FOR IMMEDIATE RELEASE: Tuesday, April 29, 2008
City Files to Confirm Right to Purchase PG&E Assets
(Stockton, CA) – The City of Stockton filed an action in San Joaquin County Superior Court today asking the court to confirm whether the City's right to purchase Pacific Gas & Electric Company’s (PG&E’s) assets is valid and enforceable.
The City negotiated a contract with PG&E in 1954 that allows the City to purchase PG&E's assets and enter the electrical utility business. The analysis performed by the City so far shows that the potential buyout of PG&E's assets in Stockton provides a unique opportunity for residents to get better service and lower rates while also providing revenue for badly needed city services, especially more police officers.
A decision to buy PG&E assets and enter the electric utility business is very complex and the City has only begun to analyze whether this is a prudent investment. An ad hoc subcommittee of the City Council has been formed to examine the complexities and the opportunity. More detailed study is necessary to determine how to best manage the utility and whether it would be financially feasible.
“We will study the issues and opportunity,” stated Mayor Ed Chavez. “The opportunity will be examined thoroughly, and we will only move forward if it is determined to be in the best interests of our citizens and the City.”
PG&E has denied the validity of the City's contract right, both in meetings with City officials and in the media. Before detailed further analysis is undertaken, the City will make sure it is on firm legal footing as to its rights under the 1954 contract with PG&E.
Should the court rule that the City's right is valid, the City will then have a firmly established contract right which will form the basis for present and future City Councils to make an educated decision about whether to enter into the electricity business for the benefit of the residents of Stockton.
For additional information, contact City Attorney Ren Nosky at (209) 937-8333.
###
|
Page
last updated