THE SUBCOMMITTEE TWO TO ORDER WHY
DON'T WE START OFF WITH OUR
DISCUSSION ITEMS I HAVE A COUPLE
OF MEMBERS WHO ARE HERE I'D LIKE
TO CALL UP -- THE CALIFORNIA
ENERGY COMMISSION WE HAVE
EXECUTIVE DIRECTOR -- BOTTOM
[inaudible]
IS THERE.
ALL RIGHT THEN LET'S CALL OF THE
P. YOU SEE.
WE'VE GOT A SERIES OF SPEAKERS
FINANCE MISTER BROWN FROM THE
ELIO.
COME FOR THIS WILL BE ITEM
[inaudible]
NUMBER. SIX OR WHAT ELSE IS
EIGHT ISSUE [inaudible]
EIGHT YOU SEE [inaudible]
CATCHER.
I MIGHT ADD [inaudible]
YES [inaudible]
AND TO SINCE I HAVE PRACTICED
BANKRUPTCY LAW FOR TWENTY FIVE
YEARS THERE'S LIKE A HANDFUL OF
PEOPLE THAT HANDLE THE TELE
THESE SO.
I HAVE A ONE THE PASSING
INTEREST OF THE TWENTY EIGHT
MILLION THAT'S BEEN REQUESTED
HERE SO PLEASE BEGIN.
THE CPC IS REQUESTING SORRY.
BECAUSE THE SENATORS.
I'M JEFF DRIVEN SIDE FROM THE
LEGAL DIVISION OF THE CALIFORNIA
PUBLIC UTILITIES COMMISSION.
AND BERNARD AS A VIA THE A
DIRECTOR FOR ADMINISTRATION WITH
THE PUBLIC UTILITIES COMMISSION --
WE HAVE SEVERAL SUBJECT MATTER
EXPERTS HERE TODAY TO PRESENT
OUR REQUEST AND ANSWER ANY
QUESTIONS THE COMMITTEE MAY HAVE.
OUR FIRST ITEM ON FOR DISCUSSION
IS ISSUE NUMBER EIGHT PC
RESPONSE TO THE UTILITY
BANKRUPTCY WHICH WILL BE
PRESENTED BY MR DRIVEN STYLE.
OUR SECOND ITEM FOR DISCUSSION
IS -- ISSUE NUMBER NINE
ELECTRICITY MARKET FRAGMENTATION
WHICH WILL BE PRESENTED BY
MEREDITH STECKEL.
OUR THIRD ITEM OF DISCUSSION IS
ISSUE NUMBER.
TEN ADMINISTRATIVE SERVICES
STAFF COMPLEMENT IT POSITIONS
WHICH WILL BE PRESENTED BY
FREDERICK GOMEZ.
FOURTH ITEM OF DISCUSSION IS
ISSUE NUMBER ELEVEN BOUNCING
ACCOUNTS.
AND AUDIT POSITIONS WHICH WILL
BE PRESENTED BY MISS ANGIE
WILLIAMS.
OUR FIFTH ITEM IS ISSUE NUMBER
TWELVE THE DECENTRALIZATION OF
THE P. UC SACRAMENTO AND LOSS OF
LOS ANGELES OFFICES WHICH I WILL
PRESENT.
AND FOR MEMBERS OF THE PUBLIC
ALL THESE MATTERS THE STAFF
RECOMMENDATION IS THE WHOLE --
HOLD THEM OPEN SO I WILL HAVE
THE PUBLIC HEARING AT THE%
CONCLUSION OF ALL -- OF THE P.
YOU SEE ITEMS PLEASE PM.
THANK YOU JEFF -- SENATORS.
JUST DRIVEN SIDE. FOR THE PC.
THE CPC IS REQUESTING FUNDING
FOR LEGAL SERVICES CONTRACTS TO
ADDRESS THE P. JEANNIE
BANKRUPTCY AND RELATED MATTERS.
THE AMOUNT OF FUNDING IS TWENTY
EIGHT MILLION DOLLARS OVER THREE
YEARS.
THE LEGAL SERVICES CONTRACT IS
AN UNANTICIPATED COST FOR ADVICE
AND REPRESENTATION ON
RESTRUCTURING FINANCING.
AND BANKRUPTCY MATTERS.
THE CPC IS AN IMPORTANT STATE
PARTY WITH STANDING AND A
SIGNIFICANT ROLE TO PLAY IN THE
P. GINNY BANKRUPTCY CASE.
WE SET P. GENIES RATES AND WE
OVERSEE THE COMPANY'S FINANCIAL
STRUCTURE.
WE EVER SEE TERMS AND CONDITIONS
OF SERVICE AND THE COMPANY'S
OPERATIONS INCLUDING ISSUANCES
OF DEBT.
EQUITY AND USE OF UTILITY
PROPERTY AS COLLATERAL.
WE ALSO IMPLEMENT IMPORTANT
PUBLIC POLICY INITIATIVES AND
PROGRAMS SUCH AS CLEAN ENERGY.
ELECTRIC VEHICLE CHARGING
INFRASTRUCTURE.
ENERGY EFFICIENCY AND PUBLIC
PURPOSE PROGRAM. TO FILL THIS
ROLE WILL P. GENIE IS IN
BANKRUPTCY THE CPC MUST HAVE
FUNDS IN ITS BUDGET TO PAY FOR
EXPERT REPRESENTATION.
IN BANKRUPTCY COURT.
OUR COUNCIL MUST ALSO BE ABLE TO
RELY ON AN EXPERT ADVISOR. TO
EVALUATE COMPLEX FINANCIAL
CONDITIONS.
AND ALSO TO MONITOR AND REPORT
BACK ON THE FLOW OF INFORMATION
IN THE CAPITAL MARKETS.
THIS WILL ALLOW OUR COUNCIL TO
PROVIDE ADVICE AND EFFECTIVE
REPRESENTATION TO THE PC.
I CAN CONTINUE WITH GENERAL
COMMENTS ON THE CONTRACTS OR
MOVE TO TAKING QUESTIONS IT'S
WHATEVER WORKS FOR THE COMBINED
LIKE FREE THEY HAVE A
DIFFERENTIATIONBETWEEN
BANKRUPTCY WORK.
AND REGULAR LEGAL WORK THE YOU
KNOW SITTING P. YOU SEE RATES
TERMS AND CONDITIONS.
YOU KNOW THE ISSUANCE OF DEBT.
THEY'RE GONNA GO FOR BANKRUPTCY
APPROVAL WHILE YOU HAVE -- THAT
IS GOOD IF YOU HAVE A SECONDARY
ROLE AS FAR AS THE THAT IS THE
THE COURT HAVING APPROVAL OF
THAT AND IN YOUR THE CLEAN
ENERGY PROGRAM SURE ENERGY
EFFICIENCY THAT GOES ON NOT
WITHSTAND THE FACT THAT THEY
HAVE A DEBTOR POSSESSION ACCOUNT.
SO I GUESS WHAT I'M CONCERNED
ABOUT IS WHAT DID YOU KNOW THIS
IS A REORGANIZATION OF THE
CREDITORS AT THE PC'S NOT A
CREDITOR.
YOU SEE IS A CREDIT CARD OKAY SO
WHEN THAT LIMITED ROLE THAT YOU
HAVE A CLAIM.
YOUR ATTORNEY WILL FILE A CLAIM.
THE COURT WILL ACCEPT THE CLAIM
OR NOT ACCEPT THE CLAIM THAT'S
NORMAL BANKRUPTCY CLAIM WORK BUT
THAT'S NOT. TWENTY MILLION
DOLLARS WORTH OF ADVICE -- IT
THROUGH THE THROUGH.
THE DEBTOR IS GOING TO BE
PROPOSING THEIR PLANNED PC THAT
SOME PROPOSED TO DO A PLAN RIGHT
THERE TO REVIEW THE PLAN.
BUT THEY'RE NOT THE PROPOSED A
PLAN.
THE LAST TIME THE P. THE P.
GINNY WAS A BACK UP TO THE PC
DID PROPOSE A PLAN.
SO YOU'RE ANTICIPATING THAT THE
P. YOU SIS GOT A PROPOSED A PLAN
I MEAN THIS IS THIS IS ROUND TO
IT.
I'M JUST SAYING THAT WAS IN.
THAT WAS AN UNUSUAL ALL
UTILITIES ARE UNUSUAL
REORGANIZATIONS RIGHT SO LET'S
LET'S PUT IT THERE I JUST.
YOU KNOW I I WANT THE PUBLIC TO
FEEL CONFIDENT THIS IS THE
SECOND REQUEST BY THE
ADMINISTRATION MINISTRATION ASK
FOR TWENTY MILLION FOR IN HOUSE.
YOU KNOW FOR THE FOR THE
GOVERNOR TO HAVE INFORMATION
SORT OF A BANKRUPTCY ONE A ONE
EIGHT AND ADVICE BUT BUT THE
DEBTOR IS THE IS THE ENTITY THAT
PROPOSES THE PLANT YOU WERE.
AND I GUESS I'M TRYING TO
DETERMINE WHAT.
WHEN IT COMES TO SETTING RATES
WHAT WOULD BE THE THETHE ADDED
VALUE FOR THE FOR THE -- THE P.
YOU SEE WITH THE LEGAL TEAM.
SO I THERE'S A LOT TO IMPACT AND
LIKE TO KIND OF YOUR QUESTION
INTO SEVERAL DIFFERENT
CATEGORIES.
IN TERMS OF THE ROLE OF THE PCS
REGULATOR.
AND THE ROLE OF THE BANKRUPTCY
COURT NOW THE P. GENIES IN
BANKRUPTCY I THINK THE BEST WAY
TO CONCEPTUALIZE THAT IS THAT
THE COURT.
AND THE P. UC NEED TO WORK SIDE
BY SIDE.
HE JENNY IS THE DEBTOR IN
POSSESSION THAT MEANS THAT THEY
ARE RUNNING THEIR COMPANY.
THERE'S NOT A TRUSTEE RUNNING
THE COMPANY FOR THEM.
AND THEY NEED TO SEEK BANKRUPTCY
COURT APPROVAL FOR MOST OF THE
ACTIONS THAT THEY TAKE RUNNING
THE COMPANY.
CORRECT THE MILLER EARLY THERE A
REGULATED UTILITY.
AND THEY NEED.
TO MAKE SURE THAT THE P. UC
APPROVALS THAT ARE NECESSARY FOR
THEM TO TAKE THE ACTIONS TO
CONDUCT THEIR BUSINESS.
ALSO ARE PROVIDED IN THE LAST
BANKRUPTCY THERE WAS A CONCERN
THAT THE UTILITY WAS TRYING.
TO ONLY HAVE THE BANKRUPTCY
COURT PROVIDE THE APPROVALS FOR
ITS ACTIONS AND TO CUT OUT THE
P. YOU SEE ONE OF THE REASONS
WHY WE NEED.
TO APPEAR N BANKRUPTCY COURT
WITH EXPERT COUNSEL IS SO THAT
WE CAN MAKE SURE THAT THE
BANKRUPTCY COURT.
PROCESS IS NOT DISPLACING THE
REGULATORY PROCESS SO WE CAN DO.
OUR JOB REGULATING UTILITY IT
CERTAINLY THIS IS JEFF BROWN TO
A JUDGE DENNIS MONTALE HE KNOWS
THAT HE HEARD ALL THOSE
ARGUMENTS YOU'RE NOT GONNA NEED
COUNSEL TO SPEND MILLIONS OF
DOLLARS TO CONVINCE HIM ABOUT
THE ROLE OF THE P. YOU SEE WE'VE
LEARNED SOMETHING.
IN THE IN THE EIGHTEEN YEARS
WHAT I'M CONCERNED ABOUT AND
WE'RE GONNA HOLD IT IS THAT SOME
OF THE WORK THAT THE DEBTOR IN
POSSESSION COULD DO WAS ORDINARY
THEY HAVE A HUNDRED TWENTY DAYS.
TO ACCEPT LEASES AND AND
EXECUTORY CONTRACTS ARE THERE
THERE [inaudible]
TERMINATED RIGHT.
I'M TRYING TO FIGURE OUT WHAT
THE ROLE OF THE P. YOU SEE WOULD
BE ON A LEASE AGREEMENT THAT.
P. JEANNIE HAS IN FRESNO JUST
PICK IN PICKING OUT THEIR MEAN
THAT'S GOING TO BE WORKED THAT
THEY'LL DO BUT HOW THAT AFFECTS%
THE OPERATION.
I MEAN IT DOES HAVE SOME EFFECT
ON THE OPERATION BUT AS FAR AS A
THE P. YOU CEASE ROLE I'M.
CHALLENGED I GUESS THEY MAY BE
IF IF THERE MAY BE AN EXPONENT
OF EXPLANATION BY SAID THERE'S
SOME ORDINARY MONTHLY OPERATING
REPORTS ARE FILED YOU KNOW
WHETHER THIS COUNCIL'S GETTING.
CLEAN OVER THE MONTHLY OPERATING
REPORTS.
YOU KNOW I MEAN THE US TRUSTEE
DOES THAT ROLE YES YOU'RE RIGHT
THERE IS A LOT OF ORDINARY
COURSE OF BUSINESS THAT OCCURS
IN THE BACK OF THE CARD.
IN ADDITION HOWEVER THE
BANKRUPTCY PROCESS IS A
COLLABORATIVE PROCESS.
THIS IS NOT AN ADVERSARY
PROCEEDING WHERE TWO LAWYERS ARE
GOING TO GET UP AND FIGHT IT OUT
IN FRONT OF THE JUDGE.
THE CREDITORS COMMITTEE THE
EQUITY HOLDERS COMMITTEE THE
TORT CLAIMS CLAIMANTS COMMITTEE
THE DEBTOR IN POSSESSION ARE ALL
GOING TO WORK COLLABORATIVELY.
TO DEVELOP A PLAN.
P. GINNY HAS EXCLUSIVITY IN
TERMS OF PROPOSING A PLAN FOR A
CERTAIN AMOUNT OF TIME.
AND THEN THAT EXCLUSIVITY WILL
AND EVEN EVEN THEN P. GENIE IS
GOING TO NEED TO WORK WITH ALL
OF THE PARTIES. TO DEVELOP A
PLAN THAT WILL ALLOW IT TO EXIT
THE P. U. C. NEEDS TO HAVE
SOPHISTICATED COUNCIL AN EXPERT
FINANCIAL ADVISORS SO IT CAN GET
IN ON THE GROUND FLOOR.
AND WORK WITH THOSE FOLKS WERE
DEVELOPING CAJUN HIS EXIT PLAN
RATHER THAN SIMPLY WAITING ON
THE SIDELINES FOR A PLAN TO BE
DEVELOPED AND THEN PRESENTED TO
THE PEACHES REGULAR COMMISSION
RECORDS ON DO.
THE CHALLENGE THAT WE HAVE IS
THAT THE DEAD YOUR OWN ADMISSION
YOU WERE A REDITOR I DON'T KNOW
IF THE CREDITORS COMMITTEE I
THOUGHT I READ THAT THE BEEN
FORMED ALREADY.
I DON'T KNOW BUT THE EQUITY
HOLDERS COMMITTEE BUT THOSE AND
THAT IS CERTAINLY THE DEBTOR IN
POSSESSION THOSE PROFESSIONALS
ARE APPROVED BY THE BANKRUPTCY
COURT AND SUBJECT TO THE
BANKRUPTCY COURTS REVIEW ON
THEIR THEIR THEIR FEES.
ARM WE'RE THE ONLY PEOPLE THAT
ARE ARE HAVE THE OVERSIGHT OVER
OVER THIS YOU'RE NOT GOING TO
SUBMIT YOUR OR THE ATTORNEY
WHOEVER WE HIRE HERE FOR TWENTY
EIGHT MILLION.
THEY'RE NOT GOING TO BE
SCRUTINIZED BY THE BANKRUPTCY
COURT OF WHETHER THE WORK THAT
THEY DID WAS IN THE BEST
INTERESTS OF THE CREDITORS OR
POP OR CONTINUE THE YOU KNOW THE
THE BENEFIT OF THE THE
REORGANIZATION YOU JUST HAVE US.
YOU KNOW BE IN WORKLOAD AND I
DON'T KNOW IF WE'RE GOING TO DO
THIS EVERY SIX MONTHS GO OVER
THE PLAN -- THE THE THE BILLING
SECTOR DOING TO SEE THAT THEY'RE
DOING THIS.
THE STATE'S WORK IN
REPRESENTATION.
YOU SEE WHITE MY DILEMMA BECAUSE
WE HAVE A JUDGE THAT'S LOOKING
OVER EVERYBODY ELSE IS ALL THE
OTHER PROFESSIONALS WORKING ON
HERE WE'RE IT'S A COLLABORATIVE
PROCESS BUT WE DON'T HAVE.
THE JUDGE LOOKING OVER HOW MUCH
MONEY THAT P. YOU SEIZE
ATTORNEYS JUST SPENDING.
IN THE LAST P. GINNY BANKRUPTCY
WE DID END UP GOING TO THE COURT
FOR SOME OF OUR EXPENDITURES AND
SO THE JUDGE DID REVIEW IT.
BUT I THINK THAT PIECE THE
EXPENDITURES OF THE PC IS
PROPOSING ARE IN LINE WITH THE
EXPENDITURES OF ALL OF THE OTHER
PARTIES IN THE PRECEDING.
P. JEANNIE PROPOSED TO SPEND
ABOUT TWENTY FOUR MILLION FOR
THE FIRST THIRTEEN WEEKS ONLY
THEY SPENT THREE MILLION SO FAR.
THAT'S WHAT WE KNOW THE
EXPENDITURES OF WE'RE PROPOSING
HERE ARE TWENTY EIGHT MILLION
WHICH COMPARES TO TWENTY FOUR
MILLION FOR THE LAST P. JEANNIE
BANKRUPTCY WHICH IS ABOUT THIRTY
MILLION.
IN TODAY'S DOLLARS.
WE LOOKED AT THE HOURLY FEES
THAT THE COUNCIL IS PROPOSING
AND COMPARED IT WITH THE
REQUESTS FOR FEES THAT WERE MADE
AND OTHER LARGE BANKRUPTCY
PROCEEDING SUCH AS THE SEARS
PROCEEDING.
AND THE HOURLY FEES ARE
COMPARABLE.
WE ALSO HAVE ARRANGED WITH OUR
COUNSEL IF WE'RE ABLE TO MAKE
PROMPT PAYMENT THERE IS A SLIGHT
DISCOUNT ON THOSE FEES.
SO WE BELIEVE THAT WE HAVE
OBTAINED.
A FAIR FEW ARRANGEMENT FOR THE
ST FROM THESE COUNCIL -- ALE.
GOOD MORNING BRIAN BROWN WITH
THE L. A. L. -- YEAH WE TOOK A
LOOKAT THIS AND WE FELT THAT
GIVEN THE NATURE OF THE
BANKRUPTCY AND THAT IS NOT A
CORE COMPETENCY OF THE
COMMISSION'S CURRENT LEGAL STAFF
WE THOUGHT -- THE NEED TO HIRE
OUTSIDE COUNSEL MADE A LOT OF
SAND IN TERMS OF THE THE
MAGNITUDE THERE IS A GREAT DEAL
OF UNCERTAINTY OF WHAT THOSE
COSTS ARE GOING TO BE OVER THIS%
THREE YEAR PERIOD AND IT COULD
EVEN SCRATCH BEYOND THREE YEARS
POTENTIALLY BUT AS THE
COMMISSION NOTED.
LOOKING BACK AT THE COSTS
ASSOCIATED WITH IT TWO THOUSAND
ONE BANKRUPTCY WE FELT LIKE THIS
SEEM LIKE A REASONABLE.
ORDER OF MAGNITUDE ASKED THE MAN
AND WE ALSO NOTICED A NOTE THAT
THERE IS.
MUCH OF THE LANGUAGE PROPOSED BY
THE ADMINISTRATION THAT LIMITS
THE DOLLARS TO BE USED FOR THIS
PURPOSE AND CAN'T BE USED FOR
ANY OTHER PURPOSE OF THAT.
THEN IF IT TURNS OUT THAT
THERE'S LESS FUNDING REQUIRED --
IT WILL BE USED FOR ANYTHING
ELSE.
MEMBERS ANYBODY ELSE HAVE A
QUESTION CENTER MONEY.
THANK YOU MISTER CHAIR -- SO THE
QUESTION THERE'S IN THE STAFF
COMMENTS OF FOUR HUNDRED FIFTY
THOUSAND DOLLARS A MONTH FOR THE
FINANCIAL ADVISER -- WHO'S THE
FINANCIAL ADVISER THE FINANCIAL
ADVISORS A FIRM CALLED TO SERRA
PARTNERS.
IN.
IN THEIR RETAINED AT FOUR
HUNDRED FIFTY THOUSAND DOLLARS A
MONTH THAT IS CORRECT
HOW MANY PERSONAL DISSENT IN LAW --
THE CONTRACT PROVIDES THAT THE
ASSIGNED PERSONNEL WILL BE
AVAILABLE -- ON ON AN ON CALL
BASIS MEANING THAT THEY ARE
FULLY COMMITTED TO THIS PROJECT --
THE FOUR HUNDRED FIFTY THOUSAND
DOLLARS COMPARES -- TO ANOTHER
NUMBER THAT IS HIGHER FOR
ANOTHER FINANCIAL ADVISER IN
THIS PROCEEDING -- WE ALSO DID
SOME DUE DILIGENCE.
BEFORE HIRING TO SERRA AND THERE
WAS ANOTHER FIRM WHO WAS IN THE
RUNNING.
AND THEY WERE COMING IN AT I CAN
SAY THIS FULLY RELIABLY BECAUSE
I'M GOING BY MY MEMORY.
I BELIEVE -- SIX HUNDRED
THOUSAND COMING DOWN.
TO FIVE HUNDRED THOUSAND AND I
BELIEVE THIS IS A STANDARD
ARRANGEMENT IN A BANKRUPTCY
PROCEEDING FOR THE COUNCIL. TO
HAVE A FINANCIAL ADVISER.
WHO CAN WORK WITH THEM THEY'RE
WORKING UNDER THE UMBRELLA OF
OUR ATTORNEY CLIENT PRIVILEGE SO
THAT OUR COUNCIL CAN GIVE US
ADVICE?
ABOUT WHAT IS.
HEY WHAT IS OCCURRING IN THE
FINANCIAL MARKETS WHICH WE NEED
TO KNOW.
AND BE WHAT THE ANALYTICS ARE.
ON NOT ONLY P. GENIE THAT ON ANY.
TOTAL DEALS THAT ARE BEING
DEVELOPED.
THANK YOU I APPRECIATE THE
COMMENT -- LUCRATIVE BUSINESS TO
BE IN IT SOUNDS LIKE -- THANK
YOU MISTER CHAIR.
THERMAL WIRE THANK YOU SO MUCH
THIS YEAR.
LOOK I UNDERSTAND A SEPARATION
BETWEEN THE MINISTRATION PC.
AND ESPECIALLY IN CHALLENGING
TIMES THAT THIS I NEED TO ENSURE
THAT BE IT THE STATE IS ABLE TO
WORK.
IN A UNITED FRONT AND SOME ITEMS.
I'M CURIOUS ABOUT HOW YOUR
COUNCILS WORKING WITH THE
ADMINISTRATION'S COUNCIL TO
ENSURE THAT.
WE ARE UNIFIED AND WHAT'S GOING
TO BE BEST FOR THE RATE PAYER
AND WILL THERE BE -- GROUP
DISCUSSIONS MEETINGS BETWEEN THE
TWO CAN YOU JUST FILL US IN ON
THAT BECAUSE I I THINK ON SOME
OF THIS IT'S GOING TO BE
IMPORTANT THAT WE ARE.
ALL SPEAKING WITH ONE VOICE.
I AGREE WITH YOU I THINK IT'S
IMPORTANT THAT WE'RE ALL
SPEAKING WITH ONE VOICE -- I
CAN'T SPEAK FOR THE
ADMINISTRATION AS A WHOLE OR THE
GOVERNOR BUT MY MY TAKE IS THAT
THE GOVERNOR IS HANDLING
STATEWIDE ISSUES.
THAT ARE BROADER AND MORE
COMPLEX THAN THE ISSUES OF THE
PC IS HANDLING THE PC IS A PIECE
OF THE PUZZLE.
AND SO OUR COUNCIL WILL BE
HANDLING.
OUR ASPECT OF THIS AND WILL NEED
TO COORDINATE WITH THE STATE AS
A WHOLE WHICH I THINK IS
GRAPPLING WITH A A BIGGER
PROBLEM.
PUSHING BACK ON THAT A BIT.
THE SETTLEMENT IMPACTS THE
ENTIRE STATE.
SO THE GOVERNOR AND I CAN'T
SPEAK FOR HIM AND I LOVE TO HEAR
FROM DEPARTMENT OF FINANCE AS
WELL -- PC IS IT IN THE MIDDLE --
AND SO WOULD LIKE TO BE A TO GET
A BETTER UNDERSTANDING IS THERE
GOING TO BE COORDINATION BECAUSE
THE DECISION CERTAINLY MADE YOU
SEE IS GOING TO BE A STATEWIDE
SIGNIFICANCE.
I UNDERSTAND THAT YOU ARE IN THE
WEEDS ON ALL ISSUES IN OUR
TECHNICAL MATTERS OF THE
BANKRUPTCY.
AND BEING ABLE TO HAVE A
COORDINATED EFFORT IS GOING TO
BE CRITICAL.
NO MATTER WHAT ORGANIZATION HERE
IN NO MATTER HOW LARGE THE
ORGANIZATION IS.
SO IS THERE ARE THERE PLANS --
TO INSURE ESPECIALLY ON MATTERS.
WHERE?
ADMINISTRATION POTENTIAL
LEGISLATURE WILL BE IS IN
COORDINATION -- IN ON THE SAME
FRONT.
I THINK THE PC WILL BE
COORDINATING WITH THE GOVERNOR'S
OFFICE THE PIECE IS AN
INDEPENDENT AGENCY BUT WE WORK
CLOSELY WITH THE ADMINISTRATION --
THE PC COMMISSIONERS ARE
APPOINTED BY THE GOVERNOR SIR I
UNDERSTAND THAT IS A STATE IN MY
I I UNDERSTAND.
SEPARATION OF CHURCH AND STATE
SO I TOTALLY GET THAT AND I
DON'T NEED THE LESSON JUST BEING
REALLY CANDID WITH YOU RIGHT.
SO I'DLIKE YOU TO GET STRAIGHT
TO MY ANSWER MY QUESTION YOU
KNOW LIKE A STRAIGHT ANSWER.
PLEASE DON'T GIVE ME A LESSON ON
WHO DOES WHAT I DON'T NEED THAT.
I'M ASKING ABOUT CORONATION IN
PLEASE ADDRESS YES WE WILL
COORDINATE.
AS GRAY INTO WHETHER PLANS
APPEAR TO DO THAT -- TO BE
HONEST I FEEL IT'S A QUESTION
THAT'S ABOVE MY PAY GRADE.
OKAY SO THROUGH THE CHAIR THAT
IS SOMETHING THAT I'D LIKE TO BE
A TO GET A BETTER UNDERSTANDING
ON BECAUSE THE MINISTRATION HAS
BEEN COORDINATING WITH THE
LEGISLATURE AND VICE VERSA.
AND SINCE YOU ARE ON THE FRONT
LINES I BELIEVE IT TO BE YOU SEE
SHOULD BE COORDINATING WITH THE
ADMINISTRATION AS WELL -- AND
WOULD LIKE TO BE A TO GET A
FOLLOW UP ON THAT AND HOW THAT'S
GOING TO LIE I WILL BE HAPPY
LIKE THANK YOU SO MUCH
[inaudible]
CENTER [inaudible]
HEY MISTER -- IT WOULD HELP IF
WE CAN FLESH OUT.
THE EXACT NATURE OF THE VARIOUS
TYPES OF ADVICE THAT THE P. YOU
SEE IS GOING TO BE GETTING FROM
OUTSIDE COUNSEL HERE SO -- IN
TERMS OF THE FEDERAL BANKRUPTCY
CODE PROVISIONS ABOUT P. YOU
SEIZE APPROVAL.
OF ANY FINAL SETTLEMENT
AFFECTING RATES IS THIS -- WITH
THIS APPROPRIATION.
DEAL WITH THAT -- WILL PROCESS
OR IS THIS MORE IN THE FRONT END
CAN YOU HELP US WITH SCOPE.
JUST GET A SENSE OF THE VARIOUS
PHASES I'M SO IN TERMS OF THE
ADVISORY PROCESS IS WALK US
THROUGH MAYBE -- IS SUPPOSED TO
IS THIS THE SORT OF THE WHOLE
THING RIGHT.
IT AT THIS POINT PARTICIPATING
IN A PROCEEDING BUT ALSO.
ON THE APPROVAL PROCESS AND AND
AND SIR EVEN ANTICIPATING THAT --
HELP WAS WAS GO.
SO THE END GAME OF THE FINAL
POINT OF THE BANKRUPTCY
PROCEEDING IS THE P. GINNY WILL
HAVE A PLAN.
AND THE PLAN WILL BE APPROVED
EITHER IN PART FOR SPECIFIC
ELEMENTS OF IT THAT RELATE TO
FINANCE BY TH COMMISSION AND IT
WILL ALSO BE APPROVED BY THE
BANKRUPTCY COURT.
SO IN ORDER FOR THE PLAN TO BE
WORKABLE.
IT NEEDS TO WORK.
FOR ALL OF THE PARTICIPANTS AND
THE BANKRUPTCY NEEDS TO WORK FOR
P. JEANNIE AND NEEDS TO WORK FOR
P. GENIES CREDITORS AND EQUITY
HOLDERS.
BUT IT NEEDS TO WORK FOR THE
COMMISSION AS THE REGULATOR AS
WELL.
AND IT NEEDS TO WORK FOR
RATEPAYERS AND SO OUR JOB IS TO
MAKE SURE THAT THE PLAN.
WORKS FOR EVERYONE INCLUDING US
INCLUDING THE REPAIR.
AT THE OUTSET.
RIGHT NOW WE WILL BE STARTING TO
GET INVOLVED IN DISCUSSIONS.
ON HOW THE PLAN IS STRUCTURED
HOW IT'S CONCEPTUALIZE WITH THE
BASIC ELEMENTS OF THE PLATTER.
AS IT GETS FLUSHED OUT.
WE WILL NEED TO RELY ON OUR
FINANCIAL ADVISER.
AND ON OUR COUNCIL. TO DETERMINE
HOW IT'S GOING TO WORK WITH THE
REPAIR PACKS WILL BE.
AND AT THE END WE WILL NEED TO
DECIDE WHETHER WE AS AN AGENCY
WANT TO APPROVE BY THE PLANET
ELEMENTS TO PLAN THEIR WITHIN
OUR JURISDICTION.
WHERE'S THE BOOK OF THE WORKING
TO BE IS IT.
IS IT A IS IT A RIGHT NOW.
THING OR IS THIS THAT'S A REALLY
GOOD QUESTION OKAY -- I'VE
BANKRUPTCY PROCEEDINGS ARE LUMPY
WORK HAPPENS IN REALLY BIG
CHUNKS.
AT TIMES THAT ARE UNPREDICTABLE.
I MEAN IF THERE'S A QUICK EXIT
THEN THE BULK OF THE WORK I
GOING TO START TOMORROW IF
THERE'S A SLOW EXIT.
I THINK THE BULK OF THE WORK
WILL START ABOUT A YEAR FROM NOW --
SO IT'S IT'S VERY UNPREDICTABLE
THAT'S PROBABLY ARE ASKING FOR
THE MONEY FOR THREE YEARS.
SO THAT IT'S THERE WHEN IT'S
NEEDED -- AND AT THIS POINT IT'S
RELATIVELY EARLY DAYS IN THE
BANKRUPTCY PROCEEDING SO WE
CAN'T PREDICT HOW IT'S GONNA GO.
REMIND ME AGAIN WHO WHO IS THE
OUTSIDE LEGAL COUNSEL IT'S A
LITTLE CANCELS THE PAUL WEISS
FIRM THIS IS PAUL WEISS AND
THOSE DO SERRA SERRA PARTNERS
AND THIS YEAR'S RELATIVELY NEW
RIGHT I MEAN THEY STARTED IN
TWENTY SIXTEEN TO MY KNOWLEDGE --
IS THAT I AM SPEAKING FROM WHAT
I HAVE READ ON THE WEBSITE AND
AND I BELIEVE SOMETHING I READ
THE WALLSTREET JOURNAL.
THE THE MAIN DRIVER THE MAIN
PRINCIPLES AND IS OUR PARTNERS
WERE WITH THE COOL HAND LOKI
FIRM.
I FELT AS IF HE W. P. OKAY I
MIGHT BE RE I'VE READ ABOUT THE
IS D. U. C. E. R. A. THAT'S
CORRECT.
I THOUGHT THEY HAD LEFT A BIG A
BOUTIQUE INVESTMENT FIRM WHICH
ONE DID YOU SAY YOU WILL HAND
LUCKY OKAY.
I'M ALL RIGHT.
OVEN AND THEN.
THE POP IN YOUR POLL WISE
COUNSEL IS BASED OUT OF SERVICE
IS GOING TO YOUR OUT OF NEW YORK
OKAY.
AT BUT SO THE WOULD YOU SAY
RIGHT NOW IS A MORE FINANCIAL.
PHASE AND AND THAT LATER IS
GOING TO BE MORE LEGAL IS THAT
NOT THE RIGHT WAY TO THINK ABOUT
IT ONE THING WE'VE BEEN
STRUGGLING WITH IS THE LACK OF
OF MATH FRANKLY THAT WE'RE
GETTING IN TERMS OF THE ABILITY
TO CHECK WHAT THE MARKETS ARE
TELLING US.
WE GET THERE'S A LOT OF ADVOCACY
GOING ON A LOT OF THINGS -- CAST
ABOUT YOU KNOW YOU HEAR NUMBERS
COMING OUT OF ELLIOTT MANAGEMENT.
THE GENIE WILL THEN COME UP WITH
pTHINGS COMING FROM OTHER EQUITY
AND DEBT HOLDERS.
DO YOU ANTICIPATE ON THE
FINANCIAL SIDE -- ANY SORT OF
MORE PUBLIC FACING OR AT LEAST
LEGISLATIVELY FACING INTERFACE
FOR WE CAN GET A SENSE OF HOW.
TO RIGHT SIZE RELEASED ANALYZE
SOME OF THE INFORMATION E'RE
GETTING BACK OR IS THAT SORT OF
BEYOND THE SCOPE OF WHAT YOU'RE
ANTICIPATING USING THE SERVICES
I MEAN TO THE EXTENT THAT THE P.
UC STAFF UNDERSTAND THE
SITUATION OF FINANCIAL MARKETS I
THINK WOULD BE HAPPY.
TO PROVIDE YOU KNOW BRIEF
LEGISLATORS -- WE ARE GOING I
MEAN PART OF THE PURPOSE OF
HAVING A FINANCIAL ANALYST ON
BOARD IS TO MONITOR WHAT'S GOING
ON IN THE FINANCIAL COMMUNITY.
SO WE CAN UNDERSTAND WHAT PEOPLE
ARE SAYING WHETHER PROPOSALS
MAKES SENSE WHETHER THEY DON'T.
WHAT WHAT THEIR EFFECT ON
REPAIRS MIGHT BE?
AND I DO HAVE LIMITATIONS ON
YOUR ABILITY TO TO INTERFACE
WITH US ON THAT.
I MEAN IS THERE IS THERE SOME
PRIVILEGE THAT YOU'RE NOT
ALLOWED TO SAY CERTAIN THINGS TO
US AND ALLOWED TO SHARE OTHERS
OR I HAVEN'T REALLY THOUGHT THAT
THROUGH I MEAN MAY KNOW WE HAVE
PRETTY -- LIBERAL -- AS RULES IN
TERMS OF THE INTERFACE WITH THE
LEGISLATURE IN WHICH YOU'RE JUST
HEARING TODAY IS.
LET'S LET'S MAXIMIZE THAT COME
THE THE FLOW THAT CONVERSATION
TO AT LEAST ARM US WITH THE BEST
INFORMATION POSSIBLE BECAUSE YES
I I MEAN I UNDERSTAND.
THAT I I'M I'M A LAWYER SO I'M
ALWAYS CONCERNED ABOUT ATTORNEY
CLIENT PRIDE.
YOU KNOW IT'S LIKE HOW DOES THAT
LINE UP I KNOW THE EX PARTE
APPLIES VERY DIFFERENTLY TO
CONVERSATIONS THE LEGISLATURE
WHERE YOU DON'T HAVE THE SAME
RESTRICTIONS BUT HOW THAT LINES
UP WITH YOUR ATTORNEY CLIENT
PRIVILEGE VERSUS YOUR PRIVILEGE
WITH THEIR FINANCIAL SERVICE
VISOR.
JUST LOVE SOME FEEDBACK ON THAT
FIND OUT THE SCOPE AND THEN
LET'S SORT OF MAXIMIZE THE FLOW
THAT THE BEST YEAH LET ME THINK
ABOUT OKAY.
THANK YOU.
I THINK IT'S SAD.
PART OF THE WORK OUT IS GOING TO
BE OUTSIDE THE BANKRUPTCY COURT
THAT'S GOING TO BE WHAT THE
LEGISLATURE AND THE GOVERNOR
COME TOGETHER WE'VE TALKED ABOUT.
YOU KNOW IT'S IT'S NOT A SECRET
THAT THERE'S FUNDING IS GOING TO
BE AN IMPORTANT THING AND HOW
THAT HOW THAT PIECE GOES IN.
I BELIEVE THE DEBTOR IN
POSSESSION WILL USE THAT AS THE
P. YOU SEE WILL USE THAT SO SO
THERE'S MY UNDERSTANDING IS THAT
THIS IS THE THIS IS THE
BANKRUPTCY WORK.
THAT WE'RE PAYING FOR THE OTHER
NORMAL LEGISLATIVE WORKER OR
DATED THEY WORK THE PC DOES NOT
THAT THESE FOLKS WON'T TOUCH IT
BUT IT'S GOOD TO BE WITH THE
BANKRUPTCY LANDS ON IT AND THAT
WOULD BE.
BASED ON WHILE IT'S A
COLLABORATIVE ENVIRONMENT IT'S
THE DEBTOR POSSESSIONS PLAN YOU
KNOW SO WE BUT SOMETIMES WE AS
LEGISLATORS WANT TO SAY WELL
THIS IS MY PLANNER ON THE
GOVERNOR THIS IS MY PLAN.
THAT'S ALL NICE FOR THE PRESS
BUT THIS IS THE DEBTOR IN
POSSESSION IS PLANNED AND IT'S
COLLABORAIVE AND ACT BUT I KNOW
THIS IS ROUND TWO WITH THE JUDGE.
SO WE I THINK WE HAVE WORKED OUT
WHAT THE ROLE OF THE P. YOU SEE
IS WHAT THE ROLE OF IT IS
BECAUSE THE WHOLE UNITED STATES
IS LEARNED FROM.
BANKRUPTCY.
P. JEANNIE ROUND ONE SO I JUST
WANNA IT'S WORD OF CAUTION THAT
WE DON'T HAVE TO RE LITIGATE
WHAT ARE.
RESPONSIBILITIES ARE LET'S GET
IN AND AND AND FIGURE OUT HOW
THOSE DIFFERENT PIECES ARE
BECAUSE FOR MY COLLEAGUES THE
PLAN COMES TOGETHER IS DIFFERENT
PIECES YOU WORK OUT.
DIFFERENT AGREEMENTS WITH
DIFFERENT CREDITORS AND HOW
YOU'RE GOING TO WORK OUT AND
THEN IT COMES TOGETHER AND
MOSAICS SO [inaudible]
THAT'S THAT'S ALL I HAVE TO SAY.
WE'RE GONNA HOLD THIS MATTER.
OPEN -- WILL BE BACK LATER ON
LOOKING FOR THE MAY REVISE ALL
RIGHT.
ANYTHING YOU WANT TO ADD AT THE
END.
OF NOT IF THEY'RE NOT ANYMORE
QUESTIONS OKAY LET'S BOOK.
ISSUE NUMBER NINE THIS IS
ELECTRICITY MARKET FRAGMENTATION.
WE LOVE THESE.
FRAGMENTATION ISSUES PLEASE
PROCEED.
HI MY NAME IS MOLLY CIRCLE I AM
A MANAGER IN THE ENERGY DIVISION
AND I WHERE I WORK ON GENERATION
AND TRANSMISSION PLANNING AS
WELL AS INFRASTRUCTURE ISSUES.
IN GENERAL -- I'M HERE TODAY TO
PRESENT ISSUE NUMBER NINE WHICH
IS THE C. P. C.'S REQUEST FOR
THREE PERMANENT POSITIONS AND
APPROXIMATELY FIVE HUNDRED
THOUSAND DOLLARS. TO ADDRESS
EMERGING REGULATORY NEEDS FOR AN
EVOLVING ELECTRICITY MARKET.
THE MARKET IS EXPERIENCING AN
UNPRECEDENTED LEVEL OF MARKET
FRAGMENTATION WE'VE GONE FROM
EIGHTEEN PROVIDERS OF RETAIL
ELECTRIC SERVICE IN THE PAST.
FOUR YEARS AND NOW WE HAVE
THIRTY SEVEN AND WE EXPECT TO
GROW.
IN TERMS OF THE ENERGY PROVIDED
OF FOUR YEARS AGO.
THE ENERGY WAS PROVIDED -- THAT
WAS PROVIDED BY COMMUNITY CHOICE
AGGREGATORS TOTALED ZERO POINT
5% OF THE ENERGY SERVE TO
RESIDENTIAL CUSTOMERS UNDER THE
CPC'S JURISDICTION.
THAT HAS NOW RISEN 225% OF THE
MARKET IN JUST FOUR YEARS.
OF THAT 25% FIGURES FROM.
TWENTY EIGHTEEN SO THE PURPOSE
OF THIS PROPOSAL IS TO ADDRESS
THESE FUNDAMENTAL SHIFTS IN THE
ELECTRICITY MARKET WE REALIZED --
AN ENERGY DIVISION THAT WE
NEEDED A DEDICATED TEAM OF STAFF
RATHER THAN A SOMEWHAT
BALKANIZE APPROACH TO THIS
REQUEST IS FOR THREE POSITIONS
INCLUDING A NEW SUPERVISOR THAT
WOULD ALLOW US -- TO AGGREGATE
ALL THE POSITIONS TOGETHER SO
THAT'S A BRIEF INTRODUCTION AND
I'M HAPPY TO TAKE YOUR QUESTIONS
OR CONTINUE WITH BACKGROUND.
YOUR FILE ON THIS WE DON'T HAVE
ANY CONCERN WITH THE THIS IS THE
STAFF RECOMMENDATIONS JUST PROVE
HIS BUDGET AT THIS IS SAID. FOUR
HUNDRED NINETY FIVE THOUSAND
DOLLARS FOR THREE POSITIONS IN
THIS EVOLVING SPACE [inaudible]
QUESTIONS.
LET'S OPEN UP THE PUBLIC HEARING
ARE THEY PAID PUT PEOPLE IN THE
PUBLIC THERE HERE ON I WANT TO
ADDRESS US.
ON ISSUE NUMBER.
NINE CLOSE PUBLIC HEARING
ENTERTAIN A MOTION.
THERE'S MOTION BY -- CENTER
MCGUIRE.
PLEASE CALL THE ROLL BY KELSEY
HI JONES.
THE WIRE.
BONDING STERN.
THANK YOU VERY MUCH REQUEST HER
GROOVE.
ISSUE NUMBER TEN THIS IS THE I.
T. POSITIONS FIVE POSITIONS. FOR
THE NINE BILLS THAT THE
LEGISLATURE HAS AN ACTIVE.
GOOD MORNING SENATORS MEMBERS OF
THE COMMITTEE MY NAME IS FOR THE
GOVERNMENT.
I AM THE IT DIRECTOR AND CHIEF
INFORMATION OFFICER FOR
CALIFORNIA PUBLIC UTILITIES
COMMISSION.
AND I'M HERE TODAY TO ADDRESS --
ITEM NUMBER TEN THE FIVE IT
POSITIONS OF THAT -- WE ARE
REQUESTING IN SUPPORT OF THE
ADDITIONAL WORKLOAD PERSONNEL
REQUIRED BY.
LISTED IN THE LEGISLATION. TO
POSITIONS WILL.
HELP PROVIDE.
THE SERVICE DESK SUPPORT FOR THE
ADDITIONAL CPUC STAFF. THRE
RESOURCES WILL PROVIDE
ADDITIONAL CAPABILITIES TO
REFORM BUSINESS ANALYSIS DATA
DATA ANALYSIS INFRASTRUCTURE
ANALYSIS AND SECURITY SUPPORT --
AT THIS TIME I'M.
READY TO TAKE ANY QUESTIONS YOU
HAVE A QUESTION SPECIFIC CATCH
UP ON THE MARCH TWENTY FOURTH
HEARING.
WE HAVE THE REQUEST A REASONABLE
GIVEN THE ADDITIONAL POSITIONS
AND BEEN ADDED TO THE COMMISSION.
MEMBERS THAT WERE GONNA HOLD
THIS OPEN WHEN WE DEAL HAVE
THE P. U. C. I. T. POSITIONS.
ALL RIGHT.
WILL THANK YOU.
ISSUE NUMBER ELEVEN BALANCING
COUNT IN AUDIT POSITIONS.
THIS IS EIGHTY SEVEN PERMANENT
POSITIONS FOR EIGHT HUNDRED
THIRTY THOUSAND DOLLARS.
THE MORNING SENATORS MY NAME'S
ANGIE WILLIAMS ON THE NEW
DIRECTOR OVER TO TELL THESE
OUGHT IT FINANCING COMPLIANCE
BRANCH AND I'M HERE TO ADDRESS --
ISSUE NUMBER -- ELEVEN WE'RE
REQUESTING SEVEN PERMANENT
POSITIONS -- AT THE COST OF
EIGHT HUNDRED AND THIRTY
THOUSAND FROM THE PUBLIC
UTILITIES COMMISSION UTILITIES
REIMBURSEMENT ACCOUNT WE ARE
ALSO LOOKING TO AMEND -- PUBLIC
UTILITIES CODE SECTION SEVEN
NINE TWO TO ALLOW.
REVIEWS OR AUDITS FOR BALANCING
ACCOUNTS.
OF THE REASON FOR THIS REQUEST
IS WE'RE NOT CURRENTLY MEETING
STATUTORY AUDIT MANDATES.
AND THEY'LL BE IN A COMPANY
TRAILER BILL THAT.
CORRECT. TO BE ANNOUNCED.
HELLO YOU HAVE A FILE.
WE THINK IT'S A REASONABLE
REQUEST GIVEN THAT THEY'RE NOT
MEETING THEIR STATUTORILY
DEFINED DEADLINES.
OKAY MEMBERS QUESTIONS ON THE
ALL THE POSITIONS.
THANK FOR MUCH WE WILL HOLD THE
MATTER OPEN YOU MAY BE SOME
PUBLIC COMMENT LATER.
ISSUE NUMBER TWELVE LET'S MOVE
TO SACRAMENTO IN LA.
ABOUT THIS CLIPPERS AND THIS IS
A WE HAVE.
HAD JUST HAD TO RUB IT IN --
THIS IS.
YES MISTER HOPE SORRY.
WITH THE FTC
PLEASE PROCEED YES OF BERNARD AS
A VETO LEFT DIRECTOR FOR
ADMINISTRATIVE SERVICES -- HE
ADMINISTRATION HAS DIRECTED THE
PC TO INCREASE THE COMMISSION'S
PRESENCE OUTSIDE OF SAN
FRANCISCO TO BETTER
COLLABORATIVE COLLABORATE WITH
OTHER STATE AGENCIES.
PROVIDE MORE TRAINING
OPPORTUNITIES FOR STAFF AND
PROMOTE PUBLIC ACCESSIBILITY TO
THE AGENCY.
ADDITIONALLY CHAPTER THREE FOUR
ONE STATUTE OF TWO THOUSAND
SIXTEEN IN S. B. EIGHT FORTY
DIRECTS THE CPUC TO DEVELOP
OPTIONS FOR LEVERAGING
ADDITIONAL FACILITIES.
IN AREAS OF THE STATE INCLUDING
SACRAMENTO.
THAT WOULD ALLOW THE COMMISSION
TO COLLABORATE WITH OTHER STATE
ENTITIES AND PROVIDE STAFF MORE
OPPORTUNITIES FOR TRAINING
CAREER DEVELOPMENT.
AND EXCHANGE AND PLACEMENTS AND
OTHER STATE ENTITIES.
THE C. P. U. C. SIX A PRESENCE
THROUGHOUT CALIFORNIA WITH
LOCATIONS IN SAC SAN FRANCISCO
SACRAMENTO LOS ANGELES AND SAN
DIEGO.
CPUC ALREADY HAS OFFICES IN SAN
FRANCISCO SACRAMENTO AND LOS
ANGELES.
A SAN DIEGO OFFICE IS UNDER
CONSIDERATION IN A FUTURE PHASE
OF DECENTRALIZATION.
THE LONG TERM PLAN INCLUDES AN
INCREASED PRESENCE TO BETTER
SERVE OUR REGULATED COMMUNITY
WHICH INCLUDES THE ABOVE
MENTIONED LOCATIONS.
THE GOAL OF DECENTRALIZATION IS
TO PROVIDE GREATER ACCESS
THROUGH THE TO THE PC.
THROUGH ESTABLISHING OFFICES
THROUGHOUT THE STATE.
INCREASING THE PC'S FOCUS AND
EXPERTISE BY RELOCATING
RESPONSIBILITIES AND MAKING
LOGISTICAL CHANGES THAT IMPROVE
THE COMMISSION'S ABILITY TO
FUNCTION. TO ESTABLISH CROSS
AGENCY RELATIONSHIPS FOR
EXAMPLES.
WITH THE CALIFORNIA AIR
RESOURCES BOARD DIVISION OF OIL
GAS AND GEOTHERMAL RESOURCES. TO
FOSTER COLLABORATION AND
COORDINATION IN ACTIONS AND
EXCHANGES OF INFORMATION.
GREAT I'M SO UPDATE THE GUY A
SUBCOMMITTEE NOW WE HAVE
[inaudible]
DSG.
THE GST GST GS -- AND YOU KNOW
IT'S A IT'S A MONSTER FOR US TO
TRY TO UNDERSTAND WE KNOW WE-HAVE ACCESS TO THE PROPERTY WE
WE KNOW FROM THIS COMMITTEE THAT
THE AIR RESOURCE BOARD IS MOVING
OUT OF LA.
AND MOVING OVER TO RIVERSIDE TO
COAL CO LOCATE WITH WITH THEM.
X. HI UPDATE US ON WHAT YOU THE
WORK THAT YOU'VE DONE WITH A D.
S. G. ON THIS SURPLUS STATE
PROPERTY THAT YOU MAY.
BE ABLE TO MOVE INTO BECAUSE WE
SEE THAT YOU'RE MOVING INTO OUR
STREET.
ON A LEASE.
AND I'M WONDERING IS THAT A
STATE PROPERTY EITHER I COME IN
ON CUE SO I KNOW IT'S OVER THERE
I FEEL.
COMFORTABLE BUT IT IS AT THE
CORE AND THE POINT OF THE
QUESTION IS IS THAT WE HAVE TO
STAY PROPERTY THAT'S THERE THIS
IS.
NORMAL OFFICE BUT WHEN YOU GET
FIFTEEN TWENTY PEOPLE IN LA YOU
COULD BE ANYWHERE RIGHT WOULD
PUT PVC UP IN AFTER SOME STATE
PROPERTY THAT SURPLUS.
ARE WE EXHAUSTING THOSE AREAS
AND YOU KNOW -- RE PURPOSING I'M
WE HAVE.
CAL FIRE WE HAVE DMV THEY COME
IN HERE THAT SAY WITHOUT GROWN
OUR FACILITY AND WE WANT TO MOVE
TO SOMETHING ELSE SO IS A P. YOU
SEE.
TRY TO GOBBLE UP THOSE
PROPERTIES.
YES SENATOR -- WE ARE ACTIVELY
ENGAGED WITH DEPARTMENT OF
GENERAL SERVICES ON ALL THE
SURPLUS PROPERTIES THEY HAVE
AVAILABLE THROUGHOUT THE STATE
WITH THESE TIPS.
SPECIFIC LOVE LOCATIONS IN SAN
FRANCISCO WE'VE WORKED CLOSELY
WITH.
GENERAL SERVICES AT THE FOUR
FIFTY FIVE GOLDEN GATE AVENUE
BUILDING WHERE WE HAVE A PORTION
OF THE ENERGY THE DIVISION -- IN
SACRAMENTO THERE WASN'T MUCH
LESS SPACE AVAILABLE AND WE PUT
OUT AN ADVERTISEMENT AND IT WAS
COMPETITIVELY BID AND THAT WAS
THE BEST DEAL WE COULD ACHIEVE
WAS THE OUR STREET -- PROPERTY
IN LOS ANGELES -- THERE IS
LIMITED AVAILABILITY IN OUR
CURRENT BUILDING AND THE BUT WE
ARE LOOKING -- TO BECOME MORE
DECENTRALIZED SO WE DID VISIT
THE US STATE BUILDING IN SAN
DIEGO AND IT'S A BUILDING THAT
WE ARE INTERESTED IN.
AND WE WOULD SEEK A VERY
ECONOMICAL AND APPROPRIATE
ENGAGEMENT WITH DEPARTMENT
GENERAL SERVICES L. L. ANYTHING.
WE DON'T HAVE ANY CONCERNS WITH
THE PARTICULAR PROPOSAL WE WE DO
NOTE AS IS LISTED IN YOUR AGENDA
THAT.
WE DON'T HAVE A LOT OF
INFORMATION RIGHT NOW ON WHAT
PHASE TWO IS GOING TO LOOK LIKE
THAT SEEM TO BE STILL UNDER
DEVELOPMENT BY THE COMMISSION.
WE DO THINK THIS COMMITTEE
HEARING IN PROBABLY FUTURE ONE
WILL BE GOOD OPPORTUNITIES FOR
YOU TO IDENTIFY AND ASK THE
COMMISSION FOR WHAT.
THEIR FUTURE PLANS ARE FOR
DECENTRALIZATION -- THE LOCATION
OF THE COMMISSION.
AND IN HOW MUCH OF ITS
OPERATIONS ARE CENTERED IN SAN
FRANCISCO THAN AN AREA OF
INTERESTFOR SOME LEGISLATORS IN
THE PAST -- IN RENT.
THAT'S RIGHT AND SO -- A AND WE
KNOW AS WELL THAT THERE IS THE
COMMISSIONER THERE COULD BE
OPPORTUNITIES PANEL WHICH UNITS
IT MOVES TO WHICH LOCATION THERE
MAY BE OPPORTUNITIES TO IMPROVE.
OPERATIONS COORDINATION WITH AND
WITH THE AIR BOARD WITH THE
ENERGY COMMISSION WITH OTHER
AGENCIES AND SO IT MAY BE
VALUABLE.
TO DO YOUR DUE DILIGENCE YOUR
OVERSIGHT OVER THE COMMISSION
MAKE SURE THEY'RE USING THE
RIGHT CRITERIA IN DETERMINING
THAT THE CENTER LINE AND SEND A
SNEAK PREVIEW SOME FACE TO YOU
CAN HELP US OUT HERE.
NOT AT THIS TIME.
CENTER JONES.
A COUPLE OF QUESTIONS REGARDING
THE SANDY LOCATION -- IS THAT A
A SERIOUS -- IS THAT A HOME IS A
SERIOUS ACCIDENT IS THAT
SOMETHING THAT YOU MIGHT
ACTUALLY PURSUE IS -- MOVING
SOME OF THE OPERATIONS TO SAN
DIEGO.
YES SENATOR I PERSONALLY VISITED
THE FRONT STREET -- BUILDING
LAST WEEK I WALKED THE ENTIRE
BUILDING SAW MULTIPLE SPACES
THERE I SUBMITTED A THE WORK
PLAN OF THE FLOOR PLAN.
AND OTHER DOCUMENTATION TO THE
DIRECTOR OF THE CPC THIS LAST
WEEK -- IT'S IT IS A SERIOUS
CONSIDERATION.
THIS IS WHAT WILL THAT OFFICE
HAVE -- HE CAN YOU TELL ME THE
LEVEL OF INTERACTION IT WOULD
HAVE WITH THE PUBLIC COMING TO
THAT BUILDING OR IS IT MOSTLY --
STATE EMPLOYEES THAT DON'T
INTERACT WITH THE PUBLIC.
I WOULD CONSIDER IT A KIND OF
LIKE A SATELLITE OFFICE BECAUSE
IT DOESN'T HAVE OF THE FULL
CAPABILITIES FOR HEARING ROOMS
AT THIS POINT.
THERE IS A A MAJOR HEARING ROOM
IN THE BASEMENT THAT I TOURED
BUT UNFORTUNATELY BECAUSE OF THE
LIMITED ABILITY TO UPGRADE THAT
BUILDING -- IT'S VERY DOUBTFUL
WOULD BE ABLE TO USE THOSE
FACILITIES BUT I DID.
CERTAINLY TOUR THAT AREA AND
CONSIDER IT MOST OF THE STAFF --
LOCATING THERE WOULD BE WORKING
OUTSIDE OF THE OFFICE -- THEY
WOULD BE DOING THE INSPECTIONS
INVESTIGATIONS -- ALE JAY'S
WOULD BE THERE AND MOST LIKELY
OUR HEARINGS WE HAVE TO BE IN
LOS ANGELES OR SOME OTHER LEASED
SPACE I CAN I WANNA MAKE SHORT
TIME AT THE BILLING ON FRONT
STREET.
ON FRONT STREET THAT IS CLOSE TO
MY MY CONCERN WITH THAT BUILDING
IS -- IF THE PUBLIC HAS.
TO HAVE ACCESS TO THE EMPLOYEES
ARE THE PARKING IS -- NOT VERY
GOOD THERE FOR THE PUBLIC AND I
THINK THERE'S EVEN SOME PARKING
CHALLENGES FOR THE EMPLOYEES
IT'S IT'S IT'S KIND OF UNDER
PART -- I WOULD ENCOURAGE YOU TO
I DON'T KNOW IF YOU'VE REACHED
OUT TO THE LEGISLATORS THAT ARE
LOCATED.
IN THAT OFFICE BUILDING KIND OF
GET THEIR TAKE ON THE
INTERACTION WITH THE PUBLIC --
FOR THAT I HAVE IS IF THERE'S NO
PUBLIC INTERACTION AND I'M LESS
CONCERNED IF THERE'S SIGNIFICANT
PUBLIC INTERACTION AND I'M.
THE CONCERNS HIGHER.
I WOULD CONSIDER IT -- MINIMAL
OKAY.
THE JUDGE WHEN YOU'RE IN THERE.
WHEN YOU GET A PC IN SAN DIEGO
[inaudible]
YEAH.
ART LET'S OPEN UP THE PUBLIC
HEARING THESE ARE THE ISSUES
THAT WERE HOLDING OPEN WITH THE
P. YOU SEE IT'S ISSUE. EIGHT TEN
ELEVEN AND TWELVE ANYBODY PUBLIC
WOULD LIKE TO ADDRESS WHAT WE
HAVE MEMBERS OF P. YOU SEE HERE.
WE'LL CLOSE THE PUBLIC HEARING
THANK YOU VERY MUCH FOR YOU SEE --
MEMBERS LET'S JUMP [inaudible]
TO ISSUE NUMBER SEVEN WITH THE
M -- THE ENERGY COMMISSION IS
ENERGY HERE NOW.
THIS IS THE ENERGY RESOURCE
PROGRAM ACCOUNT DEFICIT
REDUCTION WE HAVE HIT.
THE POINT ZERO ZERO ZERO THREE
LIMIT.
A KILOWATT HOURS WE HAVE INDEED
YES PLEASE.
THANK YOU VERY MUCH DREW BONE
I'M THE EXECUTIVE DIRECTOR FOR
THE ENERGY COMMISSION -- THANK
YOU FOR TAKING THE TIME TO HEAR
FROM US THAT ACCOUNT THE ENERGY
RESOURCES PROGRAMS ACCOUNT THE
ACCOUNT.
A GENERATES FOR US -- WHAT HAS
BEEN HISTORICALLY SUFFICIENT
FUNDS TO RUN A?
LARGE CHUNK OF OUR ORGANIZATION
HOWEVER IT IS IN A STRUCTURAL
DEFICIT AND THAT'S WHY WE'RE
HERE BEFORE YOU -- THIS MORNING.
DEMAND FOR OUR SERVICES HAS BEEN
INCREASING WE'VE GOT ABOUT SEVEN
HUNDRED PLUS STAFF OF THE ENERGY
COMMISSION.
OF FOUR HUNDRED PLUS OF THOSE
ARE FUNDED FROM THIS ACCOUNT
OVER THE LAST ABOUT DECADE YOU --
GRANTED A SEVENTY NEW POSITION
SO IT'S GROWN CONSIDERABLY AT
THE SAME TIME THE REVENUES HAVE
BEEN DECLINING.
IN IT THERE'S TWO REASONS FOR
THIS THE FIRST IS THE BUYING THE
METER SOLAR THAT WE'VE BEEN SO
SUCCESSFUL WITH THE CALIFORNIA
WE'RE UP TO ABOUT EIGHT EIGHT
GIGAWATTS RIGHT NOW AND TO PUT
THAT IN PERSPECTIVE THAT'S MORE.
THAT PRODUCES MORE ENERGY THAN
THE STATE OF VERMONT CONSUMES IN
ITS ENTIRETY SO WE'VE REALLY
DONE WELL.
WHAT WOULD THAT BE IN DOLLARS SO
THAT WE HAVE A?
YOU KNOW IF WE IF WE WERE ABLE
TO CHARGE FOR THE BEHIND THE
METER AND WHICH I NOW I REALIZE
THAT'S LEGISLATION SOME PEOPLE.
RIGHTI'LL GET EMAILS FROM IT
BUT BUT IT'S IT IS [inaudible]
A CONCERN.
AMONG THE ITEMS THAT YOUR STAFF
AND THE AWAY ALWAYS IDENTIFIED
AS POTENTIAL AREAS TO INCREASE
REVENUES. TO TO CLOSER SHORTFALL
IS TO IMPOSE THIS CHARGE WHICH
ISN'T CURRENTLY.
IMPOSED ON BY THE METER TO BUY
THE METER AND TEST YOUR QUESTION
THE THE THE NUMBER -- IT I GUESS
YOUR QUESTION WOULD BE WHAT IF
WE TOOK THE CURRENT CHARGE AND
JUST STRAIGHT UP APPLIED THAT TO
BEHIND ME -- I'D I THINK IT
GENERATES.
ABOUT DOING -- THREE MILLION.
SO THAT WOULD IF WE JUST TOOK
THE POINT ZERO ZERO THREE CHARGE
IT WOULD GENERATE THREE MILLION
MORE SO WE WOULD CLOSE THE
STRUCTURAL DEFICIT WOULD FIX IT
RIGHT.
IT WOULD SUBSTANTIALLY REDUCE IT --
SO THANKS FOR THE QUESTION THE
OTHER PIECE OF IT IS
CONSERVATION.
AND THAT'S CHIEFLY BAN -- ENERGY
EFFICIENCY AND SO AS WE REDUCE
THE ENERGY WE CONSUME BY
BECOMING MORE ENERGY EFFICIENT --
AND BUILDINGS INCREASINGLY ARE
BECOMING SO AS OUR APPLIANCES
THAT -- THAT ALSO HAS HAS A A
SUPPRESSING IMPACTS OF THIS IS
GREAT FOR CALIFORNIA IT'S GREAT
FOR RATEPAYERS REDUCES RATES
IT'S BUT SOME THESE ARE AMONG
THE REASONS WHY OUR PER CAPITA
CONSUMPTION IN CALIFORNIA'S 44%
LOWER.
THAN THE AVERAGE THROUGHOUT THE
NATION SO WE'VE DONE REALLY WELL
THERE BUT IT IMPACTS OUR ABILITY
TO RUN OUR OUR ORGANIZATION SO
THAT'S WHY WERE -- BEFORE YOU
TODAY.
OF FOR THE LAST SEVERAL YEARS
WE'VE BEEN SPENDING MORE THAN
WE'VE -- BEEN BRINGING IN AND
WE'VE BEEN ABLE TO DO THAT
BECAUSE THERE'S BEEN A RESERVE
THAT IS TRENDING SIGNIFICANTLY
DOWNWARDS AND WILL HIT ZERO IN
THE NEXT COUPLE YEARS -- I THINK
I'LL MAKE SOME CHANGES SO.
WHAT WE'VE GOT BEFORE YOU WILL
BEFORE SAID THAT I WANT TO SAY
THAT IN THE LAST TWO BUDGET
CYCLES WE HAVE REDUCED THE
PRESSURE ON THIS ACCOUNT?
BUT TWENTY SEVEN MILLION DOLLARS
SO WE'VE DONE A LOT OVER THE
LAST TWO YEARS I THANK YOUR
STAFF MR HACKER AND OTHERS WHO
HAVE BEEN COLLABORATING WITH US.
AND OF COURSE FINANCE TO FIGURE
OUT WAYS TO DO THAT AND WE'VE
WE'VE DONE IT QUITE
SUBSTANTIALLY WE STILL AREN'T
THERE.
BUT WHAT WE'VE GOT BEFORE YOU
THIS MORNING IS AN ADDITIONAL
ABOUT TEN MILLION PER YEAR.
THAT WOULD FURTHER REDUCE THE
PRESSURE ON THIS ACCOUNT -- NOT
GET US ALL THE WAY THERE BUT IT
WOULD BE A HUGE HELP
[inaudible]
BELIAU -- YES WE RECOMMEND
ADOPTING THE PROPOSED CHANGES IN
THE APRIL FINANCE LETTER WE
THINK THIS DOES MAKE A
SUBSTANTIAL PROGRESS TOWARDS
CLOSING THAT GAP.
AS THE COMMISSION NOTED --
THEY'RE STILL A GAP REMAINING
AND SO WHAT WE'VE SUGGESTED AS
YOU STARTED YOUR CONVERSATION
ALREADY IS WHAT ARE THOSE OTHER
OPTIONS THAT MIGHT STILL BE
AVAILABLE -- TO FULLY CLOSE THE
GAP.
THE THESE OPTIONS AS WELL THAT
WE KNOW IN THE AGENDA AS WELL AS
OTHERS ARE IDENTIFIED IN THE
COMMISSION REPORT THAT CAME OUT
EARLIER THIS YEAR -- ULTIMATELY
WHETHER YOU -- YOU DO HAVE SOME
TIME YOU DON'T HAVE TO DOT MORE
THAN WAS PROPOSED TODAY THE THE
STRUCTURAL DEFICIT REMAIN BUT IT.
DOESN'T GO INTO THE RESERVES ARE
DEPLETED RESERVES UNTIL TWENTY
AT TWENTY TWO TWENTY THREE SO
YOU HAVE SOME TIME.
BUT IF YOU CHOOSE NOT TO FULLY
CLOSED THE GAP NOW WE WOULD
RECOMMEND GUESS IF YOU HAVE THE
LAST TWO YEARS THE DOCKING
SUPPLEMENTAL REPORT LANGUAGE.
REQUIRING THE COMMISSION TO COME
BACK TO YOU AGAIN NEXT YEAR WITH
ADDITIONAL OPTIONS.
WHAT'S YOUR OPINION I I KNOW
THAT SOME LEGISLATORS WHENEVER
WE HAVE A TWO THIRDS VOTE KIT
LITTLE SQUEAMISH ABOUT ABOUT
THAT BUT AS AS FAR AS GRANTING
THE AUTHORITY YOU KNOW WERE --
WE'RE ALL WE ALL HAD MATH SO
WE'VE GOT POINT. ZERO ZERO THREE
THREE TEN THOUSANDTHS.
THE VIRUS AT THREE TEN THOUSANDS
PER KILOWATT HOUR -- IF THE
AUTHORITY WERE BUT LET'S SEE
RIGHT MEASUREMENT AND BECAUSE WE
DON'T WANT WE DON'T WANT
LEGISLATORS TO BE WORKING YOU
KNOW IF WE'RE GOING TO RAISE THE
CAP.
WE DON'T WANT LEGISLATORS TO
COME BACK -- OR HAVE TO VOTE ON
THIS ON AN ANNUAL BIG ANNUAL
BASIS BECAUSE PER IS AN
IMPORTANT PROGRAM BUT THE BUT WE
REALIZE THAT THEY HAVE TO COME
TO US IF WE RAISE THE CAP.
I'M JUST MAKING UP NUMBERS. FOR
TEN THOUSANDS YOU KNOW JUST TO
PICK BECAUSE I GUESS WE GO THREE
POINT THREE FIVE TWO TWO TWO OR
WHATEVER THE NUMBER IS IF WE DID.
pCLOSE THAT STRUCTURAL DEFICIT BY
JUST USING A TINY PORTION OF
THAT -- AS A AS AN INCREASE IN
THEN YOU WOULD HAVE THAT RESERVE
AS THE ENERGY EFFICIENCY AND THE
THESE OTHER MATTERS GO ON OR
MAYBE NEVER USE IT.
DO YOU HAVE A OPINION.
HE READ THE REPORT YES.
NO A A CERTAINLY THE LEGISLATURE
HAS DISCRETIONTO RAISE THAT
CAPPED WHATEVER IT DECIDES THE
AND IS IT IS -- PROGRAMS WORK IN
THE PAST THE THERE'S BEEN THE
STATUTORY CAP AND PRIOR TO THAT
THERE WAS DISCUSSION ABOUT --
THEY DIDN'T FULLY -- A UTILIZED
IN THE ENTIRE SPACE THAT WAS
AVAILABLE THE YOU COULD FOR
EXAMPLE INCREASE THE CAP TO SOME
HIGHER LEVEL KNOWING THAT THAT
DOESN'T NECESSARILY MAN THAT
YOU -- THE COMMISSION WOULD
CHARGE THAT FULL AMOUNT AND
INSTEAD IT WOULD BE DICTATED BY.
WHATEVER BUDGET PROPOSALS ARE
APPROVED BY YOU TO PROVIDE
PROGRAMS AND PROVIDE SERVICES
USING THE HERB OF FINE AND SO
YOU COULD IMAGINE A SCENARIO
WHERE YOU HAVE SOME FLEXIBILITY.
WITH A HIGHER CAP BUT YOU WOULD
STILL HAVEA LOT OF WITH
AUTHORITY TO DETERMINE WELL WHAT
WE ONE OF WHAT BUDGET PRIORITIES
THAT WE HAVE IN IN JUST MAKING
SURE THAT THE ACTUAL AMOUNT
COLLECTED IS.
COMMENSURATE WITH THAT RIGHT NOW
AND WE WOULD HAVE I MEAN IF WE
DID BEHIND THE METER AND AND AND
HAD THAT INCLUDED IN THE
STRUCTURAL DEFICIT WOULD BE LESS
SO THAT.
THAT.
FUDGE FACTOR WOULD BE A LITTLE
BIT THAT WOULD KEEP US YOU KNOW
EVERY YEAR WE HAVE A REPORT OR
FUTURE.
HERE'S A STEP TWO WOULD HAVE A
REPORT THAT SAID OKAY WE HAVE TO
ADJUST TO RATE THIS MUCH IN
ORDER TO GET IT WE HAVE THE
AUTHORITY WERE ASKING.
YOU KNOW IN A PUBLIC HEARING TO
HAVE THE AUTHORITY TO GO DO IT
AND THAT'S A DIFFERENT THAT'S A
DIFFERENT CONVERSATION.
THEN THE STRUCTURAL DEFICIT
EVERY TIME I'M UP HERE.
THE SERVER MAY THE JUST TO PUT
THIS ABSTRACTION OF THREE TEN
THOUSANDS INTO PERSPECTIVE WHAT
IT IMPACTS -- THE REST AVERAGE
RESIDENTIAL METER IT'S ABOUT
SEVENTEEN CENTS PER MONTH.
AND THE INCREASE YOU JUST
DESCRIBE IT AT ABOUT ANOTHER
NICKEL PER MONTH -- TO THAT.
EVER TO REPAIR OKAY THIS IS THE
ONLY MATTER WE HAVE WITH THE
ENERGY COMMISSION GOOD OPEN UP
THE PUBLIC HEARING.
ANY -- FRACTION INTO CS THAT
WANT TO TALK TO US ADDRESS THE
CLOSE THE PUBLIC HEARING THERE'S
NO ACTION BE TAKEN WE'RE GOING.
TO ALL THIS MATTER OPEN THANK
YOU FOR YOUR TIME.
THE MEMBERS RIGHT.
LET'S MOVE TO THE VOTE ONLY
MATTERS.
YEAH SO WHAT I WOULD LIKE I
WOULD ENTERTAIN A MOTION FOR
ITEMS ONE THREE AND FIVE OR ONE
IN THREE AS BUDGETED.
WITH REGARD TO ITEM NUMBER FIVE
WE'D LIKE TO REJECT.
AN APPROVED FIVE THOUSAND NINE
HUNDRED AND FIFTY THOUSAND
DOLLARS I'M GOING TO INCREASE
THE THE SG RAN.
AT FIVE OH FIVE VAN ES IN THE
CITY OF SAN FRANCISCO.
IS THERE A MOTION.
CIVIL BY CENTER MINING PLEASE
CALL THE ROLL I KELSEY HI JONES.
REQUIRE.
MORNING.
STERN.
ALL RIGHT THOSE MATTERS APPROVE
FIVE ZERO AND ANOTHER MOTION WE
DO ENTERTAIN AS I KNOW ITEMS TWO
FOUR AND SIX AS BUDGET.
MOVE BY CENTER MINING.
PLEASE CALL THE ROLL BY KELSEY
HI JONES.
REQUIRED [inaudible]
LOADING [inaudible]
STERN.
THAT'S FOR ONE THAT MATTERS A
PROOF THAT CONCLUDES OUR
CALENDAR -- PLEASE HAVE A WE ARE
ADJOURNED