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| GETTY MONEY, CON BEAUX, MORE TRASH TALK Adriel Hampton San Francisco Examiner Wednesday, October 15, 2003 In a debate that broke away from the traditional "Get Gavin Newsom" format common to many neighborhood forums, journalists hammered each of the six top candidates for mayor in Tuesday's broadcast event. Supervisor Newsom, who has positioned himself as a strong frontrunner through a tough love approach to homelessness, was asked whether he was using the poor for political gain, as his critics charge. Newsom defended his approach, saying reforms are needed because of a high number of deaths, and because the current reality is not working. "We need to do more, and we need to do better," he said. Matt Gonzalez, president of the Board of Supervisors and a member of the Green Party, was asked whether he was too far left politically to work with the business community. Gonzalez said the board as a whole has been pro-business, voting for a settlement on The City's tax structure that lost $35 million a year in revenue. He said he opposed the settlement because it left in place only a payroll tax. He characterized his moves to limit chain stores in neighborhoods that don't want them as addressing a center issue. Responding to a question on whether there are city streets unsafe for children at night, and which ones, attorney Angela Alioto named a number of city avenues without hitting such hot buttons as Sixth Street. "We simply don't have safe streets," she said, calling half of The City unsafe and saying she would solve the problem by pushing for better police performance. Treasurer Susan Leal said she supports the Police Department, but thinks more enforcement is needed when drug dealing goes on in plain sight of police officers. Progressive Supervisor Tom Ammiano was hit with the question whether he's moved to the center for political expediency. Ammiano said that building consensus doesn't mean moving right, that he's the same hardworking and honest guy he's always been. "I'm a more centered person," he said. Former police chief Tony Ribera, the sole Republican in the race, revealed that he would keep on Police Chief Alex Fagan, and said Fagan and Assistant Chief Heather Fong are doing a fine job. He said the answer to police reform is a mayor who will appoint strong police commissioners. Newsom responded with grace to a question about the popular leftist joke "Newsom's opposed to panhandling unless it's from the Gettys," the billionaires who've helped Newsom in his business career. Newsom said the Gettys want nothing from San Francisco and are great philanthropists. He said he has an "extended family" relationship with them. Asked about perceived failures of Mayor Willie Brown's administration, Newsom stayed clear of bashing the incumbent, who has supported him, and said he would focus on turning around The City's economic fortunes. "I'm a different person," he said. "A person who likes to be held responsible." Gonzalez positioned himself as a candidate supportive of law enforcement, but willing to criticize when he thinks cops get out of line. He also said he thinks real estate speculation is an acceptable practice, but that The City needs to better secure its long-term investment when it subsidizes housing. Alioto was asked about her judgment, when she nearly went bankrupt as a Board of Supervisors member and once dated a con man. Alioto said she's a workaholic -- working too hard at the board for little pay -- and that her relationship was a mistake. "I made a mistake," she said, adding that plenty of people live with regrets. "I'm sure Hillary feels she's made a few mistakes." Ribera said as a Republican, he's apart from San Francisco's "failed system," but that he gets along well with the other officials. He said he's tired of a government of friends and foes. "Willie either likes you or he doesn't," he said. Hit on crafting a measure that enabled voters and a city commission to award the supervisors a 200 percent raise in a tough budget year, Gonzalez said he thinks voters are better served by having full-time legislators who don't have to rely on outside work that might present conflicts of interest. Supervisors, until this summer, earned less than $40,000 a year. Both Ribera and Leal emphasized strong management skills, with Ribera touting his success in keeping a $230 million police budget in the black and Leal pointing out her solid track record in managing $3 billion in city assets -- bringing in a better return than other major counties in the state. |
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| San Francisco-based The Utility Reform Network (TURN), City Attorney Dennis Herrera, cement-maker Earl Bouse of the California Large Energy Consumers Alliance and representatives of Consumers Union and Aglet Consumer Alliance are asking the PUC to support modifications to the bankruptcy bailout. TURN claims the modifications could save ratepayers nearly $3 billion over the deal's nine-year life without jeopardizing the utility. | ||
| "We are here because we don't believe that a bankrupt corporation should use bankruptcy provisions to emerge with a windfall profit," executive TURN director Nettie Hoge said at a press conference. | ||
| PG&E representative Ron Low called the numbers "phony" and said increased financing costs under TURN's plan would cost more than $1.5 billion and drown out what the utility's experts estimate as a $400 million savings. | ||
| "They use fuzzy math to help them achieve a number that sounds good," Low said. "They've used slick financial accounting to help them achieve a higher number." | ||
| PG&E sent a representative to the press conference with a list of questions for TURN, pointing out that two of its expert witnesses have experience with energy firms found culpable for deregulation failures. | ||
| Hoge called the charges "utter b.s." and said PG&E is avoiding discussions of content because it wants to facilitate a smooth transfer of wealth to stockholders. She also accused PG&E lobbyists of doing "everything but breaking knuckles" at the statehouse to keep legislators from supporting TURN's plan. | ||
| "Ladies and gentlemen, the green light is up for greedfest," she said. | ||
| If the PUC approves the bailout, PG&E is confident it can emerge from bankruptcy court by early next year with a blue chip credit rating that will make it easier to raise $7.7 billion to repay its creditors. The utility's credit rating has been stuck at the junk level since soaring wholesale electricity prices in 2000 and 2001 depleted PG&E's accounts. State regulators subsequently raised consumer electricity rates to help the company recoup its losses. | ||
| The bailout entitles PG&E to keep up to $4 billion accumulated through excess rates during the past three years, and pocket up to $5.3 billion more through 2012. | ||
| In return, PG&E will drop various lawsuits against the PUC, abandon an effort to break away from state regulation and protect 140,000 acres of San Luis Obispo watershed the company values at $300 million. | ||
| By continuing to charge customers far more than the true cost of electricity, the bailout will diminish the profits of big power users such as Hanson Permanente Cement, where Bouse oversees manufacturing. | ||
| "Why should we have to bail out PG&E?" Bouse said. "If my business went bankrupt, I doubt anyone else would be coming to my rescue." | ||
| PG&E stopped paying shareholder dividends in January 2001 and can't restore the payments until July 2004, at the earliest. By then, PG&E says its shareholders will have missed out on more than $2 billion in suspended dividend payouts. But the bailout is expected to enable PG&E to pay higher future dividends. Critics say its excellent stock performance shows the utility is getting a sweetheart deal. | ||
| The Associated Press contributed to this report. |