In April, when Public Utilities Commission Chairman Michael Peevey persuaded the PUC board to back his plan to use $600 million generated by a 10-year surcharge on some energy bills to create a PUC-run global warming think tank, the response was far chillier than he probably expected. Gov. Arnold Schwarzenegger was enthusiastic, but he was practically alone. Experts on utility law questioned whether it would be legal for an agency created to regulate utilities to force ratepayers to subsidize an agency think tank. Consumer groups such as The Utilities Reform Network questioned the fairness of imposing an additional de facto...