San Diego, CA

Lawsuit seeking to void San Diego’s franchise agreement with SDG&E tossed out

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A controversial settlement signed final yr between town of San Diego and San Diego Fuel & Electrical survived a authorized problem after a San Diego Superior Court docket choose on Wednesday dismissed a lawsuit that sought to declare the deal null and void.

The petition filed by attorneys Michael Aguirre and Maria Severson on behalf of San Diego resident Kathryn Burton alleged the franchise settlement between town and SDG&E did not adjust to metropolis guidelines and was negotiated behind closed doorways in violation of the Brown Act open conferences legislation — fees attorneys from the utility and town disputed.

The general public “didn’t even get to see what their metropolis officers did,” Aguirre stated throughout two hours of debate earlier than Decide Eddie C. Sturgeon on Nov. 18. “The place we need to go is to a trial.”

After taking the matter beneath submission, Sturgeon issued a ultimate ruling Wednesday granting a movement for abstract judgment in favor of town and SDG&E.

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The choose dismissed the alleged Brown Act violation as a result of the petition was filed earlier than Burton was really represented by Severson, thereby ruling that Burton lacked authorized standing.

The lawsuit additionally charged the San Diego Metropolis Council erred when it eliminated an merchandise from the council’s second studying — and approval — of the franchise settlement in June 2021.

Equally, Sturgeon dominated that Burton lacked a “direct useful curiosity” to justify receiving “public curiosity standing” in that criticism. He added there was no proof the vote “would have been any completely different had the Metropolis Council acted as petitioner argues it ought to have” and went to rule there was no violation of the Metropolis Constitution.

“We’re happy the court docket dismissed the allegations of their entirety,” SDG&E spokesman Anthony Wagner stated in an e-mail. “As an intervenor on this case, SDG&E has all the time asserted the franchise agreements had been awarded in a good and clear public course of after cautious analysis by town.”

In a franchise settlement, an area authorities grants a utility the unique use of public rights of approach for transmission and distribution, in addition to the precise to put in and preserve wires, poles, energy traces and underground gasoline and electrical traces inside its jurisdictions — on this case, throughout the metropolis limits of San Diego.

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Underneath the phrases of the deal handed on a pair of 6-3 votes by the Metropolis Council, SDG&E agreed to pay town:

  • $80 million — $70 million for the electrical franchise and $10 million for the gasoline franchise, and
  • $20 million to assist advance town’s local weather fairness targets, together with a lately created Local weather Fairness Fund that may construct parks, plant bushes and enhance public transit in lower-income areas.

The monies will come from shareholder funds, not ratepayer funds.

The utility may also put up $10 million for varied packages aimed toward rising entry to solar energy and rebates for residents residing in traditionally underserved communities.

The settlement runs for 10 years and has an computerized renewal for an additional 10 years — what Mayor Todd Gloria referred to as a “10-plus-10″ settlement. Nonetheless, if for any motive town is sad with SDG&E, it has a window to void the 10-year renewal, supplied two-thirds of the Metropolis Council votes towards extending the deal.

One other authorized problem to the franchise settlement is on the docket, additionally in Superior Court docket.

The Shield Our Communities Basis, an area environmental group has filed a lawsuit that argues town did not conduct a essential environmental evaluate of the deal, favored SDG&E throughout negotiations and that the settlement’s monetary provisions represent a tax that wanted to be authorised by voters.

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Superior Court docket Decide Katherine Bacal has scheduled a listening to for Dec. 9.



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