Peter Darbee '75 Tu'77 stepped down as Chief Executive Officer of Pacific Gas and Electric on April 30 after a federal investigation of a gas pipeline explosion in September 2010 and an ongoing decline in the public's faith in the company, according to Brian Herzog, PG&E public relations representative. Following Darbee's abrupt retirement, Amy Madsen Tu'96 strengthened efforts to remove Darbee from the Tuck Business School Board of Overseers and drafted a petition calling for his immediate dismissal. Although Madsen has reached a "dead end" in negotiations with Tuck administrators, she plans to continue efforts to gather support among other alumni, she said.
A California state ballot initiative sponsored by PG&E in June 2010 first sparked Madsen's concern regarding Darbee's position at Tuck, Madsen said. PG&E spent $46 million to support Proposition 16, which would have required any local government to win a two-thirds vote before creating a public power company. Although the proposition failed to pass, PG&E's support of the bill represented an attempt to "stymie competition," Madsen, a California resident, said.
The company's attempt to establish a monopoly disguised as a public-spirited ballot initiative angered Madsen, she said.
"It really disgusted me that the company spent $46 million to alter California's constitution and basically trick people," she said.
Madsen said that after a Google search revealed that Darbee was both a Tuck alumnus and a member of the Tuck Board of Overseers. she immediately emailed Tuck Dean Paul Danos and College President Jim Yong Kim to inform them of the controversial ballot initiative.
"They needed to know this was going on," Madsen said. "Is it legal? Yes, it's legal. Is it moral, ethical? I would say no."
Darbee and Danos did not return requests for comment by press time.
Darbee has not been accused of any wrongdoing by the PG&E's Board of Directors or the Public Utilities Regulatory Commission of California, according to William Achtmeyer Tu'81, a fellow member of the Board of Overseers.
"We would never get involved with an individual in a company where the Board of Directors or the public regulator decided he had done something he shouldn't have," he said.
The Tuck Board of Overseers is an advising body that provides information on various subjects including curricula and the current business world to the Tuck dean, Achtmayer said.
Public outcry against PG&E skyrocketed in the wake of a September 2010 gas pipeline explosion in San Bruno, Calif., which killed four people and destroyed 38 homes, according to The New York Times. PG&E continued to garner negative publicity for the installation of SmartMeters, a new energy-saving initiative that resulted in higher prices for customers.
The company had determined that the pipeline in question had an "unacceptably high risk of failure" in 2007, The Times reported. Although rate-payers were charged for repairs, the repairs had not been made, according to The Times.
Darbee decided to retire from PG&E in light of the challenges the company has experienced over the past year, according to Herzog.
"With a number of stakeholders, these challenges have diminished confidence in the company," he said. "Peter decided that his early retirement and a change of leadership would be the best option for restoring faith in the company."
Throughout the uproar in California regarding PG&E's conduct under Darbee's leadership, Madsen continued to contact Tuck administrators regarding Darbee's removal from the Board, she said. Madsen's campaign has been unsuccessful so far, she said. Danos told her that Darbee will maintain his position, Madsen said.
Darbee's generous contributions to Tuck of both time and money, as well as his willingness to hire Tuck graduates, have made him a popular figure on campus, Madsen said.
"There's a disconnect with the man on campus and the executive we've seen in California," she said. "I think it's hard for the school to be impartial, because when you've got an affluent and very generous alumnus, it's hard to criticize."
Darbee has been a valuable asset to Tuck over the years, Achtmeyer said.
"Peter has been a loyal overseer for the past few years and he has been a terrific proponent for longer than that in helping to recruit students as well," he said. "Tuck will retain Darbee because popular opinion is irrelevant to his function as an overseer."
The Board of Overseers cannot dismiss a trustee "because of speculation," Achtmeyer said.
"Obviously if he was in a position where he was charged with something, it would be different," he said. "The notion that we at the Tuck school are going to yield in effect to controversy is just not true."
