Amended in Senate September 4, 2015

Amended in Senate September 1, 2015

Amended in Senate July 16, 2015

Amended in Senate July 8, 2015

Amended in Senate June 18, 2015

Amended in Assembly June 1, 2015

Amended in Assembly May 14, 2015

Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 825


Introduced by Assembly Members Rendon and Mark Stone

February 26, 2015


An act to add Article 5 (commencing with Section 8548.9.1) to Chapter 6.5 of Division 1 of Title 2 of the Government Code, and to amend Sections 311.5, 314.5, 583,begin delete 1701.1, and 1701.2 of, to amend and renumber Section 309.1end deletebegin insert 1701, 1706, and 1710end insert of, to add Section 468 to, and to add Article 1.5 (commencing with Section 720) to Chapter 4 of Part 1 of Division 1 of, 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. 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.

(2) 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 summary and the application 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.

(3) 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, files a pleading, report, or other document with the commission that is claimed to contain confidential information, it would be required to concurrently file a public version of the pleading, report, or other document with the commission 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. The bill would authorize any party to seek review of the ruling or order of the administrative law judge or assigned commissioner on the motion by filing a motion for rehearing de novo before the full commission within 30 days of the date the ruling or order on the motion was issued.

(4) 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. Included in the materials that the commission is required to publish and maintain on its Internet Web site are docket cards that list by title and date of filing or issuance all documents filed and all decisions or rulings issued in those proceedings.

This bill would require that each document that the commission distributes to any service-of-process list be docketed and identified on the commission’s Internet Web site.begin insert The bill would require the commission to adopt rules providing for posting on its Internet Web site of all comments, workshop reports, hearing exhibits, including the exhibit number assigned and whether the exhibit has been offered and received in evidence, hearing transcripts, and other documentary information included in the record of its proceedings.end insert

(5) 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.

This bill would 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 arebegin insert asend insert transparent to the publicbegin delete consistent with these legislative findings and directions, the California Public Records Act, the Bagley-Keene Open Meeting Act, and other specified matter.end deletebegin insert as reasonably possible and consistent with law.end insert The bill would require the public advisor tobegin delete have independent responsibility for overseeing the commission’s Internet Web site andend deletebegin insert work with all divisions of the commission to ensure that the commission’s Internet Web site provides adequate transparency in the information provided to the public. The billend insert would 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, a list of all proceedings involving public utilities 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 to 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,begin delete andend delete all advice letters approved by thebegin delete commission.end deletebegin insert commission, and the calendars of each commissioner.end insert The bill would require the public advisor to update, maintain, and post the commission’s service-of-process lists on the commission’s Internet Web site in an electronic form that may be used by any party to complete service of process. The bill would require the commission to open a proceeding to reexamine a specified decision relative to confidentiality of electric procurement data and to modify the commission’s confidentiality practices and procedures consistent with specified requirements. The bill would establish the Inspector General for the Public Utilities Commission within the California State Auditor’s Office to conduct oversight review and assess, audit, investigate, and report on the policies, practices, and procedures of the commission under the guidance, direction, supervision, and authority of the State Auditor.

(6) Existing law requires the commission to determine whether a proceeding requires a hearing and, if so, to determine whether the matter requires a quasi-legislative, an adjudication, or a ratesetting hearing. Upon initiating a hearing, the commission is required to assign one or more commissioners to oversee the case and an administrative law judge where appropriate. Existing law requires the assigned commissioner to schedule a prehearing conference and to issue, by order or ruling, a scoping memo that describes the issues to be considered and the applicable timetable for resolution.

This billbegin delete wouldend deletebegin insert would, in matters the commission has determined require a hearing, require the commission to use all-party conferences as a tool for listening to the parties’ perspectives on the most important issues and to facilitate public discussion between and among parties and commissioners. The bill would require that discussions at an all-party conference not rely on evidence outside the evidentiary record existing at the time of the all-party conference. The bill wouldend insert require the assigned commissioner to convene an all-partiesbegin delete meetingend deletebegin insert conferenceend insert as soon as practicable after thebegin delete parties in a proceeding are knownend deletebegin insert prehearing conference, and before completing the scoping memo,end insert to discuss the substantive matter to be decided in the proceeding and prospects for resolving issues that would otherwise be litigated. The bill would requirebegin delete an assigned commissioner to attend all hearings in a proceeding.end deletebegin insert end insertbegin insert the commission to hold an all-party conference before a quorum of commissioners, after a proposed decision is issued in all contested cases, unless all parties waive this requirement and a majority of commissioners concur with that waiver. The bill would require that a transcript be kept for each all-party conferenceend insertbegin insert and that the transcript be made a part of the record of the proceeding.end insert

(7) Existing law prohibits an officer, employee, or agent of the commission that is personally involved in the prosecution, or in the supervision of the prosecution, of an adjudication case from participating in the decision of the case or in the decision of any factually related adjudicatory proceeding. Existing law permits an officer, employee, or agent of the commission that is personally involved in the prosecution, or in the supervision of the prosecution, of an adjudication case to participate in reaching a settlement of the case, but prohibits the officer, employee, or agent from participating in the decision of the commission to accept or reject the settlement, except as a witness or counsel in an open hearing or a specified closed hearing.

This bill would prohibit an attorneybegin delete that is prosecuting a matterend deletebegin insert or other staff member who has served as a prosecutor or advocate at any stage of an adjudicatory proceedingend insert before the commission from meeting with any commissioner regarding the matterbegin delete that the attorney is prosecutingend deletebegin insert in which the attorney or staff member has servedend insert unless all parties are present.

begin insert

(8) This bill would require the commission to adopt rules providing for comments from the public, including comments made at noticed public participation hearings of the commission, to be included in the record of its proceedings and would require that the assigned commissioner, or a quorum of the commission, convene and attend each public participation proceeding.

end insert
begin insert

(9) This bill would incorporate additional changes in Sections 311.5 and 1701 of the Public Utilities Code, proposed by SB 48, to be operative only if SB 48 and this bill are both chaptered and become effective on or before January 1, 2016, and this bill is chaptered last.

end insert
begin delete

(8)

end delete

begin insert(10)end insert 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:

P7    1

SECTION 1.  

Article 5 (commencing with Section 8548.9.1)
2is added to Chapter 6.5 of Division 1 of Title 2 of the Government
3Code
, to read:

4 

5Article 5.  Inspector General: Public Utilities
6

 

7

8548.9.1.  

(a) There is hereby established, within the California
8State Auditor’s Office, the Inspector General for the Public Utilities
9Commission.

10(b) For purposes of this article, “inspector general” means the
11Inspector General for the Public Utilities Commission and
12“commission” means the Public Utilities Commission.

13(c) The inspector general shall be appointed by the State Auditor.

14

8548.9.2.  

The inspector general shall, at the direction of the
15State Auditor, conduct oversight review and assess, audit,
16investigate, and report on the policies, practices, and procedures
17of the commission. Subject to the approval of the State Auditor,
18the inspector general may maintain a permanent office at a
19commission location, provided by the commission, and shall be
20provided with sufficient staff and support by the State Auditor to
21carry out the duties of the position.

22

8548.9.3.  

(a) The inspector general shall conduct his or her
23duties under the guidance, direction, supervision, and authority of
24the State Auditor. In conducting his or her work, the inspector
25general is subject to all of the requirements of this chapter,
26including, but not limited to, the access and confidentiality
27provisions specified in Sections 8545 and 8545.1 and the
28Government Auditing Standards published by the Comptroller
29General of the United States, as specified in Section 8546.1.
30However, the inspector general may decide, without further
31approval except from the State Auditor, to audit or investigate and
32report on commission matters based on his or her preliminary
33assessment that commission activities require his or her
34investigation.

35(b) For any stage of a review, assessment, audit, or investigation,
36the inspector general may utilize all of the authority granted under
37this chapter, including, but not limited to, the authority to examine
38and reproduce records pursuant to Section 8545.2, the authority
P8    1to administer oaths, certify official acts, and issue subpoenas
2pursuant to Section 8545.4, and the authority to receive confidential
3reports of improper governmental activities pursuant to Article 3
4(commencing with Section 8547).

5

8548.9.4.  

Notwithstanding Section 8544.5, upon appropriation
6by the Legislature, the California State Auditor shall recover the
7costs for the inspector general’s activities from reimbursement
8fees paid pursuant to Chapter 2.5 (commencing with Section 401)
9of Part 1 of Division 1 of the Public Utilities Code.

begin delete10

SEC. 2.  

Section 309.1 of the Public Utilities Code is amended
11and renumbered to read:

12

305.5.  

The Governor may appoint one adviser for each member
13of the commission upon the request of the commission member.
14Each adviser shall receive a salary fixed by the commission with
15the approval of the Department of Human Resources. The total
16number of advisers exempt from civil service shall not exceed
17five.

end delete
18

begin deleteSEC. 3.end delete
19begin insertSEC. 2.end insert  

Section 311.5 of the Public Utilities Code is amended
20to read:

21

311.5.  

(a) (1) Prior to commencement of any meeting at which
22commissioners vote on items on the publicbegin delete agendaend deletebegin insert agenda,end insert the
23commission shall make available to the public copies of the agenda,
24and upon request, any agenda item documents that are proposed
25to be considered by the commission for action or decision at a
26commission meeting.

27(2) In addition, the commission shall publish the agenda, agenda
28item documents, and adopted decisions in a manner that makes
29copies of them easily available to the public, including publishing
30those documents on the Internet. Publication of the agenda and
31agenda item documents shall occur on the Internet at the same
32time as the written agenda and agenda item documents are made
33 available to the public.

34(b) The commission shall publish and maintain the following
35documents on the Internet:

36(1) Each of the commission’s proposed and alternate proposed
37decisions and resolutions, until the decision or resolution is adopted
38and published.

P9    1(2) Each of the commission’s adopted decisions and resolutions.
2The publication shall occur within 10 days of the adoption of each
3decision or resolution by the commission.

4(3) The then-current version of the commission’s general orders
5and Rules of Practice and Procedure.

6(4) Each of the commission’s rulings. The commission shall
7maintain those rulings on its Internet Web site until final
8disposition, including disposition of any judicial appeals, of the
9respective proceedings in which the rulings were issued.

10(5) A docket card that lists, by title and date of filing or issuance,
11all documents filed and all decisions or rulings issued in those
12proceedings. The commission shall maintain the docket card until
13final disposition, including disposition of any judicial appeals, of
14the corresponding proceedings. Each document that the commission
15distributes to any service-of-process list shall be docketed and
16identified on the commission’s Internet Web site.

17begin insert

begin insertSEC. 2.5.end insert  

end insert

begin insertSection 311.5 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
18to read:end insert

19

311.5.  

(a) (1) Prior to commencement of any meeting at which
20commissioners vote on items on the publicbegin delete agendaend deletebegin insert agenda,end insert the
21commission shall make available to the public copies of the agenda,
22and upon request, any agenda item documents that are proposed
23to be considered by the commission for action or decision at a
24commission meeting.

25(2) In addition, the commission shall publish the agenda, agenda
26item documents, and adopted decisions in a manner that makes
27copies of them easily available to the public, including publishing
28those documents on the Internet. Publication of the agenda and
29agenda item documents shall occur on the Internet at the same
30time as the written agenda and agenda item documents are made
31available to the public.

32(b) The commission shall publish and maintain the following
33documents on the Internet:

34(1) Each of the commission’s proposed and alternate proposed
35decisions and resolutions, until the decision or resolution is adopted
36and published.

37(2) Each of the commission’s adopted decisions and resolutions.
38The publication shall occur within 10 days of the adoption of each
39decision or resolution by the commission.

P10   1(3) The then-current version of the commission’s general orders
2and Rules of Practice and Procedure.

3(4) Each of the commission’s rulings. The commission shall
4maintain those rulings on its Internet Web site until final
5disposition, including disposition of any judicial appeals, of the
6respective proceedings in which the rulings were issued.

7(5) A docket card that lists, by title and date of filing or issuance,
8all documents filed and all decisions or rulings issued in those
9begin delete proceedings.end deletebegin insert proceedings, including the public versions of all
10prepared written testimony and advice letter filings, protests, and
11responses.end insert
The commission shall maintain the docket card until
12final disposition, including disposition of any judicial appeals, of
13the corresponding proceedings.begin insert Each document that the commission
14distributes to any service-of-process list shall be docketed and
15identified on the commission’s Internet Web site.end insert

begin insert

16(c) The commission shall make the following information
17available on the Internet:

end insert
begin insert

18(1) Information on how members of the public and ratepayers
19can gain access to the commission’s ratemaking process and to
20information regarding the specific matters to be decided.

end insert
begin insert

21(2) Information on the operation of the office of the public
22advisor established in Section 321 and how the public advisor can
23connect members of the public to persons responsible for specific
24cases and matters to be decided.

end insert
25

begin deleteSEC. 4.end delete
26begin insertSEC. 3.end insert  

Section 314.5 of the Public Utilities Code is amended
27to read:

28

314.5.  

The commission shall inspect and audit the books and
29records for regulatory and tax purposes (a) at least once in every
30three years in the case of every electrical, gas, heat, telegraph,
31telephone, and water corporation serving over 1,000 customers,
32and (b) at least once in every five years in the case of every
33electrical, gas, heat, telegraph, telephone, and water corporation
34serving 1,000 or fewer customers. An audit conducted in
35connection with a rate proceeding shall be deemed to fulfill the
36requirements of this section. Reports of the inspections and audits
37and other pertinent information shall be posted on the commission’s
38Internet Web site.

P11   1

begin deleteSEC. 5.end delete
2begin insertSEC. 4.end insert  

Section 468 is added to the Public Utilities Code, to
3read:

4

468.  

(a) Each public utility that submits an application to
5change its rates shall include in its application a summary of the
6application that can be understood by the utility’s ratepayers. This
7summary and the application shall be posted on the commission’s
8Internet Web site and, if the utility has an Internet Web site, shall
9be posted on the utility’s Internet Web site.

10(b) Each public utility that maintains an Internet Web site shall
11include on that site contact information for a utility official who
12can discuss the nature of the rate application. If the rate application
13includes different rates depending upon the utility’s service
14territory, the contact information shall identify a utility official
15who can discuss the nature of the rate application for each separate
16 service territory. The utility official shall also be qualified to
17discuss, in general terms, the operation of the utility in each service
18territory.

19

begin deleteSEC. 6.end delete
20begin insertSEC. 5.end insert  

Section 583 of the Public Utilities Code is amended
21to read:

22

583.  

(a) No information furnished to the commission by a
23public utility, or any business that is a subsidiary or affiliate of a
24public utility, or a corporation that holds a controlling interest in
25a public utility, except those matters specifically required to be
26open to public inspection by this part, shall be open to public
27inspection or made public except on order of the commission, or
28by the commission or a commissioner in the course of a hearing
29or proceeding. Any present or former officer or employee of the
30commission who divulges that information is guilty of a
31misdemeanor.

32(b) If in a proceeding before the commission, a public utility,
33or any business that is a subsidiary or affiliate of a public utility,
34or a corporation that holds a controlling interest in a public utility,
35files a pleading, report, or other document with the commission
36that is claimed to contain confidential information, a public version
37of the pleading, report, or other document that contains sufficient
38information for any other party to the proceeding to understand
39the nature of its contents shall be concurrently filed with the
40commission. An administrative law judge assigned to the
P12   1proceeding, the assigned commissioner, or the commission may
2determine the sufficiency of the information contained in the public
3version of the pleading, report, or other document.

4(c) Any party to a proceeding before the commission may file
5a motion to make public a pleading, report, or other document filed
6by a public utility, or any business that is a subsidiary or affiliate
7of a public utility, or a corporation that holds a controlling interest
8in a public utility, under a claim of confidentiality. An
9administrative law judge assigned to the proceeding or the assigned
10commissioner shall hold a hearing on the motion and determine
11whether the pleading, report, or other document should be made
12public. In determining the motion, the administrative law judge or
13assigned commissioner shall make written findings and
14conclusions.

15(d) At any public hearing, an assigned administrative law judge
16may provide direction to the parties in a proceeding as to what
17types of information may be filed with the commission under a
18claim of confidentiality.

19(e) No ruling or order entered pursuant to subdivision (c) shall
20be considered a ruling or order of the commission or a
21commissioner unless it reflects an examination of the specific
22information or documents to be made public or opened to public
23inspection. Any party may seek review of a ruling or order issued
24pursuant to subdivision (c) to the full commission by filing a
25motion for rehearing de novo by the full commission within 30
26days of the date the ruling or order on the motion was issued, and
27the pleading, report, or other document shall remain confidential
28while the motion for rehearing is pending. When a motion for
29rehearing de novo is filed, the full commission shall make the final
30determination of the motion to make public a pleading, report, or
31other document filed under claim of confidentiality.

32

begin deleteSEC. 7.end delete
33begin insertSEC. 6.end insert  

Article 1.5 (commencing with Section 720) is added
34to Chapter 4 of Part 1 of Division 1 of the Public Utilities Code,
35to read:

36 

37Article 1.5.  Transparency of Commission Regulatory Activities
38

 

39

720.  

The Legislature finds and declares all of the following:

P13   1(a) Transparency in how the commission operates and makes
2its decisions is critical to gaining and retaining the confidence of
3the public at large and serving the public utility ratepayers affected
4by the commission’s decisions.

5(b) The activities of private entities that provide essential
6services to the public and that have dedicated their property to the
7service of the public are defined as public utilities in the California
8Constitution, subject to the control by the Legislature.

9(c) The services provided by public utilities are essential to the
10proper operation of our economy and fundamentally affect every
11California family and business.

12(d) Under the California Constitution, the commission is granted
13authority to establish its own procedures subject to statute and due
14process and to establish rules for public utilities, and the Legislature
15has plenary authority to confer additional authority and jurisdiction
16upon the commission and to establish the manner and scope of
17review of commission action in a court of record.

18(e) Because the California Constitution provides special
19consideration to public utilities and to the commission that
20regulates those public utilities, it is essential to give the public the
21ability to monitor the functioning of the commission and its actions.

22(f) The greater and more unfettered the public official’s power,
23the greater the public’s interest in monitoring the exercise of that
24power.

25(g) Access to information concerning the conduct of the public’s
26business by the commission is a fundamental and necessary right
27for every person in the state.

28(h) Information concerning services provided by public utilities
29is of the highest public interest, including information about quality
30and reliability of service to the public and information about costs
31and profits.

32(i) While confidentiality of information submitted by a public
33utility may be necessary in some cases, as provided in Section 583,
34the activities and decisions of the commission should remain as
35transparent as reasonably possible.

36

721.  

The commission shall open a proceeding to reexamine
37Decision 06-06-066 (June 29, 2006) Interim Opinion Implementing
38Senate Bill 1488, Relating to Confidentiality of Electric
39Procurement Data Submitted to the Commission, as modified by
40Decision 07-05-032 (May 3, 2007), Order Modifying Decision
P14   1(D.) 06-06-066 and Denying Rehearing of the Decision, as
2Modified, and shall modify the commission’s confidentiality
3practices and procedures consistent with the requirements of
4Section 724.

5

722.  

(a) The public advisor of the commission, appointed
6pursuant to Section 321, shall have responsibility for ensuring that
7the activities of the commission arebegin insert asend insert transparent to the public as
8begin delete provided by law, including, but not limited to, the California Public
9Records Act (Chapter 3.5 (commencing with Section 6250) of
10Division 7 of Title 1 of the Government Code), the Bagley-Keene
11Open Meeting Act (Article 9 (commencing with Section 11120)
12of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
13Code), and this article.end delete
begin insert reasonably possible and consistent with
14law.end insert

15(b) The public advisor shall develop and make available
16easy-to-understand guides for the public to participate in
17commission proceedings.

18(c) The public advisor shall update, maintain, and post the
19commission’s service-of-process lists on the commission’s Internet
20Web site in an electronic form that may be used by any party to
21complete service of process.

22

723.  

(a) The public advisor of the commission shallbegin delete have
23independent responsibility for overseeingend delete
begin insert work with all divisions
24to ensure thatend insert
the commission’s Internet Webbegin delete site, in order to
25ensureend delete
begin insert site providesend insert adequate transparency in the information
26provided to the public.

27(b) The commission shall make available to the public on its
28Internet Web site all of the following information:

29(1) A summary of all electricity procurement contracts entered
30into by an electrical corporation during the previous three years,
31the expenses of which the commission, if applicable, has approved
32as being just and reasonable. The summary shall include
33information as to the name of the generating facility, its location,
34the electricity or electricity products procured, the fuel or energy
35source used to generate the electricity, the estimated total expense
36that the electrical corporation will incur pursuant to the contract,
37the estimated cost by unit of energy that the electrical corporation
38will incur pursuant to the contract, when, if applicable, the contract
39was approved by the commission, and, if applicable, the decision
40or resolution approving the contract. Information on costs and
P15   1expenses of the contract shall not be posted until the later of when
2the electrical corporation has completed the legal transactions
3required to acquire the electricity or electricity products, or one
4year after the commission approves the contract, if applicable.

5(2) A list of all proceedings involving public utilities then
6pending before the commission with information, in summary
7form, as to the amount of any rate increase being sought, both in
8cumulative amount and by unit or other means billed to ratepayers.

9(3) Transcripts and available summaries of documents, evidence,
10 testimony, and proceedings before the commission or its
11administrative law judges that are not subject to confidentiality
12pursuant to Section 583, or with confidential portions redacted,
13consistent with Section 1706.

14(4) A list of all requests submitted to the commission pursuant
15to the California Public Records Act (Chapter 3.5 (commencing
16with Section 6250) of Division 7 of Title 1 of the Government
17Code).

18(5) Advice letters approved by the commission.

begin insert

19(6) Calendars of each commissioner.

end insert
begin insert
20

begin insert724.end insert  

(a) In matters requiring a hearing pursuant to Section
211701.1, the commission shall use all-party conferences as a tool
22for listening to the parties’ perspectives on the most important
23issues and to facilitate public discussion between and among
24parties and commissioners. Discussion at all-party conferences
25may rely on evidence in the record and shall not rely on evidence
26outside the evidentiary record existing at the time of the all-party
27conference.

28(b) The assigned commissioner, and not the assigned
29administrative law judge, shall convene an all-party conference
30as soon as practicable after the prehearing conference, and before
31completing the scoping memo, to discuss the substantive matter
32to be decided in the proceeding and prospects for resolving issues
33that would otherwise be litigated. This requirement may be satisfied
34by a pre-hearing conference convened by the assigned
35commissioner.

36(c) The commission shall hold an all-party conference on the
37record before a quorum of commissioners, after the proposed
38decision is issued in all contested cases, unless all parties waive
39this requirement and a majority of commissioners concur with that
P16   1waiver. An all-party conference held pursuant to Section 1701.2
2may satisfy the requirement of this subdivision.

3(d) A transcript shall be kept for each all-party conference and
4made a part of the record of the proceeding.

5(e) The commission shall establish rules providing for all-party
6conferences. The rules shall provide for the broadest participation
7by parties to the proceeding that the commission can reasonably
8 accommodate, consistent with the commission’s other duties and
9responsibilities.

end insert
begin insert
10

begin insert725.end insert  

An attorney or other staff member who has served as a
11prosecutor or advocate at any stage of an adjudicatory proceeding
12before the commission shall not meet with any commissioner
13regarding the matter in which the attorney or staff member has
14served unless all parties are present.

end insert
15begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 1701 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
16to read:end insert

17

1701.  

(a) All hearings, investigations, and proceedings shall
18be governed by this part and by rules of practice and procedure
19adopted by the commission, and in the conduct thereof the technical
20rules of evidence need not be applied.begin delete Noend delete

21begin insert(b)end insertbegin insertend insertbegin insertNoend insert informality in any hearing, investigation, or proceeding
22or in the manner of taking testimony shall invalidate any order,
23decision or rule made, approved, or confirmed by the commission.

begin insert

24(c) The commission shall adopt rules providing for comments
25from the public, including comments made at noticed public
26participation hearings of the commission, to be included in the
27evidentiary record of its proceedings. The assigned commissioner,
28or a quorum of the commission, shall convene and attend each
29public participation proceeding. The rules, consistent with due
30process, shall provide for the submission of comments from the
31public prior to submission of the issues to be decided to the
32commission for its decision and permit consideration by the
33commission of the public comments in reaching its decisions. The
34rules shall provide for the parties to the proceeding to have one
35opportunity to respond to any public comments included in the
36record of proceedings.

end insert
begin insert

37(d) Upon request of a local elected official in the region affected
38by a contested matter, the commission shall convene a public
39participation hearing in that region.

end insert
begin delete

40(b)

end delete

P17   1begin insert(e)end insert Notwithstanding Section 11425.10 of the Government Code,
2Chapter 4.5 (commencing with Section 11400) of Part 1 of Division
33 of Title 2 of the Government Code does not apply to a hearing
4by the commission under this code.

5begin insert

begin insertSEC. 7.5.end insert  

end insert

begin insertSection 1701 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
6to read:end insert

7

1701.  

(a) All hearings, investigations, and proceedings shall
8be governed by this part and by rules of practice and procedure
9adopted by the commission, and in the conduct thereof the technical
10rules of evidence need not be applied.begin delete Noend delete

11begin insert(b)end insertbegin insertend insertbegin insertNoend insert informality in any hearing, investigation, or proceeding
12or in the manner of taking testimony shall invalidate any order,
13decision or rule made, approved, or confirmed by the commission.

begin insert

14(c) The commission shall adopt rules providing for comments
15from the public, including comments made at noticed public
16participation hearings of the commission, to be included in the
17record of its proceedings. The assigned commissioner, or a quorum
18of the commission, shall convene and attend each public
19participation proceeding. The rules, consistent with due process,
20shall provide for the submission of comments from the public prior
21to submission of the issues to be decided to the commission for its
22decision and permit consideration by the commission of the public
23comments in reaching its decisions. The rules shall provide for
24the parties to the proceeding to have one opportunity to respond
25to any public comments included in the record of proceedings.

end insert
begin insert

26(d) Upon request of a local elected official in the region affected
27by a contested matter, the commission shall convene a public
28 participation hearing in that region.

end insert
begin delete

29(b)

end delete

30begin insert(e)end insert Notwithstanding Section 11425.10 of the Government Code,
31begin insert Articles 1 through 15, inclusive, ofend insert Chapter 4.5 (commencing with
32Section 11400) of Part 1 of Division 3 of Title 2 of the Government
33Codebegin delete doesend deletebegin insert doend insert not apply to a hearing by the commission under this
34code.begin insert The Administrative Adjudication Code of Ethics (Article 16
35(commencing with Section 11475) of Chapter 4.5 of Part 1 of
36Division 3 of Title 2 of the Government Code) shall apply to
37administrative law judges of the commission.end insert

begin delete
38

SEC. 8.  

Section 1701.1 of the Public Utilities Code is amended
39to read:

P18   1

1701.1.  

(a) The commission, consistent with due process,
2public policy, and statutory requirements, shall determine whether
3a proceeding requires a hearing. The commission shall determine
4whether the matter requires a quasi-legislative, an adjudication,
5or a ratesetting hearing. The commission’s decision as to the nature
6of the proceeding shall be subject to a request for rehearing within
710 days of the date of that decision. If that decision is not appealed
8to the commission within that time period it shall not be
9subsequently subject to judicial review. Only those parties who
10have requested a rehearing within that time period shall
11subsequently have standing for judicial review and that review
12shall only be available at the conclusion of the proceeding. The
13commission shall render its decision regarding the rehearing within
1430 days. The commission shall establish regulations regarding ex
15parte communication on case categorization issues.

16(b) (1) The commission upon initiating a hearing shall assign
17one or more commissioners to oversee the case and an
18administrative law judge where appropriate. The assigned
19commissioner shall schedule a prehearing conference. The assigned
20commissioner shall prepare and issue by order or ruling a scoping
21memo that describes the issues to be considered and the applicable
22timetable for resolution.

23(2) The assigned commissioner shall convene an all-parties
24meeting as soon as practicable after the parties in the proceeding
25are known to discuss the substantive matter to be decided in the
26proceeding and prospects for resolving issues that would otherwise
27be litigated.

28(3) The assigned commissioner shall attend all hearings in a
29proceeding.

30(c) (1) Quasi-legislative cases, for purposes of this article, are
31cases that establish policy, including, but not limited to,
32rulemakings and investigations which may establish rules affecting
33an entire industry.

34(2) Adjudication cases, for purposes of this article, are
35enforcement cases and complaints except those challenging the
36 reasonableness of any rates or charges as specified in Section 1702.

37(3) Ratesetting cases, for purposes of this article, are cases in
38which rates are established for a specific company, including, but
39not limited to, general rate cases, performance-based ratemaking,
40and other ratesetting mechanisms.

P19   1(4) “Ex parte communication,” for purposes of this article,
2means any oral or written communication between a decisionmaker
3and a person with an interest in a matter before the commission
4concerning substantive, but not procedural issues, that does not
5occur in a public hearing, workshop, or other public proceeding,
6or on the official record of the proceeding on the matter. “Person
7with an interest,” for purposes of this article, means any of the
8following:

9(A) Any applicant, an agent or an employee of the applicant,
10or a person receiving consideration for representing the applicant,
11or a participant in the proceeding on any matter before the
12commission.

13(B) Any person with a financial interest, as described in Article
141 (commencing with Section 87100) of Chapter 7 of Title 9 of the
15Government Code, in a matter before the commission, or an agent
16or employee of the person with a financial interest, or a person
17receiving consideration for representing the person with a financial
18interest.

19(C) A representative acting on behalf of any civic,
20environmental, neighborhood, business, labor, trade, or similar
21organization who intends to influence the decision of a commission
22 member on a matter before the commission.

23The commission shall by regulation adopt and publish a
24definition of decisionmakers and persons for purposes of this
25section, along with any requirements for written reporting of ex
26parte communications and appropriate sanctions for noncompliance
27with any rule proscribing ex parte communications. The regulation
28shall provide that reportable communications shall be reported by
29the party, whether the communication was initiated by the party
30or the decisionmaker. Communications shall be reported within
31three working days of the communication by filing a “Notice of
32Ex Parte Communication” with the commission in accordance
33with the procedures established by the commission for the service
34of that notice. The notice shall include the following information:

35(i) The date, time, and location of the communication, and
36whether it was oral, written, or a combination.

37(ii) The identity of the recipient and the person initiating the
38communication, as well as the identity of any persons present
39during the communication.

P20   1(iii) A description of the party’s, but not the decisionmaker’s,
2communication and its content, to which shall be attached a copy
3of any written material or text used during the communication.

4

SEC. 9.  

Section 1701.2 of the Public Utilities Code is amended
5to read:

6

1701.2.  

(a) If the commission pursuant to Section 1701.1 has
7determined that an adjudication case requires a hearing, the
8procedures prescribed by this section shall be applicable. The
9assigned commissioner or the assigned administrative law judge
10shall hear the case in the manner described in the scoping memo.
11The scoping memo shall designate whether the assigned
12commissioner or the assigned administrative law judge shall preside
13in the case. The commission shall provide by rule for peremptory
14challenges and challenges for cause of the administrative law judge.
15Challenges for cause shall include, but not be limited to, financial
16interests and prejudice. The rule shall provide that all parties are
17entitled to one peremptory challenge of the assignment of the
18administrative law judge in all cases. All parties are entitled to
19 unlimited peremptory challenges in any case in which the
20administrative law judge has within the previous 12 months served
21in any capacity in an advocacy position at the commission, been
22employed by a regulated public utility, or has represented a party
23or has been a party of interest in the case. The assigned
24commissioner or the administrative law judge shall prepare and
25file a decision setting forth recommendations, findings, and
26conclusions. The decision shall be filed with the commission and
27served upon all parties to the action or proceeding without undue
28delay, not later than 60 days after the matter has been submitted
29for decision. The decision of the assigned commissioner or the
30administrative law judge shall become the decision of the
31commission if no further action is taken within 30 days. Any
32interested party may appeal the decision to the commission,
33provided that the appeal is made within 30 days of the issuance of
34the decision. The commission may itself initiate a review of the
35proposed decision on any grounds. The commission decision shall
36be based on the record developed by the assigned commissioner
37or the administrative law judge. A decision different from that of
38the assigned commissioner or the administrative law judge shall
39be accompanied by a written explanation of each of the changes
40made to the decision.

P21   1(b) (1)  Notwithstanding Section 307, an officer, employee, or
2agent of the commission that is personally involved in the
3prosecution or in the supervision of the prosecution of an
4adjudication case before the commission shall not participate in
5the decision of the case, or in the decision of any factually related
6adjudicatory proceeding, including participation in or advising the
7 commission as to findings of fact, conclusions of law, or orders.
8An officer, employee, or agent of the commission that is personally
9involved in the prosecution or in the supervision of the prosecution
10of an adjudication case may participate in reaching a settlement
11of the case, but shall not participate in the decision of the
12commission to accept or reject the settlement, except as a witness
13or counsel in an open hearing or a hearing closed pursuant to
14subdivision (d). The Legislature finds that the commission performs
15both prosecutorial and adjudicatory functions in an adjudication
16case and declares its intent that an officer, employee, or agent of
17the commission, including its attorneys, may perform only one of
18those functions in any adjudication case or factually related
19adjudicatory proceeding.

20(2) An attorney that is prosecuting a matter before the
21 commission shall not meet with any commissioner regarding the
22matter that the attorney is prosecuting unless all parties are present.

23(c) Ex parte communications shall be prohibited in adjudication
24cases.

25(d) Notwithstanding any other law, the commission may meet
26in a closed hearing to consider the decision that is being appealed.
27The vote on the appeal shall be in a public meeting and shall be
28accompanied with an explanation of the appeal decision.

29(e) Adjudication cases shall be resolved within 12 months of
30initiation unless the commission makes findings why that deadline
31cannot be met and issues an order extending that deadline. In the
32event that a rehearing of an adjudication case is granted, the parties
33shall have an opportunity for final oral argument.

34(f) (1) The commission may determine that the respondent
35lacks, or may lack, the ability to pay potential penalties or fines
36or to pay restitution that may be ordered by the commission.

37(2) If the commission determines that a respondent lacks, or
38may lack, the ability to pay, the commission may order the
39respondent to demonstrate, to the satisfaction of the commission,
40sufficient ability to pay potential penalties, fines, or restitution that
P22   1may be ordered by the commission. The respondent shall
2demonstrate the ability to pay, or make other financial
3arrangements satisfactory to the commission, within seven days
4of the commission commencing an adjudication case. The
5commission may delegate to the attorney to the commission the
6determination of whether a sufficient showing has been made by
7the respondent of an ability to pay.

8(3) Within seven days of the commission’s determination of the
9respondent’s ability to pay potential penalties, fines, or restitution,
10the respondent shall be entitled to an impartial review by an
11administrative law judge of the sufficiency of the showing made
12by the respondent of the respondent’s ability to pay. The review
13by an administrative law judge of the ability of the respondent to
14pay shall become part of the record of the adjudication and is
15subject to the commission’s consideration in its order resolving
16the adjudication case. The administrative law judge may enter
17temporary orders modifying any financial requirement made of
18the respondent pending the review by the administrative law judge.

19(4) A respondent that is a public utility regulated under a rate
20of return or rate of margin regulatory structure or that has gross
21annual revenues of more than one hundred million dollars
22($100,000,000) generated within California is presumed to be able
23to pay potential penalties or fines or to pay restitution that may be
24ordered by the commission, and, therefore, paragraphs (1) to (3),
25inclusive, do not apply to that respondent.

end delete
26begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 1706 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
27to read:end insert

28

1706.  

begin insert(a)end insertbegin insertend insertA complete record of all proceedings and testimony
29before the commission or any commissioner on any formal hearing
30shall be taken down by a reporter appointed by the commission,
31and the parties shall be entitled to be heard in person or by attorney.
32begin delete Inend deletebegin insert The commission shall adopt rules providing for posting on its
33Internet Web site of all comments, workshop reports, hearing
34exhibits, including the exhibit number assigned and whether the
35exhibit has been offered and received in evidence, hearing
36transcripts, and other documentary information included in the
37record of its proceedings.end insert

38begin insert(b)end insertbegin insertend insertbegin insertInend insert case of an action to review any order or decision of the
39commission, a transcript of that testimony, together with all
40exhibits or copies thereof introduced, and of the pleadings, record,
P23   1and proceedings in the cause, shall constitute the record of the
2commission, but if the petitioner and the commission stipulate that
3certain questions alone and a specified portion only of the evidence
4shall be certified to the Supreme Court or the court of appeal for
5its judgment, the stipulation and the questions and the evidence
6therein specified shall constitute the record on review. The
7provisions of this section shall not apply to hearings held pursuant
8to Section 1702.1.

9begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 1710 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
10to read:end insert

11

1710.  

begin deleteNo end deletebegin insert(a)end insertbegin insertend insertbegin insertExcept as otherwise provided for by Section
121701, no end insert
documents or records of a public utility or person or
13corporation which purport to be statements of fact shall be admitted
14into evidence or shall serve as any basis for the testimony of any
15witness, unless the documents or records have been certified under
16penalty of perjury by the person preparing or in charge of preparing
17them as being true and correct. If the person preparing them is
18dead or has been declared incompetent, any other person having
19knowledge of such statements of fact may certify the records. If
20certification pursuant to this section is not possible for any reason,
21the documents or records shall not be admitted into evidence unless
22admissible under the Evidence Code.

begin delete

23This

end delete

24begin insert(b)end insertbegin insertend insertbegin insertThis end insertsection shall not apply to any documents not prepared,
25directly or indirectly, by, or under the supervision or direction of,
26the public utility or person or corporation offering the documents
27into evidence.

28begin insert

begin insertSEC. 10.end insert  

end insert
begin insert

Section 2.5 of this bill incorporates amendments to
29Section 311.5 of the Public Utilities Code proposed by both this
30bill and Senate Bill 48. It shall only become operative if (1) both
31bills are enacted and become effective on or before January 1,
322016, (2) each bill amends Section 311.5 of the Public Utilities
33Code, and (3) this bill is enacted after Senate Bill 48, in which
34case Section 2 of this bill shall not become operative.

end insert
35begin insert

begin insertSEC. 11.end insert  

end insert
begin insert

Section 7.5 of this bill incorporates amendments to
36Section 1701 of the Public Utilities Code proposed by both this
37bill and Senate Bill 48. It shall only become operative if (1) both
38bills are enacted and become effective on or before January 1,
392016, (2) each bill amends Section 1701 of the Public Utilities
P24   1Code, and (3) this bill is enacted after Senate Bill 48, in which
2case Section 7 of this bill shall not become operative.

end insert
3

begin deleteSEC. 10.end delete
4begin insertSEC. 12.end insert  

No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6the only costs that may be incurred by a local agency or school
7district will be incurred because this act creates a new crime or
8infraction, eliminates a crime or infraction, or changes the penalty
9for a crime or infraction, within the meaning of Section 17556 of
10the Government Code, or changes the definition of a crime within
11the meaning of Section 6 of Article XIII B of the California
12Constitution.



O

    91