CPUC Demands Explanation of PG&E Retention Bonuses

After criticism from regulators, legislators, media, and the public for the timing and quantity of its ?retention? bonuses, Pacific Gas & Electric will need to turn over a laundry list of data on its executive payouts to the California Public Utilities Commission next week. CPUC president Michael Peevey and commissioner Geoffrey Brown last month blasted PG&E for awarding $83 million in bonuses to senior executives as the ink was drying on the utility?s approved bankruptcy settlement. Brown called for a probe into allegations by the Greenlining Institute that PG&E not disclose costs for the perks in its 2003 general rate case, which examines costs of operations. Though shareholders traditionally pick up bonus costs, Brown expressed concern that ratepayers would foot the bill. Castigating PG&E for having a ?tin ear,? Peevey also called for an investigation. PG&E?s bonuses topped original calculations, observed administrative law judge Burton Mattson in his ruling. Greenlining told the commission that ?without objection by PG&E,? its estimate of the total value of the retention bonus program on the vesting date of January 31, 2003, was $84.5 million. Mattson also noted a San Francisco Chronicle article reporting that additional bonuses were handed out in January. By February 10, PG&E will need to explain, among other things, the specifics of the retention bonus program, including when it was set up, the operation of the program, its performance targets and results, and whether results met targets. The utility was ordered to state whether any of its bonus programs were disclosed in its general rate case. ?PG&E is surprised by the request, particularly because no party had requested that the case be reopened and no party was alleging that the retention program involved ratepayer funds. But nevertheless we will file all requested information,? said John Nelson, PG&E spokesperson.

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CPUC Demands Explanation of PG&E Retention Bonuses

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