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Email: California power regulator sought donation

By WTOP Staff

ELLEN KNICKMEYER
Associated Press

SAN FRANCISCO (AP) — California’s largest utility released an email Monday saying the state’s top regulator privately asked the company to donate more than $1 million to support an environmental ballot initiative, and a separate $100,000 to a celebration of the utility commission’s 100th anniversary.

Pacific Gas & Electric Co. also said prosecutors have informed the utility that federal authorities are investigating the legality of five years of back-channel communications between PG&E and the utility commission. The U.S. attorney’s office said it would have no comment.

The email is the latest in a series released by the utility and others that allegedly show PG&E executives privately negotiating with California Public Utilities Commission officials on matters related to rate increases and financial penalties.

Consumer groups and others say the emails show too-cozy relations between the utility and regulators, and the commission says some of the private communications may have violated its own rules.

In one email released Monday, from May 2010, former PG&E vice president Brian Cherry describes to PG&E colleagues a dinner he says he had just shared with commission President Michael Peevey.

“Mike stated very clearly that he expects PG&E to step up big and early” to oppose a ballot initiative that would have suspended the state’s historic climate change law, Cherry says in the email to another company executive. “Mike said … we need to spend at least $1 million.”

Later in the same dinner, Cherry said, he “jokingly” remarked that the utility could spend $3 million on the ballot initiative, if the utilities commission approved an unrelated $26 million payment that PG&E was seeking as a reward for its energy conservation program.

“He said that is a deal he could live with,” Cherry said of Peevey.

In the same email, the then-PG&E executive said Peevey also said he wanted PG&E to give $100,000 for a then-pending celebration of the commission’s 100th anniversary.

Neither Cherry nor Peevey could be reached for comment Monday. The CPUC said it already has commissioned a third-party review of its private communications with utilities.

PG&E eventually contributed $500,000 to defeat Proposition 23, which sought to repeal California’s landmark climate law and clean energy signed by then-Gov. Arnold Schwarzenegger, according to MapLight, an independent group that tracks campaign spending.

A state administrative law judge has summoned PG&E to a hearing Tuesday on earlier emails with top commission officials. In those emails, Peevey’s then-chief of staff and another commissioner, Michael Florio, negotiated with Cherry on picking the administrative law judge who would hear a PG&E rate case. Peevey was copied on at least one of those emails.

Florio declined to comment Monday on the new email saying Peevey had pressed PG&E for donations, or say whether Peevey should stay on as the commission’s leader.

“Not my decision to make,” Florio said.

Gov. Jerry Brown has had little public comment on the matter since saying in August that he still supports Peevey, who was first appointed to the board by Gov. Gray Davis in 2002. Schwarzenegger appointed Peevey to a second term, which expires this year.

Brown’s spokesman, Jim Evans, declined to comment Monday.

PG&E said Monday that Cherry and two other executives left the utility earlier this year over the alleged private communications between the state commission and utility executives.

“We took swift and decisive action” when PG&E discovered the alleged improper communications in a utility review of more than 6,500 emails, PG&E spokesman Keith Stephens said.

A watchdog group for ratepayers said the latest emails underscored for them that the utilities commission, and its head, had lost credibility.

“It’s just unbelievable that this kind of backroom double-dealing was going on for years,” said Mindy Spatt, a spokeswoman for The Utility Reform Network. “This is beyond what we imagined.”

Federal prosecutors already have filed obstruction of justice and other criminal charges in connection with a 2010 gas pipeline explosion that killed eight people and destroyed dozens of homes in the San Francisco suburb of San Bruno.

___

Juliet Williams in Sacramento contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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