California Governor Supports CPUC Overhaul

"These reforms will change how this commission does business," said Brown. "Public access to meetings and records will be expanded, new safety and oversight positions will be created and ex parte communication rules will be strengthened." The changes mean the CPUC “will become transparent and accountable to Californians and focused on the safety of our communities," said Gatto, chair of the Assembly Utilities and Commerce Committee. Legislators had cited the CPUC's handling of the troublesome transition of Verizon customers to Frontier Communications as one reason for overhauling state utilities regulation (see 1606020071).

"The reform initiatives announced today represent the start of a new chapter for the CPUC that will allow the focus to return to the work of our dedicated staff in providing for a safe and productive California," CPUC said in a statement. "Governor Brown and Legislative leaders understand that the work of the CPUC is important, and they are as committed as we are to ensuring that we build a CPUC capable of meeting the challenges of the 21st Century. The reform initiatives warrant our support, and we remain committed to an outcome that will provide enhanced accountability and transparency, and allow us to concentrate on core regulatory functions that protect Californians."

The governor’s office said it plans to work closely with the state legislature and affected state agencies “in the months ahead.” ACA-11 won’t go forward in light of the deal with Brown, a Gatto spokesman emailed. Gatto’s committee plans to consider SB-215 at a hearing Wednesday at 1:30 p.m. PDT, to be webcast on the Assembly’s website, he said.

Proposed changes to CPUC involve governance, accountability and transparency. California will assess state telecommunications governance by Jan. 1, 2018, the agreement said. The CPUC would gain statutory authority to consider outside reports from state, federal and academic sources. Commissioners would be able to issue alternate proposed decisions at any time before the commission votes. Other proposed changes would prohibit former regulated utility executives from serving on the CPUC for two years, allow any California agency to participate in CPUC proceedings without official party status and authorize the California attorney general to bring an enforcement action in superior court against any commissioner or CPUC staffer who violates ex parte communication rules. The proposed changes clarify how commissioners may act during different kinds of proceedings. The CPUC would be subjected to judicial review provisions of the California Public Records Act. And the proposal creates an ethics ombudsperson to take concerns from CPUC employees and members of the public.

The Utility Reform Network praised the package, saying the proposals "will improve the CPUC’s decision-making by limiting the role of private unreported communications with CPUC Commissioners and Advisors, ensuring that decisions are based on publicly disclosed evidence, and moving critical discussions into public forums where all interested stakeholders can contribute.” TURN Executive Director Mark Toney said the bill “offers concrete improvements to promote transparency, close loopholes in the current process, and limit the opportunities for private interests to seek special favors behind closed doors.”