Utility customers would pay for think tank on climate

California utility ratepayers would foot the bill for a new $600-million global warming think-tank under a controversial plan approved today by the state Public Utilities Commission.

The new California Institute for Climate Solutions was pushed by commission President Michael Peevey, and the concept behind it – accelerating research into ways to quickly cut harmful greenhouse gas emissions – enjoyed broad support.

But Peevey, whose term ends in December, faced fervent opposition from lawmakers and consumer groups who called the plan too costly and the funding an unfair tax on customers of Southern California Edison, Southern California Gas Co., Pacific Gas & Electric, and San Diego Gas & Electric.

John Bohn and other utility commissioners also had misgivings about plan, but Peevey won unanimous commission support by making a series of last-minute changes.

Gov. Arnold Schwarzenegger praised the commission for creating the institute, which “will bring together the state’s preeminent colleges, universities and laboratories to fight climate change.”

Under the proposal, the utilities regulated by the state commission would collect $60 million a year for 10 years to fund the program. Peevey estimated Thursday that the program would add 25 cents to 30 cents a month to bill of each customer of the state’s four largest investor-owned electric and gas utilities.

The plan requires the institute to seek out matching funding, but there is no requirement to reduce the cost to utility customers when the institute raises additional money.

Under the commission plan, the surcharge wouldn’t be added to bills sent out by the Los Angeles Department of Water & Power or any of the other government-owned utilities..

elizabeth.douglass@

latimes.com