On The Money: Energy Surcharge
By Mike Luery
SACRAMENTO (CBS13) -- California consumers are shelling out money every month for research that's generating plenty of controversy at the State Capitol. Electric utility customers across the state are in fact paying for something that's in the air – a monthly surcharge that's going to the birds, literally.
"It's disappointing," said Senator Alex Padilla in a hearing at the Capitol today.
Senators today grilled the California Energy Commission about some of the research that you're paying for at 19 cents a month extra on your PG&E bill – adding up to $62 million a year in public funds statewide. The research is part of the Public Interest Energy Research Program (PIER).
The research is supposed to directly benefit taxpayers – not birds – a red flag for the non-partisan Legislative Analyst's Office, that wrote this critical report on the PIER program.
The LAO concluded: it is doubtful that bird distribution studies will lead to lower utility rates for consumers. Tiffany Roberts of the LAO told CBS 13: "We do question whether it's appropriate to be funding that type of research for this particular program."
"The reason for the bird migration studies is to understand the impact that climate change has had on where the birds fly so that we can position the wind turbines in places where the birds will not be slaughtered," explained Robin Smutny-Jones, Assistant Executive Director of the California Energy Commission.
When birds are killed by wind turbines, "you get all sorts of litigation, opposition and siting cases which are very expensive. It delays them and ultimately I guess costs would rise for consumers," Smutny-Jones declared.
Smutny-Jones told CBS 13, "Our whole impetus is to get these plants sited sooner so bird distribution does count. Is it the best priority? Is it the best research for tomorrow – who knows? But we stand by that an appropriate example of PIER research."
The Public Interest Energy Research you paid for also includes a study of salmon habitat restoration.
"So it is extremely valuable understanding the relationship of fish habitat will help us better ensure that we have adequate hydroelectric power," Smutny-Jones told CBS 13.
The Energy Commission says its research has added up to nearly a billion dollars in savings. But Senators were openly skeptical.
Senator Michael Rubio of East Bakersfield demanded," "When do the ratepayers recover their costs to see a reduction in their rates?"
Senator Alex Padilla, chair of the Committee on Energy, Utilities and Communications told CBS 13: "If this research program is going to continue after this year it's got to look tighter, it's got to be more focused. It's got to be more transparent and accountable for the taxpayers."
The energy surcharge expires automatically next year unless lawmakers and Governor Brown decide to continue the program.
Send us an e-mail with your story ideas to onthemoney@kovr.com. You can also follow On The Money stories in progress via Twitter at http://twitter.com/#!/mikeluery
