The column by George Avalos, of the Bay Area News Group on Wednesday, August 19 needs scrutiny and completion, or as your pundit readers might refer to as “the rest of the story”.
Mr. Avalos states that the Calif Public Utilities commission is proposing a “full-fledged investigation” into the “organizational culture, governance, policies, practices and accountability” of the Pacific Gas & Electric company.
Mr. Avalos then quotes Scott Hempling, Georgetown law professor and expert witness on utility issues and regulations as quoting “the question is not only how do we make PG&E improve, but also could other companies do a better job if given a chance.
Since many municipalities and irrigation districts have fought to gain control over PG&E facilities, which are not for sale, it makes one wonder why Mr. Avalos failed to mention who retained Mr. Hempling for comment or representation. Hmm?
Prof. Hempling also refers to PG&E as a “struggling utility” and goes on to say that PG&E’s “sub par performance is a culture of a entitlement, arising from the fact that the utility does not have to compete to maintain it’s monopoly.”
No one can or should even try to minimize the cause and effect of the horrific 2010 natural gas explosion and fire in San Bruno. PG&E bears the responsibility of ownership and maintenance of the pipeline and restitution of lives, human suffering and material damage caused by the incident — and they have.
But to suggest that one incident declares this behemoth icon of a public utility unaccountable with subpar performance due to the culture of entitlement is absurd. The PG&E Company, with roots beginning in 1852, accepts the responsibility and accountability for safely developing and delivering volatile products for the convenience and advancement of California. Many of its employees have suffered debilitating injuries and loss of life in doing so.
Any industry that produces and or delivers volatile products will suffer or cause damage due to human or mother nature. Public utilities are held accountable for the established construction standards & materials used during initial construction by the public utility commission, which was initiated under the Public Utilities Act of 1911. These 104 years of oversight by the commission have no doubt prevented countless incidents and continually improve public and employee safety.
The PUC imposed a record-setting penalty of $l.6 Billion on PG&E for causing the explosion, with the hypothesis that PG&E used inferior pipe. Much like British Petroleum’s restitution for Gulf of Mexico oil spill, it never stops. So now, continued defamation of this great company has been added to the litigation equation, but mother nature and human nature left out. What is the pipe ruptured from years of earthquake or landslide movement? What if the protective wrapping on the pipe was inadvertently damaged by a construction worker who chose to cover the damage and leave the pipe exposed to the ravages of deterioration, over time, due to elements in the soil? These hypothesis must surely command considerable theory since the extent of the damage cannot rule them out. Does the City of San Bruno not deserve some of the damages for allowing homes to be built in proximity of the pipeline? PG&E’s 163 years of existence and 110 years of incorporated commitment deserves better diligence within the courts.
In 1952, after two and a half years of painstaking research, veteran newspaperman Charles M. Coleman wrote the book “P.G.& E. of California,” a corporate biography that tells the story of the first 100 years. At the conclusion of the book, Charles wrote; “If one may brave the cynicism of a materialistic world, he will find in this utility organization, evolved during a century of development, an intangible quality, a spirit and a strength and a purpose of its own that are above and beyond the strength and purpose of individuals. Instead of being merely a corporate body, a thing of bylaws and rules, it has become a living, lasting entity, with a character and a tradition based firmly upon its dedication to public service.” This is PG&E of California.
After a 40 year career, retired from PG&E myself, this author suggests that although this analysis was written 63 years ago, these words still ring true today.
So if this proposed “full-fledged investigation” is a constructive narrative of future public safety recommendations, that is a good thing. If the investigation turns into a witch hunt, spearheaded by the city owned municipalities and irrigation districts, who already enjoy an unfair advantage within the power system, that would be a real disservice to the past visionary leadership, a 163 year old history of dedicated employees of the PG&E and the customers who thrive within the 94,000 square mile service territory.
Ron Talbott is a resident of Witter Springs
