Fresno should explore the idea of quitting PG&E and starting its own electrical utility

Here is an idea whose time has come: Fresno should research if it makes sense for the city to get off Pacific Gas and Electric Co. for power and become its own provider of electricity.

Studying the issue vs. actually becoming an electrical utility are, of course, two different things. The idea of exploring whether to become an electrical utility comes to the City Council on Thursday, where the concept will run into opposition by at least two members.

What is fueling the debate at the moment is the white-hot anger of some city leaders at California’s major utility. Fresno officials are mad for how PG&E is, in their view, holding up installation of key equipment to power new housing subdivisions.

As a result, builders cannot finish their projects, and homebuyers are left renting and waiting for when they can move in.

“In short, PG&E is singlehandedly destroying our local economy,” Mayor Jerry Dyer said at a Monday press conference.

That may be a bit overdramatic. But the problem is creating a human cost. Mike Prandini, president/CEO of the Building Industry Association of Fresno and Madera counties, said at the same news conference that builders have had to find temporary housing for around 400 families whose homes have not been energized on time. “Some of these people have already sold their home or given notice for their apartments and are now stranded and looking for a place to call home,” Prandini said.

Dyer and other local leaders also decried continual rate hikes by PG&E that take a toll on local businesses.

PG&E reaction

For its part, PG&E issued a statement that blames the situation on problems with getting a key piece of equipment — transformers — needed to energize new subdivisions. Those problems are due to the supply-chain backups caused by the COVID pandemic, it explained.

PG&E also said it underestimated the demand for new service connections, and is having trouble getting enough workers.

“While we understand the frustration some are feeling, exploring a public takeover will not benefit customers – whether in Fresno or elsewhere,” the PG&E statement said.

On a conciliatory note, the company added “We are committed to working together to solve these challenges.”

But the company also took a defensive posture when it said it won’t sell any of its infrastructure.

“PG&E’s assets are not for sale, and even exploring municipalization will likely impose significant long-term costs on local taxpayers,” the company statement said.

That part about “even exploring municipalization” certainly shifted the tone. It was downright bullying. A city has every right to explore what might make the most sense for its citizens. PG&E should know better.

Study, then decide

Dyer pointed out that Fresno already operates three utility services: trash collection, water and sewer. So adding electricity might make sense and might not be that daunting.

Councilmember Miguel Arias is skeptical. He told Bee staff writer Brianna Vaccari that Fresno has enough troubles maintaining the systems it currently operates. And he thinks the priority for setting up power would go to market-rate developments, not those aimed at affordable housing for low-to-moderate-income buyers.

Council President Nelson Esparza is doubtful the economics of running an electrical utility will add up to an advantage.

The city conducted a study three years ago into becoming a community choice power provider. Under that concept, the city buys electricity and then sets its own rates. The private utility keeps ownership and operates the electrical grid. At that time, not enough savings were to be realized, so the city did not go forward.

Fresno would not be alone if it decided to take over electrical power. The California Municipal Utilities Association has 46 public-agency members providing power to residents. The biggest is, of course, Los Angles Water and Power.

Arias’ questions are exactly why a study needs to be done. It is worth getting fresh information that would inform the public and decision makers. The council should hire a worthy consultant to research the issue, then make the decision that is best for residents.