SoCal Takes Heat Over Proposed Service Fees

Despite the denials of SoCal Chief Executive Richard Farman, the reality is that the heavy indebtedness of Pacific Enterprises has caused the funneling of vast quantities of profits from the utility “cash cow” to make up for the high-risk ventures of Pacific Enterprises Chief Executive James Ukropina (“Junk Bond Jim” as he is affectionately called by his SoCal Gas employees, who are major PE shareholders).

The result has left the utility weakened and less able to deal with deregulation.

The solution is to make up the lost capital by essentially raising prices and possibly jeopardizing consumer safety.

Of course, what Farman does not say is that the company will get a windfall profit from any such changes. Hence, it may keep any extra profit and put it back into failing Pacific Enterprises.

The price SoCal wants to extract for union cooperation in stabilizing the company is that our members no longer tell the truth to the press and the general public.

We have asked that a union representative be placed on the SoCal board and we’ve requested an early retirement plan that in our view would be cheaper for the ratepayer than the SoCal proposal. But the company refuses to discuss these items until we agree to a gag order.

What has really made them unhappy is that through their unions an alliance has been created between municipal leaders, community groups and SoCal employees. That alliance has already stopped the closure of branch payment offices, and we are trying to prevent additional service fees.

In fact, we have started a petition drive among consumers to stop any closures or service fees that will have a disparate impact on the poor, including the elderly and disabled. Our aim is to collect a quarter of a million signatures to help convince the PUC and the gas company not to make consumers and employees scapegoats for PE’s mismanagement.

JERRY ACOSTA

Los Angeles

The writer is president of Local 132 of the Utility Workers Union of America, AFL-CIO.