Amended in Assembly August 3, 2016

Amended in Assembly August 1, 2016

Amended in Assembly June 20, 2016

Amended in Senate January 4, 2016

Amended in Senate April 6, 2015

Senate BillNo. 512


Introduced by Senator Hill

February 26, 2015


An act to amend Sections 306, 311.5, 910.1, 1701, 1802, 1804, and 1808 of, to add Sections 1711, 1802.4, and 1803.1 to, and to repeal and add Section 910 of, the Public Utilities Code, relating to the Public Utilities Commission.

LEGISLATIVE COUNSEL’S DIGEST

SB 512, as amended, Hill. Public Utilities Commission.

(1) The California Constitution establishes the Public Utilities Commission, with jurisdiction over all public utilities. The Public Utilities Act provides that the office of the commission shall be in the City and County of San Francisco, that the office always be open, except on legal holidays and nonjudicial days, and that the commission hold its sessions at least once in each calendar month in the City and County of San Francisco.

This bill would require that the commission hold its sessions at least once in each calendar month, without specifying the location.

(2) The California Constitution authorizes the commission to establish its own procedures, subject to statutory limitations or directions and constitutional requirements of due process. 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. For these purposes, quasi-legislative cases are cases that establish policy, including rulemakings and investigations which may establish rules affecting an entire industry; adjudication cases are enforcement cases and complaints except those challenging the reasonableness of any rates or charges; and ratesetting cases are cases in which rates are established for a specific company. Existing law requires the commission to publish and maintain certain documents on the Internet, including a docket card that lists all documents filed and all decisions or rulings issued in those proceedings, as provided.

This bill would make the Administrative Adjudication Code of Ethics applicable to administrative law judges of the commission. Except in adjudication cases, the bill would require the commission, before determining the scope of the proceeding, where feasible and appropriate, to seek the participation of those who are likely to be affected by a decision in the proceeding. The bill would, until January 1, 2020, require the Policy and Planning Division of the commission to undertake one or more studies of outreach efforts undertaken by other state and federal utility regulatory bodies and to make recommendations to the commission to promote effective outreach, including metrics for use in evaluating success. The bill would require the commission to include a docket card that lists the public versions of all prepared oral and written testimony and advice letter filings, protests, and responses on its Internet Web site. The bill would require the commission to make additional information available on the Internet, including information on how members of the public and ratepayers can gain access to the commission’s ratemaking process.

(3) The Public Utilities Act requires the commission to develop, publish, and annually update an annual workplan that does all of the following: (A) describes in clear detail the scheduled ratemaking proceedings and other decisions that may be considered by the commission during the calendar year, (B) includes information on how members of the public and ratepayers can gain access to the commission’s ratemaking process and information regarding the specific matters to be decided, (C) includes information on the operation of the office of the public advisor and identifies the names and telephone numbers of those contact persons responsible for specific cases and matters to be decided, and (D) includes a statement that specifies activities that the commission proposes to reduce the costs of, and rates for, energy, including electricity, and for improving the competitive opportunities for state agriculture and other rural energy consumers. The act requires the commission to submit the workplan to the Governor and Legislature by February 1 of each year.

This bill would require the commission to develop, publish, and annually update a report that contains certain specified information, as provided, and would expand the requirement that the workplan, as part of that report, describe in clear detail the scheduled proceedings that may be considered by the commission during the calendar year to include all proceedings and not just ratemaking proceedings. The bill would additionally require that the report include performance criteria for the commission and executive director and evaluate the performance of the executive director during the previous year based on the criteria established in the prior year’s workplan. The bill would require the report to include a list of the public meetings held outside San Francisco in the previous year and a schedule of meetings anticipated to be held outside San Francisco during the upcoming year. The bill would require the commission to post the report in a conspicuous area of its Internet Web site and disseminate the information in the report, as provided.

(4) The Public Utilities Act requires the commission to submit an annual report to the Legislature on the number of cases where resolution exceeded the time periods prescribed in scoping memos and the days that commissioners presided in hearings.

This bill would delete the requirement that the report include the number of cases where resolution exceeded the time periods prescribed in scoping memos and instead would require the commission to annually submit a report to the Legislature on the commission’s timeliness in resolving cases and include information on the disposition of applications for rehearings. The bill would require that the report include the number of scoping memos issued in each proceeding and the number of orders issued extending the statutory deadlines for all adjudication, ratesetting, and quasi-legislative cases.

(5) The Public Utilities Act provides intervenor compensation for reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs to public utility customers or their representatives for participation or intervention in any proceeding of the commission based, in part, upon whether the intervenor would experience significant financial hardship and makes a substantial contribution to the adoption, in whole or in part, of the commission’s order or decision. Existing law precludes a local government entity from receiving intervenor compensation by excluding them from the definition of a “customer” for purposes of the intervenor compensation provisions.

The bill would permit intervenor compensation to be paid to certain local government entities that intervene or participate in commission proceedings to the extent that their involvement was for the purpose of protecting health and safety, under specified circumstances. The bill would make conforming changes.

Existing law requires a public utility that is the subject of the hearing, investigation, or proceeding in which intervenor fees are awarded to pay those intervenor fees within 30 days and makes the failure to do so a crime.

By expanding the obligation of a public utility to pay intervenor fees to an eligible local government entity, the bill would impose a state-mandated local program by expanding the application of an existing 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:

P4    1

SECTION 1.  

Section 306 of the Public Utilities Code is
2amended to read:

3

306.  

(a) The office of the commission shall be in the City and
4County of San Francisco. The office shall always be open, legal
5holidays and nonjudicial days excepted. The commission shall
6hold its sessions at least once in each calendar month. The
7commission may also meet at such other times and in such places
8as may be expedient and necessary for the proper performance of
9its duties, and for that purpose may rent quarters or offices.

10(b) The meetings of the commission shall be open and public
11in accordance with the provisions of Article 9 (commencing with
12Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of
13the Government Code.

P5    1In addition to the requirements of Section 11125 of the
2Government Code, the commission shall include in its notice of
3meetings the agenda of business to be transacted, and no item of
4business shall be added to the agenda subsequent to the notice in
5the absence of an unforeseen emergency situation. A rate increase
6shall not constitute an unforeseen emergency situation. As used
7in this subdivision, “meeting” shall include all investigations,
8proceedings, and showings required by law to be open and public.

9(c) The commission shall have a seal, bearing the inscription
10“Public Utilities Commission State of California.” The seal shall
11be affixed to all writs and authentications of copies of records and
12to such other instruments as the commission shall direct.

13(d) The commission may procure all necessary books, maps,
14charts, stationery, instruments, office furniture, apparatus, and
15appliances.

16

SEC. 2.  

Section 311.5 of the Public Utilities Code is amended
17to read:

18

311.5.  

(a) (1) Prior to commencement of any meeting at which
19commissioners vote on items on the public agenda, the commission
20shall make available to the public copies of the agenda, and upon
21request, any agenda item documents that are proposed to be
22considered by the commission for action or decision at a
23commission meeting.

24(2) In addition, the commission shall publish the agenda, agenda
25item documents, and adopted decisions in a manner that makes
26copies of them easily available to the public, including publishing
27those documents on the Internet. Publication of the agenda and
28agenda item documents shall occur on the Internet at the same
29time as the written agenda and agenda item documents are made
30available to the public.

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

33(1) Each of the commission’s proposed and alternate proposed
34decisions and resolutions, until the decision or resolution is adopted
35and published.

36(2) Each of the commission’s adopted decisions and resolutions.
37The publication shall occur within 10 days of the adoption of each
38decision or resolution by the commission.

39(3) The then-current version of the commission’s general orders
40and Rules of Practice and Procedure.

P6    1(4) Each of the commission’s rulings. The commission shall
2maintain those rulings on its Internet Web site until final
3disposition, including disposition of any judicial appeals, of the
4respective proceedings in which the rulings were issued.

5(5) A docket card that lists, by title and date of filing or issuance,
6all documents filed and all decisions or rulings issued in those
7proceedings, including the public versions of all prepared oral and
8written testimony and advice letter filings, protests, and responses.
9The commission shall maintain the docket card until final
10disposition, including disposition of any judicial appeals, of the
11corresponding proceedings.

12(c) The commission shall make the following information
13available on the Internet:

14(1) Information on how members of the public and ratepayers
15can gain access to the commission’s ratemaking process and
16information regarding the specific matters to be decided.

17(2) Information on the operation of the office of the public
18advisor established in Section 321 and how the public advisor can
19connect members of the public to persons responsible for specific
20cases and matters to be decided.

21

SEC. 3.  

Section 910 of the Public Utilities Code is repealed.

22

SEC. 4.  

Section 910 is added to the Public Utilities Code, to
23read:

24

910.  

(a) The commission shall develop, publish, and annually
25update a report that contains all of the following information:

26(1) A workplan that describes in clear detail the scheduled
27proceedings and other decisions that may be considered by the
28commission during the calendar year.

29(2) Performance criteria for the commission and the executive
30director, and an evaluation of the performance of the executive
31director during the previous year based on criteria established in
32the prior year’s workplan.

33(3) An accounting of the commission’s transactions and
34proceedings from the prior year, together with other facts,
35 suggestions, and recommendations that the commission deems of
36value to the people of the state. The accounting shall include the
37activities that the commission has taken, and plans to take, to
38reduce the costs of, and the rates for, water and energy, including
39electricity, to improve the competitiveness of the state’s industries,
40including agriculture, and, to the extent possible, shall include
P7    1suggestions and recommendations for the reduction of those costs
2and rates.

3(4) A description of activities taken and processes instituted to
4both solicit the input of customers from diverse regions of the state
5in ratesetting and quasi-legislative proceedings and to process that
6input in a way that makes it usable in commission decisionmaking.
7The report shall describe the successes and challenges of these
8processes, the effect of resource constraints, and efforts to be made
9during the calendar year to further the goal of increased public
10participation.

11(5) A list of the public meetings held outside San Francisco in
12the previous year, and a schedule of meetings anticipated to be
13held outside San Francisco during the coming year.

14(b) (1) The commission shall submit the report required
15pursuant to subdivision (a) to the Governor and the Legislature,
16in compliance with Section 9795 of the Government Code, no later
17than February 1 of each year.

18(2) The commission shall post the report in a conspicuous area
19of its Internet Web site and shall have a program to disseminate
20the information in the report using computer mailing lists to provide
21regular updates on the information to those members of the public
22and organizations that request that information.

23

SEC. 5.  

Section 910.1 of the Public Utilities Code is amended
24to read:

25

910.1.  

The commission shall annually submit a report to the
26Legislature on the commission’s timeliness in resolving cases,
27information on the disposition of applications for rehearings, and
28the days that commissioners presided in hearings. The report shall
29include the number of scoping memos issued in each proceeding
30and the number of orders issued extending the statutory deadlines
31pursuant to subdivision (e) of Section 1701.2, for all adjudication
32cases, and pursuant to subdivision (a) of Section 1701.5, for all
33ratesetting or quasi-legislative cases.

34

SEC. 6.  

Section 1701 of the Public Utilities Code is amended
35to read:

36

1701.  

(a) All hearings, investigations, and proceedings shall
37be governed by this part and by rules of practice and procedure
38adopted by the commission, and in the conduct thereof the technical
39rules of evidence need not be applied. No informality in any
40hearing, investigation, or proceeding or in the manner of taking
P8    1testimony shall invalidate any order, decision, or rule made,
2approved, or confirmed by the commission.

3(b) Notwithstanding Section 11425.10 of the Government Code,
4Articles 1 to 15, inclusive, of Chapter 4.5 (commencing with
5Section 11400) of Part 1 of Division 3 of Title 2 of the Government
6Code do not apply to a hearing by the commission under this code.
7The Administrative Adjudication Code of Ethics (Article 16
8(commencing with Section 11475) of Chapter 4.5 of Part 1 of
9Division 3 of Title 2 of the Government Code) shall apply to
10administrative law judges of the commission.

11

SEC. 7.  

Section 1711 is added to the Public Utilities Code, to
12read:

13

1711.  

(a) Where feasible and appropriate, except for
14adjudication cases, before determining the scope of the proceeding,
15the commission shall seek the participation of those who are likely
16to be affected, including those who are likely to benefit from, and
17those who are potentially subject to, a decision in that proceeding.
18The commission shall demonstrate its efforts to comply with this
19section in the text of the initial scoping memo of the proceeding.

20(b) (1) The Policy and Planning Division of the commission
21shall undertake one or more studies of outreach efforts undertaken
22by other state and federal utility regulatory bodies and make
23recommendations to the commission to promote effective outreach,
24including metrics for use in evaluating success.

25(2) This subdivision shall remain in effect only until January 1,
262020, and shall have no force or effect on or after that date, unless
27a later enacted statute that is chaptered before January 1, 2020,
28deletes or extends that date.

29

SEC. 8.  

Section 1802 of the Public Utilities Code is amended
30to read:

31

1802.  

As used in this article:

32(a) “Compensation” means payment for all or part, as determined
33by the commission, of reasonable advocate’s fees, reasonable
34expert witness fees, and other reasonable costs of preparation for
35and participation in a proceeding, and includes the fees and costs
36of obtaining an award under this article and of obtaining judicial
37review, if any.

38(b) (1) “Customer” means any of the following:

P9    1(A) A participant representing consumers, customers, or
2subscribers of any electrical, gas, telephone, telegraph, or water
3 corporation that is subject to the jurisdiction of the commission.

4(B) A representative who has been authorized by a customer.

5(C) A representative of a group or organization authorized
6pursuant to its articles of incorporation or bylaws to represent the
7interests of residential customers, or to represent small commercial
8customers who receive bundled electric service from an electrical
9corporation.

10(2) “Customer” does not include any state, federal, or local
11government agency, any publicly owned public utility, or any
12entity that, in the commission’s opinion, was established or formed
13by a local government entity for the purpose of participating in a
14commission proceeding.

15(c) “Expert witness fees” means recorded or billed costs incurred
16by a customer for an expert witness.

17(d) “Eligible local government entity” meansbegin delete either of the
18following:end delete

19begin delete(1)end deletebegin deleteend deletebegin deleteA end deletebegin inserta end insertlocal government entity that is not a publicly owned
20public utility that intervenes or participates in a commission
21proceeding for the purpose of protecting the health and safety of
22the residents within the entity’s jurisdiction after suffering a
23catastrophic material loss, either in significant damage to
24infrastructure or loss of life and property, or both, as a direct result
25of public utility infrastructure.

begin delete

26(2) A consortium of local governmental entities that intervene
27or participate in a commission proceeding for the purpose of
28protecting public health and safety through prevention of material
29loss, either in significant damage to infrastructure or loss of life
30and property as a result of public utility infrastructure.

end delete

31(e) “Other reasonable costs” means reasonable out-of-pocket
32expenses directly incurred by a customer that are directly related
33to the contentions or recommendations made by the customer that
34resulted in a substantial contribution.

35(f) “Party” means any interested party, respondent public utility,
36or commission staff in a hearing or proceeding.

37(g) “Proceeding” means an application, complaint, or
38investigation, rulemaking, alternative dispute resolution procedures
39in lieu of formal proceedings as may be sponsored or endorsed by
40the commission, or other formal proceeding before the commission.

P10   1(h) “Significant financial hardship” means either that the
2customer cannot afford, without undue hardship, to pay the costs
3of effective participation, including advocate’s fees, expert witness
4fees, and other reasonable costs of participation, or that, in the case
5of a group or organization, the economic interest of the individual
6members of the group or organization is small in comparison to
7the costs of effective participation in the proceeding.

8(i) “Small commercial customer” means any nonresidential
9customer with a maximum peak demand of less than 50 kilowatts.
10The commission may establish rules to modify or change the
11definition of “small commercial customer,” including use of criteria
12other than a peak demand threshold, if the commission determines
13that the modification or change will promote participation in
14proceedings at the commission by organizations representing small
15businesses, without incorporating large commercial and industrial
16customers.

17(j) “Substantial contribution” means that, in the judgment of
18the commission, the customer’s presentation has substantially
19assisted the commission in the making of its order or decision
20because the order or decision has adopted in whole or in part one
21or more factual contentions, legal contentions, or specific policy
22or procedural recommendations presented by the customer. Where
23the customer’s participation has resulted in a substantial
24contribution, even if the decision adopts that customer’s contention
25or recommendations only in part, the commission may award the
26customer compensation for all reasonable advocate’s fees,
27reasonable expert fees, and other reasonable costs incurred by the
28customer in preparing or presenting that contention or
29recommendation.

30

SEC. 9.  

Section 1802.4 is added to the Public Utilities Code,
31to read:

32

1802.4.  

An eligible local government entity is eligible for an
33award of compensation pursuant to this article for its involvement
34to the extent that the involvement was for the purpose of protecting
35health andbegin delete safety, and consistent with subdivision (d) of Section
361802. The eligibility of a local government entity described by
37paragraph (1) of subdivision (d) of Section 1802, shall be for
38involvementend delete
begin insert safety within the entity’s jurisdiction andend insert to the extent
39that the involvement was germane to the material lossbegin delete suffered
40and to improving safety within the entity’s jurisdiction.end delete
begin insert suffered.end insert

P11   1

SEC. 10.  

Section 1803.1 is added to the Public Utilities Code,
2to read:

3

1803.1.  

Pursuant to Section 1802.4, the commission shall award
4reasonable advocate’s fees, reasonable expert witness fees, and
5other reasonable costs of preparation for and participation in a
6hearing or proceeding to an eligible local government entity that
7complies with Section 1804 and satisfies both of the following
8requirements:

9(a) The entity’s presentation makes a substantial contribution
10to the adoption, in whole or in part, of the commission’s order or
11decision.

12(b) Participation or intervention without an award of fees or
13costs imposes a significant financial hardship.

14

SEC. 11.  

Section 1804 of the Public Utilities Code is amended
15to read:

16

1804.  

(a) (1) A customer who, or eligible local government
17entity that, intends to seek an award under this article shall, within
1830 days after the prehearing conference is held, file and serve on
19all parties to the proceeding a notice of intent to claim
20compensation. In cases where no prehearing conference is
21scheduled or where the commission anticipates that the proceeding
22will take less than 30 days, the commission may determine the
23procedure to be used in filing these requests. In cases where the
24schedule would not reasonably allow parties to identify issues
25within the timeframe set forth above, or where new issues emerge
26subsequent to the time set for filing, the commission may determine
27an appropriate procedure for accepting new or revised notices of
28intent.

29(2) (A) The notice of intent to claim compensation shall include
30both of the following:

31(i) A statement of the nature and extent of the customer’s or
32eligible local government entity’s planned participation in the
33proceeding as far as it is possible to set it out when the notice of
34intent is filed.

35(ii) An itemized estimate of the compensation that the customer
36or eligible local government entity expects to request, given the
37likely duration of the proceeding as it appears at the time.

38(B) The notice of intent may also include a showing by the
39customer or eligible local government entity that participation in
40the hearing or proceeding would pose a significant financial
P12   1hardship. Alternatively, such a showing shall be included in the
2request submitted pursuant to subdivision (c).

3(C) Within 15 days after service of the notice of intent to claim
4compensation, the administrative law judge may direct the staff,
5and may permit any other interested party, to file a statement
6responding to the notice.

7(b) (1) If the customer’s or eligible local government entity’s
8showing of significant financial hardship was included in the notice
9filed pursuant to subdivision (a), the administrative law judge, in
10consultation with the assigned commissioner, shall issue within
1130 days thereafter a preliminary ruling addressing whether the
12customer or eligible local government entity will be eligible for
13an award of compensation. The ruling shall address whether a
14showing of significant financial hardship has been made. A finding
15of significant financial hardship shall create a rebuttable
16presumption of eligibility for compensation in other commission
17proceedings commencing within one year of the date of that
18finding.

19(2) The administrative law judge may, in any event, issue a
20ruling addressing issues raised by the notice of intent to claim
21compensation. The ruling may point out similar positions, areas
22of potential duplication in showings, unrealistic expectation for
23compensation, and any other matter that may affect the customer’s
24or eligible local government entity’s ultimate claim for
25compensation. Failure of the ruling to point out similar positions
26or potential duplication or any other potential impact on the
27ultimate claim for compensation shall not imply approval of any
28claim for compensation. A finding of significant financial hardship
29in no way ensures compensation. Similarly, the failure of the
30customer or eligible local government entity to identify a specific
31issue in the notice of intent or to precisely estimate potential
32compensation shall not preclude an award of reasonable
33compensation if a substantial contribution is made.

34(c) Following issuance of a final order or decision by the
35commission in the hearing or proceeding, a customer who, or
36eligible local government entity that, has been found, pursuant to
37subdivision (b), to be eligible for an award of compensation may
38file within 60 days a request for an award. The request shall include
39at a minimum a detailed description of services and expenditures
40 and a description of the customer’s or eligible local government
P13   1entity’s substantial contribution to the hearing or proceeding.
2Within 30 days after service of the request, the commission staff
3may file, and any other party may file, a response to the request.

4(d) The commission may audit the records and books of the
5customer or eligible local government entity to the extent necessary
6to verify the basis for the award. The commission shall preserve
7the confidentiality of the customer’s or eligible local government
8entity’s records in making its audit. Within 20 days after
9completion of the audit, if any, the commission shall direct that
10an audit report shall be prepared and filed. Any other party may
11file a response to the audit report within 20 days thereafter.

12(e) Within 75 days after the filing of a request for compensation
13pursuant to subdivision (c), or within 50 days after the filing of an
14audit report, whichever occurs later, the commission shall issue a
15decision that determines whether or not the customer or eligible
16local government entity has made a substantial contribution to the
17final order or decision in the hearing or proceeding. If the
18commission finds that the customer or eligible local government
19entity requesting compensation has made a substantial contribution,
20the commission shall describe this substantial contribution and
21shall determine the amount of compensation to be paid pursuant
22to Section 1806.

23

SEC. 12.  

Section 1808 of the Public Utilities Code is amended
24to read:

25

1808.  

The commission shall deny any award to any customer
26or eligible local government entity that attempts to delay or obstruct
27the orderly and timely fulfillment of the commission’s
28responsibilities.

29

SEC. 13.  

No reimbursement is required by this act pursuant to
30Section 6 of Article XIII B of the California Constitution because
31the only costs that may be incurred by a local agency or school
32district will be incurred because this act creates a new crime or
33infraction, eliminates a crime or infraction, or changes the penalty
34for a crime or infraction, within the meaning of Section 17556 of
35the Government Code, or changes the definition of a crime within
36the meaning of Section 6 of Article XIII B of the California
37Constitution.



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