A blistering attack by the City of San Bruno, ratepayer advocates and Assemblyman Jerry Hill called into question the California Public Utility’s appointment of Sen. George Mitchell and his law firm DLA Piper as mediators in the PG&E explosion and fire settlement.
Mayor Jim Ruane of San Bruno, Thomas J. Long, Legal Director of consumer advocacy group The Utility Reform Network (TURN), and Karen Paull, Acting Legal Counsel, The Division of Ratepayer Advocates (DRA) all stood in front of the CPUC this morning and lambasted the “unholy and cozy alliance” between regulator CPUC and the regulated Pacific Gas & Electric Co.
The City of San Bruno and consumer advocates signed a letter demanding the CPUC rescind the appointment of Sen. Mitchell immediately because the CPUC went behind their backs in appointing the mediator to oversee the talks and presented evidence that CPUC and PG&E had ex-parte contact in making the decision. The groups objected to the choice of mediator and said they should have been consulted before regulator CPUC appointed the mediator.
The California Public Utilities Commission had announced Monday that it had appointed former U.S. Senator George Mitchell to serve as mediator in the talks.
San Bruno City Manager Connie Jackson and attorneys with San Francisco and the consumer groups said the CPUC had notified PG&E before it appointed Mr. Mitchell, but didn’t notify San Bruno, San Francisco, or ratepayer advocates and officials.
“The unilateral announcement by the CPUC Monday that it had selected a mediator without consulting any of the parties at the negotiating table is consistent with the cozy and unholy relationship between the CPUC and PG&E. This action is symbolic of the broken, dysfunctional and dishonest relationship between PG&E and the CPUC, the agency that is supposed to be the watchdog and protector of the public’s interest,” said Mayor Ruane of San Bruno.
“San Bruno is rightly concerned that the DLA Piper law firm has previously represented utilities–and that the firm was selected unilaterally by the CPUC and PG&E without the participation of any other party, which goes against the fundamental principles of mediation,” said Mayor Ruane at the press conference today.
“It also is of deep concern to us that DLA Piper has a lengthy list of corporate clients, including Southern California Edison, which the current chairman of the CPUC, Michael Peevey, once headed, according to news media reports about the appointment.
“In order for any mediation to succeed, the mediator will have to assure all the parties to our satisfaction that they have no conflicts, that they can be an unbiased mediator, and that the process will be open, transparent and fair,” Mayor Ruane said.
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