Michael Shames, head of the Utilities Consumers' Action Network in San Diego, concedes that Edison may win its case. But he added that if the judge orders the PUC to allow the utilities to raise their rates, the PUC may examine the utilities' past actions to determine how much money they are entitled to recover. One major question area is how much money the utilities transferred to their holding companies. The parent companies pumped much of that money into other subsidiaries or stockholder dividends, while making comparatively minimal investments in the utilities. Although the audits did not mention San Diego Gas and Electric, it made similar payments to its parent, Sempra Energy.
Nobody accuses the utilities of doing anything illegal through the transfers.
But the PUC today will discuss whether the utilities followed the spirit of the agreements that set up the holding companies. All Rights Reserved. Read our Terms of Use and Privacy Policy .