EDITORIAL: PG&E’s latest move boosts case for California takeover

San Jose Mercury News (CA)

April 07-- Apr. 7--The most dangerous convicted felon in California is at it again.

PG&E is responsible for the 2010 San Bruno explosion, 17 Northern California wildfires in 2017 and, by its own admission, likely the Camp Fire of 2018, the deadliest inferno in California history that destroyed the town of Paradise and killed 85 people. All told, PG&E's liability for its failures stands at an estimated $30 billion.

That level of incompetence demanded public or court oversight of the utility's selection of its new CEO and 10 new board members for its 13-member board of directors.

Instead, the public witnessed Wednesday what happens when PG&E is left to its own devices.

Any hope that the utility would turn a new leaf and -- finally -- prioritize safety over profit was dashed when PG&E announced that former Tennessee Valley Authority Chief Executive Officer Bill Johnson would take over as CEO of PG&E and that five of the new board members are coming from the financial asset management industry.

PG&E's priorities were clear. The utility consulted with three East Coast investment firms -- which hold nearly 10 percent of PG&E's stock -- in making the selections. The picks made Wall Street happy. PG&E's stock price rose 2.8 percent the following day, to $18.98 a share.

But California ratepayers seeking new consumer-oriented board members who would protect their interests and the public's safety took a back seat.

Nathan Click, a spokesman for Gavin Newsom, said that the new board fell short of what the governor wanted to see from PG&E.

No kidding.

"Time and again, PG&E has broken the public trust and its responsibility for ratepayers, wildfire victims and employees," Click said. The proposed board "raises concerns -- particularly the large representation of Wall Street interests and most board nominees' lack of relevant California experience."

The selections are scheduled to be ratified by PG&E shareholders on May 21. If they go through, California lawmakers should give strong consideration to a state takeover of the utility. State government has its own credibility issues, but they pale in comparison to PG&E's.

The choice of Johnson as the new CEO is troubling. At TVA, he was the highest-paid federal employee in the United States, with an annual total compensation package of $6.5 million.

He deserves credit for substantially cutting TVA's carbon emissions, but the authority under his watch has lacked transparency and turned its back on unconscionable abuse of workers.

The story began in 2008, prior to Johnson's arrival at the TVA in 2013, when 7.3 million tons of coal ash spilled from a dike at the TVA Kingston Fossil Plant in Tennessee. The TVA contracted with Jacobs Engineering to clean up the toxic mess.

A jury in November ruled that Jacobs had failed to "exercise reasonable care" in keeping workers safe and its failures likely caused the poisoning by coal ash of laborers. The Knoxville (Tenn.) News Sentinel reported that 30 workers, including two TVA employees, had died, and another 300 are dying.

Yet, under Johnson's leadership, the paper reported, TVA continued to contract with Jacobs despite the accusations it poisoned hundreds of workers, denied them protective gear and lied and tampered with testing. The TVA has refused to discuss in public forums Jacobs failure to provide workers adequate protection. The TVA also spent ratepayer money on a full-page ad, published on the 10th anniversary of the spill, praising Jacobs' work.

Sound familiar? Another utility and utility executive that refuse to learn from past mistakes. Just like PG&E.

Californians deserve better. PG&E has proven time and again that it can't clean up its act. A state-run utility is hardly ideal. But if this is the best the company can come up with for new leadership, it could be time for a public takeover -- before more lives are lost.

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