Editorial, THE FRESNO BEE
Hiram Johnson might be smiling. The California governor introduced the initiative as a reform tool, a way for citizens to wrest power from railroads and other powerful interests that held sway over the Legislature in the late 19th century.
But in recent years, the people’s tool has been co-opted by the power players. In this election, the poster child for this was Proposition 16, the measure bankrolled by PG&E to shield the utility giant from competition.
But the voters proved they were smarter than PG&E’s campaign henchman. Despite spending $46 million to pass the initiative, Proposition 16 went down to defeat.
The utility’s stockholders should take note. Proposition 16 failed most heavily in PG&E service areas. In Fresno County, 61% of voters opposed the measure. In San Francisco, where PG&E is headquartered, it was voted down by 68%.
How can PG&E fend off competition? By simply providing better service and cheaper rates.
In the wake of Proposition 16’s defeat, it’s also time for the utility’s stockholders to hold its CEO, Peter Darbee, accountable. It was his idea to spend tens of millions of dollars on a dishonest campaign that voters ultimately rejected. In the end, Proposition 16 served to tarnish PG&E’s reputation and make its CEO look foolish.
Voters also wisely rejected Proposition 17, which like 16, was an initiative put on the ballot by a self-serving business. Mercury General, an insurance company, spent $16 million to pass Proposition 17 but lost in the end.
Voters can sometimes be bamboozled into approving bad initiatives. But this time they saw through the smokescreens. Good for them.
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Tags: big corporations, consumer, contributions, deceptive, Editorial, Mercury, Prop 17, trust, voters
