SoCal Takes Heat Over Proposed Service Fees
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For more than 100 years, SoCal has operated a utility very successfully from the Mexican border through the Los Angeles Basin over to the San Joaquin Valley all the way to San Simeon on the coast. It has done this by offering the sale and service of natural gas.
During the past 30 years, its parent, Pacific Enterprises Corp., has diversified into pistachio nuts, oranges, manufacturing, building, retail sales, etc. Its overall record has been dismal.
Recently PE stock on the NYSE has plunged, and its stock dividends have been greatly reduced. The stockholders will continue to pay, along with the many retirees and employees who have contributed their savings to a retirement stock-purchase plan.
PE seems to have decided to resolve poor diversification decisions with austerity programs at its moneymaker, SoCal. These programs have resulted in poor labor-management relations, the closure of branch payment offices in many communities--and now it wants to charge for routine services.
During the past few years of poor direction, the PE board, apparently a group of “good old boys” have voted themselves nice pay raises.
The parent firm should sell its troubled holdings and return to the business of operating a utility--a utility that is well-known and respected. Stockholders, employees, retirees and now the customers are paying for the ill-advised diversification.
Where were the state and federal public utility commissions when all this was happening? Where are they now?
HARVEY N. PALMER
Arroyo Grande
The writer is a retired employee of Southern California Gas Co.
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