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>> JOANNE: A San Diego based watch dog agency is obtaining toÊ objecting to SDG&E's request
for a special fire liability account. Joining me is David Peffer.
Thank you for being here. What are your objections to the account?
>> Our main objection is that this is basically a rubber stamp pass through mechanism that
will allow SDG&E to pass through not only the cost of future wild fires but the cost
of 2007 wildfires. >> JOANNE: In all fairness a spokesperson
was here earlier in the show who said there still has to be another hearing they can't
automatically start charging rate payors. >>> There does have to be a proceeding but
under the proposed mechanism the hearing only considers narrow issues, there isn't an opportunity
to object to the fact that rates are being passed through, it's an issue of categorizing
whether the rates are 100% of the wildfire costs for strict liability or 9tive% if SDG&E
was mallfeasant or reckless in causing fires. >> JOANNE: Why shouldn't this be a cost that
customers pay, it's the cost of doing best of my recollections is it not?
>> This is far more. What they are asking for is super insurance.
This is insurance that is free, it has limitedÊ unlimited liability to be borne by the commerce
and it covers SDG&E for intentional fires or reckless conduct.
>> JOANNE: Stephanie Donovan did sort of mention that one of their proposals looked at sharing
the cost. >>> This is SDG&E's alternative proposal the
share they're referring to is 10% to shareholders and 90% to rate payors.
>> JOANNE: The other issue here is whether or not the public is involved at these hearings.
We know that the public is involved when a utility wants to increase rates but asking
for this funding mechanism county public weigh in?
>> They can. They are wearing in throughÊ weighing in
through the participation of "you can" and several others.
The public can contact the California public utilities commission they're the ones making
the decision and the more they hear from the public the better.
>> JOANNE: We received a statement from them earlier today where they expect to announce
some news shortly with regard to the public participation process of this as well.
Finally before we go, David, is there not something to be said, though, too, I think
Stephanie Donovan department to point out that in the media, in the news we have made
assumptions about their responsibility in the 2007 fires.
Do they have a case to be made there as well? >> SDG&EÊ Ms.ÊStephanie Donovan stated that
there has been no finding of fact regarding S is DG and E's liability and responsibility
for the 2007 fires. This is technically true but it is misleading.
There is no official finding of fact because they settle $the cases.
The settlement had no admission of liability. The fact is the investigations by Cal fire
and the other agencies found that SDG&E was responsible for causing these fires.
>> JOANNE: When can the public expect to hear more about whether or not this is granted,
this special account or not? >> This is an on going proceeding so we don't
have a firm timeline on it yet. Hopefully sooner rather than later but because
they have announced public participation hearings and that's breaking news, I guess, this is
something that hopefully the public will have word of sooner rather than later.
>> JOANNE: David Peffer thank you for being here.
>>> Thank you very much.