SACRAMENTO, California – Pacific Gas and Electric Company (PG&E) contributed $9.9 million to an independent expenditure committee in 2018, specifically targeting Proposition 8, a California ballot measure backed by billionaire environmentalist Tom Steyer. The utility's substantial financial involvement aimed to protect its existing infrastructure and business model from changes that would have facilitated the creation of local public power agencies. This significant spending was initially highlighted by Rob Pyers, who noted PG&E was "nearing $10 million contributed to the anti-Steyer IE committee."
Proposition 8 sought to amend a 2002 state law, allowing local governments to acquire utility infrastructure at fair market value rather than paying "stranded costs" when forming public power agencies. Tom Steyer, a vocal critic of PG&E, invested $5 million to qualify the measure for the ballot and an additional $10 million to support its passage. Proponents argued the measure would empower communities to pursue cleaner energy options and potentially lower utility rates.
PG&E was the sole donor to the "Californians Against the Deceptive Shasta Dam Initiative" committee, contributing $9.9 million to campaign against Proposition 8. The utility contended that the measure was "deceptive" and would lead to increased electricity rates and less reliable service for consumers. This expenditure underscored PG&E's consistent efforts to maintain its operational monopoly within California.
Ultimately, Proposition 8 was decisively rejected by California voters in 2018, with 68 percent voting against it, highlighting the significant impact of well-funded opposition campaigns on ballot initiatives. PG&E's substantial political spending on this measure is part of a broader pattern of the utility investing millions in lobbying and ballot initiatives to influence state politics and protect its interests.
Critics, such as Jamie Court, president of Consumer Watchdog, have consistently argued that PG&E leverages its monopoly power to influence elections and legislation.
"PG&E has a monopoly, and they use their monopoly power to influence elections and legislation. It’s a rigged system," Court stated. Despite facing billions in liabilities from wildfires and filing for bankruptcy in 2019, PG&E has continued to increase its political contributions, with reports indicating spending of $5.2 million in the most recent election cycle. Lawmakers and consumer groups continue to scrutinize how these funds are allocated and whether they align with ratepayer interests.
