Umberg’s Star Power Leaves Calderon Holding a Political Hot Wire
By Robert Warne - February 14, 2002It appears bankruptcy hasn’t prevented PG&E from buying power. Within days of Legal Investigator Erin Brockovich’s infusion of star power into Tom Umberg’s campaign for California insurance commissioner—her nemesis Pacific Gas & Electric Co.—cut a $10,000 check for Tom Calderon.
When she announced her endorsement for Umberg, Brockovich said, “Tom Umberg is the pro-consumer Democrat for insurance commissioner.”
Brockovich became a household name following the release of the 2000 movie Erin Brockovich. She is one of the most recognizable consumer and environmental activists in the nation. The movie was based on how she exposed PG&E’s responsibility for contaminating the groundwater of Hinkley, CA.
The juxtaposition of Tom Umberg and Calderon, Brockovich and PG&E, is ripe for Hollywood.
The Northern California utility sought Chapter 11 protection last April amid the State’s power crisis, which raises the question of where it managed to scrape up an extra $10,000?
adjustercom.com contacted the U.S. Bankruptcy Court Northern District of California where PG&E’s bankruptcy is being handled, and was referred to a Bankruptcy Basics publication on its website. In short, the publication makes clear that the debtor (PG&E) retains ownership while under Chapter 11 protection and is allowed to run its business under normal circumstances. What remains unclear is whether political contributions are part of PG&E’s normal course of business and whether it had to seek approval from the court to do so beforehand.
Shad Balch, spokesman for Secretary of State Bill Jones, told adjustercom.com that, “It’s up to the court to make the decision for how the company is allowed to spend its money. Our job is to keep track of the donations.”
The extra $10,000 from PG&E lights up Calderon’s campaign where there’s been a dark cloud of insurance industry money. This has been a hot topic because it was insurance money that led to former Insurance Commissioner Chuck Quackenbush’s demise.
The Foundation for Taxpayers and Consumer Rights (FTCR) has been keeping track of the money insurance commissioner candidates have received from the insurance industry. Its novel invention, the “Quack-O-Meter” shows that Calderon has reached the $1 million mark of insurance industry contributions. With half of Quackenbush’s face appearing over Calderon’s name, he only has $1.5 million to go till he’s sporting a full portrait.
Umberg has refused to take contributions from the insurance industry and has pledged to restore integrity to the Department of Insurance.
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