AN OVERSIGHT HEARING OF THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. AND THE OFFICE OF
REPAIR ADVOCATES THIS IS THE
ANNUAL LEGISLATIVE UPDATE.
WE. WERE HERE LAST YEAR AND
COURSE WE HAD A A GREAT
DISCUSSION HERE LAST YEAR ON THE
TWO SUBJECTS.
AND WE'VE OF.
IT SEEMS THAT WE HAVE.
MADE A LOT OF PROGRESS IN THAT
TIME. CALIFORNIA HAS DEFINITELY
BEEN ON THE ON THE MARCH IN THE
LAST FEW YEARS.
PRETTY MUCH CHANGE IN OUR OUR
SYSTEM OF PROCUREMENT OF ENERGY.
I'M VERY PROUD OF THE FACT THAT
CALIFORNIA IS GETTING GREENER
GRAY AND GREEN OR NOT FOR.
PROCUREMENT EVERY EVERY YEAR AND
THE PC. AND THE OFFICE REPAIR
ADVOCATES HAVE DEFINITELY BEEN A
BIG PART OF THAT EFFORT.
AND EVERYONE IN GENERAL
EVERYBODY'S BEEN WORKING VERY
HARD ON THAT.
THERE IS BEEN NO. SMALL AMOUNT
OF BILLS COME IN AND LEGISLATURE
ON THE SUBJECTS I REALLY
APPRECIATE ALL HARD. EVERYBODY
HAS BEEN WORKING TO TRANSLATE
THOSE BILLS INTO ACTION.
WE HAVE IN THAT PROCESS WE HAVE
DEFINITELY SEEN A LOT OF CHANGE.
IN OUR STATE WE'VE ALSO SEEN A
LARGE NUMBER OF NEW JOBS.
WE'VE SEEN UP.
A LOT OF NEW DEVELOPMENT IN THE
AREA OF OF.
ELECTRICAL UP PRODUCTION.
AND A LOT OF INVESTMENTS IN IN
THE CALIFORNIA ENERGY GRID.
.
WE'VE ALSO UNFORTUNATELY
EXPERIENCED CATASTROPHIC
WILDFIRES WE HAVE.
.
YOU KNOW EXPERIENCED A MAJOR
FLOODINGS WE'VE HAD.
QUITE A SLEW OF FIRES OVER THE
LAST TEN YEARS THAT HAVE. REALLY
DEVASTATED ALMOST EVERY SINGLE
PART OF THE STATE WITHOUT
EXCEPTION. THERE HAS BEEN ONE.
ISSUE OVER ANOTHER WEATHER IN
EARTHQUAKE.
THAT IS.
AFFECTED POWER LINES OR FIRES
OR SOMETHING.
THERE'S ALWAYS BEEN SOMETHING
THAT COMPLICATES THE.
THE ABILITY FOR THE STATE OF
CALIFORNIA OR PROVIDE. ENERGY
FOR THE PEOPLE OF THE STATE.
WHILE. IN THE CASE OF THE FIRES.
WE KNOW THAT THEY'RE BEEN
INVESTIGATIONS ON ONTO THOSE AND
WE STILL. ARE.
REALLY NOT AWARE OF THE DETAILS
OF THOSE MATTERS BUT THOSE.
INVESTIGATIONS ARE.
AND.
OUR I HOPE TO CONTINUE.
AND.
THAT THE CONTAINER SURE THAT
THE UTILITIES ARE APPROPRIATELY
ADDRESSING WILDFIRE RISK.
THIS COMMITTEE TODAY.
ERA IS IS.
PROBABLY GONNA TOUCH UPON THAT I
I KNOW THAT IT'S IMPORTANT TO
THE MEMBERS OF THIS COMMITTEE
AND I'M SURE IT'S IMPORTANT. TO
THE PEOPLE PRESENT IN.
THERE WAS OF.
A SUBCOMMITTEE HELD ABOUT A
MONTH AGO IN CENTER MAGUIRE'S
DISTRICT TO.
DETAIL SOME OF THE. SAFETY AND
THE SOME OF THE PERMITS
PREVENTION MEASURES TO ADDRESS
WILDFIRE RISK AND THAT WAS A
VERY. INFORMATIVE A COMMITTEE.
AND.
WE ALSO KNOW THAT.
DAGR.
YES.
THE PRIMARY OVERSIGHT. OF THE
INTEGRITY OF NATURAL GAS.
AND.
NATURAL GAS STORAGE WELLS IN
THE STATE AND THAT THE.
CPUC OVERSEES INVESTOR OWNED.
UTILITIES BROADLY AND THAT.
.
THE ISSUES SURROUNDING LISA
CANYON.
ARE ARE ARE STILL BEING ON.
ADDRESSED. BY THESE AGENCIES.
THERE ARE.
JUST A BUNCH OF ISSUES THAT THE
ISSUE USE THE PC IS. RESPONSIBLE
FOR OVERSEEING IT'S A LONG LIST
THEY HAVE A LOT OF
RESPONSIBILITIES.
AND IN REGARD TO SOME OF THE
LAWS THAT WE PASS IN THE LAST
FEW YEARS THERE THEY'RE
RESPONSIBLE FOR IMPLEMENTING. SP
THREE FIFTY AND ALL ARE CLEAN
ENERGY GOALS.
THERE IN IT RESPONSIBLE FOR
ENSURING SAFETY A MULTITUDE
MULTITUDE OF OF. UTILITIES ARE
THAT THEY OVERSEAS NATURAL GAS
ELECTRICITY TELECOMMUNICATIONS
WATER.
TRANSPORTATION FOR HIGHER.
AND.
A SLEW OF OTHER CONSUMER
PROTECTION AS RELATES TO ALL
THESE ACTIVITIES COMBINED.
THE OPENINGS DECISIONS
SURROUNDING COST ALLOCATION OF
ENERGY SERVICE WITH THE GROWTH
OF. MORE OF THE COMMUTE CHOICE I
GROUP. GATORS IS AN INSURANCE
RELIABILITY IS ALSO ON THE
HORIZON I'M SURE. WE'LL HEAR
SOME ABOUT THAT BECAUSE THAT'S
EEN AN ISSUE. OF CONSIDERABLE
CONSTERNATION IN THE LAST FEW
MONTHS.
AND AND FINALLY.
TO HELP US ACHIEVE OUR GOALS IN
THIS COMMITTEE TODAY WE WILL
HEAR FROM THE AGENCY LEADERSHIP
INCLUDING. MICHAEL PICKER THE
PRESIDENCY PC TIMOTHY SULLIVAN
THE OUTGOING EXECUTIVE DIRECTOR
OF THE CPC IN ALICE STEPHENS THE
INCOMING. EXECUTIVE DIRECTOR OF
THE CP SO THAT THERE'S NO LOSS
IN AND.
IN INFORMATION FROM ONE LEADER
TO THE NEXT IN THIS TRANSITIONAL
PERIOD.
I'M VERY PLEASED IT WILL BE A
HAVE WILL HAVE A CHANCE TO HEAR
FROM BOTH SIDES TO THIS FOR THE
COMMITTEE MEMBERS CAN GET ALL
THE QUESTIONS ANSWERED.
IN EVERY AREA ADDITIONALLY WILL
ALSO HEAR FROM THE OFFICE OF
RATE ADVOCATES DIRECTOR
ELIZABETH ECKELS.
I LOOK FORWARD TO THE DIALOGUE
CONTINUED OPPORTUNISTS WORK
TOGETHER.
TO ENSURE THAT THE AGENCY
CONTINUES TO MOVE FORWARD. AND
IN THE RIGHT DIRECTION. TO MEET
ITS MISSION OF CREATING A SAFE
AND RELIABLE.
AFFORDABLE AGREED FOR
CALIFORNIANS AND ALL THIS
ADDITIONAL SERVICES THAT THEY
OVERSEE. SO WITHOUT FURTHER ADO
ON ASK.
OF.
THE PRESENTERS TO COME FORWARD
TODAY INCLUDING.
.
A TO PRESENT A REPORT OF THE
PUBLIC UTILITIES COMMISSION OF
THE PRESIDENT MICHAEL PICKER.
AND SEE INCOMING AND OUTGOING
DIRECTORS ALASTAIR EVANS AND
CEMENT TIMOTHY SULLIVAN.
THANK YOU I'M MICHAEL PICKER I
AM THE PRESIDENT OF THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION TO MY LEFT IS ALICE
STEPHENS OUR NEW EXECUTIVE
DIRECTOR SHE'S THE FIRST. WOMAN
WHO'S BEEN APPOINTED AS
EXECUTIVE DIRECTOR OF THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION EVER.
TIM SULLIVAN IS RETIRING I'M
JEALOUS.
.
BUT HE'S EARNED HIS.
HE'S EARNED HIS TIME AT HOME.
SO.
I'M GONNA KICK IT OFF A MINUTE
TRY TO STAY FAIRLY HIGH LEVEL
AND TALK ABOUT SOME OF THE BIG
FEATURES IN THE CAL THE CPUC
LANDSCAPE.
ARM IN A THERE'S A ONE LEAVE AS
MUCH TIME AS POSSIBLE FOR YOUR
QUESTIONS.
OUR FIRST SO SAY THAT THAT WE'VE
BEEN MORE CONSCIOUS ABOUT OUR
PRESENCE IN THE NATIONAL POLICY
CONVERSATION AND I'LL GIVE A
COUPLE OF EXAMPLES. WE'RE THE
ONLY STATE REGULATORY AGENCY
THAT FILED COMMENTS ON THE FCC'S
PROPOSED AND.
ON NET NEUTRALITY.
REVERSAL. WE HAD A LOT OF
CONCERNS ABOUT THE IMPACT ON
CALIFORNIA POLICIES IN THE US SO
WE DID FILE. BECAUSE WE'RE THE
ONLY STATE REGULATORS TO HAVE
FILED WHERE THE ONLY FEW. STAY
REGULARS WHO HAVE STANDING TO
CHALLENGE THE THE FCC IN COURT.
AND WE ACTUALLY DID FILE IN THE
NINETIES. CIRCUIT COURT. AFTER
THEY FINALIZED THEIR RANKS WE
THINK THAT THERE'S A VARIETY OF.
ISSUES THAT MERIT MORE
DISCUSSION THAT THEY GAVE.
AND WILL CONTINUE TO PURSUE THAT.
WE ALSO WERE VERY ACTIVE EARLY
ON AND THAT THE DEPARTMENT OF
ENERGY'S POSE NOTICE OF PUBLIC
RULE MAKING THAT WOULD HAVE
PREFERRED. A SPECIFIC BASELOAD
PLANTS AT THE AT THE AT THE AT
HIGH COST RATEPAYERS. THEY'RE
LARGELY IRRELEVANT HERE IN THE
WEST ARM BUT WE THOUGHT IT WAS A
BAD POLICY TO BEGIN WITH AND WE
WERE PLEASED THAT OVER TIME THAT.
THE THE FIRST THE FEDERAL ENERGY
REGULATORY COMMISSION. AGREED
WITH US.
AND I THINK IT ALLOWS US TO HAVE
MORE TRANSACTIONS TREATING OUR
RENEWABLE ENERGY AND BUYING
RENEWABLE ENERGY FROM OTHER
STATES TO. AT A REASONABLE RATE.
I WOULDN'T SWEAR THAT IT
ACTUALLY ACCELERATES OUR OUR OUR
OUR OUR MARCH TOWARDS.
HE.
NON CARBON GRID BUT IT
CERTAINLY BRINGS THE PRICE DOWN
HELPS US WITH RELIABILITY AND
ACTUALLY BRING THE PRICE DOWN
FOR THOSE OTHER STATES AND SO
WE'LL CONTINUE TO. SEE THE
FRUITS OF THAT THE THAT THE
ENERGY IMBALANCE MARKET THAT THE
I SO RUNS.
AND THEN I WANT TO JUST KIND OF
CALL OUT THE FACT THAT WHEN THE
PRESIDENT ANNOUNCED HIS BUDGET
CUTS FOR DEAL WE AND FOR EPA WE
WERE A FAIRLY ASSERTIVE IN
OFFERING OPPORTUNITIES FOR.
THOSE FEDERAL EMPLOYEES TO
CONTINUE TO WORK ON CLEAN ENERGY.
HERE IN CALIFORNIA AND WE HIRED
TEN PEOPLE TO BE YOU SEE I CAN'T
TELL YOU HOW MANY ARE PARTNERS
IN THEIR RECRUITMENT CAMPAIGN
HIRED BUT I WILL ACTUALLY
IDENTIFY NEED ATTACKER WHO ONE
OF THE FOLKS THAT WE HIRED FROM
ON THE CPC IS ACTUALLY MY
PERSONAL ADVISERS HERE WITH. US
TODAY.
SO I THINK THAT WAS VERY
FRUITFUL THEY ARE WORKING IN A
VARIETY OF DIFFERENT PLACES
INCLUDING ONE PERSON IN LA WHO'S
WORKING ON OUR PUBLIC. ADVISORS
OFFICE.
DOING INCREASED OUT REACH TO
COMMUNITIES AND TO.
TO STAKE HOLDERS ABOUT OUR
PROCEEDINGS.
TWO THREE FOLKS ARE WORKING ON
OUR ON OUR CUSTOMER CHOICE
ASSESSMENT. ALONE AND IN A
VARIETY OF OTHER PLACES WITHIN
THE CPC.
.
I ALSO ALSO SAY THAT THAT WE'VE
CONTINUED TO WORK VERY HARD TO
ENGAGE ALL THE COMMISSIONERS IN
THE COURSE AND DIRECTION OF THE
CPUC. NECESSARILY WE HAVE TO
TAKE OUR INDIVIDUAL POSITIONS IS
ADJUDICATORS ON OUR PROCEEDINGS
WHEN THE RECORD IS PRESENTED TO
US. BUT WE'RE STRIVING TO WORK
TOGETHER TO SEND A CLEAR
DIRECTION IS TO LOOK TO THE
GENERAL COURSES THE CPUC. IN
MEETING THE DIRECTION THAT THE
LEGISLATURE THE GOVERNOR SENSE
TO US WE THINK THAT'S VERY
IMPORTANT. CASE AN EXAMPLE IS
THAT ALL FIVE OF US WORKED VERY
HARD IN BOTH RECRUITING
INTERVIEWING IN MAKING THE
SELECTION OF AN EXECUTIVE
DIRECTOR.
AND WHILE THE LONG PROCESS IN
THE HARD WORK DID CONVINCE ME
THAT THERE IS SOME REASON TO
HAVE A STRONG PRESIDENT WHO CAN
MAKE ALL THESE DECISIONS BY
THEMSELVES. I THINK ON BALANCE
IS STILL BETTER IS FOR THE UC
AND FOR THE STATE THAT THE
COMMISSIONERS COOPERATE IN THOSE
KINDS OF DECISIONS. AND SO I
WILL CONTINUE TO LOOK FOR
OPPORTUNITIES TO GIVE UP POWER
AND THE AUTHORITY OF THE
PRESIDENT THE INTERESTS OF
HAVING A STRONGER P. UC AND.
BETTER SERVICE TO TO THE
CITIZENS OF STATE OF CALIFORNIA.
TERMS OF US OF A.
SAFETY MANAGEMENT ARE JUST KIND
TO A COFFEE CUP OF GOING TO A
COUPLE OF THINGS.
THE PROBABLY THE GREATEST HAZARD
THE RESULTS IN THE MOST DEATH TO
CALIFORNIANS THAT THE CPC HAS
OVERSIGHT IS RAIL.
AND SO IS IT IT WHILE WE'VE
SPENT A LOT OF TIME WORKING TO
GAIN CLOSER RELATIONSHIPS WITH
OTHER STATE AGENCIES ON A
VARIETY OF DIFFERENT POLICY
ISSUES INCLUDING SAFETY. WE MADE
A REAL CONCERTED EFFORT THIS
YEAR TO REACH OUT TO LOCAL
GOVERNMENTS AND TO BUILD
RELATIONSHIPS WITH THEM AROUND
RAIL SAFETY AND THE CHALLENGES
THAT LOCAL GOVERNMENTS. REALLY
PREFER TO HAVE MORE ACCESS TO
PARTS OF THEIR COMMUNITIES ARE
BISECTED BY TRAIN TRACKS. AND
THE CHEAPEST WAY TO DO THAT IS
GRADE LEVEL CROSSINGS AND THAT'S
PROBABLY THE GREATEST RISK IS.
IT'S FROM VEHICLES TO GET STUCK
ON THE TRACKS BOA IS TRYING TO
BEAT THE THE GATE ARMS AS THEY
COME DOWN BUT IT'S ALSO
INCREASINGLY FROM PEOPLE WHO
WERE WEARING THEIR EAR BUDS. ARE
TALKING ON THEIR CELL PHONES
WITH YOUR BUDS ON AS THEY'RE
WALKING DOWN THE TRACKS AND IT'S
IT'S REALLY.
A RISK WERE SCHOOLS ARE INVOLVED
AND THAT'S FREQUENTLY THE
PATHWAY THAT THAT THAT YOUNG
PEOPLE WILL TAKE ON THEIR WAY TO
SCHOOL IS WALKING DOWN THE
TRACKS.
SO STARTING WITH THE THE CITY OF
OF OF MORE SAD WE ACTUALLY
RATHER THAN TAKING EACH OF THESE
INDIVIDUAL HAZARDS INDEPENDENTLY.
WHAT WE COULD WORK WITH THE CITY
MANAGER TO DO IS TO CREATE A
HAZARD PROFILE FOR THE CITY AND
RAIL? AND THEN TO ACTUALLY WORK
THROUGHOUT THE CITY TO REDUCE
THE RISK BASED ON THE GREATEST
HAZARD TO TO THE COMMUNITY. I
THINK THAT THAT'S VERY IMPORTANT
WE'VE DONE I AS I SAID WE'VE
DONE A LOT OF GOOD BUILDING
RELATIONSHIPS WITH OTHER STATE
AGENCIES HORIZONTALLY. NOW WE
HAVE TO MOVE ON VERTICALLY TO BE
ABLE TO PENETRATE LOCAL
GOVERNMENTS WHERE INFRASTRUCTURE
IS IMPLICATED IN COMMUNITY
SAFETY.
I WILL SAY THAT WE HAVE STARTED
TO LOOK AT THE ISSUE OF PAUL
SAFETY THIS WAS OUTCOME OF AN ON
BOX THAT WE HAD THE YEAR BEFORE
LOOKING AT POLLS SAFETY AND PULL
ON MANAGEMENT.
ONE OF THE THINGS THAT WE'VE
LEARNED IS THAT THERE ARE
PROBABLY THREE BIG DIFFERENT
DATABASES THAT KEEP RACK OF WHO
OWNS WOODEN POLES WHAT'S ON THEM
WHAT THEIR CONDITION IS. ARM
WHEN THEY WERE INSPECTED. AND
THAT THAT'S A THAT IS AS PEOPLE
WILL PROBABLY AGREE HERE A
SIGNIFICANT ISSUE WE DON'T HAVE
ACCESS TO THE DATABASE. THE THE
TELECOMMUNICATIONS INDUSTRY
WHICH USES THOSE SCROLLS AND IS
FREQUENTLY IMPLICATED IN THOSE
SAFETY HAZARD WANTS TO HAVE
ACCESS TO THAT INFORMATION FOR
PURPOSES OF ACTUALLY PLANNING IN
EXTENDING FIBER TO COMMUNITIES
THAT DON'T HAVE ACCESS TO FIBER.
SO THERE'S A VARIETY OF REASONS
WHY HAVING BETTER INFORMATION ON
ON OUR POLLS ACTUALLY IS
IMPORTANT TO CALIFORNIANS BOTH
ECONOMIC AND IN TERMS OF
ACTUALLY IMPROVING ORAL ORAL
SAFETY PROGRAMS. SO WE'VE OPENED
A PROCEEDING ON THAT WE'RE
TRYING TO DESIGN WHAT THAT DATA
BASE WAS WOULD LOOK LIKE. MY
VISION IS ULTIMATELY THE CPC
WILL HAVE DRONE PILOTS WHO CAN
FLY THAT WITH WHITE ARE AND LOOK
AT WHAT'S ON IT SEE IF THERE ARE
ILLEGAL ATTACHMENTS WHICH IS
COMMON. AND HAS RESULTED IN FOR
AND AND. IN IN IN IN MALIBU AND
IN IN SAN DIEGO AND OTHER PLACES.
AND ACTUALLY START TO TO KEEP
THOSE.
IMPROVING OUR OVERALL SAFETY
MANAGER THE POLLS WE ALSO
ADOPTED PROBABLY THIS THE US IS
TOUGHEST. VEGETATION MANAGEMENT
PROGRAM. ON AND ALL DAY IF I
COME BACK TO THAT I'LL JUST TELL
YOU THAT HAVING MADE ALL THESE
EFFORTS I STILL THINK THAT WITH
INCREASING SEVERITY AND
FREQUENCY OF STORMS THAT IS
STILL IS NOT GOING THAT'S UNPRECEDENTED. SO THIS-DID CHALLENGES GOING TO CONTINUE
TO GROW.
I WON'T I WON'T TALK ABOUT
EVERYTHING ELSE THAT WE HAVE
DONE IN THIS REGARDS BUT.
WE ARE CONTINUING TO GREENER
GRID I THINK THAT THE THE
CHALLENGE OF FINDING SOURCES OF
NINE CARBON ELECTRICITY HAS
ACTUALLY ARE HAS GOTTEN FAIRLY
EASY AND THE PRICES ARE GOOD.
THE ROLE OF THE ELECTRIC
UTILITIES IN THIS DAY AND AGE IS
MORE TO ACT AS A.
A.
TRANSPORTATION AGENCY THEY MOVE
THE ELECTRONS WHERE THEY HAVE TO
GO.
OF RENEWABLE ELECTRONS ARE CHEAP
COMMODITY IT'S THE POLLS IN THE
WIRES THAT CONNECT EVERY HOME
EVERY BUSINESS EVERY COMMUNITY
IN THE STATE OF CALIFORNIA. THAT
ACTUALLY PROVIDE THE VALUE THINK
ABOUT HOW THE INTERNET IS
ACTUALLY CLIPS THE LOT OF THE
INDIVIDUAL BUSINESSES THAT THAT
THAT ARE ON THE INTERNET.
.
AND THEN I'M GONNA TALK A LITTLE
BIT ABOUT THE. NEW PHENOMENON
SOMETHING THAT'S EMERGED VERY
VERY VERY RECENTLY. WHICH IS
THAT WE'RE SEEING THAT IT IS
HARD FOR THE ELECTRIC UTILITIES
TO GAIN ACCESS TO CAPITAL AND A
LOT OF THIS IS RELATED TO THE
RECENT FIRES. BUT.
FITCH DOWNGRADED.
SOUTHERN CALIFORNIA EDISON
BECAUSE OF THEIR CONCERNS THAT
AS COLD AS AS PEOPLE WHO WHO
PROVIDE RECOMMENDATIONS TO THE
OWNERS OF THE BONDS. OF.
OF THOSE.
UTILITIES THAT THEY MAY NOT BE
ABLE TO.
ACTUALLY SEE THE FULL VALUE OF
THEIR BONDS IN THE MARKETPLACE
STANDARD AND POOR'S DOWNGRADED
THE STOCK OF PGA. BOTH THE
UTILITIES HAVE ALREADY SEEN
MAJOR.
THE COLLAPSE OF STOCK PRICES.
SO. IT ONE HAND THIS IS REALLY
SOMETHING THAT AFFECTS YOUR
HOLDERS AND OWNERS OF THE OF THE
UTILITIES. BUT THE PROBLEM FOR
THE REST OF THIS IS THAT THE
UTILITIES ACTUALLY BORROW MONEY
TO BUILD TO OPERATE AND TO
MAINTAIN THE INFRASTRUCTURE THAT
PROVIDES US THE THINGS THAT WE
NEED AS PEOPLE MOVE FURTHER OUT
INTO THE WILD LANDS. NOW BECAUSE
THEY WANNA LIVE THERE AND I'M AN
EXAMPLEOF SOMEBODY WHO'S
RECENTLY BOUGHT A HOUSE IN A IN
A HIGH FIRE HAZARD AREA. YOU
WANT ELECTRICITY YOU WANT
TELECOMMUNICATIONS. MEANS
UTILITIES HAVE TO BORROW MONEY
NOW TO BUILD INFRASTRUCTURE AND
COLLECT THAT THROUGH RATES OVER
TIME.
AND SO AS IT GETS BORING
EXPENSIVE FOR THEM TO BORROW.
ABSOLUTELY ALWAYS GOES TO THE
RATE PAYERS AND SO THAT'S A
CHALLENGE THAT WE WILL HAVE TO
CONFRONT I'LL SAY THAT THIS IS
SPREADING VERY QUICKLY LAST WEEK.
ON MONDAY ON STANDARD AND POOR'S
DOWNGRADED THE CREDIT RATING OF
THE SOLAR PROJECT
SOLELY BECAUSE. A UTILITY HAVE
THE CONTRACT
FOR THAT PROJECT IF THIS
CONTINUES WE WILL PROBABLY HAVE
A HARD TIME SAYING TO THE REST
OF THE WORLD THAT WE COULD DO
ACCELERATE OUR PROCESS OF GREEN
THE GRID. AND IT WON'T COME WITH
A COST TO THE ECONOMY AND FRAYED
THAT.
THAT BECAUSE OF THE
COMPLICATIONS OF FIRES THIS IS
THIS IS GOING TO. OCCUPY THE CPC
AND POTENTIAL OF THE LEGISLATURE.
FOR A LARGE PART OF THIS YEAR I
DON'T KNOW HOW ELSE WE CONTINUE
TO FINANCE AND BUILD THE
INFRASTRUCTURE THAT WE NEED.
WITHOUT THAT.
I WILL ALSO JUST KIND OF POINT
TO A PROJECT THAT WE KICKED OFF
LAST YEAR.
ON COMMUNITY CHOICE OF WE WILL
WE FIND THAT THERE ARE NEW
TECHNOLOGIES THAT ARE AVAILABLE
TO CUSTOMERS THAT ALLOW THEM TO
BECOME GENERATORS AND FREQUENTLY
TO ACTUALLY EITHER. REDUCE THE
AMOUNT OF ELECTRICITY THAT THEY
NEED FROM UTILITIES WAR TO BE
ABLE TO ACTUALLY SELL
ELECTRICITY TO THE GRID OR TO
OTHER USERS SO THEY RANGE FROM
PROGRAMS THAT THE LEGISLATURE
AUTHORIZED US REQUIRED US TO DO.
LIKE NET ENERGY METERING
WHICH'LL HAS ACTUALLY PRODUCED
FOR THE FIVE GIGAWATTS OF
ROOFTOP SOLAR HERE IN CALIFORNIA.
IT'S A SUBSIDIZED PROGRAM IS THE
THE SUBSIDY COMES FROM A THE
RATE PAYERS BUT THAT WAS A
POLICY CHOICE THE STATE OF
CALIFORNIA MADE BECAUSE WE WERE
LOOKING FOR OPPORTUNITIES. TO
GIVE CUSTOMERS CHOICE TO
DECENTRALIZE OUR GRID. ON IS THE
OTHER EXAMPLES INCLUDE THE SMALL
GENERATOR INCENTIVE PROGRAM
WHICH HAS BEEN VERY IMPORTANT TO
HELP GET JUMP START THE THE.
THE THE FUEL CELL INDUSTRY BOTH.
NATURAL GAS AND THE AND THE
RENEWABLE GAS FUEL CELL INDUSTRY.
NOW IT'S HELPING TO FINANCE
NOVEL USES OF BATTERIES TO
PROVIDE ADDITIONAL RELIABILITY.
COMMUNITY SOLAR WHICH CONTINUES
TO STRUGGLE ON BOARD IS A
VALUABLE TOOL FOR FOR
COMMUNITIES WHERE YOU DON'T HAVE
ENOUGH ROOFS ARE A FOR MULTI
FAMILY HOUSING.
.
DIRECT ACCESS WHICH IS BEEN
AROUND SINCE ABOUT TWO THOUSAND
WANTED TO HANG OVER FROM THE
ELECTRICITY CRISIS OF.
OF TWO THOUSAND ONE TWO
THOUSAND FOUR.
ALL THIS GOES BACK TO A TIME
WHEN THE CALIFORNIA LEGISLATURE
MADE THE ELECTRIC UTILITY SELL
OFF THEIR GENERATION. THEY DON'T
OWN GENERATION EXCEPT FOR A
COUPLE OF BIG OF LEGACY PROJECTS
ON HYDRO PROJECTS THAT NOBODY
WOULD LIKE FOR FOR.
THE UTILITIES TO NECESSARILY
SELL OFF BECAUSE THEY PROVIDE.
NOT JUST ELECTRICITY BUT FLOOD.
WATER SUPPLY AG AG WATER WATER
FOR FISHERIES. SAID THAT WE WANT
TO HAVE THEM IN A SETTING WHERE
THEY'RE NOT ONLY DRIVEN BY ON BY.
ECONOMIC PROFITS BUT BY THE
CONTROLS THAT WE PUT ON A
PUBLICLY OWNED UTILITY.
SOME.
NUCLEAR POWER PLANTS BUT BUT THE
REST OF WHAT THEY GET IS IS BY
CONTRACT THAT IS WHERE THEIR
ABILITY TO GET CHEAP CONT. CRACK
HAPPY CAPITAL TO ACTUALLY GET
THESE UTILITIES INDUSTRIES TO
SCALE REAL QUICKLY HAVE BEEN
ENORMOUSLY VALUABLE FOR US.
AND DOES SO AS THE PRICES TO
COME DOWN YOU NOW START TO SEE.
LARGE COMMERCIAL CUSTOMERS LARGE
INDUSTRIAL CUSTOMERS ACTUALLY
PHONE THEIR OWN GENERATION SO
BIG WINDMILL SEDAN HEISER BUSH.
NOW DO YOU SEE IT EVERY TIME YOU
DRIVE TO THE BAY AREA THAT IS
THE FRUIT OF THIS KIND OF.
OF.
OF OF EXPANSION IS THE THE
INDUSTRY THAT CAME FROM A
CENTRALIZED PROCUREMENT VEHICLE.
SO WHAT DOES IT MEAN AS WE START
TO MOVE INTO THIS DISAGGREGATED
SYSTEM WHERE NOW WE'RE STARTING
TO SEE A LOT OF.
LOCAL GOVERNMENTS ESTABLISHED
ME CLEAN COMMUNITY AGGREGATORS
DATE THERE'S NO DOUBT THAT SOME
OF THESE WILL BE SUCCESSFUL
IMPROBABLE WE CAN BRING ABOUT
INNOVATION. BUT WHAT DOES IT
MEAN WHEN YOU DON'T HAVE THAT
CENTRALIZED.
PROCESS ONE OF THE FIRST
LESSONS THE THERE WERE TRYING TO
TO TAKE FROM TWO THOUSAND TWO
THOUSAND ONE IS IT LAST TIME.
THE LEGISLATURE HAD A PLAN AND
DISAGGREGATED. THE THE ELECTRIC
US SUPPLY AND ALLOWED PEOPLE TO
PROCURE FROM WHEREVER THEY
WANTED. IT THE MARKET WASN'T
WELL DESIGNED AND IT DIDN'T WORK
VERY WELL.
THIS TIME WE'RE BACKING INTO
THAT KIND OF DISAGREE DIS
AGGREGATION WITHOUT A PLAN.
THERE'S NOT A PLAN OUT THERE WE
DON'T KNOW HOW THIS WILL HAPPEN.
SO A GOOD EXAMPLE OF WHAT THE
LEGISLATURE HAD TO DO AFTER TWO
THOUSAND ONE TWO THOUSAND TWO
THOUSAND ONE. IS THE REQUIRED
ALL LOAD SERVING ENTITIES
INCLUDING THE DIRECT ACCESS
PROVIDERS INCLUDING. ON SOME OF
THE THE THE OTHER KINDS OF
PROVIDERS WHO WERE OUT THERE
THEN. TO TO PROVIDE FOR RESOURCE
ADEQUACY AND THAT MEANS THAT
ACROSS ALL OF THE STATE ALL THE
PEOPLE WHO SELL ELECTRICITY TO
CUSTOMERS THROUGH WHATEVER
VEHICLE WHATEVER BUSINESS MODEL
WHATEVER TECHNOLOGY. HAVE TO
MAKE SURE THAT THE GRID STAYS
RELIABLE. SO IF THEIR
CHARACTERISTIC IS THAT IN THE
LATE AFTERNOON AS THE SUN GOES
DOWN. THEY START TO TO TO. SHED
LOAD OR TO LOSE POWER THEN
SOMEHOW OR ANOTHER THEY HAVE TO
PROCURE WHAT IT IS THAT THEY
NEED TO MAKE SURE THAT THEIR
ELECTRICITY SUPPLY STAYS FIRM.
ONE OF THE THINGS THAT WE SAW IS
IT THAT'S CALLED RESOURCE
ADEQUACY THAT'S A LEGISLATIVE
REQUIREMENT.
WE MAKE EVERYBODY WHO'S A LOAD
SERVING ENTITY MEET THAT
LEGISLATIVE REQUIREMENT.
ONE OF THE OTHER.
CHALLENGES I THINK WE HAVE TO
RECOGNIZE AND PLAN FOR IS THE
PROVIDER OF LAST RESORT WHAT WE
SAW IN THE MIDDLE OF THE TWO
THOUSAND TWO THOUSAND ONE CRISIS
IS THAT SOME OF THESE
INDEPENDENT INDEPENDENT
PROVIDERS. FOUND THAT AS THE
MARKET STARTED TO GAIN A
TACTICAL LINE BOTH BECAUSE OF
HOT SUMMER.
DAYS WITHOUT ANY RESOURCE
ADEQUACY PLANNING. AND BECAUSE
OF.
OF GAMING THAT SOME OF THEM
COULDN'T AFFORD THE PRICE OF
ELECTRICITY AND THEY WENT
BANKRUPT SO THEY DUMPED ALL OF
THEIR CUSTOMERS BACK INTO THE
GRID SUDDENLY. AND ALL OF A
SUDDEN THE UTILITIES WHICH WERE
THE AUTOMATIC PROVIDER OF LAST
RESORT HAD A LOT OF CUSTOMERS
THAT THEY HAD PROCURED
ELECTRICITY FOR. SO THEY STARTED
TO ACTUALLY THEN SHOW SHORTAGES.
AND SO SHORTAGES ARE PROBLEM IS
AS BIG A PROBLEM IS TOO MUCH
ELECTRICITY IN THE SYSTEM SO YOU
HAVE TO HAVE SOME WAY TO ACCOUNT
FOR ALL THESE EFFECTS. ACROSS
THE ENTIRE STATE.
I THINK THAT CAN BE DONE BUT WE
HAVE TO HAVE A PLAN FOR THAT.
THERE'S ALSO A INCREASING HUNGER
FOR CUSTOMERS TO ACTUALLY MAKE
ALL OF THEIR OWN CHOICES SO EVEN
THE CCA'S ARE GOING TO FACE
COMPETITION FROM PEOPLE WHO WANT
TO GO THEIR OWN WAY. HOW DO WE
ACTUALLY PLANNED FOR THAT AS
WELL WE'VE SEEN IS ON TOP OF
THAT AS THE SOLAR INDUSTRY IS
HIT TIGHT SPOTS? THERE'S
ACTUALLY SOME PREDATORY
MARKETING THERE WE DON'T HAVE A
STORY AT THE CPC TO PROVIDE ANY
KIND OF CUSTOM PROTECTION
AGAINST CONTRACTUAL RELATIONSHIP
BETWEEN INDIVIDUAL CUSTOMERS.
AND THE PEOPLE WHO ARE PROVIDING
THEM THEIR POWER OUTSIDE OF OUR
PURVIEW.
SO THE QUESTION THEN BECOMES IN
THIS KIND OF DISAGGREGATED GRID
WHO AND WHAT KIND OF CUSTOMER
PROTECTION WE PROVIDE AGAINST
PREDATORY SELLING.
SO WE'RE IN THE MIDST OF THIS
PROJECT OF LOOKING AT OTHER
STATES WHO ACTUALLY HAD THIS
KIND OF DIS AGGREGATION AND
CUSTOMER CHOICE. WHAT'S WORKED
WHAT HASN'T WORKED WE HOPE TO
HAVE A REPORT OUT IN APRIL THAT
JUST TAKES THE LESSONS. OF THOSE
PARTICULAR ISSUES AND APPLIES IT
ACROSS ALL THOSE KINDS OF
QUESTIONS I DISCUSSED HOW DOES
THE STATE MEET ITS IT ENSURE
THAT WE MEET OUR RENEWABLE AND
ARE CLEAN ENERGY BALLS. HOW DO
WE MEET SOME OF THE OTHER
INDIVIDUAL PROCUREMENT GOALS
THAT THE STATE HAS SET? THAT
WOULD BE HARD FOR A SMALLER
PROVIDER TO ACTUALLY MEET HOW DO
WE ACTUALLY HAVE A PROVIDER OF
LAST RESORT WHAT'S THE WHAT'S
WORKED ELSEWHERE IN TERMS OF
CUSTOMER PROTECTION. HOW DO THEY
ENSURE RELIABILITY SO WE HELP TO
BE ABLE TO PROVIDE THAT AS A
TOOL FOR THE LEGISLATURE TO
UNDERSTAND TO BEGIN TO THINK
ABOUT WHAT'S A REAL PLAN RATHER
THAN JUST SORT OF BACKING AND
FOR THIS DISAGGREGATED SHIN
WITHOUT HAVING LOOKED AT ALL
THESE OTHER ISSUES?
SO I'M I'LL SHUT UP THERE AND
I'LL TURN IT OVER TO THE
EXECUTIVES ARE PREVIOUS
EXECUTIVE DIRECTOR EXECUTIVE
DIRECTOR EMERITUS. TO KIND OF
WALK YOU THROUGH SOME OF THE
SPECIFIC TASK HE SENT US FOR
LAST YEAR. ANALOG BE HAPPY TO
ANSWER QUESTIONS BEFORE YOU
TRANSITIONAL METICULOUS IS FROM
THE PANEL BEGINNING WITH K.
ASUNDER HERTZBERG IN CINEMA
CHOIR.
THANK YOU THANKS FOR ALWAYS
BEING SO GRACIOUS IN YOUR
REPORTS HERE WOULD CREATED. A
LOT OF HARD WORK IN TERMS OF THE
ROAD THE EXPANDED
RESPONSIBILITIES THE COMMISSION
OVER THE YEARS.
I AM JUST A YOU YOU TALKED ABOUT
THE ISSUE OF THE FINANCIAL
STABILITY OF THE INVESTOR OWNS.
AND YOU KNOW I I I I DON'T WANT
TO GO BACK WHICH SOMEONE LOOK
FORWARD BUT I. I HAD A BIG PIECE
OF MY LIFE TAKEN AWAY WHEN.
SITTING IN A SIMILAR. BODY
HERE'S SOME TWO DECADES AGO WITH
A FORMER PC COMMISSIONER. CHAIR
OF THE COMMISSION AT THE TIME
LOOKING AT. NOT WHAT APPEARED
NOT TO BE A BIG PROBLEM. AND IS
A FINANCIAL HAD I SEE EXACTLY
THE SAME PATTERNS TODAY WITH
RESPECT TO THE INVESTOR OWNS AND
WE SAW BEFORE. ANYTIME YOU KNOW
WE HAVE THIS YOU KNOW BETTER
THAN ALL OF US HAVE THIS
STRUCTURE OF. MONOPOLISTIC
BEHAVIOR THAT WE SANCTION
THROUGH PUBLIC UTILITIES
COMMISSION TO A LETTER RIGHT OF
RETURN FOR THESE UTILITIES
BECAUSE IT'S REALLY IMPORTANT
FOR SOCIETY TO HAVE ELECTRICITY.
AND.
BUT WHAT HAPPENED LAST TIME
AROUND AS YOU KNOW IS THAT IT
WILL BE FOR A WIDE VARIETY OF
REASONS NONE OF WHICH WE NEED TO
GO INTO DETAIL. THAT THE
COMPANIES WERE SELLING
ELECTRICITY FOR LESS MONEY THAN
THEY WERE BUYING IT FOR THE
EFFECT OF THAT WAS IS FROM MY
POINT OF VIEW WAS. A FINANCIAL
AND SECURITY IN THE SYSTEM AND
THE RATE AT WHICH THIS THING
FALLS APART IS EXTRAORDINARY.
THE COST OF FOX THE WAY THESE
DOCUMENTS IN THE OLD DAYS AS A
YOUNG KID I WROTE SOME OF THESE
THINGS NOT FOR THESE COMPANIES
BUT IN OTHER INSTANCES WHERE IF
YOU HAVE A DOWNGRADED RATING
CAUSES COST BALLS AND FINANCIAL
DOCUMENTS. AND SO IT'S IMPORTANT
AND THEN THE HOUSE OF CARDS IS
IMPACTED THE WAY THAT'S NOT
QUITE POSITIVE. AND SO WHAT
CONCERNS ME IS THAT I LOOK AT
THE SITUATION WITH RISK AND
LIABILITY AND IT SEEMS TO ME
THAT THAT.
YOU MENTIONED THE NOTION OF THE
S. SPREADING VERY QUICKLY AND
THE NOTION OF HOW QUICKLY THIS
HAPPENS I I CAN TELL YOU AS A
WITNESS TO. THIS AND THAT IS
EXACTLY WHAT HAPPENS IS WHAT I'M
CONCERNED ABOUT IS WHAT YOU'RE
DOING.
AT THE PUBLIC UTILITIES
COMMISSION GIVEN THAT EXPERIENCE
GIVEN THAT HISTORY WHAT
RECOMMENDATIONS DO YOU HAVE FOR
US AS A LEGISLATIVE BODY. TO
DEAL WITH THIS STUFF BECAUSE
OBVIOUSLY YOU KNOW I WAS ON THE
PHONE EVERY DAY FOR. I DON'T HOW
MANY MONTHS AT SIX IN THE
MORNING TALKING TO STANDARDS AND
POOR'S AND MOODY'S AND ALL THOSE
PEOPLE TRYING TO INSPIRE
CONFIDENCE APPROPRIATELY SO.
TO MAKE SURE THEY UNDERSTOOD
WHAT WE'RE DOING SO WHAT I'M
INTERESTED FROM YOU IS. IS GIVEN
WHAT THE HISTORY IS BEING GIVEN
WHAT YOU'RE I THINK YOU'RE
CORRECT OBSERVATION IS BEING
THOUGHTFUL ABOUT AN ADVANCE SO
WE DON'T SPARK SOMETHING WE
SHOULD SPARK. BUT WHAT YOUR
THOUGHTS ARE WHAT KIND OF ADVICE
YOU WOULD GIVE OUR GENERAL IN A REPORT SO I
UNDERSTAND THE YOU ARE
CONSIDERING ANOTHER HEARING AND
I WAS I WAS WAITING TO HAVE
CONVERSATIONS WITH THE CHAIR AND
HIS STAFF ABOUT WAR WHETHER AND
HOW YOU WANT TO DO THAT. SO.
GENERALLY I TAKE THE POSITION
THAT I'M NOT HERE TO TELL THE
LEGISLATURE WHAT TO DO IF YOU
ASK ME I'M HAPPY TO GIVE YOU THE
BENEFIT OF MY LIMITED AND
INTELLECT AND AND AND SCATTERED
EXPERIENCE. ARM AND I'LL BE
HAPPY TO DO THAT BUT I DON'T I
DIDN'T COME PREPARED TO HAVE
THAT CONVERSATION TODAY SO ABOUT
MY APOLOGIES. I AGREE THAT IT'S
THE DETERGENT BUT I DO I DO TEND
TO WORK TO THE DIRECTION OF THE
THE THE LEGISLATURE IN WHEN YOU
TELL ME COME GIVE YES YOUR
ANNUAL REPORT AND THAT'S WHAT I
PREFER TO DO. I DON'T MEAN IT
OBVIOUSLY A OFF DISCUSSES THE
CHAIRMAN I HAVE A CHANCE TO DO
SO YET. WHEN AGAIN OPPORTUNIST
TERMINAL I'LL DO THAT I JUST
THINK THAT IT'S IMPORTANT. THAT
WE WE DO ALL OF US.
WITHOUT REGARD TO. STANDING ANY
FORMALITIES PUT OUR BEST MINDS
TOGETHER. BY VIRTUE OF THIS
BECAUSE WE NEED TO GET AHEAD IN
THE GAME AND WE NEED TO BE
THOUGHTFUL ABOUT IT. AND AND I I
PERSONALLY THINK HOLISTIC IS I
THINK THAT THE GOVERNOR TALKS
ABOUT WITH RESPECT TO FIRES THE
NEW NORMAL. WE SEE CENTER WOULD
HOUSE GET HIS COMMITTEE TALKING
ABOUT ADAPTATION.
ISM TO ME A MUCH LARGER DYNAMIC
OF WHICH TO AVOID A PROBLEM.
RATHER THE GREAT ONE. WELL LET
ME BETRAY MY MY GENERAL.
ON LEANINGS I'D I'D TEND TO TO
NOT ALWAYS THINKS OF LARGE
INSTITUTIONS EXCEPT HIS VEHICLE
SAID ACTUALLY OFFICER CHIEF
STUFF. I'M I'M I'M IN IS FOR THE
INFRASTRUCTURE PERSON I LIKE
POLES ALIKE PIPES I LIKE I LIKE
WIRES AND WHITE GUY GENERATORS
AND SO. FOR ME WHEN IT STARTS TO
AFFECT OUR ABILITY TO HAVE THOSE
TOOLS THAT WE NEED TO GET OUR
JOB DONE. THEN I START TO REALLY
REACT IN THIS I HAVE BEEN
REACTING SINCE SINCE LAST FALL.
ME MY FIRST INSTINCT WAS THAT
THE YOU KNOW SELF INSURANCE IS
NOT GOING TO WORK IN THE
INSURANCE INDUSTRY HAS BEEN
STEPPING AWAY NOT ONLY FROM THE
UTILITIES BUT FROM INDIVIDUAL
HOMEOWNERS.
I GET IT YOU KNOW MY EXPERIENCE
IS THAT THE UTILITIES HAVE HAD A
VERY HARD TIME GETTING INSURANCE
SO THEIR SELF INJURY SO AFTER
AFTER HAVING THOUGHT ABOUT IT
LAST FALL.
NO IT'S IT'S STARTED TO OCCUR TO
ME THAT MAYBE WE WANTED TO
CREATE AN INSURANCE POOL FOR THE
UTILITIES. ALL FIVE OF THE GAS
AND ELECTRIC. BUT. IMMEDIATELY
AFTER I STARTED TO FORMULATE
THOSE THOUGHTS WE HAD THREE
MAMMOTH FIRES. THREE HUGE FIRES
ONE OF WHICH WAS CLEARLY MORE
DISASTROUS THAN ANY WE'VE EVER
SEEN ANOTHER THAT WAS LARGER ALL
OF THEM ATTENDED BY FEROCIOUS
WINDS OF A SEVERITY THATWE'VE
NEVER EXPERIENCED BEFORE
NORTHERN CALIFORNIA. AND SO IT
BECAME VERY CLEAR THAT THEY ARE
NOT ENOUGH TO SELF INSURE AS
EVEN AS A POOL SO THAT STARTED
TO MAKE ME THINK MAYBE WE NEED
SOMETHING LIKE THEIR CALIFORNIA
EARTHQUAKE AUTHORITY. AT WHICH
POINT.
IT'S NOT JUST UP TO ME IT'S NOT
JUST UP TO THE P. UC I KNOW THAT
I CAN MAKE ADVOCATE THAT THE
FIVE COMMISSIONERS I MIGHT BE
ABLE TO GAIN FIVE VOTES. FOR
VOTES TO IT DIDN'T DITION TO MY
OWN. BUT HERE FOR FOR THESE
LARGER SOLUTIONS AND LARGER
CHALLENGES OF CATASTROPHIC
CLIMATE CHANGE.
YOU KNOW SINCE THE YEAR WE SPENT
A LOT OF MONEY TO PREVENT IT.
BUT NOW WE HAVE TO ADMIT THAT
IT'S HERE AND THAT'S A DIFFERENT
SET OF.
OF OF OF ACTION.
SO THAT'S WHY I'M MOVING
CAUTIOUSLY AND LOOKING FOR THE
LEADERSHIP IN THE LEGISLATURE TO
ALSO GIVE DIRECTION TO US.
THANK YOU SO MUCH AS A CHAIR AND
USA THANK YOU CHAIR FOR HIS WORK
HERE TODAY BRINGING US TOGETHER
WANNA SAY THANK YOU TO PRESENT
PICKER. FOR HIS EFFORTS ON ALL
ISSUES AT SINCE THESE
CATASTROPHIC FIRES IDOL SITTING
SENATOR HILL FOR A HOST IN THAT
HEARING. UP IN THE NORTH BAY.
AND DO WANT TO SAY THE WORK ON A
UTILITY POLES INDIA HAVE THAT
SENSE IS. THE ABILITY FOR
RESIDENTS BETTER REPORTING
CHALLENGES IS BEING A LONG TIME
COMING APPRECIATE TACTLESS ISSUE
IT IS NOT A SEXIST OF ISSUES.
AT ALL TIMES BUT IT'S A REALLY
IMPORTANT ONES NOT SEXY TAYLOR
GO.
IS WELL WORTH I GO WRONG YEAH.
I DO WANT TO TOUCH MINE.
THE ISSUE OF THE.
CATASTROPHIC FIRES I THINK OUR
NEW NORMAL AND THAT THE STATE IS
FACING ANYONE I TALK ABOUT. SOME
OF THE COMMENTS THAT YOU HAVE
MADE PUBLICLY IN REGARD TO
POTENTIAL CHARGING RULE
CALIFORNIANS. HIGHER ELECTORAL
RATES THAN POTENTIALLY URBAN.
SO. I.
NUMBER ONE I THINK THE
SUGGESTION TO START.
CHARGING RULE CALIFORNIA'S
HIGHER LECTURE ELECTRIC RATES.
ON. IT IS A DANGEROUS PATH SET
ON AND I DON'T EVEN KNOW IF IT'S
LEGAL AND I DON'T KNOW ANYWHERE
ELSE IN THE WEST. WHICH IS
PRACTICE HAS BEEN ADVANCE.
AND WE TAKE A LOOK AT THE TWO
THOUSAND SEVENTEEN YEAR IT WAS
ON PRESIDENT.
NOW SAY FROM WHAT WE SAW AND THE
NORTH BAY.
THE MAJORITY OF HOMES THAT WERE
DESTROYED WERE NOT IN FORCE IN
AREAS.
MORE.
BUT THEY WEREN'T. EVEN CLOSE TO
URBAN WILDLAND INTERFACE.
THEY WERE TWO MILES IN TWO
LARGEST CITY NORTH OF SAN
FRANCISCO.
THIS FIRE. JUMP SIX LANES OF
HIGHWAY ONE ONE. DESTROYED.
DOZENS OF LARGE COMMERCIAL
OUTLETS. AND IN.
I RECAP IT ON THE COFFEE PARK
NEIGHBORHOOD. THIRTEEN HUNDRED
HOMES IN THAT NEIGHBORHOOD
DESTROYED.
NOT EVEN CLOSE TO A KIND OF FOR
OAK WOOD CARVER FOUR STROKE
WOULD LIKE.
IN.
WHAT I'M VERY CONCERNED ABOUT IS
THAT WE WANT? THESE MASSIVE
FIRES JUST THAT IT'S IMPACTING
RURAL AREAS WHEN IN REALITY WE
TAKE A LOOK AT THE VALLEY FIRE
FOR EXAMPLE IT WIPED OUT
MIDDLETOWN.
MIDDLETOWN IS AN INCORPORATED
COMMUNITY OF ABOUT FIVE THOUSAND.
NOT WAS IN TWO THOUSAND FIFTEEN.
THESE HOMES ARE IN URBAN
COMMUNITIES NOW.
AND NOT. JUST.
THESE.
WHAT WOULD TYPICALLY BE MORE
WHILE IN FIRE PRONE AREAS AND
FOREST?
AND I THINK THAT WHILE WE'RE
FACING A NEW NORMAL.
WE HAVE TO FOCUS ON.
I PREVENTATIVE AS YOU'RE JUST
SAYING BUT THAT MEANS IN HANTS
RESOURCES FOR FIREFIGHTING CHILE
EMERGENCY RESPONSE AND ALERTS.
HARDENING OF ELECTRICAL
INFRASTRUCTURE AND I THINK ALSO
ENFORCING THE PC'S RULES THAT
ARE ALSO ON THE BOOKS.
WHEN IT COMES TO WORKING WITH
UTILITIES AND.
ENSURING THAT THERE'S
RESILIENCY WITH THEIR ELECTRICAL
EQUIPMENT AGAIN I'M NOT AWARE OF
ANY UTILITY IN THE STATE. THE
CHARGES DIFFERENT RATES FOR
URBAN VERSUS RURAL.
NOW WHAT I KNOW. COMING FROM AN
UNINCORPORATED COMMUNITY. IS
THAT IF I'M PUTTING UP IF I WANT
TO ELECTRICITY IN MY HOME AND MY
HOME IS A HALF MILE OFF OF THE
COUNTY ROAD. I'M GONNA PAY MORE
TO GET MY HOME HOOKED UP. TO PAY
FOR THE POLLS IN INFRASTRUCTURE
THAN I WOULD IF I LIVE IN
CORPORATE COMMUNITY. AND THEN
ONCE MY HOME OR BUSINESS IS
HOOKED UP I'M GOING TO PAY THE
SAME RATES AS SOMEONE WOULD IF I
LIVE IN. A COMMUNITY OF EUREKA
VERSES OUT AND WILLOW CREEK IN
HUMBLE COUNTY.
AND.
.
I THINK THAT WHEN I THINK YOUR
QUOTE WAS WERE FACING COST FOR
UPGRADING THE GRADE THAT
PRIMARILY BENEFITS ONE GROUP OF
PEOPLE. AND I JUST THINK THAT'S
OUTLANDISH THAT'S NOT TRUE. IN.
ON THE USE AN EXAMPLE.
THIS FIGHT OVER THE AFFORDABLE
CARE ACT.
BUT WE DON'T EXPECT TO HAVE
PATIENTS WHO ARE STRUGGLING WITH
CANCER.
I PAY MORE BECAUSE.
IT'S GONNA BE A HIGHER COSTS TO
THE TAXPAYERS WE WON'T DO THAT.
NOW SOME WELL. UP BUT WE'RE
GOING TO FIGHT THAT.
AND I THINK THAT WORDS HAVE
POWER IN I THINK WHAT THE OTHER
CONCERN THAT I HAVE THAT WAS IN
THE CAR SERVES AS CO CHRONICLE.
WAS THAT.
.
AS WE SAID THIS IS YOUR QUOTE AS
WE SPEND MORE TO HARDEN AGREED
TO PROTECT PEOPLE IN THOSE HIGH
RISK AREAS HAD WE PAY FOR. IF
YOU'RE IN RICHMOND WE WANNA BE
PAINS TO PROTECT VACATION HOMES
IN NAPA.
AND I WILL GET EMOTIONAL TALKING
ABOUT THIS.
THE VAST MAJORITY OF THE HOMES
THAT WERE DESTROYED IN THE NORTH
BAY.
WHERE INDIVIDUALS AMERICAN
DREAMS?
THEY WORK THEIR ENTIRE LIFE TO
BE ABLE TO AFFORD THEIR HOME.
THEY WEREN'T VACATION HOMES THE
VAST MAJORITY OF HOMES THAT WERE
DESTROYED IN THE NORTH BAY
FIRESTORM.
OR EVEN CLOSE WHERE THERE ARE
SOME ABSOLUTELY. BUT IF WE WANT
TO START CHARGING DIFFERENT
RATES TO THOSE WHO ARE VACATION
ROOM HOMES THAT START TAKING A
LOOK AT SAN FRANCISCO IN THE
CITY OF LOS ANGELES. THERE ARE
MORE VACATION HOMES IN THE CITY
OF LA IN THE CITY OF SAN
FRANCISCO IN THE REST OF
NORTHERN CALIFORNIA COMBINED
COMBINED.
AND IF WE'RE SERIOUS ABOUT
MAKING OUR GREED MORE RESILIENT
AND PROTECTING OUR COMMUNITIES.
IT'S NOT ABOUT GOING AFTER LOW
HANGING FRUIT LIKE CHARGING RULE
RESIDENTS MORE.
AND THAT WILL NEVER HAPPEN AND I
WILL FIGHT WITH EVERY BONE IN MY
BODY.
AND I WAS VERY CONCERNED.
BECAUSE IT SEEMS LIKE I AND I'M
NOT SURE. UP BUT THOSE COMMENTS
WERE A BIT FLIP.
PURSE IS BASED IN REALITY.
SENATOR THEY'RE NOT FLIP.
WEARING AGENCY THAT MAKES IT
DIFFICULT AND VERY UNPOPULAR
DECISIONS IN ORDER TO BUILD THE
INFRASTRUCTURE THAT PEOPLE NEED.
SO IT MAY BE THAT THIS IDEA GOES
NO WHERE BUT I WILL SAY THAT
OTHER PEOPLE ARE ALREADY PRICING
THAT RISK I JUST BOUGHT A HOUSE
IN THE WILDLAND URBAN INTERFACE
IN EL DORADO COUNTY. AND I WANT
TO BE HONEST WITH YOU I DID THAT
AND KNOWING. THAT I HAD ALREADY
EXPRESSED THIS OPINION. AND I
DID THAT KNOWING THAT IT WAS IN
THE WILDLAND URBAN INTERFACE.
AND I DID THAT. NOT KNOWING THAT
I WAS GOING TO ACTUALLY PAY SIX
TIMES AS MUCH FOR INSURANCE
COVERAGE IS THE PREVIOUS OWNER.
SIX MUCH SIX SIX TIMES AS MUCH
AS FOR MY HOUSE IN DOWNTOWN
SACRAMENTO. I'M PAYING IN A HELL
OF A LOT OF MONEY FOR FIRE
INSURANCE AND HOMEOWNERS
INSURANCE IN THAT AREA SOMEBODY
IS PRICING IT DIFFERENTLY I'M
ALWAYS SAYING IS THAT WE HAD TO
PUT EVERYTHING ON THE TABLE. IF
IN FACT THE IDEA FAILS I WILL.
OKAY.
BUT I HAVE TO SAY THAT WE GOT TO
THINK ABOUT IT. SO WHAT I WOULD
SAY IS THERE ARE VERY FEW PEOPLE
IN THIS STATE THEY CAN AFFORD A
SECOND HOME. VERY FEW.
DID YOU TAKE A LOOK AT THE NORTH
COAST WE HAVE THE HIGHEST RATES
OF POVERTY THE STATE OF
CALIFORNIA.
AND IT'S GREAT THAT YOU WENT AND
BOUGHT A SECOND HOME.
UP FOR EDUCATION. IN EL DORADO
COUNTY.
THE VAST MAJORITY OF THOSE FOLKS
ARE IN EL DORADO COUNTY ON THE
NORTH COAST HAVE LIVED THERE FOR
DECADES AND THEY HAVE WORKED
YEARS TO BE ABLE TO AFFORD THEIR
MORTGAGE.
AND NO WE DON'T HAVE A SYSTEM
LIKE THAT WE DON'T HAVE A SYSTEM
WHEN IT COMES TO CABLE
TELEVISION WHERE INDIVIDUALS ARE
GOING TO BE PAYING MORE IN A
RURAL AREA. AND THEY ARE GOING
TO BE PAYING AN URBAN AREA.
ERROR RATES REGIONAL RATES THAT
ARE SET TO REGENERATE CENTER SET
OUT WITHIN. EACH OF THOSE
COUNTIES IN SIR. YOU BUYING A
SECOND HOME VERSUS HAVING A
PRIMARY RESIDENCE LET'S HAVE
THAT CONVERSATION BUT THE VAST
MAJORITY INDIVIDUALS WHO ARE
LIVING IN THOSE AREAS. OUR
PRIMARY RESIDENT HOMEOWNERS IN
THE OTHER ITEM OF THIS.
IF WE TAKE A LOOK OVER THE LAST
TEN YEARS THE HOMES THAT WERE
DESTROYED. THEY'RE NOT IN
WILDLAND FIRE YOUR TYPICAL BUT
WOULD BE TYPICAL TRADITIONAL
WHILE IN FIRE ZONES EARNING CORE
FREE TO COMMUNITIES.
A FRIEND OF.
I'D GIVE OPPORTUNITY FOR THE
PANEL MEMBERS TO ASK QUESTIONS
SO.
YOU COULD OF WILL RESERVE
COMMENTARY FOR THE END OF OF OF
THE COMMITTEE. BUT IF YOU CAN
JUST ASK QUESTIONS FROM THE GOES
FOR ALL THE MEMBERS OF WE CAN
JUST DIRECT QUESTIONS THE
MEMBERS HAD I'LL BE HAPPY TO
MEET WITH YOU PRIVATELY. THANK
YOU THANK YOU.
.
WE'RE GONNA GO TO SENATOR STERN
AND THEN SENATOR.
WINNER.
THANK YOU MISTER CHAIRMAN.
THANK YOU MISTER CHAIRMAN THING
PRESENT PICKER FOR COMING TODAY
AND.
.
TIM CONGRADULATIONS.
.
AND ALICE CONDOLEEZA TIONS OF
FOR YOUR NEW JOB.
.
WELCOME TO THE LEGISLATURE.
.
WHEN I TALK ABOUT AND LISA
CANYON ISSUE THAT I ENT YOU A
LETTER ON YESTERDAY LATER BUT
CENTER STERN YEAH YOU CAN ASK A
QUESTION YEAH THEY'LL TALK ABOUT
ASK QUESTIONS OKAY. SO I'M NOT
GONNA TALK ABOUT LEE SO NOW I
CAN TALK ABOUT THAT LATER WHEN
ELSE COMES UP IN THE FIRE FRONT.
LET'S GET TO SOME JUST.
I KNOW YOU HAVE A SEPARATE
HEARING BUT.
WANNA KNOW HOW INVERSE
CONDEMNATION WORKS JUST FOR THE
RECORD SO WE CAN ACTUALLY GET
THESE INTO THE RECORD SO. IF A
UTILITY.
IN A NO FAULT SCENARIO IS RICH.
HAS SAY ONE PERCENT OF THE CAUSE
OF A FIRE HOW MUCH UNDER
CALIFORNIA LAW OF THAT FIRE THEY
RESPONSIBLE FOR COVERING.
THE LOSS. UNDER PERCENT HUNDRED
PERCENT TO ONE PERCENT BECAUSE
HUNDRED PERCENT OF THE.
THE COURT BELIEVES THAT THE
UTILITIES WAGED SPREAD THAT COST
ACROSS ALL RATE PAYERS.
AND THEREFORE.
REDUCE THE COST THERE IS SORT
OF ACT THE COURTS ARE ACTING
UTILITY SORT OF ACT AS AN
INSURANCE POLICY.
AND SO THAT MADE SENSE FOR THE
PUBLICLY OWNED UTILITIES THE THE
PRIVATELY OWNED UTILITIES ARGUED
THAT THAT'S NOT TRUE AT THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION THAT WE HAVE A SECOND
SCREEN THAT WE APPLY. WHICH
DEALS WITH PRUDENCE C. PRUDENCE
SEE.
MEANS THAT THEY HAVE TO PROVE
THAT THEY WERE NOT AT FAULT. IF
THEY DON'T SUCCESS WE PROVE THAT
THEY'RE A FAULT UNDER CHALLENGE
FROM ALL OF OUR OTHER LITIGATORS
IN OUR PROCESS SEES. THEN THEY
EAT IT.
AND SO THAT'S THAT'S THE SECOND
PIECE THE THE INVERSE
CONDEMNATION JUST SAYS THAT
THEY'RE GONNA HAVE A STRICT
LIABILITY TEST AND SO IF YOU DO
YOU HAVE ANY. ANY.
RELATIONSHIP TO THE CAUSE OF
THE FIRE THEN WE'RE JUST GONNA
MAKE YOU BE THE PEOPLE WHO
ACTUALLY COLLECTED. FOR THE
PUBLICLY OWNED UTILITIES THE
LOCAL GOT LOCAL THOUGH THE THE
LOCAL GOVERNMENT ENTITIES. THEY
ESSENTIALLY DO PASS IT ON TO ALL
RATEPAYERS HERE AT THE PC
BECAUSE OF LONG STANDING
PRECEDENT AND I ONE POINT WAS.
UNDER THE MISAPPREHENSIONTHAT
IT WAS A REALLY STATUTE. UNDER A
LONG STANDING PRECEDENT WE
ACTUALLY UP ON OUR FIND FAULT.
AND PUT THE BURDEN OF PROOF ON
THE ON THE THE REGULATED
ENTITIES SORT OF THE NO PART
NAPOLEONIC CODE VERSUS ENGLISH
COMMON LAW. AND HOW MANY OTHER
STATES IN THE NATION HAVE THIS
KIND OF LEGAL FRAMEWORK AROUND
INVERSE CONDEMNATION. I CAN'T
SAY TO BE HONEST WITH YOU I
HAVEN'T HAD THAT CONVERSATION OF
TALK TO THEM MOSTLY ABOUT
VEGETATION MANAGEMENT PROGRAMS.
OKAY.
BY MY RESEARCH I I'VE NOTED AT
ALABAMA IS THE ONLY OTHER STATE
IN THE UNION WITH THIS SORT OF
LEGAL FRAMEWORK OR AN INVERSE
CONDEMNATION BUT. A WING GET
SOME CLARIFICATION ON THAT SO
ONE PERCENT BECAUSE UNDER
PERCENT RESPONSIBILITY BUT
DEPENDING ON RUDENCE AND
MANAGEMENT. THAT THAT DETERMINES
WHETHER IT'S RATE PAYER FUNDED
OR SHAREHOLDER FUNDED.
IF A IF UTILITY THOUGH.
HAS TO ABSORB ALL THESE COSTS
AND ENDS UP.
NOT JUST HAVING THEIR CREDIT
DOWNGRADED BUT ACTUALLY IS PUT
INTO BANKRUPTCY. WHO PAYS THAT?
ULTIMATELY IT'S RIGHT BECAUSE IT
COSTS MORE TO BORROW MONEY.
SO WHETHER OR NOT RATE PAYERS
ARE PAYING THE FIRST AT AT THE
FIRST JUNCTURE IF YOU ACTUALLY
PUSH IT TO THE POINT OF
INSOLVENCY THE RATE PAYERS ARE
STILL GOINGTO PICK UP THAT TAB
IN THE END. IF YOU WANT TO HAVE
POLES AND WIRES WHICH.
THE FORTY THREE MILLION DOLLARS
LAST NIGHT.
WAS SO WELL SO THERE IS SOME
DISK SO. THERE THERE HAVE BEEN A
FOR EXAMPLE IN FLORIDA THEY
ACTUALLY DURING THE HURRICANE
BECAUSE OF LOSS OF POWER AND
POWER DAMAGES REQUIRED THEM TO
USE THE NEW FEDERAL TAX.
US SAVINGS FOR UTILITIES TO
UNDERWRITE THOSE COSTS THERE'S
IT SO THERE'S A VARIETY WAYS BUT
THAT'S STILL IN CALIFORNIA UNDER
OUR CURRENT PLAN IS INTENDED TO
GO TO RATE PAYER SO THAT WOULD
STILL COME BACK FROM RIGHT. SO
SO ESPECIALLY FOR. BY WAS WE
WERE SUPPOSE THE THOMAS FIRED I
WAS AT THE NORTH BAY IRES BUT.
FOR THOSE HOMEOWNERS WHO
ESSENTIALLY DIDN'T HAVE
INSURANCE OR UNDER INSURED THEIR
LAST RESORT IS SORT OF THEIR
UTILITY AS THEIR INSURANCE
COMPANY SORT OF PLAYING THAT
ROLE SOMEHOW THERE AND THEY END
UP PAYING FOR. AFTER THE FACT.
IN THEIR RATES ALSO THE LOCAL
GOVERNMENTS ARE TRYING TO
RECOVER THEIR COSTS OF.
OF FIRE OPERATIONS THOSE ARE
ALL ALL ALL ON. OTHER ENTITIES
THAT POTENTIAL WEAK RECOVER
THROUGH THE USE THE USE OF
INVERSE CONDEMNATION.
AND AND IN TERMS OF RACE BEYOND
THE POWER LINES AND POLES
THEMSELVES. WHAT OTHER RISKY
CAESAR TO BE ON THE UTILITY
FRAMEWORK?
FOR THESE FIRE CONDITIONS.
SORT OF OUTSIDE OF YOUR PURVIEW.
WELL I THINK THAT THERE'S ALWAYS
ABOUT LAYERS RISK THERE'S RISK
TO TO THE NATURAL ENVIRONMENT
WHEN IN FACT THE THE THE UTILITY
IS THE CAUSE OF FIRE. ON NOT
ALWAYS TRUE FOR SO FOR EXAMPLE
IN THE MIDDLETOWN FIRE WAS
ACTUALLY A HOMEOWNER BECAUSE THE
FIRE.
AND SO YOU KNOW THEY'RE IN IN
PARTICULARLY AND AND AND FEDERAL
FOREST LANDS THE GREATEST CAUSE
OF FIRES AND UTILITY
INFRASTRUCTURES LIGHTNING
STRIKES.
SO I JUST SAY THAT THAT THE ALL
THE SAME CONDITIONS PERTAIN TO
THE FIRST YOU SEE THE NATURAL
ENVIRONMENT THEN YOU START TO
SEE. ANY KIND OF BUILT
ENVIRONMENT. AN EVENT YOU MAY
SEE SOME IMPLICATIONS FOR
WATERSHED SO FOR EXAMPLE IF A
PARTICULAR IN NORTHERN
CALIFORNIA. IS YOU HAVE FIRES IT
CAN ACTUALLY EITHER HAIR OR
SOMETIMES SCREEN ADVANTAGE SO ON
PROTEST ONE OF THE PURPOSES FOR
ACTUALLY DEPLOYING A PRESCRIBED
FIRES IN IN A PLANNED WAY. IS TO
ACTUALLY IMPROVE WATERSHED
THROUGH THE USE OF FIRE. SO.
GIVEN THERE'S CLIMATE CHANGE
FORESTRY MANAGEMENT LAND USE
INSURANCE INDUSTRY ISSUES ALL
SORT OF IN THIS THE BILL MAY
NEED TO RAISE CAPITAL AND.
SO ARE YOU A PART OF THE
GOVERNOR'S FORESTRY TASK FORCE
AT THIS POINT IT IS A P. C. BEEN
INVOLVED IN THAT PROCESS WE HAVE
ALL THOUGH IT'S MOSTLY BEEN THE
TREE MORTALITY TASK FORCE AND WE
REPRESENTED BY CARLA PETERMAN.
AND THEY'RE THE ONLY ROLE THAT
WE ARE ASKED TO PLAY WAS TO
DISCUSS THE HOW WE COULD FINANCE.
OF FORESTRY BIOMASS FACILITIES
AND THERE WERE INTENDED TO
REDUCE FIRE FUELS.
SINCE THEN WE'VE DISCOVERED A
VARIETY OF DIFFERENT CHALLENGES
FOR THOSE PROJECTS ONE OF WHICH
IS THE DAY I CAN'T GET THE FULS
FOR THAT THE INTENDED FOR
ACTUALLY PREVENTING FORESTRY
FIRES THE BY THE. BARK BEETLE
BIOMASS THEY JUST CAN'T GET IT
OUT OF THE FOREST SO THAT
THEY'RE ACTUALLY PROVIDE THEIR
THEIR BURNING OTHER FUELS. SOME
OF WHICH ARE NOT RELATED TO FIRE
SO IT'S IT FOR US IT'S IT'S
BECOMING A QUESTION WHETHER
THEY'RE ACTUALLY GOING TO BECOME.
THE SOURCE OF PREVENTION THAT
EVERYBODY EXPECT THEM TO BE TWO
MORE QUICK QUESTIONS AND I'LL BE
DONE MISTER CHAIRMAN IT HAVE YOU
EVER YOU STARTED TO ESTIMATE
WHAT THE POTENTIAL IMPACT ON THE
COST OF IMPLEMENTING SAY THE
RENEWABLE PORTFOLIO STANDARD IS
IN LIGHT OF A LOT OF THE CREDIT.
DOWNGRADING WE'VE BEEN SEEING ON
PROJECTS IS YOUR WAY TO ESTIMATE
AN ADDITIONAL THE ADDITIONAL
RATE PAYER IMPACT POTENTIALLY OF.
I THINK WE'RE FORTUNATE THAT
WE'VE ACTUALLY PROCURED WAY
AHEAD OF THE R. PS THE PRICES
CAME DOWN TO THE UTILITY JUST
TIRED BUYING CONTRACTS BECAUSE
THEY WERE GOOD DEALS. SO THEY
ACTUALLY HAVE BANK TO HEAD SO WE
HAVE SOME TIME TO ACTUALLY
FIGURE THIS OUT WHEN I'M MORE
WORRIED ABOUT IS THE FACT THAT
IT'S SPREADING.
AND IF WE DON'T FIX THIS THEN WE
WILL HAVE THAT PROBLEM OKAY AND
THEN LAST QUESTION IS.
.
ARE YOU CONCERNED AT ALL ABOUT.
THE INSURANCE INDUSTRY'S.
HOLDING OUR UTILITIES OVER A
BARREL WHEN THEY TRY TO READ UP
ON THEIR INSURANCE POLICIES JUST
LIKE HOMEOWNERS ARE STARTING
EITHER GETTING THEIR PLANS
CANCELED. OR HAVING THEIR SEE
THEIR PREMIUMS RISE SIX X. TEN
X.. ARE YOU DO ARE YOU DOING ANY
OVERSIGHT THERE IN THAT REGARD
BECAUSE IT AFFECTS SORT OF
REPAIR FRAMEWORK OR IF NOT YOU
THEN WHO.
SO I HAD A REALLY CONVERSATION
WITH THE THE STATE INSURANCE
COMMISSIONERS OFFICE TO TO
DISCUSS THIS THEY FELT THAT
THERE WOULD BE ADEQUATE COVERAGE
I'M STARTING TO SEE THAT THE
THAT THE PACE OF. OF CONCERN IN
THE INSURANCE INDUSTRY MAY
ACTUALLY BE GREATER THAN ANYBODY
EXPECTED. THE IT IS A GOOD
EXAMPLE AGAIN WAS MY OWN
PERSONAL EXPERIENCE WHERE OUR
INSURER THIRTY YEARS ON ON THE
HOUSE THE HOUSE THAT WE OWN THE
HOUSE THAT WE GONNA SELL IN
SACRAMENTO.
TO PAY FOR THIS NEW HOUSE IS.
IS.
HOME IT'S IT'S PRETTY HIGH WE
COULDN'T GET.
STATE FARM TO COVER US IN THIS
NEW HOUSE THEY SAID SIMPLY THAT
WE DON'T COVER.
RESIDENTIAL INSURANCE IN THESE
HIGH FIRE HAZARD AREAS.
REDLINING LARGE PARTS OF THE
STATE FORTY FOUR PERCENT OF THE
STATE'S LAND MASS. IN THAT THAT
TO ME IS VERY TROUBLING BUT WE
DON'T HAVE A LOT OF AUTHORITY
THERE WE DON'T HAVE A LOT OF
AUTHORITY TO REQUIRE THEM TO
SELL INSURANCE TO THE UTILITIES
WHICH IS WHY. WHEN I WHEN I SAID
THAT WHEN I FIRST WAS THINKING
ABOUT THIS AND REALIZING THAT
THE INSURER THE REGULATED
ENTITIES WE'RE GONNA HAVE A HARD
TIME GETTING INSURANCE. AND THAT
THE COST OF REINSURANCE OF SELF
INSURANCE WAS WHAT WAS GOING TO
BE HIGH. ON BASICALLY COULD
BANKRUPT THE COMPANY THAT I
STARTED THINKING CAN WE CREATE A
POOL BUT THEN I SAW. ALMOST
WITHIN MONTHS THAT THE SCALE OF
THE CLIMATE CATASTROPHE
OVERWHELMS EVEN THAT ABILITY SO
AT THIS POINT I'M STUNNED. AT
THE ONE MY LIST OF THINGS TO DO
THAT'S EXACTLY IT WAS THINKING
ABOUT WHEN WE STARTED TO WHEN I
CAME UP WITH THIS IDEA OF SHOULD
WE HAVE PEOPLE WHO ACTUALLY ARE
ARE GETTING SERVICE. FROM THE
UTILITIES AND HIGH HAZARD FIRE
IS ACTUALLY PAY A PREMIUM CAN
THAT GO INTO THIS INSURANCE POOL
DO WE HAVE SOMETHING LIKE THE
CALIFORNIA EARTHQUAKE AUTHORITY
SO I WOULD JUST ASK IT SHOULDN'T
JUST BE ON YOUR TO DO LIST IT
SHOULD BE ON OUR TO DO LIST AND.
pYOU TAKE A MESSAGE BACK TO THE
GOVERNOR'S OFFICE TO TO SAY
LET'S EX LET'S LET'S SORT OF.
LET'S ZOOM OUT A LITTLE BIT WITH
THAT TASK FORCE HE SET UP AND
TRY TO COME UP WITH A
COMPREHENSIVE SOLUTION THIS YEAR
IS BEST WHEN WE'RE LOOKING AT
LIABILITY CALCULATIONS COST
ALLOCATION THIS AREA WHERE THE
LEGISLATURE OUGHT TO BE WORKING
DIRECTLYWITH THE ADMINISTRATION
IN MY VIEW. AND TRYING TO COME
UP WITH SOMETHING COMPREHENSIVE
AND I WOULD SAY THE ONE INDUSTRY
THAT DOES NOT HAVE TROUBLE
GETTING INSURANCE IS INSURANCE.
THEY'RE DOING JUST FINE. THE
REINSURANCE MARKET IS INCREDIBLY
ROBUST WE'RE TALKING HUNDREDS OF
BILLIONS OF DOLLARS RE INSURING
THE INSURANCE COMPANY SO THERE
IS A POOL OF CAPITAL OUT THERE
AND I'D LIKE TO SEE US.
CONSIDER BEYOND THIS UTILITIES
GO THANKS FOR YOUR INTELLIGENCE
MISTER CHAIRMAN OR WINTER.
THANK YOU MISTER CHAIRMAN I'D
JUST TO FOLLOW UP ON THAT I.
AS ONE A.
SAY THAT I THIS THE IDEA THE
STRICT LIABILITY.
ISSUE WITH THEIR USE IS VERY IS
A TROUBLING ONE TO ME AND I KNOW
WERE ONE OF I'VE MAYBE TWO
STATES. THAT DO THAT ARE MAYBE
THE ONLY STATE. AND YOU KNOW WE.
WE HAVE A HUGE PROBLEM ON OUR
HANDS IN TERMS OF THESE FIRES
OWNS AN EXPOSURE WE HAVE AND OF
COURSE YOU KNOW FUNDAMENTALLY WE.
NEED A FEDERAL GOVERNMENT THAT'S
GOING TO ACTUALLY ADDRESS
CLIMATE CHANGE BUT UNLESS AND
UNTIL WE GOT THERE. THERE ARE
POLICY DECISIONS THAT WE CAN
MAKE AROUND INSURANCE AROUND
MAKING SURE EVERYONE HAS ACCESS.
TO INSURANCE AROUND LAND USE
PATTERNS I AGREE WITH THAT ARM
ACQUIRED A LOT OF THE HOMES WERE
IN URBANIZED AREAS. BUT WE
CERTAINLY DO HAVE AN ISSUE IN
TERMS OF OUR LAND USE PATTERNS
IN PART BECAUSE WE DON'T ALLOW
DEVELOPMENT. WE DON'T ALLOW
NEARLY ENOUGH DEVELOPMENT IN
URBANIZED AREAS AND SO WE PUSH
PEOPLE FURTHER OUT. AND SO WE
NEED TO LOOK AT LAND USE WE NEED
TO LOOK AT INSURANCE.
AND I I ACTUALLY THINK IT'S A
LITTLE BIT OF THE LAZY WAY OUT
FOR US TO SHOW US TO FALL TO SAY
WE'RE GONNA HAVE THE I. O. U.'S.
UP HERE FOR ALL THE DAMAGE EVEN
IF THEY WEREN'T NEGLIGENT.
AND I THINK IT'S A QUICK WAY TO
SEND THEM INTO BANKRUPTCY AND
THAT'S GOING TO UNDERMINE THE
WHOLE SYSTEM AND UNDERMINE RATE
PAYERS.
SO I WAS JUST YOU KNOW ONE I
JUST NOTE THAT I DO HAVE A
QUESTION.
UNRELATED AROUND CCA'S I'M
PARTICULARLY OF RESOLUTION E.
FORTY NINE OH SEVEN WHICH I KNOW
YOU'RE VERY FAMILIAR WITH THEM.
.
YOU KNOW THAT.
WE WERE WE WILL JUST TROUBLED BY
THE PROCESS AROUND THAT IT WAS
ANNOUNCED RIGHT FOR THE HOLIDAYS
FOR HEARING RIGHT AFTER THE
HOLIDAYS SEEM LIKE IT WAS BEING
SORT OF JAM THROUGH.
SOMETIMES I FEEL LIKE.
WHEN THERE ARE UNSUCCESSFUL
EFFORTS IN THE LEGISLATURE
AROUND CCA'S SOMETIMES IT ENDS
AS MOVES OVER THE CPUC. ACCUSES
TALK ABOUT SIR WHERE WE ARE WITH
THAT ISSUE AND WHY THE CPUC FELT
THE NEED TO.
GO THROUGH SUCH A FAST PROCESS
WHEN A SIGNIFICANT POLICY ISSUE
AROUND CCA'S.
I GUESS I QUESTIONED THE HOW
SIGNIFICANT IT WAS. I DON'T
THINK IT AFFECTED EVERY CCA IT
DIDN'T AFFECT EVERY LSE BUT IT
DID AFFECT TOM AND SO
PARTICULARLY THOSE. THOSE A LOAD
SERVING ENTITIES INCLUDING
DIRECT ACCESS THIS DIDN'T JUST
APPLIED OF CCA'S.
THERE WAS A MARKET FAILURE IN
SOME OF THE AREAS THAT ARE KIND
OF POCKETS WHERE THERE'S NOT
ENOUGH GENERATION. TO BE ABLE TO
PROVIDE A DEFINITIVE EDITION OF
RELIABILITY. AND SO THEY
EVERYBODY CAME TO YOU SEE SAYING
WITH THE MARKET IS NOT WORKING
THE WAY THEY SHOULD WE HAVE A
PROBLEM WE CAN'T SHOW YOU THAT
WE HAVE THE RELIABILITY WE WANT.
ALL THIS REALLY DID WAS SHIFT
THE DATE SET WHICH SOME CCA'S
COULD ACTUALLY OPEN.
FOR BUSINESS. TO MEET THE
CALENDAR OF THOSE THOSE
RELIABILITY MARKETS BECAUSE WE
SAW THAT THE THE THE THAT THEY
WERE FAILING WE DIDN'T WANT THE
CC EIGHT ALL OF THE SUDDEN. OPEN
UP FOR BUSINESS HIT A ROUGH SPOT
NOT BE ABLE TO PROVIDE
ELECTRICITY FOR THEIR CUSTOMERS
BUT NOBODY ELSE HAD PROCURED. SO
IT ONLY AFFECTED A VERY FEW. BUT
IN THE MEANTIME MANY OF THOSE
UTILITIES THOSE CCA'S AND OLD
SERVING ENTITIES THAT HAD
DIFFICULTY IN THAT MARKET.
TURNED AROUND AND CTUALLY.
WENT AND BOUGHT INSURANCE
POLICIES FROM THE REGULATED
UTILITIES SO A LOT OF THEM DID
NOT SPEND TIME ACTUALLY WARRING
ABOUT IT THEY WENT OUT AND FOUND
WHAT THEY NEEDED TO BE ABLE TO
ASSURE US THAT THEY COULD
PROVIDE FOR THEIR CUSTOMERS.
UNDER ALL CIRCUMSTANCES WE HAVE
AN OBLIGATION AS I POINTED OUT
UNDER LEGISLATIVE DIRECTION
STATUTE TO ENSURE THAT WE HAVE
THAT RELIABILITY. BUT IT DIDN'T
AFFECT ALL OF THE LOAD SERVING
AT INDY SEE THE DIRECT ACCESS
PROVIDERS OR THE CCA.
OUT OF THE FACT THAT ALL BUT IT
AFFECTED THE NUMBER OF THEM AND
I THINK WE THOUGHT IT WAS ONLY
ONE. WELL I MEAN IT WAS JUST A I
THINK A PERCEPTION WHICH THE
FAST TIME LINE ON THE RESOLUTION
SORT OF UNDERLINE. ODD THAT THAT
THIS IS NOT JUST LIKE US.
SOME SORT OF PERFORMANCE CHANGE
AND SO. YOU KNOW I DO THINK
WE'RE TALK ABOUT POLICY CHANGES
IT'S REALLY IMPORTANT FOR THE
CPC PARTICULARLY WHEN THE
LEGISLATURE HAS NOT ACTED. OUGHT
TO DO THAT FOR THE CPC NOT THE
SEARCHES JUMPED INTO AND I THINK
AT LEAST THAT WAS THE PERCEPTION
OF WHAT WAS HAPPENING WELL AT
DAVE I'VE SO I APOLOGIZE BUT I
THINK THE LEGISLATURE IS PRETTY
CLEAR IN TERMS OF REQUIRING US
TO ENSURE RESOURCE ADEQUACY AND
IT'S. IT'S IT'S STATUTE THAT
GOES BACK TO TWO THOUSAND TWO
THOUSAND ONE SO IDEA I THINK
THAT THERE WILL BE TAKE THAT
RELIABILITY MISSION FAIRLY
SERIOUSLY. CENTER MORALE.
THANK YOU YOU ASK A COUPLE
QUESTIONS.
YEAH I WAS THERE WAS AN
ANALYSIS FROM INVESTMENT COMPANY
SUGGESTING THAT THE CALIFORNIA
UTILITIES ARE ON A FESTIVAL IN
SELF.
FIRST QUESTION I HAVE WOULD BE
WHAT IMPACT THE END AND AFTER
SOME SPECIFIC PERCENTAGES THAT
YOU THINK THAT'LL HAVE ON OUR
RATE PAYERS. IN A CLARIFYING
QUESTION IS THERE ON THE COURTS
ASSUME THAT THE RATE PAYERS ARE
GONNA HAVE TO PAY MORE RIGHT.
BUT YET THEY WILL NOT BE ABLE
TO PASS THIS THROUGH AND SO.
NOT I'M NOT REALLY CLEAR ON
THAT SO THAT'S A CLARIFYING
QUESTION IN IN THE FIRST ONE WAS
ABOUT. HOW BAD WILL THIS IMPACT?
THE RATE PAYERS.
IT'S LIKE TRYING TO PREDICT THE
STOCK MARKET NEXT WEEK I CAN'T
GIVE YOU A FULL ANSWER ON TAT I.
IF I WAS I WOULDN'T BE WEARING
ABOUT INSURANCE ON THIS HOUSE WE
JUST BOUGHT. ON THE REALITY IS
IS THAT.
THAT.
.
BEGAN THE COURTS HAVE FOUND THAT
WHERE THERE IS ANY
RESPONSIBILITY AT ALL FOR A
UTILITY THEY BECOME THE VEHICLE
THAT HAS TO COLLECT THE MONEY SO
THAT THAT TAKES A VARIETY OF
DIFFERENT THE.
PATHWAYS IN ONE FIRE THAT I
KNOW OF THE THE ACTUAL CAUSE WAS
A TELECOMMUNICATIONS COMPANY
THEIR WIRES GOT LOOSE WHIPPED
OVER THE TELECOMMUNICATIONS
YOU'LL ACT REQUIRES. BECAUSE AN
ARC IN THEN CAUSED A FIRE BUT
BECAUSE THE ELECTRIC COMPANY
OWNS THE POLL THAT ALL THAT WAS
ATTACHED TO. THEY WERE ACTUALLY.
THE CLAUSE SO THEY HAVE TO
COLLECT ALL THE MONEY AND PAY
THE DAMAGES. THEY ACTUALLY GO
OUT AND SETTLE LAWSUIT BECAUSE
THEY'RE BEING HED STRICTLY
LIABLE SO THEY'RE LIKE AN
INSURANCE COMPANY THAT INSURES
INSURANCE A INSURING SOMEBODY
WHO'S FOUND LIABLE THE INSURANCE
COMPANY PAYS. SO THEN THEY
COLLECT THE MONEY FROM ALL OF
THE FOLKS WHO THEY DO BUSINESS
ALL THE INSURED AND THEY FIGURED
INTO THE COST OF INSURANCE.
SO THAT'S WHAT THE UTILITY DID
THERE'S A SECOND STEP HOWEVER
JUST FOR THE REGULATED UTILITIES
AND THIS IS SOMETHING THE COURT
REALLY DIDN'T PAY ATTENTION TO.
AND THAT'S IF IT COMES TO THE P.
YOU SEE. WE HAVE A DIFFERENT SET
OF TESS AND THAT MEANS THAT WE
CONSIDER THEM GUILTY UNTIL THEY
PROVE HIMSELF INNOCENT
ESSENTIALLY THE BURDEN OF PROOF
IS ON THEIR SIDE.
AND SO IN ONE CASE THAT I KNOW
OF IT CAME DOWN TO SEVERAL YEARS
OF DUELING WIND MODELS. AND. AND
LOOKING AT METEOROLOGICAL DATA
TO TRY TO FIGURE OUT WHETHER THE
WINDS COULD HAVE EXCEEDED
STANDARDS THAT ANYBODY WOULD
REASONABLY EXPECT. A POOL TO TO
HAVE TO WITHSTAND THIS NOT JUST
THE POLLS ALL THE EQUIPMENT ON
IT BECAUSE ALL THAT WILL ACT AS
A SALE. SO WE ACTUALLY THEN
REQUIRE EACH.
APPLICANT TO PUT SOMETHING ON A
POLE TO DO WIND LOAD. GNATS WHY
THE ADDITIONAL CONTRIBUTION OF
THE TELECOMMUNICATIONS PROVIDER
WHO FREQUENTLY HAVE MORE STUFF
ON A POLL ON A LITTLE WOODEN
POLES THAN ANYBODY ELSE. BECOMES
VERY IMPORTANT TO THIS
DISCUSSION. IN THAT CASE.
THE TELECOMMUNICATION PROVIDER
PAID MONEY.
TO THE UTILITY.
THAT BECAME PART OF WHERE REDUCE
THEIR COSTS. WHAT THEY FOUND IS
AT THE END OF THE DAY IT WAS
MORE THAN THEIR INSURANCE
COVERED? WHEN THEY WANTED TO
RECOVER FROM RATE PAYERS.
HE.
THE JUDGE AND THE COMMISSIONER
THIS SIGN COMMISSIONER JUST SAID
THAT THE UTILITY DIDN'T MAKE A
GOOD CASE TO SHOW THAT THEY WERE
AT FAULT.
SO THAT'S THE CHALLENGE THAT WE
FACE INTERNALLY I THINK WE'RE
GONNA HAVE TO LOOK LONG AND HARD
AT DEF PRECEDENT. BUT TO CHANGE
OUR PRECEDENT AT THIS POINT I
THINK WILL TAKE US A COUPLE OF
YEARS TO COLLECT EVIDENCE ON THE
GENERAL ISSUE. AND THEN IT'LL
PROBABLY BE FOUGHT IN THE COURTS
FOR YEARS AFTER THAT.
ONE ONE LAST COULD BE EVEN
MENTION ABOUT YOUR IS VOLATILE
OF STOCK MARKET I I DON'T KNOW
SO SO WHAT HAPPENS IS. THAT I DO
FIND OUT A LITTLE OF A STRETCH A
LITTLE BIT BECAUSE MOST
COMPANIES YOU KNOW THE HAPPEN
PERRY CALLED OUT OF THERE ALWAYS
MEASURING RESULTS.
IN THE STOCK MARKETS MORE THAN
JUST ONE COMPANY ITSELF.
IF THERE IS A WAY IN THE NEAR
FUTURE YOU YOU COULD YOU CAN.
NOW BACK IN AND JUST SAY NO WE
THINK IT'S GOING TO BE A TWENTY
TWO OR THIRTY TWO PERCENT
INCREASE TO RATE PAYERS BECAUSE
I I KNOW. YOU I KNOW YOU CAN GET
THERE IRA THAT'S HOW THATS FAIR
OKAY READ WHAT'S HAPPENING IS
THE RATING AGENCIES ARE STILL.
MAKING THEIR DECISIONS ABOUT HOW
THEY'RE GOING TO TREAT THE
UTILITY STOCKS AND HOW THEY'RE
GONNA TREAT THEIR BONDS SO WE
HAVE TO WAIT FOR THEM TO DO THAT
AND THAT'S WHAT I MEAN BY NOT
BEING ABLE TO PREDICT WHAT
THEY'RE GOING TO DO IT'S JUST
LIKE. ANYBODY ELSE'S PRICING IN
THE MARKET WERE WAITING TO SEE
WHAT THE MARKET DOES BEFORE WE
MAKE THIS ASSESSMENT THANK YOU.
DID YOU HAVE A QUESTION HATED
THE USE YOUR THANK YOU AND.
IDEA. AND I KNOW YOU DIDN'T
WANT A LOT OF COMMENTARY BEFORE
AND WANTED FOR LATER BUT SINCE
EVERYONE HAS THEIR OPINIONS I
WANTED TO SHARE. AS WELL
ESPECIALLY ON THE ISSUE OF
INVERSE CONDEMNATION AND HOW
THAT PLAYS OUT I KNOW I HAVE
LEGISLATION THIS YEAR THERE'S
OTHERS AND WILL HAVE.
KIND OF ROBUST DISCUSSIONS OF
THAT IN THE IN THE FUTURE
RELATED TO BUT IT'S SUCH A.
AN OPPORTUNITY HAVING YOU HERE
TODAY AND I AND I THINK YOU KNOW
WE'RE GETTING THE IMPRESSION
THAT THE SKY IS FALLING THE I.
O. U.'S BEEN WALKING THIS
BUILDING AND TELLING EVERYONE
THAT THE WORLD'S COMING TO AN
END. BASICALLY BECAUSE OF THE
INVERSE CONDEMNATION ISSUE.
AND I DON'T I YOU KNOW I'VE
SEEN THAT THE P. USUALLY HANDLE
THIS IN A WAY THAT'S BEEN
RESPONSIBLE. V. NO ONE EXPECTS
NOR SHOULD A UTILITY BE
RESPONSIBLE JUST BECAUSE THEY
OWN THAT POLL THEY SHOULD BE
HELD LIABLE FOR THAT AND HAVE TO
PAY ON IN THAT REGARD BUT THAT'S
TODAY THE THREE PEOPLE WHO PAY.
THREE ENTITIES THAT PAY THE
GOVERNMENT'S GOING TO PAY THE
RATE PAYERS ARE GOING TO PAY OR
THE UTILITIES GOING TO PAY ONE
OF THOSE THREE IS GOING TO BE
HELD RESPONSIBLE.
AND TODAY WHAT TURNS OUT WITH
REGARD TO THE COURT IF YOU SEE
JUST AS THEY DID WITH SD
JEANNIE'S DECISION LAST YEAR
WITH THE THREE HUNDRED SEVENTY
NINE MILLION DOLLARS. IS THEY
FOUND THAT THERE WAS SOME
RESPONSIBILITY IN HOW YOU HANDLE
THAT PRUDENCE THAT.
A RESPONSIBLE MINISTER THAT
NEGLIGENCE ISSUE THAN THEY WILL
BE ABLE TO NOT OR THEY WILL NOT
BE ABLE TO PASS THAT ON TO RATE
PAID FOR I THINK THE SYSTEM IS
WORKING. THE WAY IT SHOULD TODAY
AND.
AND WE JUST HAVE TO MAKE SURE
THAT HOWEVER WE CRAFT
LEGISLATION THIS YEAR. THAT IT
IT CONTINUES THAT I BELIEVE THAT
MODEL WHICH I THINK WORKS
EXTREMELY WELL.
BECAUSE CERTAINLY RATE PAYERS.
SHOULD BE HELD BECAUSE WE ALL
BENEFIT OBVIOUSLY THE NEED FOR
ELECTRICITY AND ALL OF THE OTHER
ASPECTS OF THAT IN THE
SHAREHOLDERS SHOULD BE HELD
RESPONSIBLE IN THEIR NEGLIGENT.
AS WE SAW IN THE SAN BRUNO
EXPLOSION OF. SIX TO EIGHT YEARS
AGO WHEN THE.
IN THAT CASE SO IT'S A IT WORKS
I HAVE TO HAVE A COUPLE
QUESTIONS AND I'LL BE HAPPY TO
GO GET TOO QUICKLY.
IN THESE ARE RELATED TO THE LAST
YEAR IN THE SAFETY CULTURE
WITHIN THAT YOU SEE.
.
THE CHART THAT THE CONCERN I
HAVE IS IN IN ONE OF THE CHANGE
THE BUDGET CHANGE PROPOSALS THE
OFF OFFICE SAFETY ADVOCATES
REQUESTS INCREASE FUNDING FOR
SOME ONGOING TRAINING PROGRAM.
THE FUSES IN A REPORT AND THE.
ESSAYS IN REPORT TALK ABOUT THE
TRAINING PROGRAMS AND AND AS IT
MOVES FORTUNE TEN SESSIONS AND
OTHER THINGS. THAT NATION UP AND
WE'VE DISCUSSED MANY TIMES THE
IDEA OF FOSTERING THE SAFETY
CULTURE IN IT THE SAFETY THIS
SUBCOMMITTEE HEARING YOU TALKED
ABOUT THE.
SAFETY CULTURE SUCCESSFUL WHEN
IT ACTUALLY MUSCLE MEMORY WHICH
I THINK IS IMPORTANT. TO I GUESS
THE KEY IS HOW ARE WE.
WORKING TO.
INCLUDE THAT IN THE IN THE IN
THE CULTURE OF.
THE IN DEPTH GAS YOU USE THE
TRAINING AND WHEN IS IT
OCCURRING WHAT HOW ARE WE DOING
THAT SHOULD BE DONE AT THE IS IT
VOLUNTARY IS IT MANDATORY FOR
ALL INCOMING STAFF. YOU KNOW I
THINK THAT WOULD BE AN IMPORTANT
ASPECT WOULD WE PROCESS A YOU
KNOW. A CURRENT STAFF BEAN.
INTRODUCED TO IT IN A BETTER WAY
AND IN A MORE THOROUGH MANNER
BECAUSE IT'S IT'S IT SEEMS THAT
WE'RE NOT GETTING.
IT I KNOW THE CULTURE CHANGE IS
IMPORTANT TO YOU AND YOU WANT
THAT SAFETY ASPECT BUT HOW IS IT
HOW IS IT PLAYING OUT BECAUSE.
THESE SO ALL OF OUR PROGRAMS ARE
SLIGHTLY DIFFERENT SO WHEN WHEN
WE HAVE AN AGREEMENT WITH THE
FEDERAL AGENCY LIKE THE PIPELINE
HAZARDOUS MATERIAL SAFETY AGENCY
WE ACTUALLY SEND OUR OUR GAS
PIPELINE HOME STAFF BOTH
AUDITORS IN THE INSPECTORS TO
FEDERAL TRAINING PROGRAM.
SIMILAR WITH THE RAIL INSPECTOR
SINCE WE ENFORCE FEDERAL
AUTHORITY. BECAUSE THE THE FC
THERE THAT. IF THE FEDERAL
RAILWAY ADMINISTRATION HAS
PREEMPTED ON STATE AUTHORITIES
FOR MANY FOR MANY IN MANY
RESPECTS.
SO WE.
WE SEE THAT AS BEING A USEFUL
TOOL THE CHALLENGE BECOMES MORE
WHAT DO MANAGERS DO TO KIND OF
KEEP THAT ALIVE IN THE FIELD SO
IT'S TRAINING BUT IT'S ALSO WHAT
ARE THE PROCESSES WATER THE
PROCESS DOCUMENT. WHAT IS IT
THAT? DO EVERY DAY ON THE JOB.
SO THAT BECOMES A A BIT OF A
CHAT ROOM CHALLENGE MORE DEALING
WITH MUCH LARGER INSTITUTIONS
LIKE THE ELECTRIC KEEP THEIR THE
GAS UTILITIES WHO TEND TO HAVE.
DIFFERENT KINDS OF PROCESSES AND
DIFFERENT KINDS OF FUNCTIONS HOW
DO YOU KEEP THAT ALIVE WIN A LOT
OF WHAT OUR OVERSIGHT IS IS
ACTUALLY HARDER TO LOOK AT THEIR
PROGRAMS TO SEE IF THEIR PROGRAM
TO ROUGH STUFF. WITH THEIR
KEEPING THE PROCESS
DOCUMENTATION THAT WE CAN USE
AND THEN WE'RE SAMPLING. IT'S
NOT AS IF WE ACTUALLY GO OUT IN
THE SAME WAY THAT WE DO FOR RAIL
LINES. WAR ELECTRIC ON AND
TELECOMMUNICATIONS THERE'S JUST
TOO MANY MILES FOR US TO BE ABLE
TO MATCH THE THIRTY SEVEN
THOUSAND PERSON WORKFORCE A. AT
PGA. SO THERE WE WE HAVE KIND OF
A MORE AUDIT FUNCTION WAS SPOT
CHECKS HOW DO YOU KEEP THAT
LIVES THERE AND I THINK THAT'S A
STRUGGLE FOR US SO. I ESRB IS
MAKING PROGRESS ELECTRIC SAFETY
AND RELIABILITY BRANCH.
SIMILARLY SOME OF THE OTHER
SAFETY PROGRAMS ARE ONES WHERE
WE ACTUALLY DON'T HAVE A LOT OF
DIRECT OVERSIGHT WE LOOK AT WHAT
THE FOR EXAMPLE THE NRC. AND
SOME OF THE OTHER AGENCIES WHO
LOOK AT NUCLEAR SAFETY DO AND WE
ARE ALWAYS IMPRESSED. AT HOW
WELL THEIR INSPECTORS DO HOW
WELL THEIR AUDITORS DO HOW
EFFECTIVE THEIR OVERSIGHT IS
WHAT THAT RESULTS IN IN TERMS OF.
OF SAFETY CULTURE AND THE
CHALLENGES CAN WE GET THERE SO
WERE. BUILDING NEW TRAINING
PROGRAMS BUT THAT'S REALLY
REQUIRED US TO REVAMP OUR HR
SYSTEM TO BE ABLE TO DO THAT
JUST AS STARTED THE ONBOARDING
PROCESSES AS WELL IT MEANS THAT
WHEN WE CAN KIND OF GET THAT
CULTURE. GOING TO TURN IT OVER
TO. OUR GOOD MORNING SENATOR
HILL. YES WE'VE ACTUALLY JUST
DEVELOPED AN ONBOARDING CLASS WE
HAVE NINE DIFFERENT CLASSES WE
HAVE ONE. ON SAFETY.
WE ARE.
DOING THAT WE HAVE THE LEADERS
OF THE COMMISSION IN THE CITY
FUNCTIONS THE OFFICE OF THE
SAFETY ADVOCATES. ELIZABETH
ABOLISHING BECAUSE THE SAFETY
ENFORCEMENT DIVISION AND MIRIAM
FD PROVIDE AN OVERVIEW ABOUT
SAFETY AND THE SAFETY CULTURE.
US SO WE ALSO TRY TO ALERT
PEOPLE TO HOW TO RAISE A SAFETY
FLAG AND GET UP TO THE TOP OF
THE ORGANIZATION. IN THE LAST
SEVERAL YEARS WE'VE ALSO HAD A
BASICALLY A A COMMISSION WIDE
ALTHOUGH ATTENDANCE IS VOLUNTARY
US SAFETY FUNCTIONS THAT.
DESCRIBES THE SAFETY PROGRAM IN
AND.
FOR FOR THE COMMISSION. ODD
THERE'S A BIG SAFETY ON OUR
BARKER ACTUALLY TOMORROW AND THE
FOCUS OF THAT IS LOOKING AT WHAT
REGULATORY AGENCIES CAN DO. TO
SUPPORT SAFETY CULTURES BOTH
WITHIN THE ORGANIZATION AND ALSO
IN THE UTILITIES THEMSELVES OF
THIS IS PRETTY MUCH A WORK IN
PROGRESS ARA. AND.
IT REQUIRES ATTENTION ON A.
IT ALSO TURNS OUT THAT EVEN
THOSE WHO ARE DIRECTLY INVOLVED
IN SAFETY THE TRAINING IS
DIFFERENT OF THE DAY OUR FEDERAL
STANDARDS FOR THE PIPELINE
AGENCIES.
AND THEY'RE TRAINED NATIONALLY
OUR ELECTRIC WIRE INSPECTORS
BASICALLY IS ON THE JOB THEY.
THEY FOLLOW SOMEONE WHO'S
ALREADY AN EXPERT AND WE DO THE
SAME WITH A TRACK INSPECTORS SO
WE HAVE A VERY WIDE RANGE OF
PROGRAMS. YOU ONE FINALQUESTION
MISTER CHAIRMAN AND THANK YOU
FOR YOUR. INDULGENCE OF.
THE TWENTY SEVENTEEN AND IN. THE
ANNUAL REPORT YOU MENTIONED
WE'VE TALKED ABOUT THIS IN THE
PAST THE POINT THREE MILLION
DOLLARS OF STAFFS CITATIONS.
ISSUED A P. GENIE FOR THE
VIOLATIONS IN THE BUTTE FIRE OF
TWENTY FIFTEEN.
AND THAT'S THE ADMINISTRATIVE
LIMIT AS WE KNOW THE EIGHT
MILLION DOLLARS. IN. IN IN I
GUESS THE YOU SAID THE
COMMISSION SET WHICH WE I THINK
WE ALL AGREE IS IMPORTANT FOR
CERTAIN. VIOLATIONS THE SET THAT
LIMIT THE.
.
TO USE IT AS A.
ECONOMIC INCENTIVE TO HAVE
PRIDE TO PRIORITIZE SAFETY DATE
TO KIND OF CREATE THAT THAT
OPPORTUNITY. OF WHICH YOU
ELECTED NOT TO OPEN THE OHIO I
FOR THAT THE BUTTE FIRE. IN ONLY
ISSUED THIS PENALTY.
DO YOU FEEL THAT THAT EIGHT
MILLION DOLLARS WAS ADEQUATE AS
A. A DISINCENTIVE OR AN
INCENTIVE FOR THE UTILITY TO TO
DO THE RIGHT THING AFTER THAT
ONE.
WE'VE BEEN LIVING OFF OF THE THE
LARGEST UTILITY FINE EVER IN THE
UNITED STATES FOR A GAS PIPELINE
EXPLOSION AND.
I'M NOT SURE THAT THAT ALONE.
WOULD IS ACTUALLY ON
SATISFACTORY TO PRESERVE. TO
PRODUCE THE RESULTS THAT I
EXPECTED THE YOU EXPECTED
ANYBODY ELSE AT THE P. C. EXPECT.
I THINK MONEY IS NOT SIMPLY THE
ANSWER.
ONE OF THE CHALLENGES IS TO
ACTUALLY ON A LEVY A SIGNIFICANT
FINE WE GENERALLY OPEN A
PROCEEDING AND BECAUSE THE THE
PROCESS THE CPC IS DATES BACK TO
THE EIGHTEEN EIGHTIES AND
EIGHTEEN NINETIES. IS PRETTY
HEAVILY LITIGATE CAN BE VERY
SLOW. SO WE'VE ALL WE STARTED TO
LOOK AT ARE THERE ADMINISTRATIVE
ACTIONS THAT WE CAN TAKE. THAT
ARE MORE SWIFT.
AND ACTUALLY RELATE TO THE
SPECIFIC INCIDENT AND WHERE IT
TAKES PLACE DURING THE CAREERS
PERHAPS OF THE MANAGERS AND THE
PEOPLE IN THE FIELD.WHO MAY
ACTUALLY BE PRESENT AT THE TIME
SO THAT IN IN MY MIND IS THE
TRADE OFF CAN WE BE FASTER ABOUT
SANCTIONS AND AND RENDERING OF
JUDGMENT? AND MAKING IT APPARENT
TO THE PEOPLE WHO ACTUALLY DO
SOMETHING ABOUT IT WITHIN THE
ORGANIZATION. SO I DON'T THINK
THERE'S A PERFECT ANSWER WERE
EXPLORING WHAT IT TAKES AND AND
AND IN A COMPLICATED WORLD. BUT
MY EXPERIENCE WAS REALLY DRIVEN
BY THE FACT THAT I'M NOT SURE
MONEY IS THE TOTAL ANSWER.
STANDARD THANK YOU CENTER
BRADFORD.
I THINK IT WAS URINE THANK YOU
MISS PARKER PRESENT CORRECT. I'M
GONNA GO BACK TO SEE SEE
QUESTION AS IT RELATES TO. THE
ISSUE OF OPT IN VERSES OPT OUT
WHEN THE. ISSUES WERE INITIALLY
ESTABLISHED IT CREATED A OPT OUT
CATEGORY TO HELP SPUR THE MARKET.
BUT TODAY IT'S ESTIMATED THAT
TWENTY FIVE PERCENT OF CUSTOMERS
ARE BEING SERVED BY A NON I OWE
YOU AND THE PC AND THE CDC
ESTIMATES THAT SIXTY TO NINETY
PERCENT OF THOSE CUSTOMERS. AND
THE NEXT TEN YEARS WILL BE
SERVED.
BY ANON I OWE YOU IF THIS IS
TRULY CONSUMER DEMAND. WHY
SHOULD WE GO TO OPT IN MARKET
VERSUS OPT OUT FOR CONSUMERS TO
TRULY TO MAKE THE DECISION?
VERSUS ARTIFICIAL MARKET OF
CUSTOMER BASE BASED ON OPT OUT.
BECAUSE AS YOU WELL KNOW ALL WE
WANT YET. SLAMMING CRAMMING.
AND THE NEWSPAPER SUBSCRIPTION
INDUSTRY AND THE CELLPHONE
INJURY AND IT WAS RULED LEGAL
HOUSE IS ANY DIFFERENT.
I'VE I THINK IT'S A DIFFERENT
BECAUSE IS SANCTIONED BY THE
STATE LAW IN BY ACTIONS OF LOCAL
GOVERNMENTS SO I THINK THAT THAT
SEES A A A.
KEY DIFFERENCE NOW THE QUESTION
OF WHETHER OR CC ACES TRUE
CUSTOMER CHOICES IT IS IS A
VALID ONE TO RAISE. AND SO WHEN
YOU LOOK AT. FOR EXAMPLE
CUSTOMER CHOICE IN TEXAS.
IT'S TRUE CUSTOMER CHOICE YOU
PICK A. A.
A CONCERT A PROVIDER OF
ELECTRICITY. AND. AND THAT TO
YOUR PROVIDER IS AND IF YOU
DON'T PICK SOMEBODY THEN YOU GET
ASSIGNED TO A ROTATING CAST IN
IT EVERY YEAR YOU CAN CHANGE.
SO THAT'S FAR MORE OF A TRUE
CUSTOMER CHOICE IS SIMILAR IN
SOME RESPECTS TO THE RADIO
SYSTEM IN ENGLAND. WHICH IS
OPERATED BY THEIR THEIR
REGULATOR AND AND SEVERAL
UTILITIES TAKEN TEN YEARS FOR
PEOPLE TO ACTUALLY MAKE A
DECISION TO DEPART FROM THE
REGULATED ENTITIES BECAUSE THEY
HAVE A DIFFERENT KIND OF THE
CHOICES YOU CAN CHOOSE WHATEVER
YOU WANT AND SO NOW THE PEOPLE.
DOWN THERE ACTUALLY STARTING TO
MOVE AWAY FROM THE REGULATED
ENTITY.
ONE OF THE THINK THE COMMON
FEATURES OF BOTH OF THOSE
SYSTEMS HOWEVER IS THAT YOU TOOK
THAT TAKE THE NEXT STEP THAT WE
DIDN'T TAKING CALIFORNIA
LEGISLATURE DID IN FACT CREATE
THE UTILITY OF THE FUTURE. IN
AND NINETEEN NINETY EIGHT WHEN
YOU REQUIRED TO ELECTRIC
UTILITIES TO SELL OFF THEIR
GENERATION. IT IS ONE OF THE
REASONS WHY WE'VE HAD SUCH
SUCCESS HERE IN CALIFORNIA AND
MOVING TO RESULTS ONCE THE
UTILITIES FIGURED OUT HOW THEY
COULD MAKE IT WORK. THEY'VE
ACTUALLY BEEN FAIRLY ARE WILLING
TO CARE RENEWABLE SAFE WORRY
ABOUT RELIABILITY. BUT THEY'VE
ACTUALLY DONE A GOOD JOB WE HAVE
MADE MORE PROGRESS THAN AYBODY
ELSE OR WAY AHEAD OF THE THE
STATUTORY GOALS.
THAT'S BECAUSE THEY DON'T
ACTUALLY MAKE MONEY SELLING
ELECTRICITY.
THEY GET A LITTLE BIT OF A OF A
CHARGE FOR PROVIDING THAT
SERVICE OF THE CONTRACTS AND AND
THEN MANAGING THE CONTRACT.
WHAT WE DIDN'T DO?
AND WHAT WILL CONTINUE WILL
START TO BE A CHALLENGE FOR US
IS WE STILL OPERATE UNDER THE
RATE STRUCTURE THE NINETEEN
FIFTIES.
WE HAVE THE UTILITY OF THE
FUTURE AND THE RATE STRUCTURE
THE NINETEEN FIFTIES UTILITIES
RECOVER THEIR MONEY.
VICE.
A COMPLICATED TERRIFIED THAT
REQUIRES THEM TO RECOVER BASED
ON THE AMOUNT OF ELECTRICITY
THEY SELL THEIR ACTUALLY
TRANSPORTATION AGENCY.
BUT WE'RE TREATING THEM LIKE
THEY'RE A SOLAR ELECTRICITY.
THAT I THINK IS A FLAW IN THE
SYSTEM THAT WILL COMPLICATE
MAKING REAL CHOICES ABOUT
CUSTOMER.
CHOICE AND I THINK THAT WE HAVE
TO DEAL WITH THAT AS WELL AS ALL
THESE OTHER ISSUES THAT WILL
RAISE IN OUR CUSTOMER CHOICE A
DISCUSSION PAPER.
WE WON'T TELL YOU WHAT WE THINK
YOU SHOULD DO WE'RE JUST GONNA
TELL YOU WHAT THE ISSUES ARE AND
THEN HOPE THE WEEK YOU HAVE A
CONVERSATION THAT ACTUALLY HELPS
TO LEAD TO SOME. WIDER RANGE
CHOICES FOR CUSTOMERS BECAUSE OF
FOLK CUSTOMERS DO WANT CHOICE.
AND WE ARE ACTUALLY PROVIDE THEM
WITH A WIDE RANGE IN THERE SO WE
HAVE ALL OUR WHOLE SLATED
DIFFERENT THINGS. BUT IT'S NEVER
REALLY BEEN THOUGHT OF AS
CUSTOMER CHOICE PER SE IT'S JUST.
HERE'S A GOOD IDEA WE'LL DO THIS
AND CUSTOMERS CHOOSE.
I'M I'M ALL FOR COMPETITION NOT
BE VERY CLEAR I WORK FOR A
UTILITY COMPANY I KNOW WHAT THEY
DO WELL I KNOW WHAT THEY DO.
POORLY SO I'M ALL FOR
COMPETITION I THINK COMPETITION
IS HEALTHY. BUT IN YOUR OPENING
COMMENTS YOU ALSO STATED THAT
SOME OF THE ISSUES HERE IS WILL
SUCCEED SOMEWHAT FELL. AND. FOR
THOSE THAT FAIL THEY RESORT BACK
TO THE PROVIDER OF LAST RESORT
DIAL USE AGAIN YOU MENTIONED
JUST LIKE THE ENERGY CRISIS IN
TWO THOUSAND TWO THOUSAND ONE
WHEN I WORK FOR UTILITY COMPANY.
YET TO GOD TO PROCURE POWER FOR
CUSTOMERS YOU NO LONGER HAVE.
THAT'S GOING TO HAPPEN AGAIN
WE'RE CREATING THAT SAME
SCENARIO AGAIN WITH. THE FACT
THAT SOME OF THESE COMPANIES
WILL FILL SO AGAIN WY WOULD WE
GET BACK TO YOU TRUE CUSTOMER
CHOICE AS YOU STATED AND
ALLOWING CUSTOMERS TO FIRMLY
STATE THEY WANT TO BE PART OF A
STREET. YOU KNOW NEW YORK HAS. A
DIFFERENT SYSTEM OF THIS ONE WAS
THE SYSTEMS WE LOOKED AT THE
STATE IS ACTUALLY THE PICKER.
THROUGH NYSERDA AND THAT'S HOW
THEY REALLY TRY TO REACH THERE
CLEAN ENERGY GOALS. AND THEN
THEY HAVE A VARIETY OF DIFFERENT
COMPANIES AS MANY AS SEVENTEEN
DIFFERENT COMPANIES WILL SELL
YOU DIFFERENT SERVICES ALONG
WITH YOUR ELECTRICITY. AND THEN.
THE THE THE REGULATORY AGENCY
ACTUALLY IS A TRUE CUSTOMER
PROTECTION AGENCY.
BUT SO FAR WE HAVEN'T BEEN GIVEN
THAT AUTHORITY TO PROVIDE THAT
CURRENTLY WE TREAT FOR EXAMPLE
NET ENERGY METERING AND ROOFTOP
SOLAR. AS A CONTRACT BETWEEN.
A CUSTOMER AND THEIR PROVIDER
NOT IS NOT IS.
AS A UTILITY.
THANK YOU SIR BRADFORD CENTER
COMMAND CANAL.
THING IS CHAIRMAN AND AND I GOT
A COUPLE QUESTIONS THEY MAY HAVE
BEEN ASKED BY THE RULES
COMMITTEE AND I WENT FOR SO I
WASN'T HERE SO IF THEY'VE BEEN
ASKED AND ANSWERED JUST STOP ME.
SO THE FIRST ONE HAS TO DO WITH
THE KIND OF THE STATE OF OHIO
USER THEY'RE A TOUGH. POSITION
RIGHT NOW. I SEE THAT.
PEONIES BEEN DOWNGRADED TO
TRIPLE BE PLUS FROM A MINUS
WHICH APPARENTLY IS RIGHT ABOVE
JUNK BOND STATUS.
WHAT IS THE CENTERS IF WE CAN
JUST STOP THE THE BACK OF
CHATTERS WITH MATH QUESTION THIS
IS A BIG DEAL APPRECIATE THAT
THINKS ABOUT? WHAT IS THIS THE
CPUC DOING TO CREATE MORE
REGULATORY CERTAINTY AND PREVENT
OUR NEXT ENERGY CRISIS? AND WHAT
IS THE C. P. U. C. DOING TO
ENSURE OUR UTILITIES ARE
FINANCIALLY STABLE BECAUSE.
IF IN THEIR OLD TO LEAVE
INVESTOR OWNED SO. NOT PRIVATE
PER SE BUT.
INVESTOR OWNED IF IF THEY GO
OUT OF BUSINESS THAT CREATES A
BIG PROBLEM SO WHAT IS THE CPUC
DOING THAT TO TRY TO DEAL WITH
THE SITUATION.
SO.
ONE OF THE THINGS THAT WE'VE
BEEN DOING IS TALKING A LOT TOO
LONG. KEY MEMBERS OF THE
LEGISLATURE AND APPEARING AT
YOUR COMMITTEES TRYING TO
DESCRIBE WHAT WE SEE IS THE
CHALLENGE AND SO I DID I DID
MAKE SOME THE SAME OBSERVATIONS
THAT YOU DID. I I I I CAN'T SAY
THAT THE THAT I SEE ABSOLUTE
DISRUPTION OF THE UTILITIES I
JUST DON'T KNOW THE THE THE THAT
WE ARE GUARANTEED TO HEAD THERE.
I CAN SAY WITH ABSOLUTE
CERTAINTY THAT IS GOING TO GET
MUCH MORE EXPENSIVE FOR THE
UTILITIES TO BORROW MONEY AND
THAT WILL SHOW UP IN RATES AIR
IMPACT. SO I WILL I WILL I WILL
GO THAT FAR AND THAT I AM VERY
CONCERNED ABOUT BECAUSE IT MAY
MEAN THAT THERE ARE CHOICES FOR
EXAMPLE. ON WHICH PROGRAMS WE
CAN AFFORD TO ROLL OUT WILL WE
BE ABLE TO CONTINUE WITH THE
UTILITIES ACTUALLY ON ADVANCING
TRANSPORTATION ELECTRIFICATION.
WHERE WILL THEY HAVE TO BACK OFF
AND MEETING THE LEGISLATIVELY
MANDATED THAT THIRTEEN HUNDRED
MEGAWATTS OF BATTERY STORAGE
BOTH OF THESE ARE EXPENSIVE?
WITH THIS STATE IS USING THE
UTILITIES AS A WAY TO GET THESE
TECHNOLOGIES TO MARKET SCALE TO
BRING THE PRICES DOWN AS WE DID
WITH RENEWABLES. UNTIL WE SEE
THE KINDS OF STABILITY IN TERMS
OF THE UTILITIES TO BORROW MONEY
THAT MAY BE. WHAT WE GOT WILL GO
FURTHER THAN THAT I POINT TO THE
FACT THAT?
SOME OF THE RATING AGENCIES SMP
ACTUALLY ARE NOW STARTING TO
DESCRIBE THIS.
THIS CHALLENGE TO THE TO THE
REGULATED UTILITIES AND ACTUALLY
STARTING TO LOOK AT THEIR
ABILITY TO PAY SOME OF THOSE.
THOSE.
THOSE LARGE CONTRACTS THAT THEY
HAD FOR RENEWABLE ENERGY AT THAT
A LARGE ME. YET SO YOU AGREE
THERE'S A PROBLEM THAT DOES THE
CPUC OTHER THAN LOOKING AT.
YOU KNOW PUT IN DIFFERENT
PROGRAMS OUT IS THERE ANYTHING
ELSE THE CPUC CAN HELP WORK WITH
THESE FOLKS BECAUSE THIS INVERSE
CONDEMNATION PIECE THAT SENATOR
HILL TALKED ABOUT.
AS I UNDERSTAND IT.
IT'S IF THE UTILITIES ONE
PERCENT RESPONSIBLE THEY TAKE
THE WHOLE FELT IN A FATAL THINGS
THAT GORE IS THAT OCCURRED
ACCURATE DEFINITION OF INVERSE
CONDITION I THINK IT'S ALWAYS
MORE COMPLICATED THAT THAN THAT
UNDER THE LAW BUT YOU KNOW AND
I'M NOT A LAWYER SO THAT'S THE
WAY I. DESCRIBED IT TO EXAMINE
IT TO PEOPLE WELL SO THAT I CAN
SEE A PROBLEM THERE I LOOK AT
THE UTILITIES TO BLAME THEN THEY
SHOULD TAKE THE RESPONSIBILITY
LIKE SAN BRUNO FOR EXAMPLE
HOWEVER. IF IT'S YOU KNOW
THERE'S SOME OTHER MITIGATING
FACTOR LIKE WE ARE MOVING TOO
SLOWLY TO ALLOW THEM TO TRIM
TREES CUT TREES DOWN BUT BY
THEIR LINES OR. IT'S THE
CONSULATE ENGAGED IN OUR
ENVIRONMENTAL ASPECT THAT'S NOT
THEIR FAULT THERE THERE'S
NOTHING THEY CAN DO ABOUT IT
THEREFORE. THEY SHOULDN'T FALL
UNDER THIS INVERSE CONDEMNATION
DO YOU AGREE WITH THAT.
THE SENATOR ACTUALLY ON A
DIFFERENT CASE AND WE DECIDE
EACH CASE BASED ON THE FACTS OF
THE INDIVIDUAL ON CIRCUMSTANCES.
ROOM ARE TWO COMMISSIONERS
MYSELF INCLUDED ACTUALLY RAISE
THIS ISSUE OF INVERSE
CONDEMNATION WHICH IS DECIDED BY
THE THE COURTS NOT BY THE CDC IS
BEING A CHALLENGE. AND WE PEELED
FOR FOR THE LEGISLATURE AND THE
FORD COURSE TO TAKE NOTICE OF
EXACTLY WHAT YOU DESCRIBE. IS
THEIR LEGISLATIVE FIX. THERE
PROBABLY IS I'M NOT THE I'M NOT
A GOOD ENOUGH LAWYER TO BE ABLE
TO ASCRIBE THAT HE DID NOT ASK
IF YOU ASK US TO HAVE OUR
LAWYERS. GIVE YOU SOME OPTIONS
I'D LIKE AND WE ALWAYS AND I
MEAN WE AT THE XENA BILL IF THAT
I'LL USE GO OUT OF BUSINESS THAT
IS A GIANT HOLE TO FILL SO.
AGAIN IF THEY'RE RESPONSIBLE
THEY NEED TO THEY NEED TO PAY
WHATEVER THEY NEED TO PAY. BUT
IF THERE WAS THIS KIND OF IN IN
ON MY WORLD ADVENTURE THERE'S
TYPE WHEN IT IMPLICATION WHICH
IS SIMILAR IF YOU'RE ONE PERCENT
RESPONSIBLE YOU TAKE ON A
PERCENT. OF THE PENALTY AND I
JUST THINK THAT'S PATENTLY
UNFAIR BUT WE CERTAINLY CAN
EXPECT OUR I'LL USE TO LIVE
UNDER THAT SO WHEN I USE THE
EXAMPLE OF DESCRIBED HIS
ENGINEERING. ON TERM OF ART YEAH
THAT'S JUST AS BAD IN THE
HEARING WORLD AS WELL SO OKAY
WE'RE GOING TO CONTINUE WITH THE.
PRESENTATION I CAN I HAVE ONE
MORE QUESTION IF I MAY QUICKLY.
SO YOU OFTEN STATE THE NEED TO
MOVE NEW AND EXISTING HOMES AND
BUILDINGS FROM NATURAL GAS TO
ELECTRICITY. WHAT WORK IS THE
CPUC DONE TO INVESTIGATE THE
COST TO CONSUMERS OF
ELECTRIFICATION BECAUSE AGAIN WE?
I'M SORRY I WASN'T HERE FOR
CENTER REQUIRES THE DISCUSSION
ON ON SECOND VACATION HOMES IN
NAPA. BUT RULE COMMUNITIES I
MEAN WE'RE NOT THERE ALL THE
CASE IN HOMES AND AND AT SOME
POINT. IF WE'RE GONNA HAVE IF IF
THE IF THAT'S THE MANTRA THAT
HEY YOU LIVE OUT THERE YOU'RE
GONNA PAY THE ENTIRE COST YOU'RE
NEVER GOING TO ELECTRIFY RESULTS
RIGHT SO WHAT DO WE DO IT TO. TO
DEAL WITH THAT.
SO THE THE A LOT OF THIS IS SEED
NORMALLY COVERED UNDER ENERGY
EFFICIENCY BUT THE BIG CHALLENGE
IN TERMS OF ENERGY EFFICIENCY IS
THAT THE LAW AND PRACTICE AND
CPUC RULES KIND OF SILO IT. SO
ENERGY EFFICIENCY PAID BY
ELECTRIC UTILITIES TO IS USUALLY
TO REDUCE THE AMOUNT OF
ELECTRICITY ENERGY EFFICIENCY
PAID FOR BY THE GAS UTILITIES
REDUCES THE NEED FOR GAS. ON THE
BIG QUESTION IS IF IN FACT WE
START TO MOVE TO SOMETHING LIKE
ELECTRIC WATER HEATERS WHICH
COST RE STORAGE AND HOT WATER. THERE
SORT OF A A HOT WATER STORAGE.
AND YOU CAN SHIFT THE USE OVER
TIME.
OTHER ADVANTAGES AND SO WE HIT
IT'S HARD TO CROSS THAT OUT
UNTIL PEOPLE ACTUALLY START TO
USE IT BECAUSE THEN YOU START TO
SEE. THE AMOUNT OF AVOIDED
ELECTRICAL GENERATION WE HAVE TO
BUILD BECAUSE PEOPLE ARE USING
THE ELECTRICITY IN THE HOUSE OFF
PICKERS WERE STARTING TO EXPLORE
THAT WE KNOW THAT TWO CATS ARE
TWENTY THIRTY GOALS WE HAVE TO
OF FOR CARBON. REDUCTION WE'RE
GONNA HAVE TO SEE MORE AND MORE
THAT AND THE QUESTION OF HOW DO
YOU ACTUALLY GET THOSE PROGRAMS
TO SCALE. NOTHER TECHNOLOGY IS
GROUND MOUNT GEOTHERMAL THAT
WORKS REALLY WELL FOR NEW
HOUSING IT'S SOMETHING YOU
REALLY WANT TO DO WHEN YOU'RE
BUILDING NEW HOUSING THERE. IT'S
THE THE FOUR THOUSAND DOLLAR
COST GETS ROLLED ACROSS NOT JUST
ELECTRIC HEATING BUT ALSO HOT
WATER HEATING AND ALSO AIR
CONDITIONING. AND SO YOU BEGIN
TO APPORTION AT ALL THOSE THINGS
FOUR THOUSAND DOLLARS FOR A
FAIRLY GOOD GROUND NOW
GEOTHERMAL BUT THE PRICE WILL
COME DOWN AS WE START TO INVEST
IN IT SO MY SUGGESTION HAS BEEN
THAT WE WORK WITH LOCAL
GOVERNMENTS WHO ARE WILLING TO.
TO DO A PILOT PROJECT TO DO
CHANGE THEIR ZONING CODES SO WE
CAN ACTUALLY START TO SEE AS YOU
SCALE THESE TECHNOLOGIES UP WITH
THE TRUE PRICES TOOK GREAT THANK
YOU VERY MUCH VERY MUCH OKAY
WE'LL MOVE ON TO THE
PRESENTATION. OR DID YOU JUST.
ALRIGHT GO AHEAD BRIEF QUESTION.
JUST.
THANKS SO MUCH A QUESTION AS TO
EMPHASIZE THIS POINT IN
LISTENING TO YOUR TESTIMONY SIR.
I CANNOT TELL YOU THIS IDEA WHEN
YOU TALK ABOUT DESCRIBED THE
CHALLENGE. AND THE NATURE OF
THIS REPEATEDLY IN RESPONSE TO
SENATORS QUESTIONS THAT ALL OF
THE INVESTOR OWNED UTILITIES ARE
GOING TO DO WITH THIS. MY
CONCERN IS NOT INFORMED BY ANY
ADVOCATE WHO'S IN THIS BUILDING
TODAY. BUT THE EXACT SAME STUFF
I SAW THIS EXACT SAME COMMISSION
TWO DECADES AGO AND HOW THESE
THINGS ARE WRITTEN AND IT
CONCERNS ME AND WE HAVE A
MANAGEMENT PROBLEM. YOU DON'T
HAVE A STRUCTURE TO HANDLE IT
AND YOU TURNED US AND SAY WE'LL
DEAL WITH IT AND WE'VE GOT
MONTHS TO DEAL WITH THAT. AND
I'M JUST TELLING YOU THIS IS NOT
WITHIN THAT FRAMEWORK IT HAS AND
GESTURE WITH CLIMATE CHANGE A
MUCH BROADER IMPLICATION AND I
JUST WANTED TO. DON'T YOU GO ON
LONG BECAUSE THE GERMAN
ADMONISHED ME BUT I WANT TO MAKE
THAT POINT IN THE MOST GRACIOUS
WAY POSSIBLE YES THE MOST
IMPACTFUL BECAUSE I THIS IS.
DEJA VU ALL OVER AGAIN FOR ME
NOT THAT IT WILL HAPPEN BUT THAT
WE HAVE TO BE GOOD IN OUR
GOVERNMENTS TO MAKE SURE IT
DOESN'T HAPPEN AND NOT TO LOOK
AT THIS BECAUSE THE END OF THE
DAY AND EXCITE. IN THE ISSUE IN
LA WHERE PRIVATE CHECK BOND
FORTY THREE HUNDRED AND SEVENTY
THREE MILLION DOLLARS. FOR THAT
WHAT HAPPENED LAST TIME WHEN IT
REACHES ALL THE RATE PAID AS A
PET COST TAXPAYERS FORTY THREE
MILLION BUCKS.
THE ED OF THE DAY WITH SENATOR
FEELS IT IS PRACTICED RESOURCES
BUT WE WANT TO MAKE SURE WE
MANAGES PROPERLY THAT IT THE
TAXPAYERS NOT ONE OF THOSE
SOURCES THANK YOU VERY MUCH.
OKAY.
MORNING SENATORS THANK YOU
SENATOR WAY SO.
I AM KIM SOLVING THE EXECUTIVE
WHO'S THE FORMER EXECUTIVE
DIRECTOR THE PC. AND I AM GOING
TO GIVE A BRIEF OVERVIEW OF OUR
ANNUAL REPORT.
.
WELL I WANT TO THANK US SENATOR
WAY SO AT THE AT THE VERY
BEGINNING OF THIS HEARING. HE
TALKED ABOUT ALL THE CHANGES
THAT HAVE HAPPENED IN THIS AREA
IN THE LAST THREE YEARS AND HE
ALSO TALKED ABOUT. THE EXPANDED
MISSION OF THE COMMISSION HAS
EXPANDED BOTH AND SAFETY IN
GREENHOUSE GAS REDUCTION. UP
WITH THAT IN MIND WE ACTUALLY
CHANGE THE FORMAT OF RIVER AND
REPORT. OF WHAT WE TRY TO DO IS
FOCUS ON MISSION OF WHAT IT IS
AND HOW WE HOW WE SERVE IT. AT
AT AND ALSO HOW WE IMPLEMENT THE
LEGISLATION THAT YOU PASS WE HAD
TO CHOP IS WORN ON OF WHAT WE
IMPLEMENTED LAST YEAR. AND THEN
THE SECOND ONE ON A CAR WORK
PLAN FOR THE YEAR TO COME. SO IF
YOU GO THROUGH THE SLIDES TO GO
THROUGH THEM VERY QUICKLY SO
THAT YOU CAN GET TO YOUR
QUESTIONS. SWIPE SLIGHT TO IS
JUST THE AN OVERVIEW WE SEE OUR
MISSION AS IN FOUR DIFFERENT
AREAS SAFETY ACCESS TO
INFRASTRUCTURE. PROTECTING THE
ENVIRONMENT AND THEN PRICES AND
SERVICES. ARE IN ADDITION TO
THAT THERE IS ONE OTHER
OPERATIONAL FUNCTION AND THAT'S
WHAT I CALL REBUILDING THE
ADMINISTRATIVE CORE. OVER THE
YEARS OF THE COMMISSION ITSELF
DIS INVESTED IN ITS OWN CENTRAL
OPERATIONS AND WE SPENT THE LAST
YEAR AND A HALF. A BUILDING ON
THAT AND ACTUALLY THE HIRING AT
THE PALACE STEBBINS IS ANOTHER
STEP IN THAT DIRECTION HER
BACKGROUND IS IN GOVERNMENT
OPERATIONS. FROM THE AIR
RESOURCES BOARD AND SHE KNOWS
HOW TO MEET THOSE CHALLENGES.
THE SECOND SLIDE OR.
WHICH IS ACTUALLY SLIDE THREE.
JUST SORT OF GIVES AN OVERVIEW
OF THE AGENCY MAPS DIFFERENT
PROGRAMS INTO THOSE OF DIFFERENT
AREAS.
AND.
AND WE ALSO THINK OF IT IS ALL
HELD TOGETHER BY THE CENTRAL
CORE OF THE AUTHORITY AND THE.
STATUTORY MISSION THAT YOU'VE
GIVEN TO THE COMMISSION. AS WELL
AS OUR. OUR EFFORTS TO COMPLY
WITH STATE CONTROLLERS AND.
THE.
.
OUR POLICIES OF THE CONTROL
AGENCIES.
OUR SITE FOR IS JUST THIS YEAR
LAST YEAR'S BUDGET GOVERNOR'S
BUDGET. AS YOU CAN SEE WERE
ABOUT.
ONE POINT SIX BILLION UP ONE-POINT THREE BILLION OF THAT IS
ACTUALLY A LOCAL ASSISTANCE OUR%
OPERATION IS THREE HUNDRED FORTY
MILLION AND BE QUITE FRANK OF
THAT ANOTHER HUNDRED MILLION. IS
IN CONTRACT SERVICES FOR THE
DEAF AND DISABLED SO OUR OVERALL
OPERATIONS ARE ABOUT TWO HUNDRED
FORTY MILLION.
FOR THE ANNUAL REPORT OUR.
ENTRANCE OF PROMOTING SAFETY ARE
WE FOCUSED ON THE FIRE SPEECH
ACTIONS THAT WE'VE TAKEN. ARE
ONE OF THE THINGS WE'RE DOING
BETTER AS WE WORK WITH OUR
SISTER AGENCIES ARE CAL FIRE.
WE'RE WORKING ON CT MAPS TO TRY
AND OF.
DIVIDE THE STATED TO RISK
HAZARDS AND THEN TRYING TO
IDENTIFY. DEVELOP POLICIES FOR
EACH OF THOSE WE ALSO PROVIDE AN
OVERVIEW OF OUR ON GOING SAFETY
INVESTIGATIONS AND SO WE SCORE
CARD THEM SO YOU CAN SEE EXACTLY
WHAT WE DO.
AND INCORRECT TERMS OF THAT
LISA CANYON WHICH WAS NOT ON THE
AGENDA LAST YEAR I BECAME ONE OF
THE MAJOR THINGS THAT WE DID. I.
PURSUANT TO STATUTES ARE IS
RESPONSIBLE FOR A NUMBER OF THE
ACTIONS. OF OUR I CONCURRED IN
TARGET DECISION TO RE OPEN IT.
WE ARE CONTINUING. TO HAVE AN
INVESTIGATION OF THE FOOD FIRST
ABOUT THE FEASIBILITY OF
DECREASING ITS USE OR CLOSING
THAT FACILITY. AND AS PART OF
THE.
THE DECISION TO ALLOW LIMITED
USE WE ELIMINATE THE AMOUNT IN
STORAGE TWENTY THREE POINT SIX
BILLION CUBIC FEET WHICH IS
ABOUT.
WHAT IS IT THAT THE OVERALL
CAPACITIES NINETY SUCH A SMALL
FACT FRACTION IT'S LESS THAN A
THIRD OF WHAT IT WOULD DONE? BUT
WE ALSO HAVE MAJOR ON GOING
SAFETY OUR PROCEEDINGS POLL
MANAGEMENT REACH INTO A BROCHURE
OUR POLLS ARE JUST AN IMPORTANT
PART OF THE INFRASTRUCTURE. THE
IMPLICATED FIFTY PERCENT OF THE.
FIRES ARE THAT WE HAVE. AND.
AND.
THERE BUT THEY SEEM TO BE VERY
RESILIENT.
THERE.
THE KEY TO FIVE G. ARE IN THE
OUR WIRELESS COMMUNICATIONS WE
ALSO HAVE INVESTIGATIONS AND-WHAT TO DO ABOUT SUBSTATION
PHYSICAL SECURITY.
YOU RECALL THAT WHENEVER
TRANSFORMER STATIONS WAS WE SHOT
UP SOUTH OF SAN JOSE. WE ALSO
NOW HAVE SEEKING MODEL
ASSESSMENT TO TRY IN A GUIDE THE.
INVESTMENTS BY UTILITIES IN
SAFETY AND WE ALSO HAVE A ZERO.
ZERO TOLERANCE AND DRUGS AND
ALCOHOL AND WE'RE CURRENTLY
INVESTIGATING A COOPER WE HOPE
TO HAVE A DECISION EARLY NEXT
YEAR.
ACCESSED INFRASTRUCTURE ARM YOU
VISA PROGRAMS THIS YEAR OFTEN
ARE VERY FAMILIAR WITH.
THEIR ONGOING I THINK WE DO A
GOOD JOB.
HAVE LIFELINE PROGRAMS BIRD WE
WE SERVE A TWO MILLION CUSTOMERS
THIS PROGRAM IS GROWING ARE WE
HAVE ONE POINT FIVE. MILLION
WIRELESS CUSTOMERS. IT TURNS OUT
THAT GIVEN A CHOICE BETWEEN A
SUBSIDIZED LANDMINES SUBSIDIZE
WHY OUR WIRELESS FACILITIES OUR
CUSTOMERS ARE INDEPENDENT OF THE
INCOME PEOPLE ARE CHOOSING.
WIRELESS DEVICES MORE AND MORE.
OF THE DEAF AND DISABLED PROGRAM
ARE CONTINUES.
THAT'S ACTUALLY DROPPING IN IN
COSTS BECAUSE OF PEOPLE ARE ABLE
TO USE.
AND BASICALLY VIDEO WHICH YOU
CAN NOW GET OVER. OVER OVER TIME
YOUR I. PADS AND YOU CAN DO ARE
SIGNALING. THE ADVANCED SERVICES
FUND WAS SUBJECT OF HEARINGS
LAST YEAR WE HAVE A MORE FUNDING
AND WE'RE WORKING ON IT.
WE CONTINUE OUR DOES OTHER
THINGS IN THE ENERGY SIDE WE.
THAT'S ALSO OVER BILLION ABOUT
A BILLION IN SUBSIDIES FOR
ELECTRICITY IS EMBEDDED IN THE
RATE STRUCTURE. ABOUT TWO
HUNDRED FIFTY MILLION IS
PROVIDED.
TO SUBSIDIZE GAS CUSTOMERS.
ELECTRIC DISCOUNTS FOR LOW
INCOME OR THIRTY TO THIRTY FIVE
PERCENT FOR GAS COPS CUSTOMERS
TWENTY PERCENT. HOT WE ALSO ARE
NOW. LOOKING INTO PROVIDING
NATURAL GAS TO DISADVANTAGED
COMMUNITIES IN THE SAN JOAQUIN
VALLEY.
TO AB TWENTY SIX SEVENTY TWO.
PEREIRA.
WE ALSO ARE CAB ONE OF THE BIG
MISSIONS OF OUR OUR OF THE
PEOPLE WHO ANSWER THE PHONES AND
PROVIDE SUPPORT IS TO PREVENT.
DISCONNECTIONS.
WE ALSO OF THE YEAR IN REVIEW
OUR CORE ONE OF OUR CORE
MISSIONS DEREGULATION OF PRICES
AND SERVICES. ARE WE HAVE AN
OVERVIEW OF THE FINES AND
PENALTIES HIGHLIGHTS WERETHE
CLOSING OF A. RETIREMENT DIABLO
CANYON OF THE WILDFIRE ACROSS.
THE GENERAL RATE REGULATION OF
FOUR P. JEANNIE AND FOR EDISON
AND THEN ALSO OUR EFFORTS OF
RESIDENTIAL RATE PERFORM. ON THE
SLIDE TO GIVE YOU REFERENCES THE
PAGES NEON REPORTS FOR YOU CAN
YOU CAN DO IT. ARE. THE YEAR
REVIEW PROTECTING THE
ENVIRONMENT.
AS SENATOR DE LEON. I SENT IT
AWAY SO POINTED OUT A LOT OF
THAT IS SPENT. IMPLEMENTING SIX
SENATE BILL THREE FIFTY A DELI
ON FOR TWENTY FIFTEEN. HOW WE'RE
MAKING PROGRESS RENEWABLE
PORTFOLIO STANDARD INTEGRATED
RESOURCE PLANNING TRANSPORTATION
ELECTRIFICATION? ENERGY STORAGE
PROCUREMENT AND BEHIND THE
LEADER OUR NEW ABBAS. I PUT IN A
SLIDE ON THAT BUILDING THE
ADMINISTRATOR CORE ARE WE HAVE A
NEW LEADER IN HR A NEW LEADER
FOR ADMINISTRATIVE SERVICES. A
NEW DEPUTY EXECUTIVE DIRECTOR
FOR STATING COMPLIANCE WE HOPE
TO SHORTLY HAVE A NEW RISK AND
COMPLIANCE OFFICER.
WE HAVE A NEW EXECUTIVE DIRECTOR
OF WHO YOU'RE BE MEETING SHORTLY.
AND WE ALSO ARE TRAINING ALL
AKAN ALL OUR STAFF WHO WERE ALL
THE RELEVANT STAFF ON HOW DO I
SCOPE CONTRACTS.
A MAJOR CHALLENGE FOR US IS BEEN
THE FEELING OF VACANCIES AND.
YOU'RE PROBABLY HEAR THIS NEW
BUDGET COMMITTEES ARE WE STARTED
JULY LAST JULY WITH A TWENTY TWO
POINT SEVEN.
SEND VACANCY RATE.
WE'VE THAT WORKING HARD WITH
THEIR RESTRUCTURING EVER HRD CAR
DEPARTMENT AND WE DROP THAT DOWN
THIRTEEN POINT NINE PERCENT.
ARE WE ACTUALLY WENT FROM
HISTORICALLY IT'S TAKEN A SNIPER
THREE MONTHS TO FILL A VACANCY
WE HAVE IT DOWN TO FOUR POINT
THREE MONTHS.
.
WE ARE ALSO EXPANDING IN
SACRAMENTO WE HAD THIRTY EIGHT
NEW HIRES HERE. WE ARE PRETTY
MUCH RE INVENTING OURSELVES. I I
THINK BEFORE WE FINISH FILLING
OUR CURRENT. LIST OF OPENINGS WE
WILL OF ADDED THREE HUNDRED
SEVENTEEN NEW PEOPLE FROM
OUTSIDE. THE AGENCY SO WE'RE V.
VIRTUALLY OVER THIRTY PERCENT OF
THE PEOPLE WILL HAVE CHANGED
FROM THE TIME I BECAME EXECUTIVE
DIRECTOR. WE ACTUALLY.
HEADED TO A REPORT WHICH SHOWS
YOU WE TRACK EACH MONTH HOW
WE'RE DOING AND YOU CAN SEE THAT
IT'S NOT THAT MAGIC JUST.
PERSISTENCE TO DROP ABOUT A
PERCENTAGE EVERY OTHER TIME.
ARE WE ARE ALSO THE UPDATING OUR
EXPANDING IN UPDATING OUR
FACILITIES WE'VE MOVED INTO
THREE HUNDRED CAPITOL MALL.
CONSTRUCTION REHABBING SPACE IT
BEGAN FEBRUARY ONE BUT WE HOPE
TO MOVE PEOPLE FROM THE FOURTH
TO THE FIFTH FLOOR IN. EARLY
APRIL THEN WE HAVE THE FOURTH
FLOOR AND HIRE MORE PEOPLE HERE
IN SACRAMENTO. AREN'T WE ALSO.
FIX MAKING OUR HEADQUARTERS
MORE ADA COMPLIANT LIKE OTHER
STATE AGENCIES WE'RE WORKING ON
THE IMPLEMENTATION OF THIS GAL.
TO TIDE US OVER OUR NEW FINANCE
DIRECTOR HAS SAID PROVIDED
FINANCE REPORTS ARE WE TRACK OF
BUDGET VERSUS ACTUAL MONTHLY WE
MONITOR A FUND BALANCES. AND WE
TRACK FEDERAL FUNDING. I KNOW
THAT. PROBABLY DOESN'T SOUND
LIKE A ROCKET SCIENCE OF BUT IT
IS ACTUALLY NEW TO US AND AND
WE'RE DOING IT. IN MY HAND OUT
SLIDE SEVENTEEN THROUGHEIGHTEEN.
JUST LIST ALL THE BILLS AND HOW
WE IMPLEMENT THEM. AND THEN WE
ALSO ARE CONTINUING TO ON.
IMPLEMENT FORMS OF WE'RE WORKING
ON THE SELECTION OF A AT AN
ETHICS ARMS WHICH PERSON THAT
WAS COVERED IN BILL. ARE WE
WORKING ON.
COORDINATION WITH OTHER
AGENCIES.
I THINK WE HAVE SOME LIKE
THIRTY I'M DOING THIS FROM
MEMORY ARE WE HAVE SOME LIKE
THIRTY FIVE MO USING FORCE. I
THINK TWENTY SIX HAVE BEEN
SIGNED IN THE LAST THREE YEARS.
WE ARE. WORKING TO INCREASE OUR
PRESENCE OUTSIDE OF SAN
FRANCISCO BOTH IN HEARINGS. AND
ALSO IN STAFFING.
WE ARE WORKING ON THAT A STUDY
OF THE GOVERNMENTS ARE
GOVERNANCE OF TELECOMMUNICATIONS.
THE STATE LIBRARIAN IS DOING
THAT. WE ARE WORKING ON A
TRANSFER TRANSPORTATION DUTIES.
AND WE'RE MOVING DANCES TORTURE
IS MOVING TO OTHER CONSUMER
AFFAIRS STUDY. WE'VE ALSO DONE
AT THE REPORT AND HAS. AN ANNUAL
ASSESSMENT OF MY PERFORMANCE.
OUT WE HOPE YOU FIND IF THE.
I THINK WE HOPE THAT YOU FIND
US TO BE A MORE RESPONSIVE AND
MORE MISSION ORIENTED AGENCY
THAN WE WERE THREE YEARS AGO.
ARE WE RECOGNIZE THAT WE STILL
HAVE MAJOR CHALLENGES.
AND.
I'M PASSING THE BATON TO. HELL
SEVEN SOON I KNOW SINISTER HIS
QUESTIONS FOR.
THANK YOU AND THE.
MISTER SULLIVAN I WANNA THANK
YOU FOR YOUR SERVICE TO OUR
STATE.
THANK YOU FOR YOUR SERVICE TO
THE UC AND THANK YOU FOR WORKING
WITH US OVER THE COURSE OF.
SEVERAL VERY HARD YEARS.
AND I WISH YOU A VERY HAPPY
RETIREMENT.
AND.
.
I HOPE I HOPE YOU'LL STAY
CONNECTED WITH US IN ONE WAY OR
ANOTHER.
THANK YOU SENATORS FIX MY
PRIVILEGE TO SERVE. AND TO THAT
HERE I JUST ACT LIKE I JUST WANT
TO. EXPRESS MY APPRECIATION FOR
THE GREAT WORK THAT YOU'VE DONE
OVER THE LAST FEW YEARS AND I
KNOW IT'S BEEN A STRUGGLE
BECAUSE.
IT'S NOT BEEN THE BEST THE IT'S
NOT BEEN THE MOST POPULAR THING
FOR YOUR WIFE TO HAVE YOU DO IN
THIS IS BEEN THE AMOUNT OF TIME
BUT.
YOU REALLY HAVE BROUGHT THE
CREDIBILITY AND THE INTEGRITY TO
THE POSITION THAT IT'S SO NEEDED
FOR SO MANY YEARS THANK YOU FOR
THAT.
THANK YOU SENATOR AND THEN ON
THAT NOTE I'D LIKE TO WELCOME
MISTER EVANS.
THANK YOU IT'S A PLEASURE TO BE
HERE AND.
I ALSO THANKED HIM FOR ALL OF
HIS EFFORTS AND. I'VE BEEN
TRYING TO TALK HIM INTO COMING
BACK FOR JUST A LITTLE TIME
YELLOW PART TIME WORK GREAT.
SO I'M OPEN TO ANY QUESTIONS YOU
HAVE BUT THIS IS DAY TEN FOR ME.
SO.
BUT. I I YOU SHOULD QUESTION I
MEAN BEEN THE FACT THAT THE PC
IS RESPONSE FOR IMPLEMENTING
GENERAL ORDER ONE FIFTY SIX AS
RELATIONSHIP. SUPPLIER DIVERSITY
FOR THE UTILITIES HOW YOUR
DIVERSITY NUMBERS.
IN TERMS OF EMPLOYMENT AND
EMPLOYMENT YOU'RE CONTRACTING
OUT ALL THAT.
ARE CONTRACTING OUT WE'VE WE'VE
MET THE STATE TARGETS THAT'S A
THAT'S WORKED OUT PRETTY WELL.
AS PART OF OUR CONTRACTING
REFORMS I CAN'T DO IT FROM
MEMORY I HAD TO GET BACK TO YOU
BUT WE.
THAT'S ACTUALLY MADE A LOT OF
IMPROVEMENT OVER THE LAST THREE
YEARS. ON OUR HIRING.
.
I I THINK IS STILL WE STILL
COULD DO BETTER. I THINK
THERE'RE SO WHAT'S THE
ROADBLOCKS DOING BETTER.
WELL.
.
THE ROADBLOCKS I PUT. SOME OF
THE ROADBLOCKS.
OF HAVE TO DO WITH THE COST OF
LIVING IN DIFFERENT AREAS AND
WHO LIVES THERE AND.
THOSE OF US SAY FOR EXAMPLE WE
HAVE MANY MORE. AFRO AMERICAN.
WORKERS IN A LOS ANGELES OFFICE
THAT WE DO NOT SAN FRANCISCO
OFFICE AND PARTLY THAT I THINK
IT'S JUST DRIVEN BY THE
DEMOGRAPHICS. OF WE HAV MORE.
ERA HISPANIC WORKERS IN
SOUTHERN CALIFORNIA. WE HAVE
MORE ASIAN WORKERS IN NORTHERN
CALIFORNIA.
A LOT OF THAT.
WE.
TRYING TO DO. THIS. INCREASED
HR OUT REACH TO TARGET THE THE.
THE US STATE UNIVERSITIES THAT
SERVE. AT.
DIVERSE COMMUNITIES AND TRY AND
TRACK THEM AND RECRUIT FROM THAT
THOSE ARE THE STEPS WE'RE TAKING.
BUT.
I I DON'T HAVE ANY HARD ON JUST
TO GIVE YOU.
I'D I'D I RECALL THAT THERE WERE.
ABOUT A YEAR AGO WHEN I ASKED
THIS QUESTION WAS REPORTED TO ME
THAT WE GENERALLY MATCH THE
DEMOGRAPHICS OF SAN FRANCISCO
WHICH IS A FAIRLY DIVERSE
COMMUNITY. WE HAVE A VERY
DIVERSE LEADERSHIP AT THE TOP SO.
A IS GIVING SERVICES GO BAY AREA.
I DID MY PART MY APOLOGIES I'M
FROM SACRAMENTO SO.
IT'S ALL SAN FRANCISCO TO ME AND.
THAT WE MATCH THE DEMOGRAPHICS
IN SAN FRANCISCO BAY AREA I I
AND I THINK OUR OUR LEADERSHIP
THAT PARTICULAR DIVISION HEADS
IT'S BEEN PRETTY STRONG ARMS IS
DEFINITELY TOO STRONG AT THE TOP
I WORK WITH TWO AFRICAN AMERICAN
AND ONE LATINA.
WOMEN AND ONE NINETEEN AND SO
ON THE WHITE GUYS OR ARE
ACTUALLY PROBABLY RIGHT ABOUT
THE FORTY PERCENT OF THE
POPULATION THAT WE REPRESENT I
ASKED. I I JUST I THINK THAT THE
THE THAT THE CHALLENGE WILL BE
CONTINUING TO MAINTAIN OUR
MIDDLE MANAGEMENT DIVERSITY.
CAUSES PEOPLE GET GOOD SKILLS
THERE A LOT OF OTHER PEOPLE WHO
WANT TO ALSO HAVE THE ADVANTAGE
OF HAVING A DIVERSE WORKFORCE
SAYS HE DOES OR ANY OTHER
OBJECTIONS AT. THOSE NUMBERS TO.
THE AT LEAST THE CHAIR PEOPLE
OF THE. OF THE CAUCASUS.
A GUARD LATINO CAUCUS FOR
AFRICAN AMERICAN CAUCUS FOR
WOMEN'S WE COULD DO THAT YEAH.
THANK YOU THANK YOU THANK YOU
VERY MUCH.
THANK YOU BUT LIKE TO THANK YOU
FOR YOUR PRESENTATION TODAY IS
VERY INFORMATIVE AND NOW WE'RE
GOING TO MOVE ON TO THE OFFICE
OF THE REPAIR THAT I STILL HAVE
A QUESTION. AL YEAH GO AHEAD
SINISTER.
THANK YOU MISTER CHAIR.
.
I DID SEND SOME OF THESE
QUESTIONS IN WRITING TO MISS
STEPHENS BUT IT MAY ALSO BE A
PROGRAM HASN'T PICKER TO WEIGH
IN HERE. CONCERNING AN ACTION
THIS WEEKEND.
TAKEN BY A DIRECTOR OF YOUR
ENERGY DIVISION AT RANDOLPH TO.
WELL I I THINK IT'S AN
AUTHORIZATION OF A MASSIVE
EXPANSION OF THE UTILIZATION OF
A LEASE SO CANYON.
THERE WAS A MARCH.
MARCH FIRST I'M SORRY MARCH
SECOND LETTER SENT FROM THE GAS
COMPANY TO THE PUBLIC YET TO
RANDOLPH AND THAT A MARCH THIRD
RESPONSE.
AUTHORIZING WHAT FEELS LIKE
OPEN ENDED WITHDRAWAL
CAPABILITIES FOR THEM NOT JUST
FOR THIS COLD SNAP IN THE WINTER
BUT ON A GOING FORWARD BASIS SO.
FIRST I WANT TO KNOW WONDER WHAT
AUTHORITY AT RANDOLPH GRANTED
THAT.
WE'VE DELEGATED EARLY ON IN
THIS PROCESS THE THIRTY TO THE
EXECUTIVE DIRECTOR TO DO TO
ACTUALLY TAKE THIS ACTION IT'S
THE INHERENT DELEGATION OF
AUTHORITY TO THE ENERGY DIVISION
I A ACTUALLY CONSULTED WITH THE
WITH ENERGY VISION DIRECTOR RAN
OFF BEFORE HAND AS I UNDERSTAND
THAT HE CONSULTED WITH. WITH THE
STABBINGS JUST GIVEN THE FACT
THAT SHE'S SHE JUST CAME ON AND
SHE'S TRAVELING A LOT AND
MEETING PEOPLE IN THE FIELD IS.
NOW AND I THINK IT WAS OUR
EFFORT TO TRY TO GET SOMETHING
OUT IN TIME FOR THEM TO ACTUALLY
BE ABLE TO WITHDRAW BY LAST
SUNDAY. I ACTUALLY HAD A
CONTRACT PHONE THROUGH THE CDC'S
OVERSIGHT OF GAS. ON A TRANSPORT
FROM THE BORDER AND.
WITHDRAWALS FROM THAT THEY
MONITOR FROM ALL THE OTHER GAS
FACILITIES AS PART OF THEIR
ENERGY FORECASTING DUTIES. I
MONITORED THE FACT THAT ALL THE
OTHER FOR STORAGE FACILITIES
AROUND THE LA BASIN WERE
STARTING TO GET PRETTY FAN.
AND SO IT JUST SEEMS TO ME TO BE
REASONABLE BASED ON ON WHAT I
UNDERSTOOD FOR THEM TO ACTUALLY
START TO WITHDRAW FROM A LISA
CANYON. THIS IS A UNEXPECTED
COLD SNAP BECAME A LATE AFTER
THE THE POINT WHERE WE ACTUALLY
HAD EXPECTED DULLED THE
TEMPERATURES TO BEGIN TO WARM
IT'S TRUE THAT IT HAPPENED IN
NORTHERN CALIFORNIA AS WELL AS
SOUTHERN CALIFORNIA. IT HE ALSO
AFFECTED SOME OF THE OTHER
SOUTHWESTERN STATES SO NOT ONLY
WERE WE CONSTRAINED IN TERMS OF
THE PIPELINES WERE AVAILABLE TO
US. BUT WE'RE ALSO HAVING A HARD
TIME GETTING DELIVERIES TO MATCH
EXPECTATIONS AT THE CALIFORNIA
BORDER IS MY UNDERSTANDING THAT
YOU KNEW THOSE PIPELINES WERE
CLOSE LONG BEFORE THE WINTER
SEASON STARTED RIGHT YOU KNEW
THOSE TWO MAJOR PIPELINES WHERE
I'VE BEEN WARNING PEOPLE FOR
QUITE SOME TIME THAT WE FACE.
POTENTIAL SHORTAGES IN THE ALLEY
BASIS SO THAT IS WHY WHY DIDN'T
THEN THE UTILITIES INVEST AND
ROBUST DEMAND RESPONSE ON THE
GAS SIDE WHY WAS IN THE PUBLIC
NOTIFIED OF THIS CONSTRAINT.
THERE HOW DO YOU HAVE ANY
ESTIMATE I I STUDY HOW HOW WOULD
YOU LIKE FIRST NOTIFY BEEN
BROADCASTING THAT'S REAL THERE'S
MEDIA THAT I CAN YEAH IT'S SO
SILLY BUT. IN TERMS OF
PUBLICIZING THIS TO RATE PAYERS
AND ACTUALLY IN ENGAGING IN A
ROBUST DEMAND RESPONSE PROGRAM
WHICH IS WHAT THE ACTUAL
CONDITIONS OF THE WITHDRAWAL
PROTOCOL REQUIRE IN WHICH WE'RE
NOT. KNIT AT NOT IN MY OPINION
MET SO THERE THAT'S SO. I'D LIKE
TO GET SOME DOCUMENTATION BACK
ABOUT WHAT WAS INVESTED DURING
THIS WINTER SEASON IN DEMAND
REDUCTION BOTH ON THE ELECTRIC.
ELECTRIC SIDE AND ON THE GAS
SIDE BECAUSE THE GAS COMPANY
ALLEGES THAT THEY THEY TOOK THEY
BEEN WORKING WITH THE BOUNCING
AUTHORITIES TO REDUCE ELECTRIC
GENERATION A MAN. BUT THERE'S
ALSO HEAT DEMAND RIGHT AND SO
IT'S JUST THERE'S VERY LITTLE
EVIDENCE IN ANY OF THE LETTERS
OR THE RESPONSE FROM THE PUBLIC
UTILITIES COMMISSION ABOUT. AN
EVIDENTIARY BASIS FOR THIS
DECISION I THINK THERE'S THERE'S
GREAT EVIDENTIARY BASIS I JUST
THINK THAT THE CHALLENGE THAT WE
FACE IS THERE A
GAS DEMAND RESPONSE PROGRAMS OR
NOVEL FEATURE THEY'VE NOT BEEN
DEPLOYED NATIONALLY THE ONLY ONE
THAT I COULD DETECT WAS IN NEW
YORK IT'S. BASED ON THE
EXPERIENCE IN NEW YORK WHICH IS
NOT GREW STRONG BUT IS IS IS IS
AT LEAST A BASIS TO BEGIN TO TO
TEST THE PROGRAMS AND TO IMPROVE
ON THEM. WE ACTUALLY HAVE CALLED
ON ON SANDIEGO GRASS SHE'S ME SO
CAL GAS TO ACTUALLY BEGIN TO
DEPLOY ONE. I THINK THAT THAT
THEY'RE NOT MEETING MY
EXPECTATIONS I DON'T UNDERSTAND
WHY YET BECAUSE I THINK THAT
THAT WE JUST DON'T HAVE A LOT OF
EXPERIENCE WITH GAS DEMAND
RESPONSE.
THE THE REALITY IS THAT THAT
MOST OF THESE PROGRAMS WILL TAKE
SOME TIME TO TO TO BUILD JUST AS
IT IS THE THE I EXPLAINED TO THE
CENTER TO SENATOR CANAL IS THAT
IT'S GONNA TAKE SOME TIME TO
REALLY DO SOME OF THE THE OTHER
FUEL SWITCHING TECHNIQUES WITH.
MOVE PEOPLE TO TO TO ELECTRICITY
ELECTRICITY IS A REAL TIME
MARKET THAT'S SOMETHING THE YOU
CAN YOU CAN ACTUALLY DO ON ON A
CASUAL BASIS. GAS MARKETS TEND
TO TAKE LONGER AND IT TAKES TWO
DAYS FOR PRICE SIGNAL SENT TO
YOU AT THE BORDER TO ACTUALLY
REACH THE LA BASIN. SO.
ASIDE FROM THE CONSTRAINTS IN
TERMS OF GAS DELIVERIES I THINK
THAT THEY YOU SEE A LITTLE BIT
OF A CHALLENGE IN TERMS OF
HAVING THEIR REAL TIME THE FACT
IN A GAS DEMAND RESPONSE I WOULD
JUST SAY TO. TO POSTURE THIS
THOSE AN EMERGENCY WHEN WE KNEW
WE ALREADY HAD CONSTRAIN
CAPACITY GOING INTO THE WINTER
AND ITALY SO FACILITY THAT IS
NECESSARY I I THINK SHOULD STILL
BE CLOSED BUT IS IS. OPEN TO A
LIMITED EXTENT KNOWING ALL THAT
AND SORT OF I MEAN WE'VE HAD A.
ONE YEAR LEAD TIME IN FACT SINCE
THE BLOW OUT WHAT SINCE TWENTY
FIFTEEN TO OVER TWO YEARS SINCE
THEN. THAT'S ENOUGH TIME TO
ACTUALLY GET A REALDEMAND
RESPONSE PROGRAM GOING AND ALSO
ENOUGH TIME TO GET SOME
COORDINATION BETWEEN THE
MUNICIPAL UTILITIES IN THE AREA.
WHICH HAVE A MAJOR GAS LOAD AND
ARE ALSO THE DEPARTMENT WATER
POWERS IT OFF TAKER FROM THE GAS
COMPANIES WELL TO SAY.
CAN WE COORDINATE CAN WE BE
BALANCING BETWEEN MUNICIPAL AND
NOT BALKANIZED AGREED IN THAT
AREA IS THERE SOME WAY TO GET
THROUGH THIS WINTER I DON'T SEE
ANY OF THAT COORDINATION SO. I
WOULD JUST SAY. THERE I WOULD I
WOULD ASK FOR SOME KIND OF
PUBLIC FACING DISCLOSURE ABOUT
THE EVIDENTIARY BASE OF THIS
DECISION THE SATISFACTION THE
WITHDRAWAL PROTOCOL THAT THAT'S
BEEN MET BECAUSE THAT IS IN
PLACE AND THAT IS YOUR PLAN. SO
A ONE PAGE LETTER SAYING WHAT
SOUNDS LIKE AN EMERGENCY WILL
TRUST YOU ON IT. WE GOTTA GO
FROM ED RANDOLPH IT IT JUST. WE
WANT TO SEE THAT PUBLIC TRUST
RESTORED AND IT'S JUST NOT THERE
RIGHT NOW AND THIS IN THE
ABSENCE OF THAT TRANSPARENCY
PEOPLE ARE GOING TO ASSUME THE
WORST SO. THAT WOULD BE MY
REQUEST FOR YOU IN COMING AS AN
EXECUTIVE DIRECTOR AND YOU
PRESENT PICTURES TO REALLY FOCUS
ON.
UP FRONT PUBLIC COMMUNICATIONS I
KNOW THAT THE WITHDRAWALS NOW
WE'RE BEING PUBLICLY NOTICED
MORE BUT BUT THIS THIS WEEKEND'S
ACTION JUST ISN'T CEREMONY I
SAID I'M AN* FOR YOUR HELP
TOO BECAUSE AS YOU KNOW I
ACTUALLY DID A.
EMERGENCY MORATORIUM ON NEW
CONNECTIONS IN THE LA BASIN
WHICH WHICH MET WITH A LOT OF
RESISTANCE IN THE ALLEY BUSINESS
COMMUNITY SO THERE'S A THERE'S A
CHORD AND I'LL EVEN WHERE PEOPLE
ARE GETTING AN AWARENESS THAT
THERE'S A PROBLEM. OR THE LEAST
WE THINK THAT THERE'S A PROBLEM
THERE RESISTING I NEED YOUR HELP
TO BREAK THROUGH THAT I WAS BUSY
MEETING ON FRIDAY WITH MANY OF
THE BUSINESS SCHOOL COMMUNITY
INCLUDING MANY OF THE BUSINESSES
IN AND THE VALLEY. REPRESENTED
BY VIKA.
AND DAYS THERE THEIR DEMAND TO
ME WAS JUST RE OPEN IT LET IT
OPERATE LIKE YOU USED TO I KNOW
I KNOW WHO'S LIKE HIS COURT
SHARED BUT HOW DO WE GET HOW DO
WE GET THROUGH THEM THE CITY OF
LA TOOK THE STEP OF ACTUALLY
STARTING TO SAY. MAYBE WE SHOULD
CHANGE OUR BUILDING CODE THE
RESPONSE I GOT FROM THE COUNTY
WAS WE'RE GOING TO GIVE WE'RE
GONNA GIVE THEM IS PERMITTED
NEWHALL RANCH WITH TWENTY ONE
THOUSAND NEW UNITS THAT ARE
GOING TO BE GAS HOOKED UP TO A
LEASE OF CANYON THAT'S ALSO AN
ACCEPTABLE SO. I COMPLETELY
AGREE THERE'S PLENTY OF BLAME TO
SPREAD AROUND HERE AND I'LL TAKE
FULL RESPONSIBILITY STEPPING UP
ON MY ENDTO PUSH ON MORE
ELECTRIFICATION ON THE BUILDING
SITE IN THE FUTURE OF. OF THAT
AND TRYING TO GET INCENTIVES IN
THERE FOR NEW HOMEOWNERS BUT I
WOULD JUST SAY YOU JUST NEED
SOME HELP.
I WOULD JUST SAY SATURDAY NIGHT
LETTER. FROM FROM ED RANDOLPH IT
IF IT STARTS TO CORRODE THAT
PUBLIC TRUST SO WILL STEP UP BUT
WE WANT TO SEE YOU GUYS STEP UP
TO DO SO CENTER VERA THANK YOU.
I LOVE IT READ ENOUGH.
THERE WAS A RECENT STUDY.
BY CAL TECH THAT.
STATED.
THE HIGH COST OF BATTERIES.
IN ME IN A HUNDRED PERCENT
RENEWABLE PORTFOLIO GOALS. AND
WITH CALIFORNIA HAVING FROM THE
HIGHEST. ELECTRICITY RATES IN
THE NATION. HOW CAN WE AFFORD TO
ABANDON? A NATURAL GAS IN RAW
RELY SOLELY ON RENEWABLE ENERGY.
WELL TO TO MY KNOWLEDGE WE DON'T
HAVE A HUNDRED PERCENT THE
GOALIE NECK IT UP TO THE STATUTE
WE HAVE A US A FIFTY PERCENT
GOAL BY TWENTY THIRTY. MOVEMENT
GO THAT WAY OKAY WEALTH SO WE
WILL WRESTLE WITH THAT LONG AND
HARD IF THAT'S IN FACT WHAT THE
LEGISLATURE DECIDES TO DO.
BUT I AGREE WITH YOU I THINK
THAT THE UNDER THE CURRENT
SYSTEM WILL BE PROBABLY THIRTY
PERCENT GAS I THINK THERE'S A
SPECIAL ROLE FOR GAS. I DON'T
KNOW THAT IT PROVIDES US WITH
BASELOAD POWER I DON'T KNOW THAT
WE NEED A LOT OF BASELOAD POWER
I THINK THAT THE REAL NEED. IS
IS PEAKING POWER AND THAT'S
BECAUSE OF THE VARIABILITY OF.
OF RENEWABLE ENERGY AND I THINK
IT WILL BE AWHILE BEFORE THE
PRICES OF BATTERY COME DOWN.
THAT THEY ACTUALLY CAN PROVIDE
THAT NEED. AND WE ARE OFF TO SEE
LONGER LIFE BATTERIES BECAUSE
MOST OF OUR PEAK PERIODS CAN
LAST FROM FORTIS TO SEVEN HOURS.
AND A TWO HOUR BATTERY ARRAY
JUST DOESN'T DO IT SO I THINK
THAT I THINK THAT THERE ARE SOME
CHALLENGES WE FACE. BUT AGAIN
YOU KNOW WHEN I FIRST STARTED ON
THIS.
THE SET OF TASKS NINE YEARS AGO
ON BUILDING LARGE SCALE
RENEWABLES. NOBODY PREDICTED
THAT WE WOULD ACTUALLY HAVE MADE
THIS MUCH PROGRESS AND DRIVING
DOWN THE PRICE OF RENEWABLES
THIS QUICKLY IT AS A MATTER FACT
BY WHAT USED TO COME TO
LEGISLATIVE HEARINGS AND GO TO
THE ENTIRE CONFERENCES. THERE
WERE DESIGNED TO TALK ABOUT HOW
IT WAS IMPOSSIBLE TO MEET
RENEWABLE SCROLL SO I'M
OPTIMISTIC THAT IF WE PUT OUR
MINDS TO IT WE CAN CONTINUE TO
DRIVE DOWN THE COST OF BATTERIES
WE CAN FIND OTHER RELIABILITY
SOLUTIONS WE CAN ACTUALLY GET
THE. MORE EFFECTIVE GAS AND
ELECTRICITY DEMAND RESPONSE
PROGRAMS. SO I THINK THAT WOULD
THAT THEY HAD IT'S UP TO US TO
MAKE THAT FUTURE. AREN'T MY LAST
QUESTION.
AS THE PC CONSIDERED.
EQUAL SACRIFICE VERSES ON EQUAL
SUFFERING AND AS RELATES TO RATE
PAYERS BECAUSE A HUNDRED DOLLAR
INCREASE TO SOMEONE WEALTHY
MEANS ABSOLUTELY NOTHING BUT TO
WORKING POOR. BUT IF WE.
LIMIT THE AMOUNT OF UTILITY OUR
ENERGY SOMEONE COULD USE EVERY
LIKE ME TO SAME EQUAL SACRIFICE
BUT WHEN WE DO THAT. NOT FAIR
VALUE BALANCE IN THE ELECTRIC
SYSTEM THAT'S ONE OF THE REASONS
WHY WE HAVE A CARE PROGRAM IN
SOME THIRTY FIVE PERCENT OF THE
CUSTOMERS ARE ACTUALLY SUPPORTED
IN SOME WAY WITH CARE SO RATHER
THAN TRYING TO DIFFERENTIATE THE
RATES BEST BASED ON NEED WHAT WE
DO IS. PROVIDE SUPPORT BASED ON
NEEDS SO YEAH I THINK THAT YOU
HAVE IS THAT THERE IS AN ISSUE
THERE WE ATE WE WILL CONTINUE TO
MONITOR THAT. AT A YEAR
PROMPTING ONE OF THE ISSUES THAT
WE'RE ESPECIALLY LOOKING AT IS
SET AS CUSTOMERS FIND HARD TO
MAKE THEIR BILLS HOW DO WE DEAL
WITH THIS CONNECTION AND AVOID.
THIS CONSTANT CYCLE OF PEOPLE
MISSING A BILL GETTING GET HAS
CONNECTED THAT HAVING TO PAY TO
BE RECONNECTED AND THEN THEN AND
MISSING A BILL AT GETTING
DISCONNECT AND IT'S THE SAME
PEOPLE THAT WE SAY WE. CARE
ABOUT THE POOR AND MINORITY WHO
ARE SUFFERING THE MOST SENATOR
WE'RE GONNA MOVE ON TO OUR NEXT
PRESENTATION THEIR OFFICE OF
REPAIR ADVOCATES WITH THANK YOU.
THANK YOU VERY MUCH FOR COMING
THANK YOU VERY MUCH FOR YOUR
TESTIMONY. PRESENTATION.
HELLO TO THE DIRECTOR NOW
ELIZABETH TACKLES A DIRECTOR OF
THE OFFICE RIGHT OF REPAIR
ADVOCATES.
AND READY FOR YOU NOW. THANKS
FOR WAITING PATIENTLY.
YEAH
.
FROM
GOOD MORNING CHAIRMAN WHO I SAW
AND MEMBERS OF THE COMMITTEE
IT'S MY PLEASURE TO BE HERE
TODAY I'M ELIZABETH ACKLES
DIRECTOR OF THE OFFICE OF RATE
PAYER ADVOCATES. AND I
APPRECIATE THE CHANCE TO PRESENT
ON ORIS KEY ACTIVITIES FROM
TWENTY SEVENTEEN I HAVE A SHORT
PRESENTATION AND I'M GOING TO
MOVE THROUGH IT REALLY QUICKLY
BECAUSE YOU'VE HAD A LONG
MORNING ALREADY. AND BE HAPPY TO
ANSWER ANY QUESTIONS THAT YOU
HAVE.
SO AS YOU KNOW OR A IS THE
STATE'S INDEPENDENT CONSUMER
ADVOCATE WITHIN THE. CALIFORNIA
PUBLIC UTILITIES COMMISSION AND
OUR MISSION IS TO ACHIEVE THE
LOWEST POSSIBLE RATES FOR
CONSUMERS CONSISTENT WITH SAFETY
RELIABILITY AND THE STATE'S
ENVIRONMENTAL GOALS.
AS I SEE OUR MISSION IT IS TO
ACHIEVE THE BEST VALUE FOR OUR
CONSUMERS ACROSS THE INDUSTRY
AREAS. SO FOR EACH DOLLAR
INVESTED IN OUR A AND M. AND
DIDN'T ACTUALLY WELL LET ME BACK
UP FOR EACH DOLLAR INVESTED IN
CALIFORNIA'S UTILITIES WE WANTED
SHE OF THE POSSIBLE HIGHEST
pPOSSIBLE RETURN FOR THE RATE
PAYER. IN TERMS OF SAFETY
RELIABILITY IN THE STATE'S
ENVIRONMENTAL GOALS.
SO SLIDE TO I JUST WANTED TO
SHOW OFF MY STAFF A LITTLE BIT
HERE. AND.
.
AND BEFORE I DO THAT I WANT TO
ACTUALLY. ENTERED USE MY NEW
CHIEF COUNSEL AND DARREN FOR OUR
AND OF COURSE MY DEPUTY OF
ENERGY LINDA SERIZAWA.
AS YOU KNOW THAT OFFICER RATE
PAYER ADVOCATES.
PROVIDES A VOICE FOR MILLIONS OF
pHAVE THE TIME OR RESOURCES TO
NAVIGATE THE STATE'S COMPLEX
SYSTEMS. AND SO WHAT WHAT THIS
ILLUSTRATES IS BOTH.
THE STAFF'S VISITING ON SITE
LOOKING AT THE ELECTRIC
UTILITIES THE WATER UTILITIES
THE TELECOM TO LOUISE AS WELL AS
REVIEWING. LITERALLY THOUSANDS
OF PAGES OF DOCUMENTATION AND
AND VARIOUS PROCEEDINGS.
AND THE STAFF IS GOOD AT WHAT
THEY DO BECAUSE WE ENDED UP LAST
YEAR WITH OVER TWO POINT THREE
BILLION DOLLARS IN SAVINGS FOR
FOR OUR CONSUMERS.
AND SO FAR THIS YEAR WE'RE OFF
TO A GREAT START. WITH OVER A
HUNDRED AT OVER ONE POINT FIVE
BILLION DOLLARS WORTH OF SAVINGS
AND.
NOW I'M GONNA JUMP TO. THE NEXT
SLIDE WHICH. QUICKLY JUST SHOWS.
THE VARIOUS RATE CASES IN EACH.
INDUSTRY AREA THE RAPE CASES.
ARE THE PLACE WHERE WE REALLY
CAN MAKE THE BIGGEST IMPACT FOR
OUR CONSUMERS IN TERMS OF
AFFORDABILITY. SO THE FIRST THE
FIRST LINE YOU HAVE HERE ON THE
GENERAL RATE CASES FOR ENERGY
THIS WAS THE PACIFIC GAS AND
ELECTRIC. RATE CASE THE UTILITY
CAME INTO REQUESTED TWO POINT
SEVEN BILLION RATE INCREASE OR A
RECOMMENDED FIVE HUNDRED SEVENTY
SIX MILLION. AND THAT COMMISSION
ULTIMATELY WENT WITH ONE POINT
FIVE BIT.
BILLION AND SO THAT RESULTED IN
CUSTOMER SAVINGS OF ONE POINT
TWO BILLION.
BASED ON WHAT THE UTILITY
WANTED VERSUS WHAT. OR A
RECOMMEND AND WHERE THE
COMMISSION ENDED UP.
THIS IS.
WELL I I HEAR SOME CHATTER OVER
THERE SO WOULD YOU LIKE ME TO
ADDRESS YOUR QUESTION ABOUT WHY
THAT IS ACTUALLY SAVINGS.
AND. UNDERSTAND OUR INCREASED
SAY.
WELL IT IS A SAVINGS COMPARED
WITH WHAT THE UTILITY REQUESTED.
IT WAS A.
RIGHT BUT STILL BEING ABLE TO
SHAVE.
ONE POINT TWO BILLION DOLLARS
OFF THAT I THINK IS IN THE
COMMISSION CAN DO IT WITHOUT US
AND OTHER ADVOCATES. PROVIDING A
VERY STRONG RECORD ON WHICH THEY
CAN BASE THEIR DECISIONS.
SO SIMILARLY AND IN WATER THAT.
WHEN SAN GABRIEL VALLEY WATER
COMPANY CAME IN THE UTILITY
REQUESTED A HUNDRED AND FIVE
POINT TWO MILLION. AND.
WE RECOMMEND A FORTY TWO POINT
THREE AND THE CUSTOMERS ENDED UP
SAVING THIRTY SEVEN POINT SIX.
ONE THING I JUST WANT TO CALL
OUT ON THE NEXT LINE ON THE
COMMUNICATIONS SIDE YOU CAN SEE
THE TWO RAPE CASES BUT THERE WAS
ALSO. A A MERGER AND AND THIS
WAS IMPORTANT BECAUSE.
HERE YOU CAN SEE IN LITTLE TINY
PRINT THAT WE WE ACTUALLY
COULDN'T GIVE YOU THE NUMBER
THAT THE UTILITY. HAD. HAD PLANS
ON BECAUSE IT'S CONFIDENTIAL BUT
JUST SUFFICE IT TO SAY IT WAS A
HUNDRED AND. SIXTY ONE POINT
FIVE MILLION LESS THAN. WHAT WE
ULTIMATELY GOT AND THAT WAS A
CONDITION OF THE MERGER THE HOT
ONE HUNDRED SIXTY ONE POINT FIVE
MILLION?
AND. TARGETED TO BUILD OUT
BROADBAND TOO UNSERVED IN
UNDERSERVED AREAS SO THAT WAS
SOMETHING WE WE PUSHED REALLY
HARD. TO GET.
SO IN ADDITION TO OUR GENERATE
CASES WHICH TAKE UP A LOT OF OUR
WORK WE ALSO HAVE.
A NUMBER OF AREAS WHERE WE ARE
WORKING ON POLICY ADVOCACY AGAIN
TO PROVIDE THAT BEST VALUE FOR
FOR CONSUMERS.
IN THESE INCLUDE EQUITABLE
ACCESS AND AFFORDABLE SERVICES
SAFETY AND RELIABILITY AND
ENVIRONMENTAL GOALS AND SO I'LL
JUST GO VERY QUICKLY THROUGH
SOME OF THESE EXAMPLES I'M NOW
ON SLIDE EIGHT.
UNDER AFFORDABLE AND EQUITABLE
SERVICES.
SO WE WE STRIVE TO KEEP SERVICES
AFFORDABLE FOR EVERYONE BUT
WE'RE PARTICULARLY FOCUSED ON
OUR LOW INCOME AND DISADVANTAGED
COMMUNITIES.
SO FOR EXAMPLE AND ON THE
ENERGY SIDE WE ADVOCATED DICK
ADVOCATED TO CAP INCREASES TO
THE ELECTRIC BASS LINE RATES TO
PROTECT LOW USAGE CUSTOMERS FROM.
FROM RACHEL RATE SHOCK AS THE
CPC CHANGES ITS ELECTRIC RATE
DESIGN POLICY OF WE ALSO TOOK
THE LEAD IN DEVELOPING A
FRAMEWORK FOR IDENTIFYING
DISADVANTAGED COMMUNITIES IN THE
SAN JOAQUIN VALLEY.
TO. FOCUS INCREASING ACCESS TO
AFFORDABLE ENERGY SERVICES IN
THE SAN JOAQUIN VALLEY. WE ALSO
SUCCESSFULLY ADVOCATED THAT
DISADVANTAGED COMMUNITY SHOULD
HAVE PRIORITY WHEN CONSIDERING
RENEWABLE ENERGY PROJECTS AND.
WE WERE SUCCESSFUL IN IN THAT AS
WELL.
FOR WATER AND COMMUNICATIONS ARE
SEVERAL EXAMPLES HERE ON THE
WATER SIDE WERE WORKING AS PART
OF A INTER AGENCY GROUP TO.
CONSIDER THE STATEWIDE LOW
INCOME WATER ASSISTANCE PROGRAM
UNLIKE THE ENERGY AND TELECOM
SIDE A HOUSE THERE IS NO. ACROSS
THE BOARD LOW INCOME ASSISTANCE
FOR WATER OM SO WE ARE WORKING
ACTIVELY IN THAT. WHEN THE
FEDERAL COMMUNICATIONS
COMMISSION CHANGED ITS
ELIGIBILITY RULES FOR A FEDERAL
LIFELINE PROGRAM. WE RECOMMENDED
EXTENDING THE STATE LIFELINE
PROGRAM TO.
TAKE CARE OF EIGHTY THOUSAND
CUSTOMERS WHO WOULD HAVE BEEN
KICKED OFF THE FEDERAL. PROGRAM
SO THAT WE'RE ACTUALLY COVERING
THOSE THOSE CUSTOMERS WHO WOULD
HAVE LOST THE FEDERAL LIFELINE
SERVICE.
WE'RE ALSO PROMOTING A NUMBER OF
POLICIES TO BRIDGE THE DIGITAL
DIVIDE.
WE RECOMMEND THE DEPLOYMENT OF
CALIFORNIA ADVANCED SERVICES TO
AREAS WITH LIMITED OR NO
BROADBAND ACCESS. WE ALSO ARGUED
FORENFORCEMENT OF REDLINING
RULES FOR BROADBAND SERVICES.
AND AS I MENTIONED WE WE REACHED
A SETTLEMENT AND THE LEVEL THREE
IN CENTURY LINK TARGET TO TARGET
INFRASTRUCTURE VESTMENTS
UNDERSERVED UNSERVED AREAS.
SO THE NEXT SLIDE SLIDE TEN.
BERNIE HAD QUITE A BIT OF
DISCUSSION ABOUT THE FIRST POINT.
INDIRECTLY.
OF COURSE LAST YEAR AS WE ALL
KNOW THAT CBC REJECTED SD GENIES
REQUESTS TO CHARGE CUSTOMERS FOR
THREE AND SEVENTY NINE MILLION
IN COSTS RELATED TO THE TWO
THOUSAND SEVEN. WILD FIRES ON
THE COMMISSION FOUND THAT. THAT
THE UTILITY DID NOT MANAGE ITS
FACILITIES REASONABLY PRIOR TO
THE FIRE AND THERE DIDN'T AND
THEREFORE DID NOT ALLOW THEM TO
PASS ALONG THOSE COSTS.
ON THE WATER SIDE AS PART OF OUR
CLASS A. WATERED YEAR SIS.
WE DETERMINED. COMPLIANCE WITH
THE SAFE DRINKING WATER
STANDARDS SO WE'RE LOOKING AT
WHETHER THE WATER IS. SAFE IN
ADDITION TO IT BEING AFFORDABLE.
AND THEN FINALLY ON THE TELECOM
SIDE OR A DEVELOPED AND
IMPLEMENTED A SYSTEM TO TRACK
NINE ONE ONE OUTAGES. WE FOUND
THAT IN URBAN AREAS WHEN THERE'S
AN OUTAGE ABOUT FIFTY PERCENT OF
THE CALLS FAIL TO REACH NINE ONE
ONE. BUT IN RURAL AREAS EIGHTY
PERCENT OF OF THOSE CALLS FAIL
TO REACH NINE ONE ONE DURING AN
OUTAGE SO WE RECOMMENDED. MORE
FOCUS PARTICULARLY IN THE RURAL
AREAS TO FIX THAT.
VERY IMPORTANT SAFETY ISSUE.
AND SO SLIGHT ELEVEN QUICKLY ON
SOME OF THE ENVIRONMENTAL GOALS
WE'VE BEEN.
ACTIVELY INVOLVED ON THE
TRANSPORTATION ELECTRIFICATION
PROPOSALS ON THE SIX. I'LL USE
ON THEIR WE'RE REALLY FOCUSED ON
HOW CAN WE THEN HOW CAN WE MEET
THE STATE'S GOALS IN TERMS OF.
ELECTRIC VEHICLES AND AT THE
SAME TIME TRY TO KEP THOSE
COSTS AS AS LOW AS POSSIBLE.
SIMILARLY ON THAT DISTRIBUTION
RESOURCE PLANNING. OR A.
SUCCESSFULLY ADVOCATED FOR A
TRANSFERENCE PROCESS TO OPTIMIZE
WHERE AND HOW THE DISTRIBUTED
ENERGY RESOURCES CAN BE
CONNECTED TO THE GRID SO
CONNECTING THE D. R. D. OURS IN
A WAY THAT. THAT IS OPTIMAL IN
TERMS OF COST AND THEN FINALLY.
WE.
SAT SEP SUCCESSFULLY RECOMMENDED
AN AGGRESSIVE GHG EMISSIONS
REDUCTION PLANNING FOR THE
INTEGRATED RESOURCE. WARD
RESOURCES PLANNING PROCESS AND
IT IS SPECIFICALLY.
A GHG REDUCTION TARGET OF FORTY
TWO MILLION METRIC TONS BY
TWENTY THIRTY AND THAT WOULD
MEAN A SIXTY ONE PERCENT
DECREASE IN G. IT SHE'S FROM THE
NINETEEN NINETY LEVEL.
SO GOING FORWARD IN TWENTY
EIGHTEEN WE WILL CONTINUE TO.
WORK HARD TO ACHIEVE THE BEST
VALUE FOR CALIFORNIA CONSUMERS
ACROSS THE REGULATED INDUSTRIES.
ENERGY WATER TELECOM CONSISTENT
WITH THE STATES. GOALS OF SAFETY
RELIABILITY AND ENVIRONMENTAL.
AND IN PARTICULAR I WANTED TO
CALL OUT THESE THESE THREE AREAS.
IN TERMS OF AFFORDABLE AND
EQUITABLE ACCESS OF COURSE WE'RE
GOING TO CONTINUE TO TO WORK
HARD TO TRY TO KEEP COSTS DOWN
AND RATES IN GENERAL. WE ARE
PARTICULARLY FOCUSED ON OUR OUR
LOW INCOME CUSTOMERS AND
DISADVANTAGED COMMUNITIES.
WE WANT TO SEE SAFE AND RELIABLE
SERVICES NOT JUST IN THE
ELECTRICITY FIELD BUT OF COURSE
IN AND WATER AND
TELECOMMUNICATIONS AS WELL. AND
THEN FINALLY WHERE CONTINUE TO
BE FOCUSED ON.
MAKING SURE THAT WE CAN REACH
THE STATES AMBITIOUS.
I MET GOALS IN A WAY THAT THAT
IS COST EFFECTIVE THIS IS A A
PARTICULAR. PASSION OF MINE
BECAUSE I. I I I ON'T WANT
PARTLY CAME TO THIS JOB BECAUSE
I WANTED TO HELP WITH THE ISSUE
OF REDUCING JEEZ SHE'S.
BUT I BELIEVE SO STRONGLY THAT
WE HAVE TO DO IT IN A COST
EFFECTIVE WAY CALIFORNIA IS ONLY
ONE PERCENT OF THAT OF THE
WORLD'S GHGS AND SO. IF WE DON'T
DEVELOP PROGRAMS THAT CAN BE
EXPORTED TO OTHER STATES AND
OTHER COUNTRIES THEN WERE WERE
REALLY HAVEN'T FULLY DONE OUR
JOB. AND THAT'S IN ADDITION OF
COURSE NOT WANTING TO SETTLE OUR
OWN REPAIRS WITH COSTS THAT THAT
ARE NOT NEEDED. SO THANKS AGAIN
FOR THE OPPORTUNITY TO BE HERE
TODAY I'M HAPPY TO ANSWER ANY
QUESTIONS THAT YOU HAVE.
THANK YOU REMEMBERS WITH ANY
QUESTIONS THE STRIP SYNERGETIC
YOU MISTER CHAIR OF.
THE QUESTION THE DIRECTOR WHO'S
THANK YOU FOR BEING HERE AND FOR
YOUR GOOD WORK.
.
THEN YOU. THIS IS KIND OF AN
OPEN ENDED QUESTION BUT THERE
ARE SOME SPECIFICS TO IT THEN
YOU TALKED ABOUT THE SDG ANY
CASE LAST YEAR WITH THE P. YOU
SEE THE THREE HUNDRED SEVENTY
NINE MILLION. HOW YOU FOUGHT TO
MAKE SURE THAT WAS EQUITABLE AN
EQUITABLE SOLUTION TO THAT?
BUT UTILITY FINANCIAL LIABILITY.
RELATING TO WILDFIRES IS GOING
TO BE I THINK IN THE FOREFRONT
OF WHAT WE WILL BE DOING OVER
THE NEXT FEW YEARS AND.
DO YOU FEEL THAT YOU FEEL THAT
IT'S A A PROBLEM AS WE JUST
HEARD FROM THE PC THEY SEEM TO
THINK THAT IT. IS A.
AND I THINK WE ALL LOOK AT IT AS
A PROBLEM BUT DO YOU SEE IT IS.
AS A SEVERE A PROBLEM IS TAT
AND AND DO YOU HAVE ANY
SOLUTIONS TO ATTORNEY IDEAS
RELATED TO IT.
IN YOUR QUESTIONING EARLIER YOU
YOU RIGHTLY POINTED OUT THAT.
THE END OF THE CURRENT SYSTEM
THE UTILITY COMES BEFORE THE PC
AND THEN THE PC MAKES A
DETERMINATION OF WHETHER THEY
ACTED REASONABLY OR NOT. SO
REGARDLESS OF WHETHER INVERSE
CONDEMNATION IS THE LAW THE
UTILITY IS NOT GOING TO BE A
HUNDRED PERCENT RESPONSIBLE
FINANCIALLY RESPONSIBLE FOR
THOSE COSTS UNLESS THEY WERE
SOME WAY AT FAULT. SO I THINK WE
HAVE TO BE CAREFUL WHEN WE'RE
TALKING ABOUT THE LEAD REALLY IS
IN A SENSE THAT A TWO STEP
PROCESS BECAUSE. FIRST YOU FIGHT
IT OUT IN THE COURTS AND SO EVEN
IF THE COURTS HOLD A UTILITY
STRICTLY LIABLE AND AND BY THE
WAY CITIES. AT INVERSE
CONDEMNATION IS NOT COMPLETELY
THE LAW OF THE LAND HERE IN
CALIFORNIA THEY'VE BEEN TO
APPELLATE COURTS THAT HAVE THAT
HAVE HELD THAT UP. ON BUT NOT
EVERYBODY IN I THINK IT'S FAIR
TO SAY IT'S A FAIRLY SUBTLE
DOCTRINE. BUT YOU KNOW YOU COULD
ARGUE IT THE OTHER WAY TO.
SO A BOTTOM LINE IS THAT EVEN
IF A COURT HOLDS A UTILITY
STRICTLY LIABLE. THEN THE
UTILITY COMES BEFORE THE PC AND
AND SAYS LOOK I ACTED REASONABLY
I DID EVERYTHING I WAS SUPPOSED
TO DO I FOLLOW MY PROTOCOLS I
DID WHAT YOU ASKED ME TO DO. AND
IN THAT CASE THEY WOULD BE
ALLOWED TO PASS THOSE EXTRA
COSTS THAT ARE NOT COVERED BY
INSURANCE ONTO THEIR RATE PAYERS
SAID THERE AND NOT IN FACT.
HOLDING THE BAG ASLONG AS THEY
ARE AS LONG AS THEY ACTED
REASONABLY.
AND WE UNDERSTAND AT THAT YEAH
THAT'S MY UNDERSTANDING OF IT IS
AS WELL SIR. IS THAT.
.
HOW YOU SEE MOVING FORWARD TO OR
ARE YOU CONCERNED THAT THERE MAY
BE SOME CHANGES TO THAT?
THAT APPROACH.
WELL THERE'S CERTAINLY. A LOT OF
DISCUSSIONS GOING MY PERSPECTIVE.
IT'S IMPORTANT TO MAINTAIN THAT
REASONABLENESS REVIEW AT THE U.
TO AT THE AT THE COMMISSION
BECAUSE THEY DO HAVE THE
EXPERTISE TO TO LOOK AT. OUR OWN
WHAT HAPPENS AND TO MAKE A
DETERMINATION DID THAT UTILITY
ACT REASONABLY ARE NOT.
SO.
AT IT BUT TAKING A STEP BACK
IT'S ALSO VERY IMPORTANT FOR US
TO FOCUS. ALL OF US THE
UTILITIES US THE STATE
LEGISLATURE THE LOCAL
JURISDICTIONS ON HOW CAN WE
PREVENT THESE FIRES INTO HARD IN
OUR RESILIENCE AGAINST THE FIRES
BECAUSE THE HEAT IN THESE FIRES
IT I I AGREE WITH THE GOVERNOR
WE WE ARE. IT'S IT IS THE NEW
NORMAL AND SO THEY ARE GOING TO
KEEP COMING SO EVERYBODY HAS TO
STEP UP THEIR GAME. TO TO MAKE
SURE THAT THEY'RE DOING WHAT IS
REASONABLE AND THEN IN THIS NEW
ENVIRONMENT TO TO.
MITIGATE VIRUS. THANK YOU.
YOU. NEED TO SOME QUESTIONS.
SENATOR STERN YEAH THANKS.
.
TAKING HIS ANKLES FOR BEING HERE
AND.
FOR YOUR REPORT ACTUALLY FOUND
IT PRETTY COHERENT AND. READABLE.
.
I I WANTED TO ASK YOU.
GOING BACK TO THE SORT OF
PREPARING FOR CONSTRAINED. GAS
SUPPLIES IN THE LA BASIN AREA
AFTER LEE SO. AND THIS NOTION
THAT.
WE GOT HIT BY SURPRISE THIS
WEEKEND BECAUSE IT WAS A COLD
SNAP SO WE HAD TO OPEN UP THE
FLOODGATES AND GO FOR IT.
IS A MUCH SLOWER MOVING
EMERGENCY IN MY VIEW THAN THAT
SO I I WAS WONDERING JUST
LOOKING AT THE. EXPENDITURE OF
EFFICIENCY DOLLARS END. AND SORT
OF PUTTING DEMAND RESPONSE UNDER
THAT HAVE YOU SEEN. HAVE YOU
BEEN TRACKING THOSE EXPENDITURES.
IN THE LA BASIN EITHER BY THE
GAS COMPANY OR BY EDISON AND
SORT OF. BE SEEN EXPEDITIOUS
ACTION OCCURRING SINCE THE LATE
TWENTY FIFTEEN THERE WAS A.
ANOTHER IS AN ACTION PLAN
DEVELOPED.
.
SORT OF FINALIZE MAYBE MID
TWENTY SIXTEEN FROM BUT I
HAVEN'T SEEN ANY DATA BACK ON
WHAT YOU KNOW WHAT WHAT
EFFICIENCY MEASURES HAVE
ACTUALLY BEEN PURSUED IN THE
BASIN SINCE THE. RIGHT TO YOUR
TALKING ABOUT PRIMARILY THE
ENERGY EFFICIENCY PROGRAMS IN
AND. AT LEAST YOU CAN YOU BASE
YOUR ENERGY EFFICIENCY PROGRAMS
AND AND THEN THEY WERE TARGETED
PELO PROGRAMS WITHIN THE ACTION
PLAN LIKE. EXPAND GAS ELECTRIC
EFFICIENCY PROGRAMS TARGETED LOW
INCOME CONSUMERS.
AS WELL AS A AN AIR
CONDITIONING A LARGE COMMERCIAL
USE. PROGRAM CALLED FOR BY THE
PUBLIC UTILITIES COMMISSION I
JUST DIDN'T KNOW.
IF YOU GUYS HAD INVESTIGATED THE
STATUS OF THOSE AND AND REALLY
IF YOU KNOW. IF IF REPAIR
DOLLARS BEING AUTHORIZED AND
THEY'RE SUPPOSED TO BE GOING TO
LOW INCOME CONSUMERS THE BASIN
TO BUFFER THEM AGAIN SOME SPIKE
IN PRICES. WHAT I DON'T WANT TO
SEE HAPPEN HERE IS US ALL WORRY
ABOUT A COLD SNAP AND THEN
EVERYONE WHO'S ON FIXED INCOMES
SEES THEIR BILLS SPIKE? ALL OVER
THE SOUTHERN CALIFORNIA BASIN
AND EVERYONE'S ASKING WHY AND
AND THEN MEANWHILE HAD A TWO
YEAR LEAD TIME TO DO SOME
EFFICIENCY THERE AND IT HASN'T
BEEN PURSUED SO RIGHT. RIGHT
RIGHT IDEA AND MISSED IMAGES AND
YEAH SO WE CERTAINLY A MONITOR
IN THESE ISSUES ON AN ONGOING
BASIS AND.
I'M ACTUALLY GONNA LET IT IF
LINDA LINDA'S MY DEPUTY ENERGY
SET. SO GO AHEAD.
SO IN TERMS OF OF. LOOKING A
HOW THE UTILITIES ARE PERFORMING.
GROUP WITH RESPECT ENERGY
EFFICIENCY AND GAS MORE
SPECIFICALLY WE ARE LOOKING AT
VARIOUS REPORTS I.
DON'T KNOW OFF THE TOP OF MY
HEAD IF WE'VE SEEN ACTUAL
REPORTS FROM A RICH MINE ARE.
ASSESSMENT REPORTS FROM THE
ACTION PLAN THAT YOU WERE
SPEAKING TO AND THAT'S SOMETHING
WE'LL HAVE TO GET BACK TO MY
MIND PHONE UP ABSOLUTELY I THINK
IT'S WORTH IT WE'RE TAKING A.
LOOK AT AND ONE OF THE QUESTION
I HAD FOR YOU IS.
BEYOND THIS SORT OF REPAIR
PROTECTIONS AND SORT OF MAKING
SURE DOLLARS ARE SPENT OR PAYING
FOR THESE THINGS.
DO YOU DO YOU HAVE A SORT OF ANY
MARKET OVERSIGHT FUNCTION IN
TERMS OF LOOKING AT SPECULATION.
MARKET MANIPULATION IS THAT IS
THAT WITHIN YOUR WHEEL HOUSE ARE
YOU MORE IN THE RAPE CASES. JUST
PUSHING FOR THE BEST VALUE FOR
THE CONSUMERS TO YOU IS IS THERE
ANY ENTITY WITHIN THE PUBLIC
UTILITIES COMMISSION THAT'S
ACTUALLY LOOKING AT.
.
YOU KNOW EXPOSURE TO WHOLESALE
TRADING MARKETS. AROUND THE
STATE IF THERE'S ANY SORT OF
EVIDENCE OF COMMODITIES
SPECULATION I I WORRY ABOUT IT
ESPECIALLY IN THESE COLD SNAPS
IN THESE PERIODS WHERE. THEY'RE
SORT OF THERE'S A LOT OF BUFFER
ROOM GIVEN TO TRADERS TO SAY
OKAY IT'S COLD SO YEAH PRICE ARE
GONNA GO UP BUT HOW MUCH ARE
THEY GOING TO GO UP AND HOW MUCH
DOES THAT ACTUALLY AFFECT PEOPLE
IN A ARE THOSE JUSTIFIED BY. THE
COST OF THAT SERVICE OR IS THERE
SOMETHING ELSE GOING ON HERE SO
DID YOU HAVE THAT AUTHORITY TO
LOOK AT THAT DATA.
AT THIS POINT.
WELL I'LL LET LINDA HAD MADE
LOVE TO SAY QUICKLY I MEAN WE WE
HAVE AUTHORITY TO LOOK AT ANY
PUBLIC DATA AND THEN CERTAINLY
WITH RESPECT TO THE REGULATED
BUT NOT NOT ACTED THIS WAY NOT
PUBLIC. THIS IS PROPRIETARY DATE
I MEAN THIS IS DATA THAT YOU
KNOW THE THE ENERGY COMMISSION
FRANCES LOOKS AT THIS KIND OF
DATA IN THE OIL MARKETS. RIGHT.
AND AND THERE'S THERE'S SOME
DATA THAT CAN'T BE DISCLOSED
BECAUSE IT'S SOME IS BUSINESS
CONFIDENTIAL INFORMATION OR A
SORT OF. MARKET VALUE BUT ARE
YOU ABLE TO ACCESS AND NOT
PUBLICLY ACCESSIBLE DATA TO MAKE
SURE THAT.
NOT NO FUNNY BUSINESS IS GOING
ON.
YEAH I THINK THE ANSWER IS IT
DEPENDS ON THE TYPE OF OF
CONFIDENTIAL DATA AND I'LL LET
LINDA TALK A LITTLE BIT MORE
ABOUT THAT SO THE SHORT ANSWER
IS YES WE DO WE DO. LOOK AT THAT
TYPE OF DATA WE DEFINITELY. WE
WE HAVE MET WITH THE US
DEPARTMENT OF.
A MARKETING MANAGEMENT.
GET MONITORING AT THE CHI SO OF
HOW TO DISCUSS THOSE TYPES OF
ISSUES WILL WE SEE.
UP.
DISPARITIES BUT WE DO THE SAME
ON THE GAS SIDE AS WELL WE HAVE.
A WHOLE GAS TEAM THAT LOOKS AT
GAS PRICING GAS POLICIES
ETCETERA. TWO IS THERE ANY
INTENTION AFTER THIS WINTER
SEASON IS DONE TO SORT OF DO A
LOOK BACK AND ACTUALLY ANALYZE.
PRICES AND MAKE SURE THAT THEY
SORT OF CO HERE AT LEAST WITH
SOME REASONABLE RANGER YOU GUYS
PLANNING ON THAT KIND OF COURSE
YES AND WE. WE OFTEN FALL THAT
INTO OUR RATE CASE WORK OF WHAT
WE DO LOOK AT WHAT'S BEEN
RECORDED HISTORICALLY. AND SEE
WHAT THEY'RE ASKING FOR A BIT
JUST ON A DAILY WEEKLY MONTHLY
BASIS WE WERE ALWAYS LOOKING AT
THE PRICES AND YOU PUBLISH THOSE
FINDINGS AT SOME POINT BEYOND
THAT THAT IS YOUR COMMENTS AND
SAY GENERAL RATE CASE ARE THERE
ARE ANY OF THOSE FINDINGS
PUBLISHED BY OR. IF WE FIND
ANOMALIES AND WE WILL WE WILL
MAKE THOSE. ISSUES PUBLIC EVEN
IF YOU DON'T FIND ANOMALIES I
WOULD JUST SUGGEST AFTER THIS
SEASON ESPECIALLY BECAUSE WE
PROBABLY ARE GONNA SEE A BILL
SPIKE IN SOME WAY I THINK IT
WOULD BEHOOVE. YOU TO.
DO WHATEVER KIND OF ANALYSIS
YOU'RE CAPABLE OF DOING AND LET
US KNOW WHAT GAPS THERE MAY BE
AN ACTUALLY GET THAT INFORMATION
BACK TO THE PUBLIC BECAUSE. YOU
KNOW WHERE THEY WANT TO GET THE
ANGRY PHONE CALLS AND I'VE GOT
THE COMPOUNDING ISSUE OF ANGRY
RESIDENTS WHO ARE WORRIED ABOUT
THEIR KIDS GETTING SICK. OUT IN
PORTER RANCH BUT ON TOP THAT ALL
SOUTHERN CALIFORNIA RATEPAYERS
ARE GONNA BEAR THE COSTS THIS
RIGHT NOW SO. IF THERE'S SOME
WAY TO. POST WENT TO A POST
WINTER ANALYSIS AND REALLY DO A
DEEP DIVE ON. ON THAT EVEN IF
THERE'S NO THERE THERE I THINK
EVEN THAT HELPS.
THANKS FOR TAKING. THE DISCOURSE.
ENERGY CENTER SKINNER.
THANK YOU A.
CENTER REDFORD AND APOLOGIES I
DIDN'T GET TO HEAR THE OPENING
OF.
.
SYNDICATION BUT I DID HAVE A
QUESTION AROUND THE TIME.
GUIDELINES FOR STORAGE IN THE S.
CHIP PROGRAM.
AND I DON'T KNOW IF ANYONE
COVERED THAT YET SO I WANT TO BE
REPETITIVE BUT.
.
I.
WE'VE SEEN THAT SOME OF THE.
RULES THAT WE SET UP AROUND THAT
PROGRAM. COULD HAVE LED TO SOME
UNINTENDED CONSEQUENCES FOR
EXAMPLE HIGHER GREENHOUSE GAS
EMISSIONS FROM SOME OF THE
APPLICATIONS WERE HIGHER COSTS.
AND AS. I KNOW THERE'S AN
ONGOING WORKING GROUP ON THIS
AND I WONDERED IF THE OFFICE OF
REPAIR ADVOCATES WAS INVOLVED.
YES ABSOLUTELY YEAH WE ARE AN
ACTIVE PARTICIPANT IN THE
WORKING GROUP AND WE SHARE THAT
CONCERN OF THE VARIOUS
STAKEHOLDERS INCLUDING INDUSTRY
STAKEHOLDERS THAT. THIS STANDARD
NEEDS TO BE RESHAPED AND WE WANT
TO ACHIEVE A STANDARD THAT WILL
ACCURATELY REFLECT. THE AT
HOPEFULLY THE REDUCTION IN GHG
IS BECAUSE.
AND THERE'S SOME EVIDENCE THAT
RIGHT NOW THAT DH IS COULD
ACTUALLY BE INCREASING IN SO SO
YEAH WE WANT TO MAKE SURE THAT
THERE IS A STANDARD THAT. IS
ACCURATELY.
REFLECTING WHAT IS ACTUALLY
HAPPENING WITH RESPECT TO THE
GHGS BECAUSE AS YOU KNOW I MEAN
THE WHOLE PURPOSE OF THE FHA
PROGRAM IS TO PROVIDE INCENTIVES
TO COMPANIES. SO THAT THEY CAN.
THEY CAN HELP TO REDUCE GHGS
RIGHT. WILL END OF COURSE AND I
KNOW THIS WOULD BE YOUR
OBJECTIVE BUT IT. AND I DON'T
KNOW BECAUSE I'M NOT LOOKING
INTO ENOUGH DETAIL BUT IT'S ALSO
POSSIBLE THAT.
IF OUR RULES WERE SUCH THAT THEY
WERE DEPLOYED DIFFERENTLY THAT
IT MIGHT NOT ONLY HELP US IN
TERMS OF REDUCING GHGS BUT IT
MIGHT REDUCE COSTS TO. I'M NOT
AND I DON'T KNOW THAT FOR
ABSOLUTE SURE BUT CERTAINLY
WOULD BE AN OBJECTIVE YOU ALL
WOULD BE LOOKING AT ABSOLUTELY
YEAH WE ARE OF COURSE ALWAYS
INTRODUCE INTERESTED IN.
IMPLEMENTING THESE PROGRAMS IN A
WAY WITH LEASE COSTS TO
RATEPAYERS.
AND THESE COMPANIES ARE
RECEIVING RATE PAYER FUNDS AS
PART OF THEIR INCENTIVES SO SO
WE CERTAINLY WANT TO MAKE SURE
THAT. THAT IN FACT THAT THE
COMPANIES WHO ARE RECEIVING
REPAIR FUNDS ARE. REDUCING GHGS
AND ME WE WANT TO MAKE SURE THAT
THAT STANDARD IS AN APPROPRIATE
STANDARD.
THANK YOU.
GREAT.
THAT IT SHOULD.
YEAH. WHEN YOU. I'M GONNA FALL
UPON.
GIGI AND I COMMEND YOU I DON'T
THINK IT'S A SINGLE MEMBER HERE
THAT. DOESN'T WANT TO REDUCTIONS
OF GREENHOUSE GASES BUT ITS
STUDY IS BEEN STATED THAT IF
CALIFORNIA FELL OFF THE MAP.
WOULD HAVE NO IMPACT ON
GREENHOUSE GAS ARC OR CARBON
STILL. IS THAT THE BEST USE OF
RATE PAYER DOLLARS AND HELPING
RATE PAYERS BECAUSE AS I TALK TO
WORKING PEOPLE EVERY DAY.
DOESN'T HELP AND KEEP THEIR
LIGHTS ON IT DOES HELP PUT FOOD
ON THE PLATE SO ARE WE REALLY
HELPING CONSUMERS.
IS THAT THE FOCUS THAT WE SHOULD
BE SPENDING MONEY ON RIGHT NOW.
IT'S A GOOD QUESTION.
WE SEE OUR ROLE IS TAKING THE
MANDATES THAT COME FROM THE
STATES AND THE STATE OF
CALIFORNIA AND. IMPLEMENTING IT
IN THE MOST COST EFFECTIVE
MANNER SO IF THE LEGISLATURE
SAYS WE WANNA. FIFTY PERCENT ARE
WE WANT TO GET TO SIXTY PERCENT
OR A HUNDRED PERCENT THEN THE
JOB OF THAT OFFICE REPAIR
ADVOCATES IS TO FIGURE OUT OKAY
HOW CAN THIS BE IMPLEMENTED. IN
THE MOST COST EFFECTIVE WAY AND
THE ADDED BENEFIT IN THAT I MEAN
IT IS CERTAINLY BENEFITS ARE
REPAIRS IF WE CAN DO THAT COST
EFFECTIVELY. BUT IT ALSO
BENEFITS OTHER STATES OR OTHER
COUNTRIES EVEN WHO THEN CAN
ADOPT THOSE PROGRAMS AND THEN
HOPEFULLY YOU MAKE A REAL
DIFFERENCE IN IN GEOCITIES
YOU'RE RIGHT IN CALIFORNIA'S ONE
PERCENT BUT BUT WE ARE WE HAVE
TO START SOMEWHERE. AND AND SO.
YEAR IT'S IMPORTANT TO COME UP
UNDERSTANDING AND THAT'S NOT.
SAYING THAT WE SHOULD DO
ANYTHING BUT I THINK MANY TIMES
WE.
MR PRIORITIZATION OF WAR WE
SHOULD BE FOCUSING OUR OUR
RESOURCES MY SECOND QUESTION
WOULD BE.
DID SEE A BIG A FIREWALL BETWEEN
THE PC AND THE OFFICES OR A.
SINCE YOUR BUDGET IS PRETTY
MUCH DETERMINED BY THE
COMMISSION.
WHAT I SEE OUR BUDGET WE THANKS
TO THE GOOD WORK OF A NUMBER OF
FOLKS IN THE LEGISLATURE HAVE?
HAVE THEY'VE SEPARATED OUT.
WE DEALS DO STILL SHARE
RESOURCES.
AND AND FOR THE MOST IT FOR THE
MOST PART THAT WORKS FAIRLY WELL
SO WE WE SHARE RESOURCES LIKE IT
AN HR AND CONTRACTING. ON IT SO
WE'RE STILL CONNECTED IN THAT
WAY BUT IN TERMS OF THE BUDGET
ITSELF.
I HERE I GO TO THE DEPARTMENT
OF FINANCE AND THE GOVERNOR'S
OFFICE AND SAY OKAY THIS IS WHAT
WE NEED THESE ARE THAT THE.
POSITIONS WE NEED EXCEPT HER AND
THEY THEY DON'T YOU KNOW WE WE
ARE INDEPENDENT IN TERMS OF THAT.
CORRECT. ME QUESTIONS.
OKAY A SINISTER.
TWO QUICK ONES WAS STILL GOT
CAPTIVE. AUDIENCE HERE.
VANCE PROCUREMENT DID YOU GUYS
ARE TO GET INTO THAT THREE X. A
X. PAPER CHAIRMAN OF RENEWABLES.
I KNOW THERE WAS A LETTER SENT
LAST YEAR BY SENATOR DAILY OWN
THERE'S OBVIOUSLY DISCUSSION OF
EXPANDING UPON THAT.
IN SORT OF THROUGH LEGISLATION
BUT JUST WONDERING IF YOU GUYS
AND LOOK FROM A RATE PAYER
PERSPECTIVE IT.
ARE THERE GOOD BARGAINS THAT TO
BE HAD ON THE TABLE RIGHT NOW
FROM SORT OF. BUYING HAD WE'VE
OVER BOUGHT ALREADY SO THERE IS
I MEAN AT LEAST IN THE NEAR TERM
IT SEEMS LIKE THERE'S A LOT OF
RENEWABLE ENERGY IN THE SYSTEM
BUT ARE WE.
ARE YOU DO YOU HAVE CONCERNS
ABOUT MISSING A WINDOW HERE
THERE'S TACK THERE'S YOU KNOW
FEDERAL TAX CREDITS IN THE MIX
TERROR OF THINGS LIKE THAT IT.
IS A GOOD TIME TO BUY OR ARE WE
WISE TO SORT OF WAIT UNTIL. THE
WHOLE I ARE PEOPLE PROCESS PLAYS
ITSELF OUT.
WELL FROM MY PERSPECTIVE SINCE
THERE IS ENOUGH ACTUALLY MAYBE.
AS YOU SAID MORE THAN MORE THAN
SUFFICIENT IN THE SYSTEM RIGHT
NOW THAT WE WOULD NOT SUGGEST
GOING OUT AND BUYING MORE
BECAUSE EVEN WITH EVEN WITH A
TAX INCENTIVE.
YOU. OKAY SO MAYBE YOU GET
THIRTY PERCENT OFF BUT IF YOU
END UP NOT EVEN NEEDING THE
RESEARCH YOU'VE PAID FOR THE
WHOLE THING I MEAN IT'S LIKE
GOING OUT AND BUYING SOMETHING
AT A STORE AND THAT'S ON SALE.
THAT YOU DON'T REALLY NEED THIS
BECAUSE IT'S ON SALE SO THAT
WOULD BE THE ANALOGY SAID THAT'S
HOW WE LOOK AT IT AND CERTAINLY
TO THE EXTENT THAT YOU CAN. BUY
BY RENEWABLES ON SALE.
.
IF THERE IS A NEED THERE IN THE
SYSTEM NOW OR IN THE SHORTER
TERM OR EVEN IN THE LONGER TERM
AS WE LOOK OUT. THEN THEN YES
LET'S YEAH LET'S GO GET EM WHILE
THE TAX INCENTIVES ARE THERE BUT
SO DO YOU SEE THAT NEED.
MAYBE NOT BASE OUR CURRENT
POLICIES THAT WE'VE GOT A FIFTY
PERCENT. YOU KNOW RENEWABLE
TARGET UNDER SB THREE FIFTY SO
WE'RE ONLY. PURCHASE STEP TO.
WHAT OVERNIGHT THIRTY PERCENT
RANGE SO THERE IS SOME FUTURE
BUT IT'S GONNA BE YEARS OUT BUT
I SORT OF THINK OF LIKE? ARE YOU
GOING TO COOK MAYBE DON'T NEED
THAT WINTER COAT THIS YEAR. BUT
IF YOU THINK AHEAD AND YOU KNOW
YOU'RE GONNA GROW INTO IT YOU
GET A LITTLE EXTRA BIGGER SIZE
AND BUY IT FOR. TWO YEARS AHEAD
I MEAN THAT'S HOW MY MOM SHOPPED
CAUGHT.
RIGHT I MEAN DO YOU WRITE THAT
SORT OF FUTURE DEMAND EVEN IF
IT'S NOT HERE NOW WE DON'T
REALLY WANNA HIT RATE PAYERS
WITH ANY EXPENSES BUT.
IF HE GETS MORE EXPENSIVE IN
FIVE YEARS AND WE'RE SITTING
HERE WITH A MANDATE ON OUR HANDS.
RIGHT WELL AND THAT'S WHAT WE
THAT'S WHERE WE DON'T KNOW I
MEAN WE WE ARE THE COSTS OF
RENEWABLES HAVE DROPPED
SIGNIFICANTLY. WE HOPE THAT THEY
CONTINUE TO GO DOWN.
SO WAS SO YES IF IF WE THOUGHT
IF WE HAD GOOD EVIDENCE THAT
THOSE PRICES WERE GOING TO GO UP
IN FIVE YEARS THAN IT MIGHT MAKE
SENSE TO SORT OF MOCK UP ON THEM.
BUT IF IF WE THINK IT'S GOING TO
BE FLAT OR REDUCE SCENE THEN I
DON'T THINK THAT INCENTIVE
REALLY EXISTS. IT WHAT ONE MORE
FINAL QUESTION WHEN I GOT IN
THANK YOU MISTER CHAIR.
.
YOUR.
YOU HAVE WITHIN OR A.
SOME RATE PAYER PROTECTION FIRE
POWER BUT WE KNOW ON THE OUTSIDE
AT THE INTERVENOR COMPENSATION
STRUCTURE ALSO HELPS ADVOCATES
GET ENGAGING DO SOME OF THAT
ADVOCACY THEMSELVES AND
PROCEEDINGS. DID YOU I DIDN'T
SEE ANYTHING IN YOUR ANNUAL
REPORT BUT IF YOU LOOK AT IT.
SORT OF BACKLOGS FOR INTERVENOR
COMP AND SOME THE SORT OF
PENDING CASES I MEAN IS THIS. IS
THIS AN ISSUE IN IN YOUR MIND
FOR SORT OF KEEPING THAT
INCENTIVE ALIVE FOR REPAIR
ADVOCATES GET ENGAGED OUTSIDE OF
OR IT. IT CERTAINLY IS AN ISSUE
IN THE SENSE THAT ABSOLUTELY WE
LIKE HAVING THE OTHER INTERVENOR
AS IN THE CASE WE WORK WELL WITH
THE OTHER INTERVENOR IS AND AND
IT GIVES US AN OPPORTUNITY FOR.
US TO FOCUS OUR RECESS SOURCES
ON ONE ISSUE AND AND AND
INTERVENOR TO FOCUS ON SOMETHING
ELSE AND WE CAN WORK TOGETHER.
WE DON'T TYPICALLY GET INVOLVED
IN THOSE PROCEEDINGS BECAUSE WE
DON'T TYPICALLY GET INVOLVED IN.
INTERNAL CPC TYPE PROCEEDINGS.
OKAY THANK YOU.
I HAVE ONE FINAL QUESTION.
PRESENT PICKER EARLIER STATED
THAT. OUR RATE MAKING PROCEDURE
GENERATE CASES AND ACQUITTED IT
FAST. WHAT IMPROVEMENTS WOULD
YOU SUGGEST?
IN GOING FOR TWO INCH USE.
CLAIM A SAVINGS BASED ON WHAT A
UTILITY REQUEST VERSUS WHAT YOU
AUTHORIZE HOUSE I MEAN I STILL
DON'T SEE THAT AS A SAVINGS TO
RAISE FARES WHEN AT THE END OF
THE DAY IT'S AN INCREASE TO THE
RIGHT. OKAY. SO FIRST ROLE IN
TERMS OF IMPROVING EFFICIENCY
FOR REPAIRS AND FOR THE THIRD
RATE CASES WE WOULD ACTUALLY
LIKE TO SEE THE RAPE CASES MOVE
FROM A THREE YEAR CYCLE TO A
FOUR YEAR CYCLE BECAUSE RIGHT
NOW. THEY TEND TO PILE UP ON
EACH OTHER AND SO WHAT HAPPENS
IS IF THE COMMISSION DOESN'T GET
THE DECISION OUT WITHIN THREE
YEARS THEN IF IT'S DELAYED IN
BEING IMPLEMENTED. THEN THE
REPAIRS AND UP HAVING TO PAY
MORE TO CATCH UP AND SO WE WE
SAY OKAY WELL FOR NOT GOING TO
MAKE THE THREE YEAR CYCLE LET'S
LET'S LET'S LOOK AT A LONGER
CYCLE. WE ALSO THERE USED TO BE
A SYSTEM WHERE WHEN WHEN THE
UTILITIES FIRST.
WE'RE GOING TO FILE THEIR RATE
CASE THEY WOULD. PUT OUT A
NOTICE THAT WE COULD LOOK AT AND
AND SEE WHETHER THERE WERE
DEFICIENCIES AND WHAT THEY
WANTED TO SAY AND AND AND THEN
WE COULD THEY GAVE US SORT OF A
JUMP ON. ON BEING ABLE TO. ON
THE DISCOVERY PROCESS 
BUT IT BUT IN A WAY I THINK THAT.
FRANKLY IT SHOULD BENEFIT THE
UTILITIES AS WELL BECAUSE YOU
KNOW WE'RE GONNA BE ASKING THOSE
QUESTIONS WHETHER WE'RE ASKING
THEM UP FRONT OR A BRIDGE OR
DRAGGING IT OUT OVER A LONG
PERIOD OF TIME. SO TO THE EXTENT
THAT WE CAN WE CAN STILL HAVE
THAT SYSTEM THAT WAS HE HERE
WITH UP UNTIL JUST A COUPLE
YEARS AGO.
TO TO LOOK AT AND SORT OF.
THE DEAL WITH SOME OF THE
DEFICIENCIES IN WHAT THEY WERE
SAYING UP FRONT I THINK THAT
ALSO IMPROVE THE EFFICIENCY OF
THE PROCESS. GREAT.
OKAY I SEE NO FURTHER QUESTIONS
WOULD YOU LIKE TO CLOSE WITH
CIRCLES. WELL I REALLY
APPRECIATE THE OPPORTUNITY TO BE
HERE TODAY AND THANK YOU SO MUCH
FOR YOUR QUESTIONS AND PLEASE
KNOW THAT MY DOOR IS. ALWAYS
OPEN SO IF YOU HAVE QUESTIONS
AFTER THIS OR IN ANY TIME.
PLEASE CONTACT MY OFFICE AND MY
CONTACT INFORMATION IS ON THE
LAST PAGE OF THE FLIGHTS GREAT
WELL I WANNA SAY THANK YOU ON
BEHALF OF SENATOR WAY SO GERMAN
WAY SO FOR ALL OF OUR PANELISTS
TODAY BOTH. OUR A AND THE PC FOR
BEING HERE TODAY AND FOR ALL OUR
SENATORS WHO PARTICIPATED AND WE
STAND ADJOURNED THANK YOU