Peevey Holds Ground on Otay Mesa

With characteristic toughness, Michael Peevey, California Public Utilities Commission president, rejected consumer groups? demand that he bow out of voting on San Diego Gas & Electric?s controversial proposal to buy output from the Otay Mesa plant. The deal is part of SDG&E?s grid reliability request for proposals. Peevey refuted charges by The Utility Reform Network and the Utility Consumers? Action Network that he is biased toward the deal. He also rejected assertions that he played a central role in negotiations between SDG&E and Calpine, which owns Otay Mesa (see Circuit , May 14, 2004). Contrary to implications of the TURN/UCAN motion, ?SDG&E and Calpine reached an arm?s-length agreement? on the power-purchase deal without his intervention, said Peevey in a May 25 ruling. Moreover, the CPUC president said he never had a ?predetermined outcome in my mind as to what would be the ?best? or the ?right? outcome? of SDG&E?s request-for-proposal process. Votes on the proposed decisions on SDG&E?s grid reliability RFP, including Otay Mesa, were pushed to the CPUC?s June 9 meeting.

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Peevey Holds Ground on Otay Mesa

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