California

Should PG&E give money to California politicians? Republican proposes ban

A California Republican wants to ban Pacific Gas and Electric Co. from donating to state politicians and candidates, marking the latest Capitol rebuke of the bankrupt utility blamed for several deadly wildfires.

Assemblyman Kevin Kiley of Rocklin announced legislation on Wednesday to prohibit campaign contributions from PG&E, arguing it’s time to end the “uniquely intertwined” relationship between California and the company responsible for recent tragedies like the 2018 November Camp Fire that killed 85 and left the town of Paradise in ruins.

The company donated in 2017 and 2018 more than $5 million to Assembly, state Senate and statewide campaigns, ballot measures, and local and city council races, among others. Kiley accepted $4,000 from PG&E, but his office said he donated the money back to a nonprofit for wildfire victims in late 2018.

“As PG&E seeks to emerge from bankruptcy, the most important part of restructuring is to loosen its grip on the State Capitol,” Kiley said in a press statement. “Governor Newsom has sharply criticized PG&E’s negligence, and rightly so. But it was California’s political leadership that let them get away with it. This was ultimately a failure of politics.”

PG&E in October acknowledged that a faulty transmission tower was likely responsible for sparking the Kincade Fire, which prompted mass evacuations in Sonoma County. Gov. Gavin Newsom in December rejected the company’s bankruptcy plan, saying its proposal didn’t go far enough to protect Californians.

PG&E also frustrated ratepayers in the fall when it routinely shut down parts of the grid amid windy and dry conditions associated with wildfire risk. The company said it had to cut power to millions of Californians to avoid another wildfire catastrophe. But Newsom, echoed by state and local officials, called the blackouts an inexcusable and dangerous procedure that left older, sick residents in the dark for days.

Kiley’s announcement arrives two days after another California lawmaker, Sen. Scott Wiener, D-San Francisco, introduced a bill to convert PG&E into a public utility. Legislators have also written bills to strengthen protocol during mass shutoffs and forbid utilities from charging customers when their power is cut.

The utility said in a response to Kiley’s proposed ban that PG&E is entitled to participate in the “political process.”

Like many individuals and businesses, PG&E participates in the political process. That right is guaranteed to everyone by the U.S. Constitution,” the company said. “PG&E holds itself to the highest standards of public disclosure and compliance with applicable laws and regulations. Lobbying expenses are paid for with shareholder funds, not utility customer dollars.”

This story was originally published February 5, 2020 at 1:11 PM with the headline "Should PG&E give money to California politicians? Republican proposes ban."

HW
Hannah Wiley
The Sacramento Bee
Hannah Wiley is a former reporter for The Sacramento Bee’s Capitol Bureau. 
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