California lawmakers on Monday rejected a proposal aimed at cracking down on how some of the nation's largest utilities spend customers' money. California's investor-owned utilities can't use money from customers to pay for things like advertising their brand or lobbying for legislation. Instead, they’re supposed to use money from private investors to pay for those things. Consumer groups say utilities are finding ways around those rules.
bill in the state Legislature would have expanded the definitions of prohibited advertising and political influence to include things like regulators’ decisions on rate-setting and franchises for electrical and gas corporations. It would also allow regulators to fine utilities that break the rules. Monday, the bill failed to pass a legislative committee for the second time in the face of intense opposition from utilities, including Pacific Gas & Electric.
Our customers have told us they want to know how we are investing to improve safety and reliability,' Paulo said. 'We also use digital and email communications, but some customers do not have internet or email access, so we use methods including television spots to communicate with all of our customers.' Some consumer groups say the ads have crossed the line.