California PUC President to Step Down

October 14, 2014 By Karen Henry

corruption-energy-manageCalifornia Public Utilities Commission (CPUC) president Michael Peevey announced that he would not seek reappointment when his term ends in December, an article on the SFGate website reports.

Peevey’s announcement comes after the release of e-mail messages from 2010 that show Peevey appeared willing to give favorable consideration to a rate-setting case in exchange for Pacific Gas and Electric (PG&E) providing $100,000 toward CPUC’s 100th anniversary dinner, according to another SFGate article. Peevey was overseeing the organization of the dinner.

Peevey said that a decision on a pending gas-rate case would be made in January, around the same time of PUC’s anniversary celebration, suggesting that the decision would depend on whether PG&E contributed to the celebration.

A spokesperson for the commission has denied the allegation, adding that Peevey’s comments were misinterpreted by the PG&E employee.

While the rate case settled without a commission hearing, Peevey is also reported to have helped PG&E with a matter related to how much money the utility would receive for replacing electric meters with smart meters. According to the SFGate article, Peevey proposed paying PG&E $6 million for the decommissioned meters. The commission ultimately approved $3.24 million for PG&E.

Peevey is also accused of colluding with PG&E to appoint a preferred administrative law judge to a rate case.

Photo via Shutterstock.

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