At least a half-dozen lawmakers report holdings in the energy companies, and several more own shares in the state's utilities, according to the most recent disclosures filed with the Fair Political Practices Commission. In addition, three legislators reported direct income last year from either a utility or a power plant owner. Legislators are allowed to own stock in companies affected by their decisions as long as the decisions are broad-based and their holdings are inconsequential. Lawmakers who receive income from private companies may participate in a decision if it does not affect that company differently from other firms in the same industry. But even if they aren't breaking any laws, it still seems odd for our lawmakers to have a personal financial stake in the companies whose fate may rest on a single vote of the Legislature.
Some legislators agree and have been shedding their holdings.
Lowenthal said he didn't realize the stocks were part of his wife's retirement portfolio until the Los Angeles Times spotted them in his financial disclosure and reported the news earlier this year. I just want to make sure I am in a position to feel completely free to vote on anything. Senate leader John Burton, the San Francisco Democrat, owned shares last year in Williams Cos., one of two firms that have been accused by the Federal Energy Regulatory Commission of withholding power from the California market to drive up prices. Burton said he originally thought the company was in fiber optics. But Burton still owns a piece of El Paso Energy Corp., a stock he said was purchased for him by his financial adviser.