LAKE TAHOE, Calif./Nev. – After Liberty Utilities announced that they would be entering the market, it renewed TAHOE SPARK’s call for investigations into the company and their practices—especially how it affects ratepayers in the area.
Danielle Hughes, who serves as a supervisor of the California Energy Commission (CEC) and on the board of the North Tahoe Public Utility Board, said she expressed concerns around rates increasing for Tahoe customers with the 2021 general rate case for Liberty Utilities. Hughes said she formed TAHOE SPARK to represent residents, because during the rate increase, the major representation was for large commercial interests.
Now, though she says, “I keep uncovering more and more. There is clear cost-shifting happening and no one is overseeing it.” Hughes says that in her position, she noticed that Tahoe is not factored into energy modelling or in plans for the California Public Utilities Commission (CPUC). “This is so broken.”
The lack of oversight is a major concern for TAHOE SPARK, especially because she says it’s easy to take advantage of the more rural Northern California areas. Rates have been increasing at a faster pace than the rest of the state, and while Tahoe pays into climate programs and wildfire mitigation, Hughes says the region doesn’t receive the benefits of climate credits, which can be shifted around by companies.
A lack of transparency is a major reason why TAHOE SPARK has been advocating for a shift on the local governance level, including the city of South Lake Tahoe and reaching out to supervisors in the counties.
TAHOE SPARK is also sounding the alarm on the high profit margins of Liberty Utilities—higher than any other utility in California. Hughes also said she has pointed out they have non-disclosed lump sum payments and compared what was happening with Liberty Utilities and NV Energy (owned by Berkshire Hathaway) to the restructuring of ENRON.
“These issues are complex and hard to acknowledge when they’re this bad,” said Hughes, pointing out that both in politics and everyday life, utilities and their companies are hard to wrap your head around. “But that’s why I want to educate people about what’s happening. Otherwise, how are we going to participate in rate setting and advocating for ourselves?”
One of TAHOE SPARK’s main pushes is to get Tahoe connected with California’s energy, where there would be more required oversight and transparency. The CPUC is currently deciding on whether to open proceedings regarding Liberty Utilities’ rate increases.
According to a Liberty spokesperson, “Liberty supports public participation in CPUC proceedings, which are transparent and open to public input. Liberty’s mission is to deliver safe, affordable, reliable, and sustainable energy for our customers and communities that we serve. Liberty works collaboratively with the CPUC and other interested parties to achieve these goals.”
TAHOE SPARK is interested in looking at transparency on the generation side, and one major move that could be happening is considering Pioneer Community Energy as an option, which already services Placerville and El Dorado County. “That would allow us oversight from the local government,” said Hughes.
Hughes also urged people to reach out to their representatives about the issue, especially given the deadline in a year. State Senator Marie Alvarado-Gil is one of the representatives who is seeking input about reliable power for Tahoe. The CPUC will likely be deciding on opening proceedings within the next few weeks.
