Utility Rate Payers Asked to Pay for a $6 Million Program That May Be Illegal. In April, the Public Utilities Commission unanimously approved a proposal to set up a $6 million per year institute at the University of California to "fight climate change." According to Capitol Weekly, the program has faced push-back from lawmakers.
The program, nicknamed "Peevey's Plan" (after the PUC president who would be co-chairman of the institute if it were to go forward), has caused concern for many in the Legislature. One issue is accountability over funds raised from a proposed 12-cent to 20-cent surcharge on utility rate payers, expected to raise $600 million over 10 years for the institute.
The legislative counsel said the PUC lacks legal authority
to create the institute, since that would be a legislative, rather than
regulatory act. "You need a bill to establish the institute, that's my
direction to you," Senator Christine Kehoe, chairwoman of the Senate
Energy Committee, told proponents of the institute. She added, "We are
getting a feeling on the legislative side that our only alternative is to
exercise more vigorous oversight, because counting on you to communicate
directly to this committee or the Senate on what your proposal is and your
plans going doesn't seem to be happening." (Source: Capitol Weekly,
June 5.)
Cal-Taxletter June 6, 2008
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