PG&E meeting with Linda Mar and Park Pacifica residents

Pacifica Tribune/Jane Northrop, 3/27/12.  "PG&E addresses concerns over location of Park Pacifica pipeline."

"Mayor Pro Tem Len Stone coordinated a public open house with a PG&E representative last week to discuss the location of main gas lines in Pacifica. Stone said he has received many calls from Pacificans, especially Linda Mar and Park Pacifica residents, who were concerned something like what happened in San Bruno could happen in Pacifica. They wanted to know if there was a main distribution line under their neighborhoods.

There is only one distribution feeder main line that comes into Pacifica. It comes in from San Bruno and goes along Buffalo Court to Oddstad and Terra Nova Boulevards. The distribution feeder main operates at a much lower pressure than the transmission lines do. It was a high pressure transmission line that exploded in San Bruno.

PG&E:  Gas lines good, testing this month just in case.

 The Feb. 14 meeting was attended by Jim Cogan, PG&E government relations representative and about 60 Pacifica residents. PG&E sent out about 1,700 notices to residents in the back of Linda Mar to invite them to the open house."They are constantly doing inspections and maintenance. No issues have been found in our lines," Stone said.

Those who attended the open house told Stone they were relieved PG&E and the city of Pacifica were paying attention to what was going on in the community and in their neighborhood.  "Ever since the pipeline explosion, I went right to PG&E and asked how it affects Pacifica and I asked how Pacifica is maintained. I wanted to make sure we stayed on top of it," Stone said. "It's great to have established a relationship with PG&E. I feel I can pick up the phone and get a response to my questions immediately. That's extremely important. We can work together and have good communication."  

Assembly member Jerry Hill has relentlessly sought to hold PG&E responsible for the San Bruno disaster, and to make PG&E accountable to the public in general. He attended the open house, as well. "He's been a very strong advocate for San Mateo County and the state in general and making sure PG&E does the right thing. To see him here in Pacifica advocating for us was very nice. People were happy to see we are doing proactive things," Stone said.

PG&E spokesperson Brittany Chord said PG&E is undergoing a comprehensive effort to pressure test and replace pipeline in its system. That will result in hydro testing the line in April and, in some cases, replacing the pipe to make sure the system is working safely and reliably.  Residents will be notified several times when a test is conducted. Initially, PG&E will send a letter to customers within 500 feet of where the test will be conducted. The letter will explain the process and invite residents to attend an open house to learn more. As the test date approaches, some natural gas will be released so crews can work safely. PG&E will telephone residents to warn them they may smell natural gas and telephone them again when the line is put back together again. Finally, PG&E will send a final letter notifying residents about what they did and tell them the results of the test.

"As a company we know we have a lot of work to do to earn back the trust of our customers," Chord said. "We are explaining this type of work to our customers and explaining the natural gas distribution system we do. Besides holding open houses, we are doing work to strengthen our system to make sure it is working properly. We are communicating with our customers on many levels."  If you have a concern about PG&E:  Call 1-800-PGE-5000 to speak with a PG&E representative at any time, or visit www.pge.com to learn more about the gas transmission and distribution system."

Posted by Kathy Meeh

PG&E rate payers will not pay CEO retirement

except for $46,000 we already paid, which may be reimbursed.

Payout to retiring CEO Peter Darbee is $35 million.  This is a 6 year retirement package, but this time the bill will be paid by STOCKHOLDERS.    


Mercury News 4/25/11.  "Less than 72 hours after Gov. Jerry Brown said he didn't want PG&E ratepayers to pay any of the costs for the $35 million retirement package for outgoing PG&E CEO Peter Darbee, the company's board announced Monday that its shareholders -- rather than the public -- will bear all the costs. "Renewing public faith is critical to our future," said Lee Cox, a PG&E board member who will become interim CEO, president and chairman May 1. "Today's decision is another opportunity to show customers, regulators and others that PG&E is listening closely and taking action to earn back their confidence." But exactly how or when the 6.1 million California customers who pay monthly PG&E gas and electric bills will be made whole remained unclear Monday. On Friday, Terrie Prosper, a spokeswoman for the California Public Utilities Commission, the state agency that regulates PG&E, said ratepayers would be asked to pay $9.6 million of Darbee's $35 million retirement package. The $9.6 million is Darbee's pension, and was approved by the PUC as part of a wider pension program in 2009, she said. Most of the rest of Darbee's retirement will come in the form of company stock. But on Monday, in the wake of PG&E's announcement, Prosper said in an email that the PUC will direct PG&E "to credit $9.6 million to ratepayers in its accounts immediately, provide an audited accounting of the credit, and return that amount to ratepayers." 

Specifics unclear. Neither Prosper nor PUC Executive Director Paul Clanon returned calls Monday, however, to explain whether the money would come in the form of a credit on ratepayers' bills, or some other method, such as a slight reduction in the profit the PUC allows PG&E to earn in a future year. PG&E last year reported a $1.1 billion profit. PUC President Michael Peevey, a former president of Southern California Edison, also did not return calls to clarify the issue. "I am hopeful that this is the first step in a series of pro-consumer actions that will signal a new chapter for PG&E as it works to rebuild trust and confidence with its customers and the general public," Peevey said in a statement.

Confusion reigned Monday over the specifics, however. Brian Hertzog, a PG&E spokesman, said PG&E's customers so far have paid only about $46,000 into a trust fund that covers one portion of Darbee's pension. If the company credits customers for that amount, the difference the average person would see on their utility bill would be "minuscule," he said. The company will seek to have the pension costs eliminated from customers' bills in two or three years when the PUC again deliberates what rates PG&E can charge, he said. Meanwhile, consumer groups and political leaders who blasted PG&E for awarding what they called a lavish send-off package for Darbee said it is a promising step that PG&E will apparently pick up the whole tab. "PG&E didn't anticipate the problems that were created by this, and they should have," said Assemblyman Jerry Hill, D-San Mateo. "They have enough PR staff and a crisis management team that they should watch this stuff. I want them to build credibility. I want to have faith in them again." Added Mindy Spatt, a spokeswoman for the consumer group The Utility Reform Network: "The PUC should move quickly to assure customers these costs have indeed been covered by the shareholders and that any money already paid to PG&E to cover Darbee's pension will be returned."

A series of setbacks. Darbee, 58, announced his retirement Thursday. During his past year at the helm, PG&E has been rocked by a series of major setbacks and failures, including spending $46 million to bankroll Proposition 16, a defeated June ballot measure that would have reduced competition from green-energy providers; bungling the rollout of millions of its wireless SmartMeters; and having one of its major gas transmission lines explode in San Bruno on Sept. 9, killing eight people and destroying 38 homes. Darbee, a former Goldman Sachs vice president, was given $8.4 million last year in compensation from PG&E. In addition to his $35 million retirement package, he also will receive a $4.25 million grant of stock-based awards that will vest in the next three to five years. PG&E's board made that award to Darbee in March as part of a long-term performance incentive program, but he will still be able to keep it despite leaving the company.

Dave Ashuckian, deputy director for energy at the division of ratepayer advocates, a branch of the PUC that lobbies on behalf of consumers, said he'd like to see the commission offer rebates to customers for Darbee's pension costs -- even though they might be only for a few dollars each. "In general we like to see rebates done in a lump sum all at once and preferably in the summer months when bills are highest," he said. "We're happy that they're not going to charge ratepayers. We certainly think that $35 million in retirement for six years on the job is a pretty hefty payout, especially given the dismal."  

Reference:  Peter Darbee education background and business biography information:   Bloomberg businessweek, and Forbes people.

Posted by Kathy Meeh
  

Response to the "Stop the garbage rate hike" 5/13/11

Reference "Stop the garbage rate hike", 5/13/11 Fix Pacifica article by Leo Leon. 

Article comment from Chris Porter, General Manager Recology of the Coast,  5/15/11, 8:41pm.

Corrections to comments posted..Recology does not service Millbrae. San Bruno does not offer its citizens food waste in conjunction with its greenwaste pickup and will just begin offering a twenty gallon can when we have had that service in Pacifica for ten years. You can put up comparisons of rates but unless you are comparing like services the comparison does not ring true. 

Recology did not pay back the City of Pacifica for the back owed franchise fees of approximately $810,000, Louie Picardo did before the sale of the Company happened. Yes, there was a sale of Coastside Scavenger Company to Recology with four years remaining on the franchise agreement. The City of Pacifica had the right to review and approve the sale and took the opportunity to request more services that the citizens of Pacifica had been asking for (single stream one container recycling, composting). In order to provide the services the City asked for, Recology negotiated an additional three years to be added to the franchise to be able to finance the needed equipment expenditures and bring our office up to date.  

We also began a new program for customers who have a financial hardship, regardless of age, and used the PGE CARE Program as a measurement for this discount. This replaced the automatic senior discount which went into effect at age 65 whether you had a financial hardship or not. There are close to 500 people on the financial hardship program currently. 

Also, we do not own the Recycling Yard facility on Palmetto Avenue. It is owned by Jim Payne and we have been paying rent to him since 1990 and this is a facility that is exclusive to Pacifica and the coastside customers. We will not be taking our trash to SF and then by train to Yuba City. Our trash goes to HMB's Ox Mountain Landfill and we were successful in negotiating a deal with them at the beginning of the year to hold our disposal rate as is.  

The numbers on the rate increase gave from a year audit done by an outside Company and given to the City of Pacifica. Hilton Farnkoff did not audit the numbers again when they did the rate review. The next rate submission will have the numbers re-audited by Hilton (or whoever is the City's review people) at an additional cost to the City. The franchise agreement allows for a 4% to 8% rate increase. The documents, after being reviewed by the City and their review people, authorized an over 9% rate increase but the agreement holds it to 8% tops. If people are using the programs and have a 20 gallon cart, they will be paying $21.86 with the increase which is over 25% less than the $30.19 they were paying for a 30 gallon can in 2007. Rate payers can help themselves by recycling and composting as the garbage rate is charged by the size garbage cart you use. 

To end I will say this was not a sweetheart deal but a sale of a Company which Mr. Picardo, at 74 years old, had every right to do. He had several offers but felt Recology was the best for him and his employees. Another thing is that Recology found jobs for all our outsourced employees within the Recology family. This is something I as the general manager was most grateful for. I hope this answers some questions. If anyone has a question they want an answer to, please feel free to call my office or City Hall and speak to Steve Rhodes or Ann Ritzma. I am also sure any councilperson will verify the statements I have made. 

Posted by Kathy Meeh