According to consumer groups, utility companies are exploiting loopholes in rules surrounding illicit spending on advertising and lobbying with customer money. The new legislation would have worked toward closing those loopholes and levying fines on violators.Democratic state Sen. Dave Min, who authored the bill that failed to pass on Monday. “I know that consumers are outraged by this.”
Utility companies such as Pacific Gas & Electric Company fiercely opposed the bill because it would “take away the power of state regulators to examine utility companies’ costs and decide whether it is ‘just or reasonable’ for customers to pay for them.” A PG&E lobbyist told Fox News, “It’s appropriate for customers to pay for the company’s membership fees that go to various industry associations because they benefit customers.”A rising cost of electricity prompted the bill as the work to maintain and upgrade power equipment has proven expensive amid wildfires.
Matt Vespa, senior attorney at the environmental advocacy group Earthjustice, said Monday’s vote was “incredibly disappointing.” He said the current rules for utilities “incentivizes them to see what they can get away with.”Consumer groups said PG&E has spent up to $6 million on ads featuring a plan to bury power lines to reduce wildfire risk, though it may raise consumers’ bills.