Story Highlights
This morning’s Sacramento Bee reports:
The increasingly aggressive election battle over electricity service in eastern Yolo County landed on the steps of the Capitol on Tuesday, with several lawmakers calling for an investigation into Pacific Gas and Electric Co.’s campaign tactics.
Assemblyman Dave Jones, D-Sacramento, and Sen. Deborah Ortiz, D-Sacramento, denounced PG&E for using a customer service telephone line and billing inserts to oppose ballot measures that would enable part of Yolo County to drop PG&E and buy power instead from the Sacramento Municipal Utility District.
Ortiz and Jones — along with Assemblywoman Lois Wolk, D-Davis, who was not at the news event — wrote a letter dated Tuesday to the Senate Energy, Utilities and Communications Committee and the Assembly Committee on Utilities and Commerce requesting that PG&E be asked to demonstrate that none of its inserts, telephone recordings or other political activities was paid for with ratepayer funds.
While we are certainly glad that people are starting to take notice about the campaign that PG&E has run against H&I, this issue only covers part of the story including the misuse of campaign and city logos for campaign purposes, the complaint filed by the No on Measure X campaign, the complaint filed by the City of Davis. The entire PG&E campaign has been misleading. The central issue in the campaign is over whether or not there will be savings for county ratepayers–the question I have to continually ask is whether you trust any claim that PG&E makes, because I sure don’t. At this point, I would at least be inclined to investigate a claim that the sky was blue. That’s how little credibility they have with me. I’ll be honest, I was always going to vote for SMUD, but it wasn’t an issue high on my radar until I watched the utterly contemptible campaign emerge.
—Doug Paul Davis reporting
This is really a no brainer issue. PG&E is a private company so it pays income taxes and must show a return on equity. SMUD has a competitive advantage because it does not have to pay income taxes and does not have shareholders to worry about. In the long run it costs both utilities about the same to buy a barrel of oil and convert it to electricity. Obviously, over the long haul SMUD can offer lower rates than PG&E. The lingering question is how quickly rates will drop because it will take money and time to purchase the PG&E infrasture.
The only losers in all of this are the PG&E employees because if you cut out 2% of the market then the company is left with excess overhead and the way to bring that back in line is to lay off employees. On the other hand SMUD will hire more employees and PG&E will have increased incentive to be more responsive to the remaining 98% of its customers.
All of the other stuff going on seems to be simple political posturing.
This is really a no brainer issue. PG&E is a private company so it pays income taxes and must show a return on equity. SMUD has a competitive advantage because it does not have to pay income taxes and does not have shareholders to worry about. In the long run it costs both utilities about the same to buy a barrel of oil and convert it to electricity. Obviously, over the long haul SMUD can offer lower rates than PG&E. The lingering question is how quickly rates will drop because it will take money and time to purchase the PG&E infrasture.
The only losers in all of this are the PG&E employees because if you cut out 2% of the market then the company is left with excess overhead and the way to bring that back in line is to lay off employees. On the other hand SMUD will hire more employees and PG&E will have increased incentive to be more responsive to the remaining 98% of its customers.
All of the other stuff going on seems to be simple political posturing.
This is really a no brainer issue. PG&E is a private company so it pays income taxes and must show a return on equity. SMUD has a competitive advantage because it does not have to pay income taxes and does not have shareholders to worry about. In the long run it costs both utilities about the same to buy a barrel of oil and convert it to electricity. Obviously, over the long haul SMUD can offer lower rates than PG&E. The lingering question is how quickly rates will drop because it will take money and time to purchase the PG&E infrasture.
The only losers in all of this are the PG&E employees because if you cut out 2% of the market then the company is left with excess overhead and the way to bring that back in line is to lay off employees. On the other hand SMUD will hire more employees and PG&E will have increased incentive to be more responsive to the remaining 98% of its customers.
All of the other stuff going on seems to be simple political posturing.
This is really a no brainer issue. PG&E is a private company so it pays income taxes and must show a return on equity. SMUD has a competitive advantage because it does not have to pay income taxes and does not have shareholders to worry about. In the long run it costs both utilities about the same to buy a barrel of oil and convert it to electricity. Obviously, over the long haul SMUD can offer lower rates than PG&E. The lingering question is how quickly rates will drop because it will take money and time to purchase the PG&E infrasture.
The only losers in all of this are the PG&E employees because if you cut out 2% of the market then the company is left with excess overhead and the way to bring that back in line is to lay off employees. On the other hand SMUD will hire more employees and PG&E will have increased incentive to be more responsive to the remaining 98% of its customers.
All of the other stuff going on seems to be simple political posturing.
For me, the issue is twofold.
First, I’ve never like PG&E. SMUD may be just as bad, but I’d prefer the new and smaller devil to the one I know.
Second, competition is good. When there is no competition the consumers struggle. If this forces PG&E to be more responsive because this could happen in the future that’s a good thing. OTOH, their modus seems to be to buy their way out of problems, so perhaps it’s wishful thinking.
For me, the issue is twofold.
First, I’ve never like PG&E. SMUD may be just as bad, but I’d prefer the new and smaller devil to the one I know.
Second, competition is good. When there is no competition the consumers struggle. If this forces PG&E to be more responsive because this could happen in the future that’s a good thing. OTOH, their modus seems to be to buy their way out of problems, so perhaps it’s wishful thinking.
For me, the issue is twofold.
First, I’ve never like PG&E. SMUD may be just as bad, but I’d prefer the new and smaller devil to the one I know.
Second, competition is good. When there is no competition the consumers struggle. If this forces PG&E to be more responsive because this could happen in the future that’s a good thing. OTOH, their modus seems to be to buy their way out of problems, so perhaps it’s wishful thinking.
For me, the issue is twofold.
First, I’ve never like PG&E. SMUD may be just as bad, but I’d prefer the new and smaller devil to the one I know.
Second, competition is good. When there is no competition the consumers struggle. If this forces PG&E to be more responsive because this could happen in the future that’s a good thing. OTOH, their modus seems to be to buy their way out of problems, so perhaps it’s wishful thinking.
We agree!
But what is OTOH?
We agree!
But what is OTOH?
We agree!
But what is OTOH?
We agree!
But what is OTOH?
Sorry–OTOH is computer short-hand for “on the other hand”
Sorry–OTOH is computer short-hand for “on the other hand”
Sorry–OTOH is computer short-hand for “on the other hand”
Sorry–OTOH is computer short-hand for “on the other hand”
“Second, competition is good. When there is no competition the consumers struggle. If this forces PG&E to be more responsive because this could happen in the future that’s a good thing.”
Doug,
Replacing PG&E with SMUD will not create a competitive market. It replaces one natural monopolist with another.
As you may know from my column, I strongly support switching from PG&E to SMUD. Beyond the fact that PG&E does not act like a normal private enterprise — that is the very nature of all publicly regulated monopolies — its prices for electricity are higher now, have been higher in the past, and always will be higher in the future. As a consumer of electricity, you’d almost have to be a dolt not to favor the change.
The reasons for SMUD’s cost advantages are numerous. Beyond the fact that they pay much less of their consumers’ money to their executives, SMUD has access to very low cost hydroelectric power from the federal dams in the Western states (WAPA). That is the primary reason SMUD electricity is so much cheaper than PG&Es. In the long run, when we in Yolo County become full-fledged members of SMUD, we will be consuming that power, too.
Also, because SMUD is municipal utility, it can, by law, offer (in most cases) much better rebate programs for its customers. As I wrote a few weeks ago, SMUD offers a better deal than PG&E does for customers who want to install solar energy plants at their homes.
The only big question that remains in my mind — and it is worthy of concern — is how much a court will determine PG&E’s Yolo County assets to be worth. If PG&E wins the court case, and we have to repay that very high figure, it will take much, much longer for Yolo County to become full-fledged SMUDites. Hopefully, the court determines that the PG&E assets are closer in value to what SMUD says they are.
“Second, competition is good. When there is no competition the consumers struggle. If this forces PG&E to be more responsive because this could happen in the future that’s a good thing.”
Doug,
Replacing PG&E with SMUD will not create a competitive market. It replaces one natural monopolist with another.
As you may know from my column, I strongly support switching from PG&E to SMUD. Beyond the fact that PG&E does not act like a normal private enterprise — that is the very nature of all publicly regulated monopolies — its prices for electricity are higher now, have been higher in the past, and always will be higher in the future. As a consumer of electricity, you’d almost have to be a dolt not to favor the change.
The reasons for SMUD’s cost advantages are numerous. Beyond the fact that they pay much less of their consumers’ money to their executives, SMUD has access to very low cost hydroelectric power from the federal dams in the Western states (WAPA). That is the primary reason SMUD electricity is so much cheaper than PG&Es. In the long run, when we in Yolo County become full-fledged members of SMUD, we will be consuming that power, too.
Also, because SMUD is municipal utility, it can, by law, offer (in most cases) much better rebate programs for its customers. As I wrote a few weeks ago, SMUD offers a better deal than PG&E does for customers who want to install solar energy plants at their homes.
The only big question that remains in my mind — and it is worthy of concern — is how much a court will determine PG&E’s Yolo County assets to be worth. If PG&E wins the court case, and we have to repay that very high figure, it will take much, much longer for Yolo County to become full-fledged SMUDites. Hopefully, the court determines that the PG&E assets are closer in value to what SMUD says they are.
“Second, competition is good. When there is no competition the consumers struggle. If this forces PG&E to be more responsive because this could happen in the future that’s a good thing.”
Doug,
Replacing PG&E with SMUD will not create a competitive market. It replaces one natural monopolist with another.
As you may know from my column, I strongly support switching from PG&E to SMUD. Beyond the fact that PG&E does not act like a normal private enterprise — that is the very nature of all publicly regulated monopolies — its prices for electricity are higher now, have been higher in the past, and always will be higher in the future. As a consumer of electricity, you’d almost have to be a dolt not to favor the change.
The reasons for SMUD’s cost advantages are numerous. Beyond the fact that they pay much less of their consumers’ money to their executives, SMUD has access to very low cost hydroelectric power from the federal dams in the Western states (WAPA). That is the primary reason SMUD electricity is so much cheaper than PG&Es. In the long run, when we in Yolo County become full-fledged members of SMUD, we will be consuming that power, too.
Also, because SMUD is municipal utility, it can, by law, offer (in most cases) much better rebate programs for its customers. As I wrote a few weeks ago, SMUD offers a better deal than PG&E does for customers who want to install solar energy plants at their homes.
The only big question that remains in my mind — and it is worthy of concern — is how much a court will determine PG&E’s Yolo County assets to be worth. If PG&E wins the court case, and we have to repay that very high figure, it will take much, much longer for Yolo County to become full-fledged SMUDites. Hopefully, the court determines that the PG&E assets are closer in value to what SMUD says they are.
“Second, competition is good. When there is no competition the consumers struggle. If this forces PG&E to be more responsive because this could happen in the future that’s a good thing.”
Doug,
Replacing PG&E with SMUD will not create a competitive market. It replaces one natural monopolist with another.
As you may know from my column, I strongly support switching from PG&E to SMUD. Beyond the fact that PG&E does not act like a normal private enterprise — that is the very nature of all publicly regulated monopolies — its prices for electricity are higher now, have been higher in the past, and always will be higher in the future. As a consumer of electricity, you’d almost have to be a dolt not to favor the change.
The reasons for SMUD’s cost advantages are numerous. Beyond the fact that they pay much less of their consumers’ money to their executives, SMUD has access to very low cost hydroelectric power from the federal dams in the Western states (WAPA). That is the primary reason SMUD electricity is so much cheaper than PG&Es. In the long run, when we in Yolo County become full-fledged members of SMUD, we will be consuming that power, too.
Also, because SMUD is municipal utility, it can, by law, offer (in most cases) much better rebate programs for its customers. As I wrote a few weeks ago, SMUD offers a better deal than PG&E does for customers who want to install solar energy plants at their homes.
The only big question that remains in my mind — and it is worthy of concern — is how much a court will determine PG&E’s Yolo County assets to be worth. If PG&E wins the court case, and we have to repay that very high figure, it will take much, much longer for Yolo County to become full-fledged SMUDites. Hopefully, the court determines that the PG&E assets are closer in value to what SMUD says they are.
Rich:
“Replacing PG&E with SMUD will not create a competitive market.”
That is correct and not what I was attempting to imply. What I was suggesting is that if a SMUD can be a legitimate threat to takeover a market from PG&E, then PG&E will be forced to take steps to mitigate that threat. It’s still not perfect competition of a real market, but it’s better than PG&E basically having no fear of consequences for their policies.
Rich:
“Replacing PG&E with SMUD will not create a competitive market.”
That is correct and not what I was attempting to imply. What I was suggesting is that if a SMUD can be a legitimate threat to takeover a market from PG&E, then PG&E will be forced to take steps to mitigate that threat. It’s still not perfect competition of a real market, but it’s better than PG&E basically having no fear of consequences for their policies.
Rich:
“Replacing PG&E with SMUD will not create a competitive market.”
That is correct and not what I was attempting to imply. What I was suggesting is that if a SMUD can be a legitimate threat to takeover a market from PG&E, then PG&E will be forced to take steps to mitigate that threat. It’s still not perfect competition of a real market, but it’s better than PG&E basically having no fear of consequences for their policies.
Rich:
“Replacing PG&E with SMUD will not create a competitive market.”
That is correct and not what I was attempting to imply. What I was suggesting is that if a SMUD can be a legitimate threat to takeover a market from PG&E, then PG&E will be forced to take steps to mitigate that threat. It’s still not perfect competition of a real market, but it’s better than PG&E basically having no fear of consequences for their policies.
“What I was suggesting is that if a SMUD can be a legitimate threat to takeover a market from PG&E, then PG&E will be forced to take steps to mitigate that threat.”
OK. I just re-read what you originally wrote, Doug, and I see that I misinterpreted what you were saying.
“What I was suggesting is that if a SMUD can be a legitimate threat to takeover a market from PG&E, then PG&E will be forced to take steps to mitigate that threat.”
OK. I just re-read what you originally wrote, Doug, and I see that I misinterpreted what you were saying.
“What I was suggesting is that if a SMUD can be a legitimate threat to takeover a market from PG&E, then PG&E will be forced to take steps to mitigate that threat.”
OK. I just re-read what you originally wrote, Doug, and I see that I misinterpreted what you were saying.
“What I was suggesting is that if a SMUD can be a legitimate threat to takeover a market from PG&E, then PG&E will be forced to take steps to mitigate that threat.”
OK. I just re-read what you originally wrote, Doug, and I see that I misinterpreted what you were saying.
Pg&e has hired whores lynnel pollock and dudly holman to lie to their neighbors for a fee from pg&e. I ask all responsible people to boycott and demand removal from store shelves any products from the pollock farm in woodland. Second there should be a barrage of calls to the irs and franchise tax board demanding that holman be investigated for overlapping his no profit with his for profit business in woodland-both share the same address and phone number and sense holman will whore for pg&e its a sure thing that he cheats on his taxes…
Pg&e has hired whores lynnel pollock and dudly holman to lie to their neighbors for a fee from pg&e. I ask all responsible people to boycott and demand removal from store shelves any products from the pollock farm in woodland. Second there should be a barrage of calls to the irs and franchise tax board demanding that holman be investigated for overlapping his no profit with his for profit business in woodland-both share the same address and phone number and sense holman will whore for pg&e its a sure thing that he cheats on his taxes…
Pg&e has hired whores lynnel pollock and dudly holman to lie to their neighbors for a fee from pg&e. I ask all responsible people to boycott and demand removal from store shelves any products from the pollock farm in woodland. Second there should be a barrage of calls to the irs and franchise tax board demanding that holman be investigated for overlapping his no profit with his for profit business in woodland-both share the same address and phone number and sense holman will whore for pg&e its a sure thing that he cheats on his taxes…
Pg&e has hired whores lynnel pollock and dudly holman to lie to their neighbors for a fee from pg&e. I ask all responsible people to boycott and demand removal from store shelves any products from the pollock farm in woodland. Second there should be a barrage of calls to the irs and franchise tax board demanding that holman be investigated for overlapping his no profit with his for profit business in woodland-both share the same address and phone number and sense holman will whore for pg&e its a sure thing that he cheats on his taxes…