Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 825


Introduced by Assembly Member Rendon

February 26, 2015


An act to amend Sectionsbegin delete 314.5, 583, and 1759end deletebegin insert 314.5 and 583end insert of, to amend, renumber, and add Section 309.1 of,begin delete andend delete to add Sectionsbegin delete 309.2, 468, and 717end deletebegin insert 309.2 and 468end insert to,begin insert to add Article 1.5 (commencing with Section 720) to Chapter 4 of, and to repeal and add Article 3 (commencing with Section 1756) to Chapter 9 of, Part 1 of Division 1 of,end insert the Public Utilities Code, relating to the Public Utilities Commission.

LEGISLATIVE COUNSEL’S DIGEST

AB 825, as amended, Rendon. Public Utilities Commission

(1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, gas corporations, heat corporations, telegraph corporations, telephone corporations, and water corporations. Existing law requires the Governor to designate the president of the commission from among its members and requires the president to direct the executive director, the attorney, and other staff of the commission, except for the Division of Ratepayer Advocates. Existing law requires the commission to appoint an executive director who is responsible for the commission’s executive and administrative duties and to organize, coordinate, supervise, and direct the operations and affairs of the commission and expedite all matters within the commission’s jurisdiction. Existing law authorizes the executive director to employ those officers, administrative law judges, experts, engineers, statisticians, accountants, inspectors, clerks, and employees as the executive director deems necessary to carry out the provisions of the Public Utilities Act or to perform the duties and exercise the powers conferred upon the commission by law.

This bill would prohibit the commission from reassigning any staff member from a duty or activity authorized by statute to another duty or activity unless the Legislature has authorized personnel for that duty or activity. The bill would require the commission’s internal auditor to report directly tobegin delete the president, executive director, and the attorney toend delete the commission.

(2) The California Constitution authorizes the commission to establish rules, examine records, and prescribe a uniform system of accounts for all public utilities. The Public Utilities Act requires the commission to inspect and audit the books and records of electrical corporations, gas corporations, heat corporations, telegraph corporations, telephone corporations, and water corporations for regulatory and tax purposes. An inspection and audit is required to be done at least every 3 years if the utility has over 1,000 customers and at least every 5 years if the utility has 1,000 or fewer customers. The act requires that reports of the inspections and audit and other pertinent information be furnished to the State Board of Equalization for use in the assessment of the public utilities.

This bill would delete the requirement that the reports of the inspections and audit and other pertinent information be furnished to the State Board of Equalization for use in the assessment of the public utilities and instead require that the inspections and audit and other pertinent information be posted on the commission’s Internet Web site.

(3) Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law, with certain exceptions, prohibits a public utility from changing any rate, except upon a showing before the commission and a finding by the commission that the new rate is justified. With certain exceptions, whenever any electrical, gas, heat, telephone, water, or sewer system corporation files an application to change any rate for the services or commodities furnished by it, existing law requires that the corporation furnish its customers notice of its application to the commission for approval of the new rate. This notice requirement does not apply to any rate change proposed by a corporation pursuant to an advice letter submitted to the commission filed pursuant to commission-established procedures for advice letters.

This bill would require each public utility that submits an application to change its rates to include in its application a summary of the application that can be understood by the utility’s ratepayers. The bill would require that this summarybegin insert and the applicationend insert be posted on the commission’s Internet Web site and, if the utility has an Internet Web site, to be posted on the utility’s Internet Web site. Each public utility that maintains an Internet Web site would additionally be required to include on that site contact information for a utility official who can discuss the nature of the rate application.

(4) Every public utility is required by existing law, to furnish such reports as the commission may require. No information furnished to the commission by a public utility, except those matters specifically required to be open to public inspection, are open to public inspection or made public except by order of the commission or a commissioner in the course of a hearing or proceeding. Any present or former officer or employee of the commission who divulges any information in violation of these provisions is guilty of a misdemeanor.

This bill would provide that if in a proceeding before the commission, a public utility, or subsidiary, affiliate, or holding company, seeks to file a pleading, report, or other document with the commission that preserves the confidentiality of information contained therein, it would be required to file a public version of the pleading, report, or other document that contains sufficient information for any other party to the proceeding to understand the nature of its contents. The bill would authorize any party to the proceeding to file a motion to make public a pleading, report, or other document filed under a claim of confidentiality. The bill would require an administrative law judge assigned to the proceeding or the assigned commissioner to hold a hearing on the motion and determine whether the pleading, report, or other document should be made public.begin insert The bill would provide that specified information is by its nature public information and is not to be treated as confidential.end insert

(5) Existing law requires the commission to publish and maintain certain documents and information, including making available on the commission’s Internet Web site, the commission’s annual work plan, general orders, and Rules of Practice and Procedure, the proposed and alternate proposed decisions and resolutions, the agenda, agenda item documents, rulings of the commission, and adopted decisions and resolutions of the commission.

begin insert

Existing law requires the commission to establish an office of the public advisor and to appoint a public advisor. Existing law requires the office of the public advisor to assist members of the public and ratepayers who desire to testify before or present information to the commission in any hearing or proceeding of the commission.

end insert

This bill wouldbegin insert add legislative findings and declarations relative to improving the transparency of commission regulatory activities. The bill would require the public advisor to be responsible for ensuring that the activities of the commission are transparent to the public consistent with these legislative findings and directions, the California Public Records Act, the Bagley-Keene Open Meeting Act, and other specified matter. The bill would require the public advisor to have independent responsibility for overseeing the commission’s Internet Web site and wouldend insert require the commission to post on its Internet Web site a summary, as specified, of all electricity procurement contracts entered into by an electrical corporation during the previous 3 years, the expenses of which the commission has approved as being just and reasonable,begin delete andend delete a list of allbegin insert proceedings involvingend insert public utilitiesbegin delete with ratesetting casesend delete then pending before the commission with information, in summary form, as to the amount of any rate increase being sought, both in cumulative amount and by unit or other means billed tobegin delete ratepayers.end deletebegin insert ratepayers, transcripts and available summaries of documents, evidence, testimony and proceedings before the commission or its administration law judges that are not subject to confidentiality, a list of all requests submitted to the commission pursuant to the California Public Records Act, and all advice letters approved by the commission. The bill would require the commission to open a proceeding to reexamine a specified decision relative to confidentiality of electric procurement data. The bill would require the California State Auditor to appoint an inspector general for the commission who would be authorized to audit and investigate the commission’s activities and report any finding to the Legislature.end insert

(6) The California Constitution provides that the Legislature has plenary power to establish the manner and scope of review of commission action in a court of record. Existing law provides that only the Supreme Court and the court of appeal have jurisdiction to review, reverse, correct, or annul any order or decision of the commission or to suspend or delay the execution or operation thereof, or to enjoin, restrain, or interfere with the commission in the performance of its official duties.

begin delete

This bill would authorize an action to enforce the requirements of the Bagley-Keene Open Meeting Act or the California Public Records Act to be brought against the commission in the superior court.

end delete
begin insert

This bill would repeal the existing provisions of the Public Utilities Act pertaining to judicial review of commission decisions and would instead authorize any party to a proceeding aggrieved by a decision or order issued by the commission in the proceeding to obtain a review of the order in the superior court for the City and County of San Francisco or the County of Los Angeles, by filing in the court, within 60 days after the decision or order of the commission upon the application for rehearing, a written petition praying that the order of the commission be modified or set aside in whole or in part. The bill would require that a copy of the petition be transmitted by the clerk of the court to the commission and would require the commission to file with the court the record upon which the decision or order complained of was entered. The bill would provide that until the record in a proceeding has been filed in the court, the commission may at any time, upon reasonable notice and in such manner as it deems proper, modify or set aside, in whole or in part, any finding or order made or issued by it.

end insert

(7) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because certain provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P5    1

SECTION 1.  

Section 309.1 of the Public Utilities Code is
2amended and renumbered to read:

3

305.5.  

The Governor may appoint one adviser for each member
4of the commission upon the request of the commission member.
5Each adviser shall receive a salary fixed by the commission with
6the approval of the Department of Human Resources. The total
P6    1number of advisers exempt from civil service shall not exceed
2five.

3

SEC. 2.  

Section 309.1 is added to the Public Utilities Code, to
4read:

5

309.1.  

The commission shall not reassign any staff member
6from a duty or activity authorized by statute to another duty or
7activity unless the Legislature has authorized personnel for that
8duty or activity.

9

SEC. 3.  

Section 309.2 is added to the Public Utilities Code, to
10read:

11

309.2.  

The commission’s internal auditor shall report directly
12tobegin delete the president, executive director, and the attorney toend delete the
13commission.

14

SEC. 4.  

Section 314.5 of the Public Utilities Code is amended
15to read:

16

314.5.  

The commission shall inspect and audit the books and
17records for regulatory and tax purposes (a) at least once in every
18three years in the case of every electrical, gas, heat, telegraph,
19telephone, and water corporation serving over 1,000 customers,
20and (b) at least once in every five years in the case of every
21electrical, gas, heat, telegraph, telephone, and water corporation
22serving 1,000 or fewer customers. An audit conducted in
23connection with a rate proceeding shall be deemed to fulfill the
24requirements of this section. Reports of the inspections and audits
25and other pertinent information shall be posted on the commission’s
26Internet Web site.

27

SEC. 5.  

Section 468 is added to the Public Utilities Code, to
28read:

29

468.  

(a) Each public utility that submits an application to
30change its rates shall include in its application a summary of the
31application that can be understood by the utility’s ratepayers. This
32summarybegin insert and the applicationend insert shall be posted on the commission’s
33Internet Web site and, if the utility has an Internet Web site, shall
34be posted on the utility’s Internet Web site.

35(b) Each public utility that maintains an Internet Web site shall
36include on that site contact information for a utility official who
37can discuss the nature of the rate application. If the rate application
38includes different rates depending upon the utility’s service
39territory, the contact information shall identify a utility official
40who can discuss the nature of the rate application for each separate
P7    1 service territory. The utility official shall also be qualified to
2discuss, in general terms, the operation of the utility in each service
3territory.

4

SEC. 6.  

Section 583 of the Public Utilities Code is amended
5to read:

6

583.  

(a) No information furnished to the commission by a
7public utility, or any business that is a subsidiary or affiliate of a
8public utility, or a corporation that holds a controlling interest in
9a public utility, except those matters specifically required to be
10open to public inspection by this part, shall be open to public
11inspection or made public except on order of the commission, or
12by the commission or a commissioner in the course of a hearing
13or proceeding. Any present or former officer or employee of the
14commission who divulges that information is guilty of a
15misdemeanor.

16(b) If in a proceeding before the commission, a public utility,
17or any business that is a subsidiary or affiliate of a public utility,
18or a corporation that holds a controlling interest in a public utility,
19seeks to file a pleading, report, or other document with the
20commission that preserves the confidentiality of information
21contained therein, it shall file a public version of the pleading,
22report, or other document that contains sufficient information for
23any other party to the proceeding to understand the nature of its
24contents. An administrative law judge assigned to the proceeding,
25the assigned commissioner, or the commission may determine the
26sufficiency of the information contained in the public version of
27the pleading, report, or other document.

28(c) Any party to a proceeding before the commission may file
29a motion to make public a pleading, report, or other document filed
30by a public utility, or any business that is a subsidiary or affiliate
31of a public utility, or a corporation that holds a controlling interest
32in a public utility, under a claim of confidentiality. An
33administrative law judge assigned to the proceeding or the assigned
34commissioner shall hold a hearing on the motion and determine
35whether the pleading, report, or other document should be made
36public. In determining the motion, the administrative law judge or
37assigned commissioner shall make written findings and
38conclusions.

39(d) At any public hearing, an assigned administrative law judge
40may provide direction to the parties in a proceeding as to what
P8    1types of information may be filed with the commission under a
2claim of confidentiality.

begin insert

3(e) The following information is by its nature public information
4and shall not be treated as confidential pursuant to this section:

end insert
begin insert

5(1) Information submitted to any local, state, or federal entity
6that is available to the public from that entity.

end insert
begin insert

7(2) Information regarding a public utility’s interactions with a
8public entity that is available to the public, including information
9related to payments or subsidies from a public entity.

end insert
begin insert

10(3) Contracts for goods or services executed by the commission
11or by any entity created by the commission.

end insert
begin insert

12(4) Any document that is defined as a public record pursuant
13to the California Public Records Act (Chapter 3.5 (commencing
14with Section 6250) of Division 7 of Title 1 of the Government
15Code).

end insert
begin delete
16

SEC. 7.  

Section 717 is added to the Public Utilities Code, to
17read:

18

717.  

The commission shall make available to the public on its
19Internet Web site the following information:

20(a) A summary of all electricity procurement contracts entered
21into by an electrical corporation during the previous three years,
22the expenses of which the commission has approved as being just
23and reasonable. The summary shall include information as to the
24name of the generating facility, its location, the electricity or
25electricity products procured, the fuel or energy source used to
26generate the electricity, the estimated total expense that the
27electrical corporation will incur pursuant to the contract, the
28estimated cost by unit of energy that the electrical corporation will
29incur pursuant to the contract, when the contract was approved by
30the commission, and if applicable, the decision or resolution
31approving the contract. Information on costs of the contract shall
32not be posted until the electrical corporation has completed the
33legal transactions required to acquire the electricity or electricity
34products.

35(b) A list of all public utilities with ratesetting cases then
36pending before the commission with information, in summary
37form, as to the amount of any rate increase being sought, both in
38cumulative amount and by unit or other means billed to ratepayers.

end delete
P9    1begin insert

begin insertSEC. 7.end insert  

end insert

begin insertArticle 1.5 (commencing with Section 720) is added
2to Chapter 14 of Part 1 of Division 1 of the end insert
begin insertPublic Utilities Codeend insertbegin insert,
3to read:end insert

begin insert

4 

5Article begin insert1.5.end insert  Transparency of Commission Regulatory Activities
6

 

7

begin insert720.end insert  

The Legislature finds and declares all of the following:

8(a) Transparency in how the commission operates and makes
9its decisions is critical to gaining and retaining the confidence of
10the public at large and serving the public utility ratepayers affected
11by the commission’s decisions.

12(b) The activities of private entities that provide essential
13services to the public and that have dedicated their property to
14the service of the public are defined as public utilities in the
15California Constitution, subject to the control by the Legislature.

16(c) The services provided by public utilities are essential to the
17proper operation of our economy and fundamentally affect every
18California family and business.

19(d) Under the California Constitution, the commission is granted
20authority to establish its own procedures subject to statute and
21due process and to establish rules for public utilities and the
22Legislature has plenary authority to confer additional authority
23and jurisdiction upon the commission and to establish the manner
24and scope of review of commission action in a court of record.

25(e) Because the California Constitution provides special
26consideration to public utilities and to the commission that
27regulates those public utilities, it is essential to give the public the
28ability to monitor the functioning of the commission and its actions.

29(f) The greater and more unfettered the public official’s power,
30the greater the public’s interest in monitoring the exercise of that
31power.

32(g) Access to information concerning the conduct of the public’s
33business by the commission is a fundamental and necessary right
34for every person in the state.

35(h) Information concerning services provided by public utilities
36is of the highest public interest, including information about quality
37and reliability of service to the public and information about costs
38and profits.

39(i) While confidentiality of information submitted by a public
40utility may be necessary in some cases, as provided in Section 583,
P10   1the activities and decisions of the commission should remain as
2transparent as reasonably possible.

3

begin insert721.end insert  

The commission shall open a proceeding to reexamine
4Decision 06-06-066 (June 29, 2006) Interim Opinion Implementing
5Senate Bill 1488, Relating to Confidentiality of Electric
6Procurement Data Submitted to the Commission, as modified by
7Decision 07-05-032 (May 3, 2007), Order Modifying Decision
8(D.) 06-06-066 and Denying Rehearing of the Decision, as
9Modified. The commission shall narrow the definitions of
10confidential data types consistent with Sections 583 and 720.

11

begin insert722.end insert  

(a) The public advisor of the commission, appointed
12pursuant to Section 321, shall have responsibility for ensuring
13that the activities of the commission are transparent to the public
14as provided by law, including, but not limited to, the California
15Public Records Act (Chapter 3.5 (commencing with Section 6250)
16of Division 7 of Title 1 of the Government Code), the Bagley-Keene
17Open Meeting Act (Article 9 (commencing with Section 11120) of
18Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
19Code), and this article.

20(b) The commission shall provide funding for the costs of the
21office of the public advisor from reimbursement fees paid pursuant
22to Chapter 2.5 (commencing with Section 401).

23(c) The public advisor shall develop and make available
24easy-to-understand guides for the public to participate in
25commission proceedings.

26

begin insert723.end insert  

The California State Auditor shall appoint to the staff of
27the California State Auditor’s Office an inspector general for the
28commission, which shall report any findings to the Legislature.
29The Inspector General shall have authority, including the
30authorities of the California State Auditor, to audit and investigate
31the commission’s activities based on information it receives. The
32California State Auditor may recover the costs for the inspector
33general’s activities from reimbursement fees paid pursuant to
34Chapter 2.5 (commencing with Section 401).

35

begin insert724.end insert  

(a) The public advisor of the commission shall have
36independent responsibility for overseeing the commission’s Internet
37Web site, in order to ensure adequate transparency in the
38information provided to the public.

39(b) The commission shall make available to the public on its
40Internet Web site all of the following information:

P11   1(1) A summary of all electricity procurement contracts entered
2into by an electrical corporation during the previous three years,
3the expenses of which the commission has approved as being just
4and reasonable. The summary shall include information as to the
5name of the generating facility, its location, the electricity or
6electricity products procured, the fuel or energy source used to
7generate the electricity, the estimated total expense that the
8electrical corporation will incur pursuant to the contract, the
9estimated cost by unit of energy that the electrical corporation
10will incur pursuant to the contract, when the contract was approved
11by the commission, and, if applicable, the decision or resolution
12approving the contract. Information on costs of the contract shall
13not be posted until the electrical corporation has completed the
14legal transactions required to acquire the electricity or electricity
15products.

16(2) A list of all proceedings involving public utilities then
17pending before the commission with information, in summary form,
18as to the amount of any rate increase being sought, both in
19cumulative amount and by unit or other means billed to ratepayers.

20(3) Transcripts and available summaries of documents, evidence,
21 testimony, and proceedings before the commission or its
22administrative law judges that are not subject to confidentiality
23pursuant to Section 583.

24(4) A list of all requests submitted to the commission pursuant
25to the California Public Records Act (Chapter 3.5 (commencing
26with Section 6250) of Division 7 of Title 1 of the Government
27Code).

28(5) Advice letters approved by the commission.

end insert
begin delete29

SEC. 8.  

Section 1759 of the Public Utilities Code is amended
30to read:

31

1759.  

(a) No court of this state, except the Supreme Court and
32the court of appeal, to the extent specified in this article, shall have
33jurisdiction to review, reverse, correct, or annul any order or
34decision of the commission or to suspend or delay the execution
35or operation thereof, or to enjoin, restrain, or interfere with the
36commission in the performance of its official duties, as provided
37by law and the rules of court.

38(b) The writ of mandamus shall lie from the Supreme Court and
39from the court of appeal to the commission in all proper cases as
40prescribed in Section 1085 of the Code of Civil Procedure.

P12   1(c) This section does not apply to an action brought against the
2commission to enforce the requirements of the Bagley-Keene Open
3Meeting Act (Article 9 (commencing with Section 11120) of
4Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
5Code) or the California Public Records Act (Chapter 3.5
6(commencing with Section 6250) of Division 7 of Title 1 of the
7Government Code), which action may be brought in the superior
8court.

end delete
9begin insert

begin insertSEC. 8.end insert  

end insert

begin insertArticle 3 (commencing with Section 1756) of Chapter
109 of Part 1 of Division 1 of the end insert
begin insertPublic Utilities Codeend insertbegin insert is repealed.end insert

11begin insert

begin insertSEC. 9.end insert  

end insert

begin insertArticle 3 (commencing with Section 1756) is added to
12Chapter 9 of Part 1 of Division 1 of the end insert
begin insertPublic Utilities Codeend insertbegin insert, to
13read:end insert

begin insert

14 

15Article begin insert3.end insert  Judicial Review
16

 

17

begin insert1756.end insert  

(a) Any party to a proceeding aggrieved by a decision
18or order issued by the commission in the proceeding may obtain
19a review of the order in the superior court for the City and County
20of San Francisco or the County of Los Angeles, by filing in the
21court, within 60 days after the decision or order of the commission
22upon the application for rehearing, a written petition praying that
23the order of the commission be modified or set aside in whole or
24in part.

25(b) No objection to the order of the commission shall be
26considered by the court unless the objection shall have been urged
27before the commission in the application for rehearing unless there
28is reasonable ground for failure so to do.

29(c) A copy of the petition shall forthwith be transmitted by the
30clerk of the court to the commission and the commission, upon
31receipt of the petition, shall file with the court the record upon
32which the decision or order complained of was entered. Upon the
33filing of the petition, the court shall have jurisdiction, which upon
34the filing of the record with it, shall be exclusive, to affirm, modify,
35or set aside the decision or order in whole or in part.

36(d) Until the record in the proceeding has been filed in the court,
37the commission may at any time, upon reasonable notice and in
38any manner it determines is proper, modify or set aside, in whole
39or in part, any finding or order made or issued by it.

P13   1(e) If any party applies to the court for leave to produce
2additional evidence, and shows to the satisfaction of the court that
3the additional evidence is material and that there were reasonable
4grounds for failure to produce the evidence in the proceedings
5before the commission, the court may order the additional evidence
6to be taken before the commission and to be produced upon the
7hearing in a manner and upon those terms and conditions as the
8court determines are proper.

end insert
9

begin deleteSEC. 9.end delete
10begin insertSEC. 10.end insert  

No reimbursement is required by this act pursuant to
11Section 6 of Article XIII B of the California Constitution because
12the only costs that may be incurred by a local agency or school
13district will be incurred because this act creates a new crime or
14infraction, eliminates a crime or infraction, or changes the penalty
15for a crime or infraction, within the meaning of Section 17556 of
16the Government Code, or changes the definition of a crime within
17the meaning of Section 6 of Article XIII B of the California
18Constitution.



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