"Common Cents" letter from Michael Shames

UCAN News

Editor's Note:
In September of 2008, UCAN mailed 25,000 nickels out to its most valued members.
This letter explains why.

 


             I used to think "Somebody
 
         should do something about that,"

                 " then I realized I was somebody "   

                                                                                                           - Lily Tomlin

Dear Friend,

   You and I have something in common: We both know the value of a dollar. And if you're reading this letter, you probably know the value of a nickel, too. I included a nickel in this mailing to get your attention (it worked) and to remind you of something that we share in common.

  I believe you and I have common cents.

  That is, we both appreciate the value of our hard-earned money. Separately, our "common cents" may not amount to much, but by pooling our change, we can affect positive change (OK, I promise ... no more puns).

  UCAN is a great example of this pooling power. Over the years, more than 60,000 San Diegans, like yourself, have made enough small donations to help build the most powerful and respected regional consumer group in the United States. Since 1984, UCAN has protected you from being "nickeled to death" by the likes of SDG&E, telephone and cable companies, gasoline companies, insurers, water utilities, and other unscrupulous and disreputable corporations.

  But there is also another common sense reason why I sent you this nickel ...

  ... it symbolizes what I call the "Nickel Paradox."

  This nickel is worth more than you think ... and less. On the one hand, government and corporate policies are devaluing that nickel. California and federal regulators view your nickels almost with contempt. They approve rate increases that might seem small to them yet spread over 12 million customers statewide, they add up to hundreds of millions of dollars siphoned out of your pockets into the accounts of regulated companies. And, as we explain in the enclosed newsletter, the Federal Government has lied to you about the impact inflation is having on you.

   And in the so-called unregulated industries -- such as telephone, gasoline and banking - corporate giants are using nickel-and-dime pricing strategies to charge you more while providing you with less.

   Government indifference and corporate greed, combined with real inflation and the devalued dollar, have resulted in your nickel being less valuable during a time when that nickel should be treated with more respect than ever. These are tough times for working folk and pensioners ... and nickels (and any other change) are increasingly important to every San Diego household. Yet, those who are supposed to be protecting your nickels are increasingly treating them with contempt.

  That's why UCAN is fighting 5 Common Sense battles to protect you:

  Common Sense Battle #1: Stopping SDG&E's $1.7 Billion Boondoggle

  As I write this letter, SDG&E is mounting an all-out attack on your wallet. They've bribed, badgered, and misinformed San Diego's most prominent leaders into believing that to comply with California's "green" energy mandates, it must spend roughly $1,500 per ratepayer (that's you) to build the so-called Sunrise PowerLink across the Anza-Borrego State Park. Then, once it is built, the project will cost another $7 billion in maintenance and financing fees over the next 40 years.

  UCAN has fought the construction of this line so aggressively in regulatory court that SDG&E perjured itself and lied to the California Public Utilities Commission to prevent UCAN from delivering a win to ratepayers (see our Summer 2007 Watchdog). We came out swinging. Our attorneys submitted 900 pages of expert testimony proving that there are at least five cheaper, "greener" alternatives to the Sunrise PowerLink (you can read the summary on our Web site at www.ucan.org).

  The battle still rages. In our fall edition of the Watchdog, we will be focusing our attention on the Sunrise Powerlink, so if you are a member, watch your mailbox - it's coming soon. If you are not a member, I urge you to join us today to help fund the fight against this horrific financial and environmental abuse.

   Common Sense Battle #2: Water Utility Follies

   We may not be able to lower your water rates, but we have exposed water rate fraud and government malfeasance in regards to water and sewer services.

   If you live in the City of San Diego, you were systematically overcharged for your water in the late 1990s. UCAN's watchdogs sniffed out this fraudulent billing in 2003 and notified the city, which refused to refund the overcharges. They forced us to take them to court at a legal cost of $4 million (it takes a lot of money to fight City Hall).

  UCAN won that legal action and returned $35 million to you, the ratepayer.

  That legal action resulted in an average refund of roughly $125 per meter in San Diego. But our advocacy on water issues hasn't stopped there. As you will read in the enclosed Watchdog, UCAN has developed a countywide water efficiency plan that can save us from an imminent water emergency without rationing, and build a long-term model for economic growth that can sustain San Diego for the rest of this century. Unfortunately, this plan will be resisted by powerful political interests. With your help, we can bring meaningful reforms.

  Common Sense Battle #3: Fighting gasoline price gouging

  When I started our gas project back in 1996, San Diego was paying the highest price in the continental USA for gasoline. Meanwhile, in LA, gasoline averaged as much as 25¢ a gallon less than San Diego. The difference is significant - for the average commuter, this type of redlining costs roughly $250 a year. UCAN's advocates worked aggressively to expose the oil industry's ruthless pricing policies.

  At the time of this writing, gasoline in LA averages about two cents more than San Diego gasoline - about what it costs to ship fuel through the pipeline to San Diego. While there are still huge problems with gasoline in San Diego - and horrific inequities in Southern California markets, we estimate that by minimizing the San Diego / Los Angeles "Gouge Gap" that UCAN has saved motorists an estimated $40 million a year.

  Common Sense Battle #4: Protecting your privacy

  Most people don't realize it, but your privacy is a financial issue. If your financial information gets into the wrong hands, it could permanently ruin your credit and even cost you your job. Yet a few years ago, if you were an ID theft victim, the police wouldn't even take your complaint. Thanks to our privacy project at www.privacyrights.org, and our aggressive actions on your behalf at the state and federal levels, the San Diego police are now required to help you. If the criminals are caught, they're going to go to jail ... where they belong.

  Common Sense Battle #5 Exposing big phone companies

  If you are tired of being ripped off and deceived by your land line and cell phone companies, (especially your cell phone carriers) you should know that UCAN has returned hundreds of millions of dollars to consumers just like you by exposing fraud and abuse at major phone companies. Our attorneys have proved in court that Pacific Bell and SBC (now AT&T) intentionally defrauded phone customers with deceptive plans and sales pitches, resulting in tens of millions of dollars being returned to ratepayers.

Earlier this year, we went after AT&T for international call billing abuses. Just last week we filed additional actions against Sprint and Telepacific for their fraudulent billing practices. In addition, our advocates have fought aggressively against wireless companies that sell cell phones that don't work due to reception "dead zones," bad return policies, and predatory contracts that force you to pay extra or renew your contract without your consent.

  Common Sense Battle #6: Personal help protecting you from rip-offs

  UCAN is the ONLY consumer group in San Diego that operates a member hotline dedicated to protecting you from utility scams and general consumer fraud. If you've been ripped off, you can call 619-881-UCAN and get personal hands-on help to resolve your disputes with your wireless, landline, or cable phone company, your electric company, and even cases of general consumer abuse. No other consumer group in the USA intervenes as aggressively as UCAN does on behalf of its members (see benefits on the enclosed order form).

  You value your money. So does UCAN.

  Government indifference. Corporate greed. Hyper-inflation. It's time you and your money are treated with a little more respect. Yet, the people who should be protecting your nickels are treating you with jeers and contempt.

  I've dedicated my professional life to making those changes by enforcing the law and reminding the big utilities and our political leaders that they are accountable to the law and ratepayers like you.

  We may not have all the money we need, but with your help (your common cents) and the truth, we do have the power. I invite you to exercise it today by returning the enclosed order form with a generous donation ... or better yet, donate online with your credit card at www.ucan.org (that will save us a lot of nickels).

  Sincerely,

Michael Shames
Executive Director


P.S. If times are tight and you just can't afford to contribute now, just hold onto the enclosed nickel. If nothing else, it will remind you of UCAN's efforts to protect you from being nickeled to death by the big utilities. And if you ever feel that you are being nickled, call our Fraud Squad and let them know. We're ready to take the nicklers on...

....on your behalf. And on our dime.

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