A Cloud of Pessimism Descends on S.F.

From storekeepers and midday shoppers to grim-faced downtown professionals, the mood in Pacific Gas & Electric’s hometown was universal pessimism Friday, as news of the utility’s bankruptcy filing and the worsening energy crisis coursed through the city.

Some termed the utility a greedy corporate entity that was only protecting its stockholders. Others blamed state government for a shortsighted deregulation plan and for a long-term failure to develop alternative sources of energy.

Still others blamed consumers for failing to heed the conservation message, saying that they felt sorry for PG&E;’s employees, from the linemen to the secretaries, who could lose their jobs.

The one thing everyone agreed on is that California ratepayers will be left to clean up the mess through higher energy bills.

“I saw this coming ages ago--it was just so obvious,” said Dennis Venturoni, a business analyst. “It goes back to deregulation when the utilities stopped running their own plants and began relying on outside generators, who could charge whatever they wanted--while the utilities had their rates frozen. A literal disaster waiting to happen.”

Tom Schmidt, a shoe repair store owner, said he was sick to his stomach over the fact that a billion-dollar corporation like PG&E; “could just cry No mas! and expect ratepayers to dig it out of its hole.”

“I think it’s just one of those political things--the utility set us up for the big fall,” he said. “By nature, filing bankruptcy is a shirking of responsibility. That’s what they’re doing. Maybe the ratepayers need to file for energy bill bankruptcy themselves.”

Under a steady Friday afternoon drizzle, Barbara Nichols agreed that the gray skies matched her economic mood. “We should all get together and refuse to pay our utility bills,” she said.

“And why not? PG&E; is looking after its stockholders, trying to leave it to ratepayers to pick up the tab. Well, I’m sick of picking up the tab. This is disgusting.”

PG&E; headquarters in San Francisco’s financial district was battened down and somber Friday. Security guards turned away everyone but employees from the company’s normally open lobbies. People with appointments were forced to wait for verification or escorts.

Most of the employees filing in and out at midday, grabbing lunch or a quick smoke, waved away requests for comment. Those who would talk did so only on promise of anonymity.

The mood at 77 Beale St. was a complicated mix of sadness and resignation, cautious optimism and duty. As providers of an essential service, several employees said Friday, it’s not as though they could stop working for very long--even after hearing such bad news.

When the company announced the bankruptcy filing to employees shortly before 10 a.m., the phones in the computer support department immediately stopped ringing, as workers filled PG&E;’s auditorium or dialed in to listen via conference call. Shortly afterward, though, work resumed.

One senior electrical distribution employee characterized the session as “upbeat”--or at least as upbeat as circumstances would allow. He said that PG&E; Chief Executive Robert D. Glynn Jr. announced the bankruptcy filing and gave five reasons for the action.

“The CEO was applauded for taking a stand on the energy crisis,” the worker said. “He thinks this will move things along and help end the stalemate in negotiations. . . . Our jobs should not be affected.”

One man who works in the billing department described Friday as “pretty much business as usual. I’ve got some things to do this afternoon. I’ll get them done. We’re going on with our lives. . . . It’s too bad it’s come to this, but [bankruptcy] may be the answer.”

One common refrain outside of the utility’s offices was that at least someone finally did something about the energy crisis that has loomed over the state for the last year. Bankruptcy is never good news, some said, but it’s not as though the Legislature or Gov. Davis had accomplished much.

“A lot of people were pessimistic about the state being able to do anything” about the crisis, said a PG&E; computer support technician. “This is something. People are carrying on. I think they saw this as a necessary move.”

‘Too Little, Too Late’ From the Governor

While the technician sympathized with Davis, calling him a “victim of circumstances,” he expressed anger at the federal government for sitting by and watching the California economy implode. “Do they think they can let the whole state divebomb and think it won’t affect the rest of the country?” he asked incredulously.

Not everyone was so understanding of the governor’s position. Verna Stephens, the receptionist in a downtown dental office, said she “got goose bumps” Thursday night watching Davis map out his strategy to ease the crisis. “It was all too little, too late,” she said.

“If the state had been on the ball, they would have anticipated this. They could have found alternative energy sources long ago. What about solar? What about nuclear energy? France runs 80% of its country on nuclear power, so why can’t we? Instead, our energy house of cards is collapsing.”

Serving coffee at a downtown cafe, Mike Alexander said he was resigned to the worst. “Sure I’m unhappy, but this was seemingly inevitable,” he said. “PG&E; is such a massive corporation, they’re going to get what they want. But who’s looking out for the consumer?”

San Francisco dentist Steve Bumgarner said ratepayers--especially business owners--deserve a share of the blame. “We all had our chance to conserve,” he said. “But you looked around every night and saw all the lights on. People didn’t get it.”

When she heard Friday’s bankruptcy filing news, florist Krystyna Rugienis gave a little mock sigh. “I hope they’re still able to pay for their flowers--they’re a client of mine,” she joked.

Rugienis said she was worried about many of the utility’s employees, who had become customers and friends. “I feel sorry for all of them,” she said.

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Times staff writer Tim Reiterman contributed to this story.