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	<title>Brian Cherry &#8211; CalWatchdog.com</title>
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		<title>New signs of pattern of misconduct with Peevey, PG&#038;E</title>
		<link>https://calwatchdog.com/2015/02/17/more-evidence-pattern-of-misconduct-with-peevey-pge/</link>
					<comments>https://calwatchdog.com/2015/02/17/more-evidence-pattern-of-misconduct-with-peevey-pge/#comments</comments>
		
		<dc:creator><![CDATA[Chris Reed]]></dc:creator>
		<pubDate>Tue, 17 Feb 2015 19:15:24 +0000</pubDate>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Inside Government]]></category>
		<category><![CDATA[Regulations]]></category>
		<category><![CDATA[Waste, Fraud, and Abuse]]></category>
		<category><![CDATA[PG&E]]></category>
		<category><![CDATA[Proposition 23]]></category>
		<category><![CDATA[HECA]]></category>
		<category><![CDATA[Tom Bottorf]]></category>
		<category><![CDATA[Brian Cherry]]></category>
		<category><![CDATA[Chris Reed]]></category>
		<category><![CDATA[Michael Peevey]]></category>
		<guid isPermaLink="false">http://calwatchdog.com/?p=73957</guid>

					<description><![CDATA[The initial investigations by several newspapers and other media into former California Public Utilities Commission President Michael Peevey&#8217;s relationship with Pacific Gas &#38; Electric quickly produced several bombshells. Emails show]]></description>
										<content:encoded><![CDATA[<p><img fetchpriority="high" decoding="async" class="alignnone size-full wp-image-73961" src="http://calwatchdog.com/wp-content/uploads/2015/02/PGE.jpg" alt="PGE" width="348" height="163" align="right" hspace="20" srcset="https://calwatchdog.com/wp-content/uploads/2015/02/PGE.jpg 348w, https://calwatchdog.com/wp-content/uploads/2015/02/PGE-300x141.jpg 300w" sizes="(max-width: 348px) 100vw, 348px" />The initial investigations by several newspapers and other media into former California Public Utilities Commission President Michael Peevey&#8217;s relationship with Pacific Gas &amp; Electric quickly produced several bombshells. Emails show Peevey pressured PG&amp;E to give money to oppose Proposition 23, the failed 2010 ballot measure opposing AB 32; appeared to link his support for rate hikes to PG&amp;E actions on unrelated issues; and was open to PG&amp;E efforts to influence inquiries into a San Pedro pipeline explosion that killed eight people.</p>
<p>But a new San Francisco Chronicle <a href="http://www.sfgate.com/news/article/PG-E-e-mails-may-prove-pivotal-in-building-case-6082926.php" target="_blank" rel="noopener">account</a> suggests that rather than these being isolated cases, a you-scratch-my-back-I&#8217;ll-scratch-yours approach was Peevey&#8217;s modus operandi when dealing with the giant Northern California utility. He sought to prop up a project by the Hydrogen Energy California (HECA) firm by constantly reminding PG&amp;E how much he had done for it.</p>
<p><em>A Pacific Gas and Electric Co. executive exploited former state Public Utilities Commission President Michael Peevey&#8217;s intense interest in a Kern County alternative-energy project in making a backroom deal to win favorable treatment for the company, newly released e-mails show.</em></p>
<p><em>Among the 65,000 e-mails that the company made public last month was a string of contacts between Peevey and since-ousted PG&amp;E Vice President Brian Cherry that could prove pivotal to state and federal prosecutors probing possible wrongdoing at the agency.</em></p>
<p><em>A Chronicle review of the e-mails shows that in late 2013, Cherry went so far as to tell Peevey that “you owe” another PG&amp;E executive for keeping alive the struggling $4 billion project near Bakersfield. A month later, Cherry called on Peevey’s top aide to repay the debt by intervening to appoint an administrative law judge he wanted to oversee a $1.3 billion rate case.</em></p>
<p><strong>Socializing &#8212; and swapping favors?</strong></p>
<p>The latest piece also adds to the already-established picture of Peevey regularly socializing with top utility executives while discussing major issues.</p>
<p><em>HECA was still languishing on Jan. 1, 2013, when Cherry wrote a memo to his boss, Tom Bottorf, about a New Year’s Eve he had spent with Peevey at Sea Ranch in Sonoma County, where both men had vacation homes.</em></p>
<p><em>“Mike will be reaching out to you in a few weeks over HECA. He strongly believes in this project and its importance to the state of California,” Cherry told Bottorff. &#8230;</em></p>
<p><em>Peevey then reminded Cherry that PG&amp;E had had “a great day” at the utilities commission’s most recent meeting, when Peevey had pushed through a regulatory decision in the company’s favor. The decision — opposed by customer advocates — awarded $29 million to utilities to encourage them to get customers to reduce energy use, even though the companies had failed to meet conservation targets.</em><em>After stressing how much PG&amp;E had benefited, thanks to his efforts, Peevey said that “HECA was important to him,” Cherry wrote. “I told him I got the message and would forward it on.</em></p>
<p><em>“We ended the conversation with a dram or two of Johnny Walker Blue Label.”</em></p>
<p>There is still no publicly revealed evidence of bribery or overt corruption. But legal experts say even without such evidence, Peevey is legally vulnerable under anti-corruption statutes dealing with improperly influencing government decisions that are supposed to be  ministerial &#8212; based on set standards &#8212; not transactional &#8212; based on unrelated favors or actions done by regulated utilities.</p>
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