestAuthors":[],"slug":"nuclear-shutdown-means-more-greenhouse-gas-emissions","title":"Nuclear Shutdown Means More Greenhouse Gas Emissions","publishDate":1373500861,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>Officials at Southern California energy utilities say they have the power they need to weather the \u003ca href=\"http://www.californiareport.org/archive/R201306071630/a\">permanent closure of the San Onofre Nuclear Generating Station. \u003c/a>\u003c/p>\n\u003cfigure id=\"attachment_99113\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003cimg class=\"size-medium wp-image-99113\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/06/5040_transform-300x168.jpg\" alt=\"The San Onofre Nuclear Generating Station is seen from the beach along San Onofre State Beach on March 15, 2012 south of San Clemente, California. (David McNew/Getty Images)\" width=\"300\" height=\"168\">\u003cfigcaption class=\"wp-caption-text\">The San Onofre Nuclear Generating Station is seen from the beach along San Onofre State Beach on March 15, 2012, south of San Clemente, Calif. (David McNew/Getty Images)\u003c/figcaption>\u003c/figure>\n\u003cp>But the decision to shut down a plant that provided about a fifth of San Diego and southern Orange County’s power is leading to other challenges: an increase in greenhouse gas emissions; massive layoffs; and the question of how to store spent nuclear fuel.\u003c/p>\n\u003cp>The Southern California power plant has been out of commission since January 2012, \u003ca href=\"http://ww2.kqed.org/news/2013/06/07/99105/San-Onofre-Close-San-Diego-Nuclear-Plant\">when a radiation leak revealed major internal problems in its tubing system\u003c/a>. San Onofre’s Units 2 and 3 produced 2,200 megawatts of electricity – enough to power 1.4 million homes, according to Southern California Edison Vice President David Mead. The utility made the decision to permanently shutter the power plant last month.\u003c/p>\n\u003cp>\u003cstrong>Less Nuclear Means More Greenhouse Gases\u003c/strong>\u003c/p>\n\u003cp>Testifying in front of the state Senate’s Energy Utilities and Communication Committee Wednesday morning, Mead told lawmakers that power plants fueled by natural gas have bridged Southern California’s electricity-generating gap since San Onofre went offline. That has led to an increase in greenhouse gas emissions. While 50 percent of SCE’s electricity came from carbon dioxide-free sources (nuclear, hydroelectric and renewable) in 2011, that number dropped to 30 percent in 2012. This comes at a time when California is trying to reduce greenhouse gas emissions to 1990 levels by the end of the decade.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>And as greenhouse gas emissions go up, SCE’s staffing levels will drop. “Right now it looks like we will be going from the current amount of 1,500 employees down to 400 eventually,” Mead said. “We’re in the middle of a dramatic staffing reduction right now that’s going to get us to 600 employees by September.”\u003cbr>\n\u003c!--more-->\u003cbr>\n\u003cstrong>Long-Term Vulnerabilities\u003c/strong>\u003c/p>\n\u003cp>Mead and other executives assured lawmakers they have the power resources to make up for San Onofre’s loss. Indeed, the power grid\u003ca href=\"http://www.reuters.com/article/2013/07/03/utilities-california-heatwave-idUSL2N0F90I120130703\"> made it through last week’s heat wave without any incidents\u003c/a>.\u003c/p>\n\u003cp>San Diego Gas & Electric vice president Jim Avery told lawmakers his utility responded by increasing output at its other power plants, which had been operating at only 41 percent capacity. “When San Onofre went offline those numbers increased to about 65 percent. That increase in energy that came out of those combined-cycle power plants created enough energy to displace 80 percent of the loss of San Onofre within the San Diego basin.”\u003c/p>\n\u003cp>But state regulators warned the closure creates long-term vulnerabilities, especially as California utilities rely more and more on renewable energy. “It takes a portfolio of different types of resources to meet all the needs that we have,” said California Public Utilities Commissioner Mike Florio. “Nowhere in the constitution are we given the ability to dictate when the sun’s going to shine or when the wind’s going to blow. So that is a real limitation on renewables.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>California’s Independent System Operator, which oversees the state’s electricity grid, is studying how to replace San Onofre’s lost power, and expects to release a report in late 2013 or early next year.\u003c/p>\n\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1373501650,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":12,"wordCount":584},"headData":{"title":"Nuclear Shutdown Means More Greenhouse Gas Emissions | KQED","description":"Officials at Southern California energy utilities say they have the power they need to weather the permanent closure of the San Onofre Nuclear Generating Station. But the decision to shut down a plant that provided about a fifth of San Diego and southern Orange County’s power is leading to other challenges: an increase in greenhouse","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"103238 http://ww2.kqed.org/news/?p=103238","disqusUrl":"https://ww2.kqed.org/news/2013/07/10/nuclear-shutdown-means-more-greenhouse-gas-emissions/","disqusTitle":"Nuclear Shutdown Means More Greenhouse Gas Emissions","customPermalink":"2013/07/10/103238/","path":"/news/103238/nuclear-shutdown-means-more-greenhouse-gas-emissions","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Officials at Southern California energy utilities say they have the power they need to weather the \u003ca href=\"http://www.californiareport.org/archive/R201306071630/a\">permanent closure of the San Onofre Nuclear Generating Station. \u003c/a>\u003c/p>\n\u003cfigure id=\"attachment_99113\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003cimg class=\"size-medium wp-image-99113\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/06/5040_transform-300x168.jpg\" alt=\"The San Onofre Nuclear Generating Station is seen from the beach along San Onofre State Beach on March 15, 2012 south of San Clemente, California. (David McNew/Getty Images)\" width=\"300\" height=\"168\">\u003cfigcaption class=\"wp-caption-text\">The San Onofre Nuclear Generating Station is seen from the beach along San Onofre State Beach on March 15, 2012, south of San Clemente, Calif. (David McNew/Getty Images)\u003c/figcaption>\u003c/figure>\n\u003cp>But the decision to shut down a plant that provided about a fifth of San Diego and southern Orange County’s power is leading to other challenges: an increase in greenhouse gas emissions; massive layoffs; and the question of how to store spent nuclear fuel.\u003c/p>\n\u003cp>The Southern California power plant has been out of commission since January 2012, \u003ca href=\"http://ww2.kqed.org/news/2013/06/07/99105/San-Onofre-Close-San-Diego-Nuclear-Plant\">when a radiation leak revealed major internal problems in its tubing system\u003c/a>. San Onofre’s Units 2 and 3 produced 2,200 megawatts of electricity – enough to power 1.4 million homes, according to Southern California Edison Vice President David Mead. The utility made the decision to permanently shutter the power plant last month.\u003c/p>\n\u003cp>\u003cstrong>Less Nuclear Means More Greenhouse Gases\u003c/strong>\u003c/p>\n\u003cp>Testifying in front of the state Senate’s Energy Utilities and Communication Committee Wednesday morning, Mead told lawmakers that power plants fueled by natural gas have bridged Southern California’s electricity-generating gap since San Onofre went offline. That has led to an increase in greenhouse gas emissions. While 50 percent of SCE’s electricity came from carbon dioxide-free sources (nuclear, hydroelectric and renewable) in 2011, that number dropped to 30 percent in 2012. This comes at a time when California is trying to reduce greenhouse gas emissions to 1990 levels by the end of the decade.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>And as greenhouse gas emissions go up, SCE’s staffing levels will drop. “Right now it looks like we will be going from the current amount of 1,500 employees down to 400 eventually,” Mead said. “We’re in the middle of a dramatic staffing reduction right now that’s going to get us to 600 employees by September.”\u003cbr>\n\u003c!--more-->\u003cbr>\n\u003cstrong>Long-Term Vulnerabilities\u003c/strong>\u003c/p>\n\u003cp>Mead and other executives assured lawmakers they have the power resources to make up for San Onofre’s loss. Indeed, the power grid\u003ca href=\"http://www.reuters.com/article/2013/07/03/utilities-california-heatwave-idUSL2N0F90I120130703\"> made it through last week’s heat wave without any incidents\u003c/a>.\u003c/p>\n\u003cp>San Diego Gas & Electric vice president Jim Avery told lawmakers his utility responded by increasing output at its other power plants, which had been operating at only 41 percent capacity. “When San Onofre went offline those numbers increased to about 65 percent. That increase in energy that came out of those combined-cycle power plants created enough energy to displace 80 percent of the loss of San Onofre within the San Diego basin.”\u003c/p>\n\u003cp>But state regulators warned the closure creates long-term vulnerabilities, especially as California utilities rely more and more on renewable energy. “It takes a portfolio of different types of resources to meet all the needs that we have,” said California Public Utilities Commissioner Mike Florio. “Nowhere in the constitution are we given the ability to dictate when the sun’s going to shine or when the wind’s going to blow. So that is a real limitation on renewables.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>California’s Independent System Operator, which oversees the state’s electricity grid, is studying how to replace San Onofre’s lost power, and expects to release a report in late 2013 or early next year.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/103238/nuclear-shutdown-means-more-greenhouse-gas-emissions","authors":["256"],"programs":["news_6944"],"categories":["news_19906","news_13","news_356"],"tags":["news_782","news_1069","news_1067"],"label":"news_6944"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.","airtime":"SUN 2pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Possible-Podcast-Tile-360x360-1.jpg","officialWebsiteLink":"https://www.possible.fm/","meta":{"site":"news","source":"Possible"},"link":"/radio/program/possible","subscribe":{"apple":"https://podcasts.apple.com/us/podcast/possible/id1677184070","spotify":"https://open.spotify.com/show/730YpdUSNlMyPQwNnyjp4k"}},"1a":{"id":"1a","title":"1A","info":"1A is home to the national conversation. 1A brings on great guests and frames the best debate in ways that make you think, share and engage.","airtime":"MON-THU 11pm-12am","imageSrc":"https://ww2.kqed.org/radio/wp-content/uploads/sites/50/2018/04/1a.jpg","officialWebsiteLink":"https://the1a.org/","meta":{"site":"news","source":"npr"},"link":"/radio/program/1a","subscribe":{"npr":"https://rpb3r.app.goo.gl/RBrW","apple":"https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?s=143441&mt=2&id=1188724250&at=11l79Y&ct=nprdirectory","tuneIn":"https://tunein.com/radio/1A-p947376/","rss":"https://feeds.npr.org/510316/podcast.xml"}},"all-things-considered":{"id":"all-things-considered","title":"All Things Considered","info":"Every weekday, \u003cem>All Things Considered\u003c/em> hosts Robert Siegel, Audie Cornish, Ari Shapiro, and Kelly McEvers present the program's trademark mix of news, interviews, commentaries, reviews, and offbeat features. Michel Martin hosts on the weekends.","airtime":"MON-FRI 1pm-2pm, 4:30pm-6:30pm\u003cbr />SAT-SUN 5pm-6pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/All-Things-Considered-Podcast-Tile-360x360-1.jpg","officialWebsiteLink":"https://www.npr.org/programs/all-things-considered/","meta":{"site":"news","source":"npr"},"link":"/radio/program/all-things-considered"},"american-suburb-podcast":{"id":"american-suburb-podcast","title":"American Suburb: The Podcast","tagline":"The flip side of gentrification, told through one town","info":"Gentrification is changing cities across America, forcing people from neighborhoods they have long called home. Call them the displaced. Now those priced out of the Bay Area are looking for a better life in an unlikely place. American Suburb follows this migration to one California town along the Delta, 45 miles from San Francisco. But is this once sleepy suburb ready for them?","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/American-Suburb-Podcast-Tile-703x703-1.jpg","officialWebsiteLink":"/news/series/american-suburb-podcast","meta":{"site":"news","source":"kqed","order":"13"},"link":"/news/series/american-suburb-podcast/","subscribe":{"npr":"https://rpb3r.app.goo.gl/RBrW","apple":"https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?mt=2&id=1287748328","tuneIn":"https://tunein.com/radio/American-Suburb-p1086805/","rss":"https://ww2.kqed.org/news/series/american-suburb-podcast/feed/podcast","google":"https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vS1FJTkMzMDExODgxNjA5"}},"baycurious":{"id":"baycurious","title":"Bay Curious","tagline":"Exploring the Bay Area, one question at a time","info":"KQED’s new podcast, Bay Curious, gets to the bottom of the mysteries — both profound and peculiar — that give the Bay Area its unique identity. And we’ll do it with your help! You ask the questions. You decide what Bay Curious investigates. 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You can also visit the MindShift website for episodes and supplemental blog posts or tweet us \u003ca href=\"https://twitter.com/MindShiftKQED\">@MindShiftKQED\u003c/a> or visit us at \u003ca href=\"/mindshift\">MindShift.KQED.org\u003c/a>","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Mindshift-Podcast-Tile-703x703-1.jpg","imageAlt":"KQED MindShift: How We Will Learn","officialWebsiteLink":"/mindshift/","meta":{"site":"news","source":"kqed","order":"2"},"link":"/podcasts/mindshift","subscribe":{"apple":"https://podcasts.apple.com/us/podcast/mindshift-podcast/id1078765985","google":"https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vS1FJTkM1NzY0NjAwNDI5","npr":"https://www.npr.org/podcasts/464615685/mind-shift-podcast","stitcher":"https://www.stitcher.com/podcast/kqed/stories-teachers-share","spotify":"https://open.spotify.com/show/0MxSpNYZKNprFLCl7eEtyx"}},"morning-edition":{"id":"morning-edition","title":"Morning Edition","info":"\u003cem>Morning Edition\u003c/em> takes listeners around the country and the world with multi-faceted stories and commentaries every weekday. 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On Our Watch brings listeners into the rooms where officers are questioned and witnesses are interrogated to find out who this system is really protecting. 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