PG&E: Pipeline Explosions, Prop 16 and Smart Meters Are All Symptoms of the Same Disease
PG&E has tried to bill itself as the green energy maverick of utilities in the past few years. But along the way PG&E and its CEO Peter Darbee lost focus on the most basic of missions: safe and reliable gas and electricity service for its customers. From PG&E's troubled smart meter installation program to its $46 million campaign backing Prop 16 and finally to the fatal gas pipeline explosion in San Bruno, the utility has repeatedly ignored customers and has often placed greater emphasis on political fights than on service and day-to-day operations. In short, the utility's priorities are out of whack.
Smart meters: PG&E massive smart meter installation program was problematic from the beginning. The company, facing potential budget overruns, tried to install millions of smart meters in a short time frame. and while an independent state-ordered report found the smart meter technology itself works properly, PG&E's customer service during the installation failed miserably. And it wasn't until the press started to report on negative customer reaction that the utility stepped up its customer outreach efforts.
- What PG&E did right: After plenty of teeth gnashing -- and three years of customer complaints -- PG&E finally apologized to customers for refusing to acknowledge problems with new smart installations. It may be a little too late for apologies, but it does mark at slight shift in PG&E's stance on customer service. PG&E also has finally recognized that the old school utility industry days of not communicating with customers beyond their monthly bill is officially over.
If voters had approved the initiative, PG&E would've successfully used a ballot initiative to lock up local-power monopolies for itself. Instead, voters rejected the measure and PG&E lost its green street cred. PG&E tried to frame Prop 16 as a protection for the taxpayer. In the end, customers and voters saw it for what it was: a naked power grab by monopoly-blinded management at PG&E that would've killed the rollout of renewable energy-powered utilities.
Pipeline explosion: The investigation into what caused the gas pipeline to explode in the San Bruno neighborhood is just beginning. But here's what we do know the utility and its safety record.
- PG&E spent more than $100 million last year to detect and fix gas leaks after an internal study found major problems in the way it reported line ruptures, according to a report by the Sacramento Bee. Although the faulty inspections and leaks involved different pipes, it does raise questions about the company's inspection program. The internal study found problems with reporting of leaks including falsification of records and inadequate training of third-party inspectors.
- Three weeks before the explosion, a PG&E whistle blower filed suit against the utility alleging a cover-up involving company leaders who knew about safety violations.
This obviously doesn't reverse the destruction and death caused by the explosion. But the company's rather quick decision to offer up the $100 million fund tells me that 1) PG&E understands what's at stake, and 2) is willing to put money and resources to fix the problem.
It will be interesting to see how Darbee steers PG&E through this mess. The real test will be whether the utility actually puts its priorities back in order. That means safe and reliable electricity -- correcting its inspection process and upgrading its manual shutoff valves to an automatic and less-time consuming system -- is first on the list . The roll out of renewable energy should follow and the politics should bring up the rear.
Photo from Flickr user smi23le, CC 2.0
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