Michael Peevey, a former utility executive and energy industry entrepreneur, was reappointed last Friday to another six-year term on the California Public Utilities Commission (CPUC) and retained as its president. Gov. Arnold Schwarzenegger also reappointed CPUC member Rachelle Chong.

The appointments require confirmation by the state Senate.

Peevey, 70, was originally appointed by Schwarzenegger predecessor Gray Davis and was later reappointed and made CPUC president by Schwarzenegger, who can select another member of the five-member panel to the top position at any time. Chong, 49, a former Federal Communications Commission (FCC) member, was selected for the CPUC by Schwarzenegger three years ago after the governor tapped then-CPUC member Susan Kennedy to be his chief of staff.

Consumer group The Utility Reform Network (TURN) Monday blasted the retention of the members, calling it a “step backward for California and a blow to consumers.” TURN said change is needed at the CPUC, charging that the past terms of Peevey and Chong have been marked by “higher utility bills, reckless deregulation similar to that seen in the banking industry, and excessive ratepayer costs for overpriced utility projects,” such as the multi-billion-dollar, five-year change to smart meters by the state’s four largest private-sector utilities.

“There is a widespread agreement throughout the United States that change is needed to fix our country’s economic problems,” said TURN Executive Director Mark Toney. “California can and should be at the forefront of that change. To do so we need to move away from reckless deregulation toward responsible regulation in the public interest.”

Peevey has served as president of the CPUC since 2002 and is a Democrat. Chong, a Republican, has served since 2006 and was originally appointed to the FCC by President Bill Clinton. Peevey is an economist and Chong is one of four lawyers on the CPUC. Schwarzenegger made no comment on the appointments.

©Copyright 2008Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.