I'D LIKE TO WELCOME EVERYONE TO
THIS HEARING THAT YOU'RE AWARE
GOVERNOR NEWSOME CREATED TO
STRIKE FORCE. TO EXAMINE THE
STATE'S EFFORTS RELATING TO THE
SAFETY RELIABILITY AND
AFFORDABILITY OF ENERGY.
AS PART OF THESE EFFORTS THE
STRIKE FORCE WAS DIRECTED TO
DEVELOP A ROADMAP.
THAT ADDRESSES THE ISSUES OF
WILDFIRES.
CLIMATE CHANGE IN CALIFORNIA'S
ENERGY FUTURE.
LAST MONTH THE STRIKE FORCE
ISSUED A REPORT ON WHILE
PARTISAN CLIMATE CHANGE.
IN CALIFORNIA'S ENERGY FUTURE
THIS SELECT COMMITTEE IS
ESTABLISHED SPECIFICALLY TO
EXAMINE THE STRIKE FORCE REPORT
AND SUGGESTED OPTIONS CONTAINED
HEREIN.
THE STRIKE FORCE REPORT ON
WILDFIRES IN CLIMATE CHANGE
CALIFORNIA'S ENERGY FUTURE IS
COMPRISED OF FIVE PARTS.
COVERING A BROAD RANGE OF TOPICS
IN SETTING FORTH A SERIES OF
OPTIONS IN QUESTIONS FOR THE
LEGISLATURE TO EXAMINE.
TODAY WE'VE ASSEMBLED SOME TO A
DISTINGUISHED PANEL OF STRIKE
TEAM MEMBERS TO GIVE US AN
OVERVIEW OF EACH PART OF THE
REPORT.
HOWEVER WE HAVE ASKED.
THE PANELISTS TO SPEND A LITTLE
MORE THEIR TIME ON PART.
ONE PERTAINING TO A WILDFIRE
PREVENTION AND RESPONSE PART
THREE PERTAINING TO A FAIR
ALLOCATION OF CATASTROPHIC
QUALIFIER DAMAGES.
AND PART FIVE PERTAINING TO THE
P. JEANNIE SITUATION.
THE OTHER SUBJECT TO THE STRIKE
TEAM REPORT ARE THE EQUAL
IMPORTANCE IN THIS SELECT
COMMITTEE MAY SET TIME IN THE
FUTURE TO DELVE DEEPER INTO
THOSE PARTS OF THE REPORT.
AS WELL.
IN ADDITION THE SENATE'S
CONSIDERATION OF THE STRIKE TEAM
REPORT GOVERNOR NEWSOME IS ALSO
ASK THE SB.
NINE OH ONE COMMISSION ON
CATASTROPHIC WHILE FAR COST
RECOVERY TO CONSIDER THE OPTIONS
IN THE REPORT AS WELL.
THEREFORE WE'VE ASKED CHAIR OF
THE COMMISSION IN OUR SENATE
COMMISSION APPOINTEE TO GIVE US
AN UPDATE -- COMMISSION
ACTIVITIES DELIBERATIONS BEFORE
I INTRODUCE OUR FIRST PANEL ARE
THERE ANY OTHER MEMBERS THAT
WOULD LIKE TO MAKE -- ANY
INTRODUCTORY MORE REMARKS.
SEEING NONE WATER WE SYMBOL OUR
FIRST PANEL.
WE'D CROWFOOT SECTOR NATURAL
RESOURCES TIM EIGHING ANYTHING
POLLOCK OF PHIL'S INJURE.
ENERGY PARTNERS IN NACY
MITCHELL FROM O'MELVENY AND
MYERS LLP [inaudible]
GOOD AFTERNOON.
GOOD AFTERNOON CHAIRMAN DOT
MEMBERS OF THE COMMITTEE.
THANK YOU FOR FORMING THE SELECT
COMMITTEE AND THANK YOU FOR THE
OPPORTUNITY TO BE WITH YOU TODAY
TO SHARE.
THE RESULTS OF THIS REPORT --
ONE OF THE PRIMARY PURPOSES OF
THIS REPORT IS TO INFORM THE
DIALOGUE -- THAT YOU ALL ARE
LEADING -- IN THE STATE SENATE
IN THE STATE ASSEMBLY ON THESE
COMPLICATED ISSUES A MAJOR BUT
AND MAJOR PROBLEMS SO WE
APPRECIATE YOUR ATTENTION AND
YOUR INTEREST IN THIS -- I AM
HERE -- INTO IT TODAY AT THIS
HEARING TO BOTH THAT SORT OF
FRAME -- THE OVERALL REPORT AND
AND WHAT WE WERE ATTEMPTING TO
GET DNE WITH IT -- AND THEN
I'LL OVERVIEW SECTION ONE AND
THEN I'LL INTRODUCE -- MY
COLLEAGUES HERE ARE REAL WHO ARE
EXTERNAL EXPERTS THAT WE HAVE
UTILIZED IN THEIR STRIKE FORCE
PROCESS.
SO I WOKE UP TODAY TO NPR --
THAT WAS REMINDING ITS LISTENERS
THAT IT WAS SIX MONTHS AGO TODAY --
THAT THE TOWN OF PARADISE --
EXPERIENCED WHAT IS REALLY
UNIMAGINABLE TRAGEDY. EIGHTY
FIVE LIVES LOST. NINETEEN
THOUSAND HOMES AND BUSINESSES
DESTROYED OVER A HUNDRED FIFTY
THOUSAND ACRES.
OF LAND BURNED IN JUST HOURS.
THAT SAME MONTH IN SOUTHERN
CALIFORNIA THE WALLS THE FIRE
RAGED IN LOS ANGELES AND VENTURA
COUNTIES.
KILLING THREE PEOPLE DESTROYING
SIXTEEN HUNDRED HOMES AND
BUSINESSES.
AND OVER A HUNDRED THOUSAND
ACRES OF LAND.
JUST A YEAR BEFORE IN NAPA AND
SONOMA THE TUBS FIRE.
THE SECOND MOST IS DESTRUCTIVE
FIRE IN CALIFORNIA HISTORY.
TOOK TWENTY TWO LIVES NOW 360-0
HOMES AND BUSINESSES AND
DESTROYED THIRTY SIX THOUSAND
ACRES.
ALL TOLD AS YOU KNOW TWENTY
SEVENTEEN AND TWENTY EIGHTEEN
WERE EASILY THE MOST DESTRUCTIVE
YEARS IN TERMS OF WILD FIRE
DAMAGE IN THE STATE'S HISTORY.
MORE THAN SIXTEEN THOUSAND WILD
FIRES.
BURNING ALMOST THREE MILLION
ACRES OF CALIFORNIA -- THAT'S
ABOUT 3% OF OUR TOTAL LAND MASS.
HUNDRED THIRTY NINE LIVES LOST.
TENS OF THOUSANDS OF BUSINESSES
AND HOMES DESTROYED.
DANGEROUS AIR QUALITY ACROSS THE
STATE THAT -- WHILE SOME OF
THOSE FIRES RAGED ACTUALLY HAD
THE WORST AIR QUALITY ON THE
PLANET.
AND OF COURSE THE MISSION OF
MILLIONS OF TONS OF CARBON
DIOXIDE AT A TIME WHEN
CALIFORNIA'S TRYING TO LEAD THE
WORLD.
REDUCING THE AMOUNT OF
GREENHOUSE GAS POLLUTION.
THIS REPRESENTS A WILDFIRE
CRISIS AS YOU KNOW THAT WE HAVE
NEVER EXPERIENCED BEFORE IN
CALIFORNIA [inaudible]
AND A CRISIS THAT WILL VERY
LIKELY GET WORSE -- GIVING
CLIMATE CHANGE.
WARMING WINTER AND SUMMER
TEMPERATURES REDUCE SNOW PACK.
DR WARMER CONDITIONS -- IN OUR
FORESTS AND LONGER MORE
PUNISHING DROUGHTS.
AND THEN OF COURSE IN THE WAKE
OF THE TWENTY EIGHTEEN FIRES AT
THE END OF THE YEAR I I SHOULD
SAY IN JANUARY -- PACIFIC GAS
AND ELECTRIC -- DECLARES
BANKRUPTCY -- DRIVEN BY THE
FINANCIAL LIABILITIES ASSOCIATED
WITH THESE WILD FIRE RISK.
AND OF COURSE THAT BANKRUPTCY --
AS THE GOVERNOR NOTED CREATES
GREAT UNCERTAINTY FOR FIRE
VICTIMS FOR CONSUMERS FOR
WORKERS AND REALLY FOR ALL
CALIFORNIANS. TO RECOGNIZING
THAT CRISIS -- SHORTLY AFTER THE
P. GINNY DECLARE BANKRUPTCY THE
GOVERNOR IN THE STATE OF THE
STATE -- CALLED FOR AN ENERGY
STRIKE FORCE TO BE ASSEMBLED.
LED BY HIS CHIEF OF STAFF THAT
WOULD DEVELOP.
A REPORT IN SIXTY DAYS NOT TO
SHARE WITH YOU ALL IN THE
LEGISLATURE AND MEMBERS OF THE
PUBLIC.
AND HE SAID HE HE WANTED THAT.
THAT'S RIGHT FOR US TO TO FOCUS
ON ACTIONS THAT WOULD ENSURE
CALIFORNIANS CONTINUED ACCESS.
TO TO SAFE AND AFFORDABLE POWER
AND TO SEEK JUSTICE FOR FIRE
VICTIMS FAIRNESS FOR EMPLOYEES
AND PROTECTIONS FOR CONSUMERS.
AS I MENTIONED THE THE THE
ENERGY STRIKE FORCE THAT
PRODUCED THE REPORT WE'RE
TALKING ABOUT TODAY WAS LED BY
ANNA LARY.
INCLUDED OTHER LEADERS IN THE
GOVERNOR'S OFFICE INCLUDING
CABINET SECRETARY ON AMANDA
SANTOS.
OKAY CORD THE DIRECTOR OF THE
GOVERNOR'S OFFICE OF PLANNING
AND RESEARCH WE'RE GRATEFUL THAT
THE STATE INSURANCE COMMISSIONER
RICARDO LARA AND TEAM I JOIN TO
THE TASK FORCE.
THE TASK FORCE ALSO INCLUDED THE
DIRECTOR OF THE DEPARTMENT OF
FINANCE THE CHIEF OF CAL FIRE
THE PRESIDENT THE CPUC THE CHAIR
OF THE CALIFORNIA ENERGY
COMMISSION.
THE C. E. O. OF THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR AND
MYSELF SERVING AS THE SECRETARY
OF THE NATURAL RESOURCES AGENCY.
WE ALSO WERE ABLE TO RETAIN --
THE EXPERTISE OF NATIONAL
EXPERTS ON THESE QUESTIONS OF OF
BANKRUPTCY THE FUTURE OF
UTILITIES WILDFIRE -- AND OTHER
TOPICS AND SAMPLING OF THESE
EXPERTS ARE HERE TODAY TO SHARE
THEIR PERSPECTIVE -- WITH YOU AS
THEY SHARED WITH US.
AND THE REPORT WILL WILL
SUMMARIZING DISCUSS WITH YOU
TODAY -- WAS WAS RELEASED ON
APRIL TWELFTH AND IT WAS --
CALLED WILDFIRES IN CLIMATE
CHANGE CALIFORNIA'S ENERGY
FUTURE.
AS THE CHAIRMAN NOTED YOU'VE
ASKED US.
TO FOCUS ON CERTAIN.
AREAS WITHIN THE REPORT AND I
JUST WANT -- TO SET CONTEXT FOR
YOU -- AS AS IT RELATES TO THE
REPORT -- AS I SAID I'LL
SUMMARIZE SECTION ONE WHICH IS
REALLY FOCUSED ON WILD FIRE.
PREVENTION AND RESPONSE
MITIGATION.
HOW THEN TURNED TO TIM WEIGHING
OF PHIL SINGER ENERGY PARTNERS
TO SUMMARIZE BRIEFLY SECTION TO
FOCUSED ON -- CLEAN ENERGY GOALS
AND HOW THEY'RE IMPACTED BY
THESE SET OF EVENTS.
AND THEN NANCY MITCHELL -- FROM
O'MELVENY MYERS -- WILL THEN
SUMMARIZE THAT THE LAST THREE
PARTS OF THE REPORT -- INCLUDING.
THE DISCUSSION OF ALLOCATING
COSTS OF THE WILD FIRES.
ARE DISCUSSING NEEDED REFORMS AT
THE C. P. U. C..
AND THEN ALSO OVER VIEWING
REPORTS RECOMMENDATIONS ON HOW
TO HOLD P. JEANNIE ACCOUNTABLE.
AND BROADLY ENSURE SAFER
UTILITIES.
I AND THEN WITHIN A PRESENTATION
NANCY WILL ALSO ASK NATHAN
POLLOCK OF PHIL SINGER ENERGY
PARTNERS -- TO TO SHARE HIS
EXPERTISE.
SO OVER VIEWING SECTION ONE AS
YOU BASS CHAIRMEN I'LL A REALLY
TAKE IT IN THREE PARTS -- ONE IS
CHARACTERIZING THE PROBLEM AS WE
SEE IT TOO IS SUMMARIZING THE
RESPONSE OR OUR RESPONSE TO DATE
IN THE NEWS MINISTRATION.
AND AND MOST IMPORTANTLY FOR
THIS DISCUSSION.
OVER VIEWING FURTHER ACTION THAT
WE BOOK THAT WE RECOMMENDED IN
THE REPORT.
SO AS WE ALL KNOW WILD FIRES A
PART OF CALIFORNIA'S NATURAL
ECOLOGY -- THERE'S THERE'S LONG
PHYSICAL RECORD OF PERIODIC
FIRES ESSENTIALLY MANAGING OUR
FORESTS ALSO STRONG EVIDENCE OF
A CALIFORNIA TRIBES ACTUALLY
MANAGING FORCED THROUGH
PRESCRIBED BURNS.
I IN THE LAST TWO HUNDRED YEARS
OUR POPULATION HAS EXPANDED INTO
THE FORESTS THE OAKLAND THE
CHAPARRALS -- AND WITH THAT
WE'VE SUPPRESS NATURAL FIRE.
AND WHAT HAS RESULTED IS A
FOREST IN A WILD LAND -- THAT
LOOKS VERY DIFFERENT AND IS
ACTUALLY FAIRLY ON NATURAL -- TO
COMPARED TO WHAT IT ONCE WAS.
TODAY ONE OUT OF FOUR
CALIFORNIANS LIVE IN AN AREA OF
THE STATE THAT IS THREATENED BY
FIRE -- WHAT WE WHAT WE'VE COME
TO KNOW AS THE WILDLAND URBAN
INTERFACE OR THE WILL BE?
NOT 25% OF CALIFORNIA'S
POPULATION OR ELEVEN MILLION
PEOPLE.
I AT THE SAME TIME AS AS I
ALLUDED -- CLIMATE CHANGE IS
COMPOUNDING THIS THE SITUATION.
LONGER AND MORE INTENSE FIRE
SEASON ARE CHARACTERIZING WHAT
CAL FIRE AND OTHER AGENCIES HAVE
TO DEAL WITH -- STRETCHING ON
AVERAGE EIGHTY TO NINETY DAYS
LONGER -- THAN IN THE PAST AND
IN SOME PARTS OF CALIFORNIA FIRE
SEASON IS LITERALLY -- YEAR
AROUND -- A RECENT DROUGHT
OBVIOUSLY CREATED AN EPIDEMIC OF
TREE MORTALITY ACROSS THE SIERRA
AND OTHER PARTS OF THE STATE.
THAT WE HAVE AN EXPERIENCED IN
IN CALIFORNIA'S HISTORY WHICH
ADDS TO THAT -- FIRE DANGER.
JUST CONSIDER THESE FACTS
FIFTEEN OF THE TWENTY S. POINT
TWENTY MOST DESTRUCTIVE FIRES
HAVE OCCURRED SINCE.
TWO THOUSAND HI AND TEN OF THOSE
FIRES ATTENDED THE TWENTY MOST
DESTRUCTIVE SINCE.
TWENTY FIFTEEN MORE THAN ONE
QUARTER OF THE STATE'S LAND MASS
IS NOW -- CLASSIFIED AS UNDER
EXTREME OR VERY HIGH FIRE RISK
TWENTY FIVE MILLION ACRES.
AND ACCORDING TO OUR FOURTH
CLIMATE ASSESSMENT WHICH IS THE
SET OF SCIENCE THAT THE STATE
FUNDS -- CALIFORNIA'S WILDFIRE
BURN AREA WILL LIKELY INCREASE
BY 77% -- BY BY -- TWENTY ONE
HUNDRED SOBERING FACTS. TO
RESPONSE TO ALL OF THIS -- YOU
KNOW GOVERNOR NEW SOME ACTUALLY
BEGAN TAKING ACTION BEFORE.
BEING INAUGURATED IN SPENDING
TIME OBVIOUSLY IN PARADISE --
AND UNDERSTANDING THAT THE NEEDS
OF A FIRE VICTIMS AND THE
RESPONSE ONCE HE TOOK OFFICE IN
HIS SECOND FULL DAY OF OFFICE HE
ISSUE TO EXECUTIVE ORDERS AND
I'LL TALK ABOUT BOTH.
THE FIRST EXECUTIVE ORDER
DIRECTED CAL FIRE TO ISSUE
WITHIN FORTY FIVE DAYS --
SPECIFIC RECOMMENDATIONS THAT
COULD BE IMPLEMENTED IMMEDIATELY
TO PROTECT OTHER VULNERABLE
COMMUNITIES THIS YEAR FOR THIS
FIRE SEASON.
AND THAT EXECUTIVE ORDER
DIRECTED CAL FIRE NOT ONLY TO
RECOMMEND IMMEDIATE ACTIONS BUT
ALSO A LONGER TERM ACTIONS TO
ADDRESS THIS IN COMING YEARS.
CAL FIRE I HAVE FOLLOWED THAT
EXECUTIVE ORDER AND WITHIN FORTY
FIVE DAYS ISSUED PUBLICLY WHAT A
COUPLE WAS KNOWN.
AS THE WILDFIRE PREVENTION AND
MITIGATION REPORT I CALLED FOR A
RECOMMENDED A RANGE OF ACTIONS
MEDIA -- MEDIUM TERM AND LONG
TERM. ONE OF THE MOST IMPORTANT
IMMEDIATE ACTIONS WAS AYE.
EXPEDITING THIRTY FIVE PROJECTS
ARE REALLY MOSTLY FIRE BREAK
PROJECTS AROUND COMMUNITIES TO
PROTECT TWO HUNDRED OF THE MOST
VULNERABLE COMMUNITIES IN
CALIFORNIA.
THE GOVERNOR READ THAT REPORT
AND SHORTLY THERE AFTER HE DID
SOMETHING FAIRLY UNPRECEDENTED
WHICH IS DECLARE A PROACTIVE --
PROCLAMATION OF EMERGENCY TO
EXPEDITE THOSE THIRTY FIVE
EMERGENCY PROJECTS.
AND GAVE MY OFFICE ODD NOT TO
RESOURCES SECRETARY THE POWER TO
WAIVE C. C.
AND OTHER ENVIRONMENTAL LAWS AND
RULES TO ACTUALLY GET THIS PROP
THESE PROJECTS DONE.
WE'VE BEEN DOING THAT WITH THE
SPECIFIC FOCUS OF PROTECTING --
THESE TWO HUNDRED MOST
VULNERABLE COMMUNITIES.
I'LL MENTION AS WE'RE DOING THAT
WERE RECOGNIZING THE GRAVITY OF
WEAVING ENVIRONMENTAL SAFEGUARDS
AND WE'VE INSTITUTED A SET OF
BEST MANAGEMENT PRACTICES. FOR
EACH OF THOSE PROJECTS THAT
AVOIDS ENVIRONMENTALLY AND
CULTURALLY SENSITIVE RESOURCES.
AND WORKS CLOSELY WITH REGIONAL
DEPARTMENT OF FISH AND WILDLIFE
OFFICES AND REGIONAL WATER BOARD
OFFICES. TOO WEAK TO TO REALLY
MINIMIZE ENVIRONMENTAL IMPACT OF
THESE OF THESE PROJECTS.
THE GOVERNOR THEN ARE REDEPLOYED
NATIONAL GUARD MEMBERS ARE FROM
THE CALIFORNIA MEXICAN BORDER TO
ACTUALLY ENGAGE AND HELP
CALIFORNIA -- I IMPLEMENT THESE
THESE THIRTY FIVE EMERGENCY
PROJECTS -- I SHOULD MENTION
THOSE ARE TREATING ABOUT NINETY
THOUSAND ACRES OF LAND AROUND
THESE COMMUNITIES.
AND THE THOSE NATIONAL GUARDS
MEN AND WOMEN ARE DEPLOYED IN
FOUR AREAS OF THE STATE TODAY.
OUT WORKING ON THOSE PROJECTS.
THE SECOND EXECUTIVE ORDER THE
GOVERNOR CALLED FOR THAT SECOND
DAY IN OFFICE -- INITIATED WHAT
WAS WHAT IS CALLED A INNOVATION
PROCUREMENT SPRINT.
AND THE DIRECTOR WAS REALLY
FOCUSED ON BRINGING THE BEST
TECHNOLOGY AND INNOVATION TO THE
FIRE FIGHT -- WITH A FOCUS ON
DOING WHAT'S NEEDED TO GO TO GO
OUT AND SOLICIT THE BEST THE
BEST TECHNOLOGIES THERE ARE.
AND WE'VE YOU KNOW CONTRACTING
REQUIREMENTS AND OTHER
BUREAUCRATIC PROCESS SEES SO
THAT WE COULD BEGIN PILOTING
THESE TECHNOLOGIES AS EARLY AS
THIS SUMMER -- AND THAT IS --
THAT IS ON TRACK.
OBVIOUSLY PART OF THE GOVERNOR'S --
FIVE RESPONSE TO THIS CRISIS IS --
MANIFEST IN HIS PROPOSED BUDGET --
THAT WAS PROPOSED IN JANUARY AND
I HAVE MORE INFORMATION I CAN
PROVIDE ON THAT BUT SINCE YOU
ALL HAVE REVIEWED THAT AND
ARGUING THAT RIGHT NOW I WON'T
GO INTO THAT LEVEL OF DETAIL.
BUT IT'S WORTH NOTING THAT --
THE THE LEGISLATURE PASSED IN
THE GOVERNOR SIGNED AB SEVENTY
TWO WHICH IS GETTING FIFTY
MILLION DOLLARS INTO COMMUNITIES --
IMMEDIATELY -- TO IMPROVE THEIR
PREPAREDNESS -- AS WE FACE --
THIS NEXT FIRE SEASON.
SO THAT'S REALLY THE SET OF
IMMEDIATE ACTIONS I THINK I HOPE
THAT BOTH SORT OF FRAMING THE
PROBLEM IS WE SEE IT AND THOSE
MEDIA ACTIONS GIVES YOU SOME
SENSE OUR CONTACTS.
FOR THE FURTHER ACTIONS THAT
THIS REPORT CALLS.
FOR AND SO I WOULD CATEGORIZE
CATEGORIZE CATEGORIZE THOSE
THOSE FURTHER ACTIONS IN PART
ONE OF THE REPORT REALLY IN FOUR
CATEGORIES. ONE ACTIONS TO
STRENGTHEN OUR ABILITY TO FIGHT
THESE FIRES. TO HELPING
COMMUNITIES BUILD THEIR
RESILIENCE. TO DISTRACT THREE
IMPROVING FORCE MANAGEMENT AND
HEALTH.
AND THEN FOR OBVIOUSLY BUILDING
SAFER UTILITIES.
AND WHAT I'LL DO NOW IS JUST
REALLY PROVIDE A ALMOST LIKE A
BULLET POINTED LIST OF
HIGHLIGHTS FROM EACH OF THOSE
CATEGORIES.
AND OF COURSE INVITE YOU -- TO
FOR A DEEPER DISCUSSION ON ANY
ONE OF THESE.
SO ACTIONS TO STRENGTHEN OUR
ABILITY TO FIGHT FIRES INCLUDE
INVESTING OVER TIME IN MORE YEAR
ROUND PERSONNEL AND AND
EQUIPMENT FIRE ENGINES -- WE'VE
BEGUN TO DO THAT IN THE
GOVERNOR'S PROPOSED BUDGET WITH
THIRTEEN ENGINES AND ASSOCIATED
PERSONALITIES PROPOSED BUDGET.
CALIFORNIATRUSTSWOMEN STRATEGIC
PLAN THAT ACTUALLY CALLS FOR A
DETAILED ANALYSIS OF WHAT OUR
NEEDS THAT CAL FIRE SO THAT WE
CAN REALLY RIGHT SIZE PERSONNEL
WITH THE GROWING THREATS THAT WE
FACE.
OBVIOUSLY WE NEED TO MODERNIZE
OUR OUR FLEET OF CALIFORNIA AND
IT'S AN AIRCRAFT'S INCLUDING
REPLACING VIETNAM ERA
HELICOPTERS WITH THE NEW STATE
OF THE ART MORE EFFECTIVE
HELICOPTERS.
AND ENABLING THIS FLEET OF C.
ONE THIRTY AIR TANKERS -- THAT
DROPPED BY RETARDANT ON ON THE
FIRES.
AND THEN WE NEED TO CONTINUE TO
INVEST IN A MUTUAL AID SYSTEM.
WHICH MANIFESTS IN RESOURCES IN
THE COMMUNITY THAT YOU REPRESENT --
WITH THE EXPECTATION THAT THOSE
FIRE ENGINES ARE PRE POSITIONED
FOR THE WILD FIRES THAT WILL
FACE ACROSS THE STATE.
SECOND CATEGORY HELPING
COMMUNITIES BUILD THEIR
RESILIENCE TO FIRE -- FIRST AND
FOREMOST WE HAVE TO CONTINUE WE
ALL CAN DO A BETTER JOB --
REALLY BUILDING AWARENESS AND
CONTINUING TO ENFORCE DEFENSIBLE
SPACE IN OUR COMMUNITIES -- AND
THAT INCLUDES NOT ONLY AWARENESS
AND ENFORCEMENT BUT POTENTIALLY
AT THE REPORT SUGGESTS.
CONSIDERING UPDATING CODES THAT
GOVERN DEFENSIBLE SPACE.
WE NEED THE WE NEED TO DO A
BETTER JOB ENABLING COST
EFFECTIVE -- HARDENING OF HOMES.
CALIFORNIA HAS SOME OF THE MOST
STRINGENT BUILDING CODES FOR NEW
HOMES -- AS IT RELATES TO
PROTECTING THOSE HOMES AGAINST
BURNING UP IN A WILDFIRE.
BUT OBVIOUSLY MOST OF THE HOMES
IN THESE WONDERFUL COMMUNITIES --
OUR COMMUNITY THAT ARE MOST
VULNERABLE I HAVE ALREADY BEEN
BUILT.
AND SO WE ARE FOCUSED ON
INCREASING OR EXPANDING PROGRAMS
TO HELP -- HOMEOWNERS IN BONOBO
COMMUNITIES HEART IN THEIR HOMES --
THROUGH ACTIVITIES LIKE ROOF
REPLACEMENTS ARE CLOSING VANCE --
ETCETERA.
I IN THE REPORT CALLS FOR
CONSIDERATION OF A FUNDING
MECHANISM.
THAT WOULD ALLOW -- FOR
HOMEOWNERS IN THESE COMMUNITIES --
TO IMPROVE THE FIRE SAFETY IN
THEIR HOMES.
WE ALSO IS THE REPORT -- POINTS
OUT THAT NEED TO WORK WITH LOCAL
COMMUNITIES TO UPDATE AND
STRENGTH AND LOCAL EMERGENCY
PLANS.
EVACUATION ROUTES IDENTIFICATION
OF ESSENTIALLY -- SAFE HAVENS IF
RESIDENTS CAN'T EVACUATE. NE OF
THE LESS TOLD STORIES OF
PARADISE IS IT WAS ACTUALLY --
RELATIVELY -- WELL PREPARED TOWN
AS IT RELATES TO CATASTROPHIC
WILD FIRE AND IT ACTUALLY
DRILLED -- WITH ITS ITS
RESIDENTS ON EVACUATION ROUTES.
AND SOME ARGUE THAT FATALITIES
WOULD HAVE BEEN MUCH HIGHER HAD
THOSE EVACUATION ROUTES NOT BEEN
PRE PLANNED -- AND PRE
COMMUNICATED WITH RESIDENTS.
AND IF AND IT WOULD HAVE BEEN
MUCH WORSE HAD THERE NOT BEEN
ESSENTIALLY CLEARANCE PROJECTS
OF VEGETATION ON ON EITHER SIDE
OF THOSE EVACUATION ROUTES.
SO WE EED TO ENSURE THAT ALL
VULNERABLE COMMUNITIES ACTUALLY
HAVE THOSE EMERGENCY PLANS AND
COMMUNITY MEMBERS ACTUALLY I
UNDERSTAND THOSE -- AND THAT
THEIR INSTITUTIONALIZED -- AN
UPDATED REGULARLY -- MORE CAN BE
DONE TO ENHANCE COMMUNICATION A
NOTIFICATION SYSTEMS -- AND
THERE HAVE BEEN RECENT STATE
STANDARDS SET ON THAT AND WE
NEED TO ENSURE THE
IMPLEMENTATION OF THOSE
STANDARDS.
SO THAT -- IT RESIDENTS ACTUALLY
LEARN ABOUT FIRES -- FROM THEIR
CELL PHONES OR IN WAYS -- THAT'S
EASILY ACCESSIBLE.
AND THEN -- THE REPORT GOES ON
TO TALK ABOUT -- IMPROVED LAND
USE PRACTICES -- TO REDUCE FIRE
THREATS -- CHANGING HOW HIGHER
RISK AREAS ARE DESIGNED TO
PLANNED BUILT AND SIR BY
COMMUNITIES.
AND SOME OF THIS YOU KNOW HOUSE
TO DISCUSS THE SENSITIVE TOPIC
OF APPROPRIATE GROWTH WHERE
GROWTH SHOULD OCCUR.
IS A DYNAMIC TENSION BECAUSE
LAND USE AUTHORITY RESTS WITH
LOCAL GOVERNMENTS -- BUT AS THE
REPORT POINTS OUT IT'S AN
OPPORTUNE TIME TO DISCUSS.
REALLY HOW HOW TIME COMMUNITY
SHOULD SHOULD GROW OUTWARD --
GIVEN THIS FIRE RISK -- AND THEN
LASTLY -- CONTINUING HIGH AT TWO
OF ALL HOW WE ASSESS BONE
ABILITY OF OF OF COMMUNITIES.
ARE THAT THAT CAL FIRE FORTY
FIVE DAY REPORT TOOK PHYSICAL
FIRE RISK BUT THEN ALSO OVERLAID
IT WITH OUR COMMUNITIES AT OUR
CONCERTS CONSTRAINED BY
EVACUATION ROUTES.
AND PARTICULARLY VULNERABLE
GIVEN DEMOGRAPHICS LIKE AGE AND
INFIRMITY AND WE STE WE NEED TO
CONTINUE TO HIGHLIGHT WHICH
COMMUNITIES ARE MOST VULNERABLE.
SO WE CAN FOCUS ON THOSE
COMMUNITIES.
THIRD AREA RECOMMENDATIONS IN
SECTION ONE IMPROVING AND
EXPANDING FORCE MANAGEMENT AND
HEALTH -- AS I TOLD IT FROM OUR
PERSPECTIVE AS I SHARED -- YOU
KNOW THE FORCE LOOKS VERY
DIFFERENT THAN IT DID TWO
HUNDRED YEARS AGO.
AND WE NEED TO DO --
COLLECTIVELY A LOT MORE
MANAGEMENT IN THE FOREST IN
TERMS OF VEGETATION THEN WE HAVE
IN THE PAST -- A LARGE PLAN IN
THE LAST SEVERAL YEARS CALLED
THE FORCE CARBON PLAN CALLS
450-010-00 ACRES OF FOREST
MANAGEMENT A YEAR.
AND THIS FORCE MANAGEMENT HAS TO
BE APPROPRIATE WE'RE NOT TALKING
ABOUT INDISCRIMINATE LOGGING
THIS IS.
SCIENTIFICALLY DRIVEN FORCE
MANAGEMENT -- THAT HELPS
FOREST'S US STAY HEALTHY AND AND
FIRE SAFE.
THE GOOD NEWS IS SINCE TWENTY
TEN WE'VE -- DOUBLE THE AMOUNT
OF LAND THAT WE ARE MANAGING AND
TRIPLE THE AMOUNT THAT WERE WERE --
MANAGING BY PRESCRIBED FIRE THE
PROBLEM IS WE'RE GONNA MEET THAT
CARBON THAT FORCED CARBON BY
PLAN GOAL WE HAVE TO INCREASEBY
TEN ACTS.
OF THE AMOUNT OF OF LAND THAT
WERE -- THAT WE'RE MANAGING YOU
ALL HAVE LEAD CALLING FOR ONE
BILLION DOLLARS OF INVESTMENT IN
FORCE MANAGEMENT OVER THE NEXT
FIVE YEARS -- THE GOVERNOR HAS
APPOINTED A NEW CHAIR OF THE
GOVERNOR'S FORCE MANAGEMENT TASK
FORCE -- SUPERVISOR FROM PLASTER
COUNTY NAME JENNIFER MONTGOMERY
WHO'S REALLY GOING TO DRIVE
ACTION.
TOWARDS THESE FORCE MANAGEMENT
GOALS WHICH WILL INCLUDE --
WORKING WITH PRIVATE LANDOWNERS
IN CREATING INCENTIVES TO
ACTUALLY GET THIS FUEL OUT OF
THE FOREST -- WHETHER IT'S BIO
MASS OR THE MASS TIMBER INDUSTRY.
OR ENVIRONMENTALLY APPROPRIATE
ECONOMY -- THAT CAN ACTUALLY
HELP IN RURAL COMMUNITIES AND
CREATE AN INCENTIVE TO MANAGE
FORESTS.
AND IN ORDER TO DO THIS WORK WE
ACTUALLY AFTER A IMPROVING
EXPAND WORKFORCE TRAINING WE DO
NOT HAVE ENOUGH PEOPLE TO DO
THIS WORK RIGHT NOW.
I AM SO WE NEED TO FOCUS ON
ACTUALLY BUILDING UP THAT HUMAN
CAPACITY -- IN OUR IN OUR TOWNS
ACROSS THE STATE WHICH BY THE
WAY CREATE A GREAT ECONOMIC.
OPPORTUNITY. FOR RURAL
COMMUNITIES.
AND THEN LASTLY AS IT RELATES TO
FORCE MANAGEMENT HEALTH WE NEED
TO REALLY STAND TOP OF THE BEST
SCIENCE WE NEED TO DO THIS
CAREFULLY -- THERE ARE
ENVIRONMENTAL LEADERS AND GROUPS
THAT ARE CONCERNED ABOUT THE
SCALE OF FORCE MANAGEMENT THAT
WE'RE TALKING ABOUT AND WE
UNDERSTAND THAT.
AND SO WE NEED TO ACTUALLY
MANAGE FOREST AND TAKE SO CALLED
FUEL OUT OF THE FOREST CAREFULLY.
I IN A VOID IMPACTS --
ENVIRONMENTAL IMPACTS THAT ARE
NEGATIVE.
AND THEN THE FOURTH CATEGORY
WHICH WILL PROBABLY SPEND MOST
OF THE TIME TALKING ABOUT TODAY
IT'S REALLY BUILDING SAFER
UTILITIES AS IT RELATES TO WILD
FIRE RISK.
AS YOU PROBABLY KNOW ACCORDING
TO DATA FROM CAL FIRE
INVESTIGATIONS ABOUT 10% OF
WILDFIRES -- IN CALIFORNIA ARE
STARTED -- AS A RESULT OF
ELECTRICAL IGNITIONS OR
IGNITIONS FROM ELECTRICAL
EQUIPMENT BUT 10%.
MOST OF THOSE WITHIN THAT 10%
ARE ELECTRIC UTILITIES JUST
BECAUSE UTILITIES HAVE MOST OF
THAT INFRASTRUCTURE.
SO OBVIOUSLY ONE IMPORTANT
ELEMENT OF REDUCING WELFARE RISK
IS.
BUILDING SAFER UTILITY
INFRASTRUCTURE AND SAFER UTILITY
MANAGEMENT.
THE I'LL HIGHLIGHT THREE AREAS
OF RECOMMENDATIONS IN SECTION
ONE FIRST IS -- STRENGTHENING
THE REQUIREMENTS IN THE WILD
FIRE MITIGATION PLANS WHICH AS
YOU KNOW ARE FAIRLY NEW
REQUIREMENT FOR INVESTOR OWNED
UTILITIES.
BY CONTINUING TO STRENGTHEN
THOSE SO THAT I THAT THE
GOVERNMENT CAN ACTUALLY OVERSEE
SAFETY PLANS FROM THE UTILITIES
THAT ARE ADEQUATELY ROBUST TO
ADDRESS THE THREAT.
SECOND IS ENSURE THE UTILITIES
ACTUALLY INVEST IN TECHNOLOGY
AND MONITORING.
MANY OF TALKED ABOUT THE THE
WORK THAT SAN DIEGO GAS ELECTRIC
DID AFTER THE TWO THOUSAND SEVEN
FIRES I IN TERMS OF PROTECTIVE
WHETHER A MONITORING.
THAT HAVE REALLY PROVEN TO BE
FAIRLY SUCCESSFUL FOR THAT
UTILITY AS IT RELATES TO
AVOIDING -- UTILITY CREATED
FIRES.
AND THEN LASTLY -- ANOTHER
CATEGORY IN THE SECTION IS
ALIGNING INCENTIVES FOR
UTILITIES WITH SAFETY.
IN OTHER WORDS CONDITIONING A
RETURN ON IN EQUITY THAT THE C.
P. U. C. ALLOW IS ON IT WITH
WILD FIRE SAFETY PERFORMANCE --
SO THAT UTILITIES THE INVESTOR
OWNED UTILITIES THAT REALLY.
ARE REQUIRED -- TO DELIVER RATE
PAYER -- INVESTOR BENEFIT
ACTUALLY THE THEIR INCENTIVES
FOR DOING SO RELY ON PROVIDING
TOP SAFETY FOR THEIR CUSTOMERS.
HOW CLOSE BY JUST QUOTING THE
ACTUAL THE LAST PARAGRAPH OF THE
REPORT THAT I THINK CAPTURES
WHAT WE'RE DEALING WITH HERE
TODAY?
IT SAYS WILDFIRE HAS ALWAYS
PLAYED CALIFORNIA.
CLIMATE CHANGE HAS MADE AND WILL
CONTINUE TO MAKE THESE FIRES
HOTTER LARGER MORE FREQUENT AND
MORE DESTRUCTIVE.
THE COST OF THESE FIRES IS
UNBEARABLE.
THE LOSS OF HUMAN LIFE PROPERTY
ECONOMIC OPPORTUNITIES COMMUNITY
LIFE EXACERBATED BY THE COST TO
REBUILD COMMUNITIES REBUILD
COMMUNITIES CANNOT BE SUSTAINED.
MOST IMPORTANTLY IT ENDS WITH
SAYING THE STATUS QUO IS NOT AN
OPTION.
DOING NOTHING IS NOT ACCEPTABLE.
SO I'LL TURN IT OVER TO TIM
WEIGHING THAN TO TAKE US THROUGH
SECTION TO AND I KNOW.
MISTER CHAIRMAN THAT YOU OF
REALLY ASK FOR A FOCUS ON
SECTION ONE IN THREE BUT WE WANT
TO PROVIDE A LITTLE BIT ON
SECTION TO JUST OFFER CONTEXT
FOR THE DISCUSSION HERE TODAY.
THERE ARE ENOUGH I WANTED TO
MAKE SURE THAT -- NO MEMBERS HAD
ANY QUESTIONS FOR YOU AFTER.
WHAT YOU'VE DONE HERE THAT AND
I'D BE HAPPY TO ANSWER THEM NOW
OUR AT THE END OF THE
PRESENTATION?
SIR MORE LOCK.
THANK YOU MISTER.
MISTER CRAWFORD -- YOU HAD
MENTIONED THAT WE HAVE DOUBLE
THE LANDOWNER MANAGEMENT FORCED
AND COULD YOU EXPLAIN WHAT THAT
MEANS.
YES SO CAL FIRE TRACKS THE
AMOUNT OF ACREAGE -- THAT IS
THAT IS UNDER TREATMENT FOR
VEGETATION IN OTHER WORDS
REDUCING BRASCH IN SOME CASES
SMALL DIAMETER TREES IN ORDER TO
PROTECT COMMUNITIES.
HI AND FOR SEVERAL YEARS THE
AMOUNT OF ACREAGE THAT WE WERE
ABLE TO TREAT WHAT WE CALL
VEGETATION MANAGEMENT -- HOVERED
AROUND FIFTEEN THOUSAND ACRES
PER YEAR -- RECENTLY AND I THINK
BELIEVE -- TWENTY SEVENTEEN FIVE
CAL FIRE WAS ABLE TO EXPAND THE
AMOUNT OF OF ACRES ARE MANAGED
GETTING THAT YOU KNOW DANGEROUS
VEGETATION OUT WELL YOU KNOW
MAINTAINING HEALTHY FORESTS. TO
ABOUT THIRTY THREE THOUSAND
ACRES.
AND THEN LASTLY I WOULD JUST
CONTRAST THAT TO OUR GOAL WHICH
IS FIVE HUNDRED THOUSAND ACRES.
SO WHILE WE CAN YOU KNOW --
PROVIDE SOME CREDIT TO CAL FIRE
FOR DOUBLING THE AMOUNT OF
ACREAGE WE'RE STILL WELL SHORT
OF WHERE WE THINK WE NEED TO BE.
ON THE ON THAT TOPIC.
SO THEN THE ONE BILLION
INVESTMENT OVER THE NEXT FIVE
YEARS RELATES TO JUST THESE
ACRES -- NO WE HOPE TO THAT WE
HOPE THAT THAT ONE BILLION SO
FOR EXAMPLE.
AS I UNDERSTAND IT THE BUDGET
ALLOCATES TWO HUNDRED MILLION
DOLLARS THIS YEAR -- A LARGE
PART OF IT GOES TO VEGETATION
MANAGEMENT -- WITH THESE THIRTY
FIVE EMERGENCY PROJECTS WE WILL
MANAGE OVER NINETY THOUSAND
ACRES THIS YEAR -- AND WE ARE
HOPING THAT THIS -- AMOUNT OF
FUNDING THIS ONE BILLION DOLLARS
AT THAT MANIFESTS OVER FIVE
YEARS MOVES US TOWARD THAT GOAL
OF FIVE HUNDRED THOUSAND ACRES --
HOW HOW CLOSE WE GET TO THAT
GOAL OR IF WE CAN SUPPRESS THE
GOLD RELIES ON -- A LOT OF THE
WORK THAT'S UNDER WAY BUT WE'RE
GONNA HOPE TO GET THAT SORT OF
MAXIMUM BANG FOR THE BUCK
WITHOUT MONEY AS IT RELATES TO
VEGETATION MANAGEMENT WITHIN
THAT ACREAGE.
WE'RE JUST MAKING A SMALL DENT
ON WHAT WE OWN IS THE STATE.
WELL I WOULD SAY -- WE HAVE BEEN
MAKING A SMALL DENT WE INTEND IT
WE INTEND TO DO MORE DO MORE BUT
I SHOULD HAVE MENTIONED THAT WE
HAVE.
A CRITICAL PARTNER IN -- IN THE
FEDERAL GOVERNMENT -- NATIONAL
FOREST -- SERVICE NATIONAL
GOVERNMENT OUR FEDERAL
GOVERNMENT I SHOULD SAY --
MANAGES ABOUT 57% OF OUR FOREST
LANDS -- SO WE NEED TO DO OUR
PART OF THE STATE WITH WITH
GENERAL FUND OR RESOURCES FROM
THE STATE BUDGET.
WE NEED TO SUPPORT OUR
COMMERCIAL TIMBER OPERATORS --
TO CONTINUE TO DO THEIR PART WE
NEED TO HELP STAND UP OTHER --
SECTORS AS I AS I MENTIONED --
SOME OF THIS STUFF FOREST FORCED
BY PRODUCT SECTOR THIS MASS
TIMBER ARE GOOD CROSS LIMITED
TIMBER INDUSTRY THAT CAN
ACTUALLY USE SMALLER PERMIT A
SMALLER TREE PERIMETER AND SLASH.
FOR FOR US YOU KNOW TO
POTENTIALLY BUILD PRODUCTS -- SO
IT'S A COMBINATION OF PUBLIC
FUNDING STATE FUNDING FEDERAL
FUNDING -- PRIVATE SECTOR YOU
KNOW COMMERCIAL OPERATORS RIGHT
NOW AND THEN HOPEFULLY NEW
SECTORS INCLUDING BIOENERGY. FOR
THE STATE OF UTAH IS SOMEHOW
WORKING ON A PROJECT TO TRANSFER
LAND FROM THE FEDERAL GOVERNMENT
TO THE STATE OF UTAH ARE WE
LOOKING AT THAT AS WELL.
NO.
WE HAVE FOCUSED ON ON DEEPENING
THE PARTNERSHIP WITH THE FOR
SERVICE AND WE ACTUALLY HAVE
REALLY STRONG PARTNERS IN THE
REGIONAL FORESTER AND THE THE
DIFFERENT -- NATIONAL FOREST WE
ACTUALLY HAVE A PARTNERS IN THE
FOR SERVICE THAT ARE.
I BELIEVE ARE ARE WELL ALIGNED
WITH OUR GOALS.
THEY'RE LOOKING AT SOME
INTERESTING INNOVATION IN THE
WAY THEY MANAGE THEIR LANDS TO
REALLY SCALE THIS UP AS WELL
THEIR GOAL IS ANOTHER FIVE
HUNDRED THOUSAND ACRES PER YEAR.
ALL RIGHT THANK YOU VERY MUCH
THANK MEASURE JUST TO FOLLOW UP
ON THE MISS CRAWFORD -- I I DID
I DIDN'T GET THE FIRST PART OF
THE THE CONVERSATION THERE IN
THE IN THE IN RESPONSE TO HIS
QUESTION.
ART IS THE CONCERN OVER INVITE
WE KNOW THAT WE DON'T NEED WE
DON'T WANT TO TRAMPLE ON OUR
ENVIRONMENT WE DON'T WANT TO GO
BACKWARDS.
BUT AT THE SAME TIME WE KNOW WE
HAVE THESE CRITICAL THE ACTION
NOT PART OF THE REASON WHY WE
WERE ONLY THIRTY THREE THOUSAND
ACRES.
OKAY.
MENTIONED THAT HE ARE.
THEY CAL FIRE AND THE BOARD OF
FORESTRY ARE DEVELOPING A A
PROGRAMMATIC ENVIRONMENTAL
IMPACT REPORT -- ESSENTIALLY TO
PROVIDE PROGRAMMATIC CLEARANCE
TO VEGETATION MANAGEMENT
PROGRAMS -- THERE ARE OBVIOUSLY
ENVIRONMENT REQUIREMENTS AND SEE
CA BUT I DO I WOULD NEVER
SUGGEST THAT WE WE HAVE BEEN YOU
KNOW WE'RE CONSTRAINED AT THIS
LEVEL AS A RESULT OF THAT -- WE
CAN PROTECT OUR ENVIRONMENT
WHILE MANAGING OUR FORESTS THANK
YOU CENTER HILL.
THANK YOU THANK YOU SECURING
THANK YOU AND THE PROGRAM FOR
ORGANIZING AND PUTTING THIS
TOGETHER AND THANK THANKS TO THE
GOVERNOR FOR THE LEADERSHIP BE
SHOWN.
THE QUALITY OF THE WORK THAT
CAME OUT OF THE STRIKE FORCE IN
THE THE THE THE REPORT THAT
WE'VE GIVEN I DID I'M SO
IMPRESSED WITH IT SO THANK YOU.
A QUESTION IN THE REPORTS VERY
COMPREHENSIVE AND BRING FORWARD
A LOT OF VERY THOUGHTFUL IDEAS
AND AND IT'S VERY THOROUGH BUT
I'M CURIOUS.
I THINK THE AND THE THE GOVERNOR
MENTIONED THERE'S A THIRTEEN
NINETY DAY KIND OF GUIDE POST
HERE AND WE'RE TASK I THINK THE
LEGISLATURE FOR THAT WINDOW OF
NINETY DAYS TO ACCOMPLISH.
SOMETHING IN THAT THE IN THAT --
THAT TIME FRAME BUT UP.
WHICH OF THE ACTIONS THAT YOU
IDENTIFIED IN THE REPORT TO ME
AND THERE MANY IN MASSIVE WHICH
ONES WOULD YOU SAY ARE THE MOST
IMPORTANT SIGNIFICANT OR HOW
SHOULD WE PRIORITIZE THOSE IN
AND WHAT'S IMPORTANT TO THE
GOVERNOR AND THAT.
THANK YOU FOR THAT QUESTION AND
I THINK YOUR QUESTION IS IS
GERMANE TO SOME OF THE TOPICS
THAT MY COLLEAGUES WILL ADDRESS
HERE.
AS AS IT RELATES-- TO OUT
WILDFIRE LIABILITY FINANCIAL
LIABILITY AND UTILITY UTILITY
RESTRUCTURING.
I IN TERMS OF WHAT I JUST
PRESENTED ON I THINK IT'S MOST
IMPORTANT THAT WE TAKE ANY
ACTION POSSIBLE TO PROTECT
COMMUNITIES.
THIS YEAR FROM WILDFIRE THREATS.
I AND THAT'S WHY THOSE THIRTY
FIVE PROJECTS FOCUS ON THE THE
FUEL BREAKS AROUND THE
COMMUNITIES.
ON THE GOOD NEWS IS THAT -- YOU
KNOW UNDER THE UNDER THE UNDER
THE LEGISLATURE'S DIRECTION --
THROUGH VEHICLES LIKE SB NINE A
ONE IN THE GOVERNOR'S DIRECTION
WE'RE DOING THAT -- AND WE HAVE --
YOU KNOW WE HAVE A A STRONG PLAN
IN PLACE TO PROTECT COMMUNITIES
A SUMMER THROUGH CAL FIRE.
IN WILL GET THREE TIMES THE
AMOUNT OF VEGETATION MANAGEMENT
ON THIS YEAR THAN WE DID -- ONLY
LAST YEAR AS A RESULT OF OF
THESE ACTIONS -- BUT I THINK
YOUR QUESTION IS A GOOD ONE TO
SORT OF KEEP TOP OF MIND AS WE
TALK THROUGH THESE OTHER PIECES
OF THE REPORT.
KEEP UP THIS WAY WHAT YOU --
PROCEED ON ON YOUR PART AND THEN
WILL -- TAKE SOME QUESTIONS
[inaudible]
RIGHT.
THANK YOU SENATOR DODD AND
MEMBERS OF THE COMMITTEE FOR
ALLOWING ME TO PRESENT TODAY.
CLINTON LG FROM PHIL SINGER
ENERGY PARTNERS OR FTP.
WE ARE A BOUTIQUE CONSULTING
FIRM SPECIALIZING IN THE
ELECTRIC POWER INDUSTRY -- WE'RE
WORKING WITH -- GOVERNOR STRIKE
FORCE TO PERFORM RISK AND RATE
ANALYSIS AND TO EVALUATE MARKET
REFORMS.
I'LL BE TALKING ABOUT PART TWO
OF THE GOVERNOR STRIKE FORCE
REPORT.
SUPPORT TO THE REPORT MITIGATING
CLIMATE CHANGE THROUGH CLEAN
ENERGY POLICIES.
IS IMPORTANT IN LIGHT OF
CALIFORNIA'S RECENT EXPERIENCE
WITH CATASTROPHIC WILDFIRES.
WHICH REINFORCES THE NEED TO
MITIGATE CLIMATE CHANGE AND
MAINTAIN RELIABILITY AND
REASONABLE ENERGY COSTS.
THE GOVERNOR STRIKE FORCES
REAFFIRMING CALIFORNIA'S LONG
TERM GOAL OF ACHIEVING CLEAN
CARBON FREE ENERGY.
THE TARGETS ARE TO INCREASE THE
RENEWABLE PORTFOLIO STANDARD
260% BY.
TWENTY THIRTY AND TO ACHIEVE
1100% CARBON FREE ENERGY BY.
TWENTY FORTY FIVE TO DATE
CALIFORNIA HAS MADE REMARKABLE
PROGRESS TOWARD THESE GOALS.
AS OF LAST YEAR A THIRD OF THE
RETAIL ELECTRIC SALES WITHIN THE
STATE CAME FROM RENEWABLE ENERGY
SOURCES.
AND MORE THAN HALF OF THE SALES
ARE FROM CARBON FREE RESOURCES
WHICH INCLUDE HYDROELECTRIC AND
NUCLEAR ENERGY.
IN ADDITION THE RENEWABLE ENERGY
INDUSTRY HAS GREATLY BENEFITED
CALIFORNIA'S ECONOMY. TO DATE IT
HAS CREATED OVER HUNDRED
THOUSAND JOBS WITHIN THE STATE
AND ATTRACTED OVER SEVENTY
BILLION DOLLARS IN CAPITAL
INVESTMENTS.
WITH THE POTENTIAL FOR MUCH MORE
IN THE FUTURE.
GOING FORWARD THE STATE NEEDS TO
BE IN THE BEST POSSIBLE POSITION
TO FIZZLE TO FACILITATE
INVESTMENTS IN ENERGY
INFRASTRUCTURE. TO MEET ITS
AMBITIOUS GOALS.
WHILE ENSURING RESOURCE ADEQUACY
AND RELIABILITY.
ON THE PAST 2100% CLEAN ENERGY A
NUMBER OF CHALLENGES HAVE TO BE
OVERCOME.
THE MARKET HAS CHANGED AS
TECHNOLOGY HAS ADVANCED AND
RENEWABLE ENERGY COSTS HAVE
DECLINED.
NEW ELECTRICITY PROVIDERS HAVE
EMERGED IN THE FORM OF ENERGY
SERVICE PROVIDERS AND COMMUNITY
CHOICE AGGREGATORS.
DISTRIBUTED GENERATION IS ALSO
GAINING MARKET SHARE.
THE RESULT IS THAT THE
ELECTRICITY MARKETS HAVE BECOME
MORE FRAGMENTS.
AN INVESTOR OWNED UTILITIES ARE
INCREASINGLY BECOMING POLES AND
WIRES COMPANIES.
THAT IS THEIR RETAINING THE
ELECTRICITY DELIVERY FUNCTION
AND TRANSITIONING AWAY FROM
RETAIL SALES OF ELECTRICITY.
WITHIN THE WHOLESALE ELECTRICITY
MARKET RELIABILITY AND RESOURCE
ADEQUACY CHALLENGES MAY ARISE.
AS RENEWABLES GAIN EVER GREATER
MARKET SHARE THE GREETED WILL
HAVE TO CONTINUE TO ACCOMMODATE
THE INTERMITTENT NATURE OF THEIR
GENERATION.
NATURAL GAS FIRED GENERATION
CURRENTLY PROVIDES RELIABILITY
AND RESOURCE ADEQUACY SERVICES --
BUT AS CALIFORNIA.
APPROACH IS A 100% CLEAN ENERGY
AND NATURAL GAS FIRED GENERATION
IS REPLACED BY RENEWABLES.
NEW TYPES OF SOLUTIONS WILL PLAY
A GREATER ROLE.
THE SOLUTIONS MAY INCLUDE TIME
OF USE RATES -- DEMAND RESPONSE
ENERGY EFFICIENCY.
INCREASED REGIONAL COORDINATION.
ELECTRIC VEHICLE INTEGRATION AND
ELECTRICITY STORAGE.
THEY'RE ALSO CHALLENGES THE
RETAIL ELECTRICITY MARKET --
CURRENTLY THE CUSTOMER CHOOSES
NOT TO OBTAIN SERVICE FROM
COMMUNITY CHOICE AGGREGATORS AND
ENERGY SERVICE PROVIDERS.
WORK THOSE PROVIDERS FAIL --
THEY CAN OBTAIN SERVICE FROM AN
I. O. U. AS A PROVIDER OF LAST
RESORT.
IF I USE BECOME POLES AND WIRES
COMPANIES THEY MAY NOT BE ABLE
TO PROVIDE THE SERVICE.
AND AN ALTERNATE PROVIDER OF
LAST RESORT WILL HAVE TO BE
DESIGNATED.
A DISTRIBUTED ENERGY RESOURCES
SUCH AS ROOFTOP SOLAR ARE
GAINING MARKET SHARE THESE
RESOURCES ARE DESIRABLE BUT THEY
ARE NOT CONTROLLED BY THE GRID
OPERATOR LIKE TRADITIONAL
GENERATORS.
THE OPERATION OF DISTRIBUTED
ENERGY RESOURCES WILL HAVE TO BE
INCREASINGLY MANAGED AND
INTEGRATED IN ORDER TO MAINTAIN
SYSTEM RELIABILITY.
A PUBLIC PURPOSE PROGRAMS SUCH
AS ENERGY EFFICIENCY DEMAND
RESPONSE.
ARE PART OF THE CLEAN ENERGY
FUTURE.
AND CALIFORNIA HELP WILL HAVE TO
ENSURE THAT THESE PROGRAMS ARE
MAINTAINED WHILE THE ROLE OF THE
I. O. U.'S EVOLVE.
IN ADDITION TO THE ELECTRICITY
SECTOR BUILDINGS AND
TRANSPORTATION ALSO NEED TO BE
DE CARBONIZED.
VEHICLES BURNING GASOLINE AND
DIESEL CURRENTLY COUNT FOR OVER
A THIRD OF GREENHOUSE GAS
EMISSIONS WITHIN THE STATE --
CONVERTING THEM TO LECTURE CITY.
IS THE BEST WAY TO TAKE
ADVANTAGE OF CARBON FREE
ELECTRICITY GENERATION. TO MEET
THESE CHALLENGES CALIFORNIA
SHOULD LEAN ON THE INTEGRATED
RESOURCE PLANNING PROCESS
ADMINISTERED BY THE CPUC OR A
SIMILAR FRAMEWORK.
GAPS IN THE MARKETS CAN BE
IDENTIFIED AND ADDRESSED.
A POTENTIAL SOLUTION MAY BE A
NEW STATE PROCUREMENT ENTITY.
THAT CAN ENTER INTO LONG TERM
CONTRACTS IF I USE COMMUNITY
CHOICE AGGREGATORS AND ENERGY
SERVICE PRIDE PROVIDERS CANNOT.
THE STATE PROCUREMENT ENTITY
COULD ALSO PROVIDE CREDIT
SUPPORT.
SO THAT OTHER ENTITIES CAN
PURCHASE A TEMPERATURE NEEDED
RESOURCES [inaudible]
THROUGHOUT TRANSPARENCY IS
CRITICAL.
CUSTOMERS REGULATORS AND ENERGY
PROVIDERS SHOULD BE AWARE OF
INFORMATION RELATED TO THE
COMPOSITION OF ELECTRICITY.
COMPLIANCE WITH REQUIREMENTS.
AND OTHER PROCUREMENT DATA TO
IMPROVE DECISION MAKING.
ACHIEVING THE STATE'S CLEAN
ENERGY GOALS IS PARAMOUNT BUT
CALIFORNIA MUST ACCOMPLISH THESE
GOALS.
WHILE ENSURING RELIABILITY.
MAINTAINING REASONABLE COSTS FOR
CUSTOMERS AND REDUCING RISKS.
THANK YOU.
NOW I'D LIKE TO TURN IT OVER TO
MS MITCHELL TO COVER PART.
THREE ARE THERE ANY QUESTIONS.
I DIDN'T KNOW IF YOU WANT TO
TAKE QUESTIONS BUT YOU GO AHEAD
OKAY GREAT.
SO THANK YOU SENATOR DODD AND
MEMBERS OF THE COMMITTEE FOR
ALLOWING US TO PRESENT TODAY.
I NEED TO MITCHELL I'M A PARTNER
AT THE LAW FIRM OF O'MELVENY
MYERS AND TODAY I'M PRESENTING
AS A REPRESENTATIVE OF GOVERNOR
NEWSOME STRIKE FORCE.
MY PRESENTATION WILL ADDRESS THE
FOLLOWING SECTIONS OF THE REPORT.
PART THREE WHICH IS ENTITLED TO
FAIR ALLOCATION OF CATASTROPHIC
WILD FIRE DAMAGE.
PART FOR ENTITLED A MORE
EFFECTIVE CPUC.
WITH TOOLS TO MANAGE AND
CHANGING UTILITY MARKET.
AND PART FIVE ENTITLED HOLDING
P. JEANNIE ACCOUNTABLE AND
BUILDING A UTILITY THAT
PRIORITIZES SAFETY.
SINCE MR WANG'S PRESENTATION ON
PART TWO HIGHLIGHTED FOR THE
COMMITTEE THE CHANGING DYNAMICS
OF CALIFORNIA'S ENERGY MARKET.
AS A FOLLOW UP TO THAT SECTION
I'M GOING TO BRIEFLY ADDRESS
PART FOR OF THE STRIKE FORCE
REPORT WHICH FOCUSES ON THE
REFORMS. TO THE CALIFORNIA
PUBLIC UTILITY COMMISSION AND
THEN WE'LL MOVE TO PARTS THREE
AND PART FIVE WHICH I KNOW YOU
WANTED TO FOCUS ON TODAY.
AS PART OF THE PRESENTATION ON
PART THREE MR BOLICK FROM PHIL
SINGER ENERGY PARTNERS WILL ALSO
PRESENT SOME DATA.
ON MODELING THE SIZE OF A
POTENTIAL WILDFIRE FUND WHICH IS
SOME WORK THAT THE STRIKE FORCES
DONE SINCE WE COMPLETED THE
INITIAL REPORT.
SO WITH REGARD TO PART.
FOUR THE STRIKE FORCE CONCLUDED
IN PART FOUR OF THE REPORT THAT
CPUC REFORM IS NECESSARY IN
ORDER TO MEET THE CHANGING
DYNAMICS OF CALIFORNIA'S ENERGY
MARKETS.
THE REPORT RECOMMENDED THAT THE
STATE EVALUATE A COMPREHENSIVE
OVERHAUL OF THE CPUC IN AN
EFFORT TO SERVE IN THE CURRENT
AND FUTURE NEEDS OF CALIFORNIA.
RECOGNIZING AND THAT SUCH AN
OVERHAUL COULD BE A LONGER TERM
PROCESS THE REPORT ALSO
INCORPORATED SOME
RECOMMENDATIONS FOR NEAR TERM
ACTION.
AT A HIGH LEVEL THE STRIKE FORCE
IDENTIFIED CERTAIN CHALLENGES IN
THE CURRENT CPUC PROCESS.
THOSE ISSUES FALL ROUGHLY INTO
THE FOLLOWING BUCKETS.
THE FIRST BUDGET IS THE CPUC
LACKS THE RESOURCES AND
EXPERTISE TO TO ADDRESS ITS
CURRENT SCOPE.
THE CBC'S HISTORIC FUNCTION HAS
BEEN PRIMARILY AS A RATE SETTING
BODY.
AND RICH HISTORY THE CBC HAS
DEVELOPED SUBSTANTIAL EXPERTISE
IN THE AREA OF RATE SETTING.
BUT RECENTLY THE CPUC HAS BEEN
CHARGED WITH IMPLEMENTING
CALIFORNIA'S CLEAN ENERGY GOALS.
AND ALSO ADDRESSING THE SAFETY
ISSUES TO PREVENT WILDFIRES.
AND THE CBC HAS REGULATORY
RESPONSIBILITY FOR A VARIETY OF
INDUSTRIES NOT JUST THE ELECTRIC
ENERGY SECTOR.
AND AS ITS MANDATE HAS EXPANDED
FOR EXAMPLE IN THE AREAS OF
SAFETY THE UNDERLYING EXPERTISE
TO DECEIVE YOU SEE HAS DEVELOPED
IS NOT KEPT UP WITH THAT
EXPANSION.
THE SECOND BUCKET OF ISSUES THAT
THE REPORT IDENTIFIED.
IS THE CP UC'S CHOIRS AYE
JUDICIAL PROCESS WHICH IS NOT
NECESSARILY SUITABLE FOR ALL THE
FUNCTIONS IT'S BEING ASKED TO
PERFORM.
THE CBC HAS AN APPROACH TO
RESOLVING ISSUES THAT IS BECAUSE
I JUDICIAL IN NATURE IT'S A
HIGHLY STRUCTURED LEGAL PROCESS
THAT INCORPORATES ADMINISTRATIVE
LAW JUDGES SUBSTANTIAL PLEADINGS
INSUBSTANTIAL HEARINGS.
THAT PROCESS.
POTENTIALLY VERY WELL SUITED TO
TRADITIONAL MARIE RATE MAKING IS
NOT NIMBLE OR FLEXIBLE AND DOES
NOT NECESSARILY LEND ITSELF TO
POLICY MAKING FUNCTIONS OR
RAPIDLY CHANGING CIRCUMSTANCES.
THE THIRD A BUCKET OF ISSUES
THAT THE REPORT IDENTIFIED WITH
THE CP UC'S CURRENT PROCESS.
IS THAT THE CB USY HAS SOME ILL
DEFINED AND POTENTIALLY
CONFLICTING MANDATES.
THIS CD UC HAS ALWAYS HAD TO
BALANCE THE OBLIGATIONS TO
PROTECT CONSUMERS WITH ITS NEED
TO ENSURE FINANCIALLY HEALTHY
UTILITIES THAT CAN MEET
CALIFORNIA'S NEEDS.
THE EXPANSION OF THE C. B. UC'S
ROLLS INTO AREAS SUCH AS SAFETY
AND CLEAN ENERGY MEANS THAT THE
CPUC IS ALSO TAKING ON A BECAUSE
I POLICY MAKING FUNCTION IN SOME
OF THOSE AREAS.
AND THAT RESULTS IN A C. B. UC
WITH A VERY BROAD BUT SOMEWHAT
ILL DEFINED AND SOMETIMES
CONFLICTING SET OF MANDATES.
HAVING IDENTIFIED THOSE PROBLEMS
AND HAVING RECOMMENDED THE
EVALUATION OF LONGER TERM AND
MORE COMPREHENSIVE REFORM.
THE REPORT ALSO RECOMMENDED NEAR
TERM THE FOLLOWING FOR ACTIONS.
NUMBER ONE THAT THE LEGISLATURE
PROVIDE THE RESOURCES NECESSARY
TO EXPAND TO THE SAFETY
EXPERTISE AT THE CPUC.
OR TO CREATE ANOTHER STATE
AGENCY WITH THE NECESSARY
RESOURCES AND EXPERTISE.
THE SECOND.
RECOMMENDED ACTION WAS AS PART
OF A COMPREHENSIVE APPROACH TO
REFORMING THE WILDFIRE LIABILITY
FRAMEWORK WHICH WILL TALK ABOUT
AS PART.
THREE THE LEGISLATURE PROVIDED
GUIDANCE TO THE CPUC ON
OVERHAULING ITS DECISION MAKING
PROCESS. TO ADDRESS SAFETY
RELATED INITIATIVES AND COST
RECOVERY ACTIONS IN THE AREA OF
WILD FIRE DAMAGES.
HAVING SAID THAT THE REPORT ALSO
RECOGNIZED THE NEED TO ENSURE
THAT ANY OVERHAUL OF DECISION
MAKING PROCESS STILL PROVIDE FOR
APPROPRIATE PUBLIC INPUT AND
TRANSPARENCY.
BUT ALLOW IT TO BE DONE ON A
MORE STREAMLINED BASIS.
THE THIRD RECOMMENDATION IN THE
AREA OF CEBU SEE REFORM WAS THAT
THE CPUC WORK WITH THE
GOVERNOR'S OFFICE OF PLANNING
AND RESEARCH. TO IDENTIFY HIGH
RISK INDUSTRY REGULATORY MODELS
FOR EXAMPLE IN AVIATION.
THAT COULD PROVIDE A BASIS FOR
LONGER TERM REFORM.
AND FOURTH THAT THE CBC DEVELOP
BEST PRACTICES FOR UTILITIES
THEY CAN BE A RESOURCE ON ISSUES
SUCH AS CHANGING TECHNOLOGY.
AND CLIMATE CHANGE AND I
UNDERSTAND THAT AS TO THIS
FOURTH RECOMMENDATION THE CBC
HAS ALREADY UNDERTAKEN TO MOVE
THIS FORWARD.
THAT THAT SORT OF A GENERAL
OVERVIEW OF PART FOR SENATOR DOT
I DON'T KNOW IF YOU'D LIKE TO IF
ANYONE HAS ANY QUESTIONS IF
YOU'D LIKE ME TO MOVE TO PART.
THREE SIR HILL THANK YOU THANK
YOU MISTER CHAIR OF A COUPLE
QUESTIONS IF I COULD GO ON IN
TERMS OF THE AND THANK YOU FOR
HIGHLIGHTING THE CHALLENGES THAT
THE CQC HAS AND AND I THINK
WE'VE RECOGNIZE THOSE AND IT'S
NO FAULT OF THEIR OWN.
IT TO A LARGE EXTENT IT'S THE
RESOURCES THEY POINT TO CHIU SO
ACCURATELY -- CONVEYED ONE OF
THE ISSUES THOUGH IN TERMS OF
THE QUASI JUDICIAL ROLE.
OF THAT THE FEW SHE HAS THAT
COULD CHANGE THAT NOW THEY HAVE
THE AUTHORITY TO DO THAT WE
DON'T HAVE TO DO ANYTHING
LEGISLATIVELY SO -- SO YOU THEM
WHEN AND WHY THEY HAVEN'T DONE
BUT BABY ALASKA THE
COMMISSIONERS HERE ON THAT BUT
THEY DO HAVE THAT BUT MORE
IMPORTANTLY.
THERE WAS ALSO IN THE REPORTED
TALKED ABOUT -- TO CULTURE
DELEGATING MORE ENFORCEMENT
AUTHORITY TO STAFF -- IS THERE
ANYTHING SPECIFIC THAT THAT YOU
HAVE WHAT KIND WHAT TYPE OF
AUTHORITY THAT WAS INCLUDED IN
THE REPORT THAT YOU WOULD THINK
THEY SHOULD HAVE MORE OF SO AS I
UNDERSTAND THE CPUC PROCESS MOST
OF THE AUTHORITY RESIDES IN THE
ALE J. AND THEN IN THE
COMMISSIONER WHOSE.
AND IN CHARGE AND THERE MAY BE
AND THIS WOULD BE SOMETHING I
THINK PROBABLY BETTER DISCUSSED
WITH THE CPC BUT THERE MAY BE
WAYS THAT.
THAT THEIR PROCESS COULD BE IN
PART STREAMLINED BY DELEGATING
MORE FUNCTIONS TO THE CPUC STAFF
PARTICULARLY IF YOU DEVELOP
EXPERTISE IN THE SAFETY AREA.
I MEAN THAT MAKES GOOD SENSE AND
AND FEW YEARS AGO WE DID GIVE
THAT AUTHORITIES TO FIND SIDE
AND FIND.
A THORNY FOR THOSE MINOR
VIOLATIONS BUT I THINK THAT
YOU'RE RIGHT WILL TAKE IT UP
WITH THEM TO SEE THANK YOU.
THANK YOU FUTURE.
YOUR HONOR OVER TO ME.
OKAY SIR MORE LUCK.
THANK YOU MISTER MISS MITCHELL
SEEMS TO ME THAT YOU'RE VERY
COMPLIMENTARY TO THE CPUC I'M
JUST WONDERING -- IF IT'S JUST
SO MONOLITHIC THAT THAT IT NEEDS
MORE THAN WHAT YOU'RE
RECOMMENDING I'M JUST WONDERING
IF IT NEEDS TO BE BROKEN UP INTO
SMALLER UNITS TO BE MORE
EFFECTIVE.
SO SO TO BE CLEAR I'M HERE AS A
REPRESENTATIVE OF THE STRIKE
FORCE AND I HATE I DON'T MEAN TO
BE COMPLEMENTARY OR OTHERWISE I
WAS TRYING TO REPORT ON WHAT THE
STRIKE FOR SUGGESTED.
I THINK THAT AT THE END OF THIS
PROCESS THE STRIKE FORCE REALLY
LEFT IT TO THE GOVERNOR AND TO
THE LEGISLATURE AND AND YOU'RE
GOOD POLICY MAKING SKILLS TO
DETERMINE WHAT WOULD BE
APPROPRIATE. FOR THAT SI PC.
WELL I'M NOT TRYING TO KILL THE
MESSENGER I AM.
I'M JUST TRYING.
TO MAYBE PRIDE A LITTLE BIT AND
SAY HEY YOU YOU HAVE SOME
RECOMMENDATIONS BUT THE MORE I
LOOK AT THE CPUC IT SEEMS LIKE
IT'S TRYING TO COVER SO MUCH
TERRITORY.
AND IT WAS SO MANY INDUSTRIES
AND IT KEEPS GROWING AND I'M
JUST WONDERING IF.
YOU KNOW USUALLY USING THE WORD
REFORM BUT I'M I I'M WONDERING
IF RESTRUCTURING AND RE.
REORGANIZING AND AND SPLITTING
IT UP INTO MORE FOCUSED.
DIVISIONS WOULD BE A BETTER
APPROACH SO I THINK THAT THE
REPORT WAS FAIRLY CLEAR ON THE
ISSUE THAT THE BREADTH AND SCOPE
OF WHAT THE CPUC IS TRYING TO DO
IS IS VERY DIFFICULT GIVEN ITS
CURRENT.
CURRENT RESOURCES AND
CONFIGURATION.
HOW YOU WOULD GO ABOUT
IMPLEMENTING THAT REFORM?
I'M A BANKRUPTCY LAWYER I'M BIG
ON RESTRUCTURING THINGS BUT I I
COULDN'T TELL YOU HOW TO DO THAT
PART OF IT BUT I DO THINK THAT
THE REPORT WAS VERY CLEAR THAT
THAT THE FUNDAMENTAL PREMISE
THAT YOU'RE TALKING ABOUT IS
CONSISTENT WITH WHAT THE REPORT
WAS.
WITH THANKS FOR YOUR POLITE AND
PROFESSIONAL RESPONSE.
THANK YOU MISTER.
OKAY -- MR MALIKI WANTED -- I
THINK I'M I'M STARTING PART
THREE IF THAT'S OKAY SENATOR
DODD AND THEN AND THEN I'LL TURN
IT OVER. TO TO MISTER POLLOCK
WHAT WHAT WHAT SECOND.
IF I MAY BEFORE WE GET TO
SECTION THREE I'D LIKE IF I
COULD TO TO GO BACK.
TO SOME OF THE THE POINTS THE
OBSERVATIONS YOU MADE ABOUT
THINGS THAT WE NEED TO BE DOING
IN THE STATE.
AND AS I WAS GOING THROUGH MY
LIST OF LEGISLATION THAT WE DID
LAST YEAR SB NINE A ONE A NUMBER
OF BILLS THAT I DID TO TALK
ABOUT THINNING -- MAKING SURE
THAT WE CAN DO -- THE KINDS OF
VEGETATION IN FUEL MANAGEMENT --
WORKING WITH CAL FIRE THESE ARE
THESE ARE ISSUES THAT THE
LEGISLATURE'S PASSING ALREADY
BEEN SIGNED BY THE GOVERNOR.
SO WELL I APPRECIATE IDENTIFYING --
THE PROBLEMS THAT EXIST WE HAVE
I THINK TO A LARGE EXTENT
STARTED WORKING ON THOSE THINGS
THROUGH POLICY SO THEN THE
QUESTION BECOMES -- IS THERE
GOING TO BE FUNDING.
IN THE BUDGET I'M NOT TRYING TO
YOU KNOW GET A SNEAK PREVIEW BUT
IT SEEMS TO ME THAT A LOT OF
THIS WORK.
IS READY TO BE IMPLEMENTED WE
HAVE DONE THE POLICY CAL FIRE
NOW AS A RESULT OF LEGISLATION
FROM LAST YEAR FOR EXAMPLE HAS
BEEN AUTHORIZED TO WORK WITH
LOCAL COMMUNITIES TO IDENTIFY
THE HARDENING -- AND THE
PLANNING THAT NEED TO BE DONE
FOR ALL THOSE HOMES IN THE WILL
WE AS YOU SAY AND AND MAKING
SURE THAT WE HAVE ENOUGH EGRESS
INGRESS AND Là PARADISE.
SO THOSE THINGS ARE BEING DONE
AS WE SPEAK THE QUESTION IS IS
THERE GOING TO BE FUNDING SO
THAT WE CAN CONTINUE. TO TRY TO
ADDRESS THOSE ISSUES WHICH ARE
BOTH BEEN MENTIONED IN THIS
REPORT AND ALSO ADDRESSED TO
SOME EXTENT -- THROUGH
LEGISLATION.
THAT WE ARE -- UNDERTOOK LAST
YEAR IN RESPONDING TO THESE
FIRES SO WHAT IS SO I GUESS
QUESTIONS WHAT IS THE GOVERNOR'S
OF FINANCIAL COMMITMENT TO THESE
ISSUES THAT WE'VE ALREADY PUT IN
PLACE. ONE EXAMPLE FOR EXAMPLE --
AS BEFORE SIXTY FIVE I THINK IS
A BILL I DID LAST YEAR TO GIVE.
PEOPLE MONEY TO HARDEN THEIR
HOMES THROUGH THE PACE PROGRAM
IT'S NOT ENOUGH BUT IT'S A START
ADDRESSING SOME OF THESE THINGS
TO DO YOU HAVE SOME PROPOSALS
THAT YOU'LL BE PRESENTING EITHER
THROUGH THE BUDGET.
OR THAT YOU WOULD LIKE TO SEE US
AS POLICY MAKERS -- INTRODUCED
TO TO EFFECTUATE THESE
SUGGESTIONS.
IT'S AN EXCELLENT QUESTION I
THINK YOU RAISE A VERY GOOD
POINT WHICH IS THE LEGISLATURE
IN THE PAST TWO TO THREE YEARS
HAS PROVIDED YOU KNOW AGENCIES A
LOT OF AUTHORITY TO MAKE
PROGRESS ON THESE FRONTS ONE
AREA -- THAT COMES TO MIND FOR
ME AS PRESCRIBED FRE.
NAM THAT HAS BEEN SUCH A
CHALLENGE -- WE KNOW IT MAKES
SENSE TO DO TO AVOID MEGA FIRES
BUT THERE ARE A RANGE OF OF OF
REGULATORY AND TURN A
BUREAUCRATIC CHALLENGES WITH
THAT -- AND SO LEGISLATION HAS
HAS CLEARED THE WAY FOR US T
MAKE PROGRESS ON THIS SO YOU
KNOW ONE POINT TAKEN.
WE NEED TO HOLD OURSELVES
ACCOUNTABLE FOR MAKING PROGRESS
IN IMPLEMENTING THESE LAWS I AND
THEN TO THAT WE NEED TO MAKE
SURE THAT THERE'S FUNDING FOR
THIS -- YOU REYES HOME HARDENING --
AND I WOULD AGREE THAT -- YOU
KNOW WE NEED TO FIND WAYS TO
HELP PEOPLE -- HELP IN PEOPLE IN
THESE VOLATILE COMMUNITIES
AFFORD HOME HARDENING -- HOME
HARDENING YOU KNOW IS NOT CHEAP --
THERE ARE AFFORDABLE THINGS THAT
CAN GET DONE BUT THEY NEED
FINANCIAL SUPPORT.
YOU REYES PACE AS AN EXAMPLE AND
I THINK BASED ON THE LEGISLATIVE
LEADERSHIP ON PACE I WAS TOLD
THIS WEEK THAT ACTUALLY THAT'S
THAT'S ESSENTIALLY GET GETTING
PUT IN PLACE WHERE FOLKS ARE
GOING TO BE ABLE TO USE THAT
PROPERTY SAYS CLEAN ENERGY
FINANCING.
FOR HOME HARDENING I'M SO WE'RE
MAKING PROGRESS -- AS IT RELATES
TO THE BUDGET AND RESOURCES I
THINK THAT YOU KNOW I'LL BRING
THAT POINT BACK TO THE
DEPARTMENT FINANCING THE
GOVERNOR'S OFFICE. TO ENSURE
THAT -- ALL OF THIS WORK IS
GETTING FUNDED ADEQUATELY
[inaudible]
THANK YOU.
OKAY.
SO PART THREE OF THE REPORT.
I'M THIS STRIKE FORCE CONCLUDED
IN PART THREE OF THE REPORT THAT
A NEW POLICY FRAMEWORK IS
NECESSARY TO ADDRESS WILDFIRE
LIABILITIES IN LIGHT OF THE
INCREASED RISK IN MAGNITUDE OF
FIRES.
THE UNCERTAINTY AS TO THE TIMING
AND EFFECTIVENESS OF MITIGATION
EFFORTS.
THE APPLICABLE CALIFORNIA LAW
AND THE FINANCIAL STRESS ON THE
UTILITIES SECTOR.
THE REPORT IDENTIFIED SEVEN
PRINCIPLES THAT SHOULD GUIDE ANY
SOLUTION AND CAREFULLY EVALUATED
VARIOUS ALTERNATIVES FOR A NEW
POLICY FRAMEWORK.
THE REPORT ULTIMATELY IDENTIFIED
THE THREE APPROACHES THAT THE
STRIKE FORCE BELIEVES MERIT
FURTHER CONSIDERATION.
THE REPORT DID NOT SELECT AN
APPROACH BUT RATHER IDENTIFIED
IMPORTANT QUESTIONS THAT THE
GOVERNOR AND THE LEGISLATURE
WOULD NEED TO ANSWER BEFORE
SELECTING AN APPROACH.
BEFORE MOVING INTO THE SUBSTANCE
OF THE RECOMMENDATIONS I WANTED
TO IDENTIFY FOR THE COMMITTEE A
FUNDAMENTAL PREMISE UNDERLYING
THE REPORT.
AND THAT IS THAT STABLE WELL
MANAGED AND INVESTABLE UTILITIES
A BENEFIT CALIFORNIA.
AND BY INVESTABLE I MEAN THEY
CAN ATTRACT CAPITAL THE MARKET
AT REASONABLE PRICES.
RECOGNIZING THE SPECIFIC ISSUES
WITH P. JEANNIE IN TERMS OF
SAFETY AND MANAGEMENT THAT WILL
DEAL WITH MORE IN PART FIVE OF
THE REPORT.
THE REPORT NOTES THE UTILITIES
HAVE BEEN AND REMAIN CRITICAL
PLAYERS IN ACHIEVING
CALIFORNIA'S CLEAN ENERGY GOALS
AND IN MAINTAINING A SAFE AND
RELIABLE SYSTEM.
MOREOVER UTILITIES THAT ARE NOT
FINANCIALLY STABLE OR NOT
INVESTABLE MAY HAVE REAL
FINANCIAL COSTS FOR CONSUMERS.
ALL THREE INVESTOR OWNED
UTILITIES A RECENTLY REQUESTED
IN FOR GORE CPUC FILINGS
INCREASED RETURN ON EQUITY.
IN THE RANGERS 14216% WHICH IS
SUBSTANTIAL INCREASE FROM WHERE
THERE ARE -- HE IS TODAY.
I'M AND MOST OF THEM JUSTIFIED
THOSE REQUESTS BASED ON
SUBSTANTIAL WILD FIRE RISK
PREMIUMS.
NOT INVISIBLE UTILITIES ALSO
HAVE HIGHER BORROWING COSTS.
ON AND REGARDLESS OF WHETHER
THOSE INCREASES IN IN OUR WE ARE
IN FOR OUR APPROVED IN THE NEAR
TERM.
THE RECENT FILINGS PROVIDE SOME
CONTEXT FOR YOU FOR THE
POTENTIAL COSTS TO CONSUMERS IF
A NEW LIABILITY FRAMEWORK IS AND
PUT IN PLACE.
WITH THAT SAID THE STRIKE FORCE
CONCLUDED THAT ANY REFORM OF THE
WILDFIRE LIABILITY FRAMEWORK
NEEDED TO BE GROUNDED IN SEVEN
PRINCIPLES.
NUMBER ONE MAINTAINING SAFE
RELIABLE AND AFFORDABLE POWER.
NUMBER TWO HOLDING UTILITIES
ACCOUNTABLE TO PRIORITIZE SAFETY.
NUMBER THREE TREATING WILD FIRE
VICTIMS FAIRLY.
NUMBER FOUR REQUIRING EQUITABLE
STAKEHOLDER CONTRIBUTIONS.
NUMBER FIVE REDUCING OVERALL
COSTS OF BOTH THE FIRES IN THE
CLAIMS THAT ARISE FROM THEM.
BUT BEING CAREFUL NOT TO CREATE
A FREE RIDER PROBLEM OR CREATING
AN APPROPRIATE INCENTIVES FOR
PEOPLE NOT TO ACT RESPONSIBLY.
NUMBER SIX PROMOTING
CALIFORNIA'S CLEAN ENERGY GOALS
AND NUMBER SEVEN RECOGNIZING THE
CONTRIBUTIONS OF TAX PAYERS THAT
WILL BE REQUIRED TO PAY THE COST
OF MITIGATING FIRE RISK IN
FIGHTING FIRES AS AND WHEN THEY
IGNITE.
THE REPORT SPEND SUBSTANTIAL
TIME ON THE EXISTING LEGAL
FRAMEWORK APPLICABLE TO WILDFIRE
LIABILITY COST RECOVERY
STANDARDS THE RECENT APPLICATION
OF THOSE STANDARDS SENATE BILL
NINE A ONE AND ITS AFTERMATH.
AND THE CURRENT STATE OF THE
INSURANCE MARKET AND WHILE WE'RE
HAPPY TO TAKE QUESTIONS ON THAT.
I'M NOT GONNA GO THROUGH THAT
BACKGROUND IN DETAIL I THINK THE
COMMITTEE MEMBERS PROBABLY HAVE
A DEEPER KNOWLEDGE OF SOME OF
THOSE ISSUES THAN ANYONE SITTING
UP HERE -- THE REPORT IDENTIFIED
THREE CONCEPTS AS WORTHY OF
FURTHER CONSIDERATION.
BY THE POLICY MAKERS.
THE FIRST CONCEPT WAS A
LIQUIDITY ONLY FUND LIABILITY
UNDER ADVERSE CONDEMNATION TO A
FAULT BASED STANDARD.
AND THE THIRD CONCEPT WAS A
LARGER WILDFIRE OR CATASTROPHIC
WELFARE FUNDS.
I WOULD NOTE FOR THE COMMITTEE
THAT THESE CONCEPTS ARE NOT
MUTUALLY EXCLUSIVE OR
NECESSARILY STANDALONE CONCEPTS
WELL I'M GOING TO DESCRIBE
CONCEPTS WANTING CONCEPTS THREE
IS TO SEPARATE FUNDS.
THE GOVERNOR AND THE LEGISLATURE
COULD CONSIDER COMBINING CERTAIN
CONCEPTS ARE IMPORTING FEATURES
THAT WE DESCRIBED IN THE REPORT
FROM ONE COM SET CONCEPT TO
ANOTHER.
I'M ALSO BECAUSE OF THE
UNCERTAIN IMPACT OF ANY OF THE
ALTERNATIVES ON THE INSURANCE
MARKETS.
THE GOVERNOR AND THE LEGISLATURE
MAY ALSO WISH TO ABOUT EVALUATE
POLICY OPTIONS TO IMPROVE ACCESS
AND AFFORDABILITY OF INSURANCE
DEPENDING ON WHICH OPTION YOU
WOULD SELECT.
I THINK IT'S ALSO IMPORTANT TO
HIGHLIGHT THAT EACH OF THESE
ALTERNATIVES ASSUMES A
REGULATORY REFORM IN THE FURTHER
IN THE FORM OF FURTHER
CLARIFICATION OF COST RECOVERY
STANDARDS.
AND MODIFICATION OF POTENTIAL
STREAMLINING OF THE REGULATORY
PROCESS.
THE STRIKE FORCE CONCLUDED THAT
SOME DEGREE OF REGULATORY REFORM
IS NECESSARY IN ANY OF THE
CONCEPTS THAT WERE PUT FORTH IN
THE REPORT.
IF THE CONCEPTS ARE GOING TO
STABILIZE THE UTILITIES AND PUT
THE UTILITIES IN A POSITION TO
FINANCE THEIR CAPITAL NEEDS.
AT A REASONABLE COST.
I THINK IT'S ALSO IMPORTANT FOR
POLICY MAKERS TO CONSIDER THAT
ANY CHANGE IN THE REGULATORY
FRAMEWORK.
AND ANY INCREASED CERTAINTY ON
COST RECOVERY HAS AN ATTENDANT
IMPACT ON REPAIRS.
AND SO REGULATORY REFORM NEEDS
TO BE BALANCED IN TERMS OF
WHAT'S NECESSARY FOR INVESTABLE
UTILITIES AND THE IMPACT THAT
THAT REGULATORY REFORM WOULD
HAVE ON REPAIRS.
EACH OF THE CONCEPTS HAS
BENEFITS IN TRADE OFFS IN THE
CASE OF A FUN STRUCTURE AT LEAST
ONE THAT REQUIRES CONTRIBUTIONS
FROM UTILITY INVESTORS. ONE OF
THOSE CHALLENGES IS THAT THE
INVESTOR CONTRIBUTION IS LIKELY
TO COME WITH CONDITIONS.
ARE TYPICALLY OR EXPECTEDLY
REQUIRING MORE DEFINITIVE AND
POTENTIALLY UNCAPPED COST
RECOVERY STANDARDS THAT COULD
SHIFT FUTURE COSTS TO REPAIRS.
AND OR LEAVE FEWER FUNDS
AVAILABLE TO PAY WILD FIRE
DAMAGE CLAIMS.
SO WITH THAT LET ME BRIEFLY
SUMMARIZE THE THREE CONCEPTS
THAT WERE IN THE REPORT.
THE LIQUIDITY ONLY FUND IS
DESIGNED TO ADDRESS THE INVEST
ABILITY OF UTILITIES BY
PROVIDING ESSENTIALLY BRIDGE
FINANCING OUR LIQUIDITY
FINANCING. FOR UTILITIES TO PAY
WILD FIRE CLAIMS PENDING THE C.
P. UC'S DECISION ON COST
RECOVERY.
THE IDEA IS TO ADDRESS THE
TIMING PROCESS THAT EXIST IN THE
EXIT IN THE CURRENT REGULATORY
FRAMEWORK.
THE PRIMARY BENEFIT OF THE
LIQUIDITY ONLY FUND IS TO
STABILIZE THE CREDIT RATINGS OF
UTILITIES AND ALLOW THEM TO
ACCESS CAPITAL TO MAKE THE
NECESSARY INVESTMENTS.
THAT BENEFITS REPAIRS BY KEEPING
THE COST OF BORROWING AND R. O.
E. RELATIVELY LOW.
SOME FEATURES OF THE LIQUIDITY
FUND THAT WERE IDENTIFIED IN THE
REPORT.
THE REPORT IDENTIFIED THAT
FUNDING COULD BE PROVIDED BY A
UTILITY INVESTORS OR RATE PAYERS
OR COMBINATION. ONE SOURCE OF
POTENTIAL FUNDING THAT THE
REPORT CONSIDERED AS A POTENTIAL
CONTINUATION OR SECURITIZATION
OF THE STREAM OF REVENUE THAT'S
CURRENTLY KNOWN AS THE
DEPARTMENT OF WATER RESOURCES
ARE D. W. R. CHARGE.
ONCE THOSE BONDS ARE TO FEES
THAT CHARGE COULD IN THEORY
CONTINUE AND BE USED FOR THIS
PURPOSE.
THE FUND WOULD BE AVAILABLE TO
PAY CLAIMS BEFORE COST RECOVERY
DETERMINATION THIS GOES TO THE
ISSUE OF CREATING LIQUIDITY BY
pONCE THAT COST RECOVERY
DETERMINATION WAS MADE THEN THE
FUND WOULD BE REIMBURSED IF THE
COST RECOVERY DETERMINATION WAS
THAT UTILITY HAD ACTED PRUDENTLY.
THAN THAT REIMBURSEMENT WILL
COME FROM REPAIRS.
IF THE UTILITY HAD NOT ACTED
PRUDENTLY THEN IT WOULD COME
FROM UTILITY INVESTORS IN BOTH
CASES WHAT WOULD HAPPEN IS THE
FUND WOULD GET MONEY BACK IN SO
IT WOULD JUST HAVE PROVIDE IT
WOULD HAVE ADDRESSED THE TIMING
ISSUE.
BECAUSE THE DRAWS WOULD BE
REIMBURSED AND THE SIZE OF THE
FUND THAN IS LIKELY TO BE MORE
LIMITED IT'S LESS LIKELY TO BE
DEPLETED.
BECAUSE YOU HAVE A REVOLVING
SOURCES OF FUNDING.
IT IS IMPORTANT TO NOTE THAT
THIS CONCEPT DOES NOT SHIELD
EITHER UTILITY SHAREHOLDERS OR
LIQUID OR UTILITY CUSTOMERS FROM
ON CAP LIABILITY FOR WILD FIRE
DAMAGES IT ADDRESSES THE TIMING
RISK.
THE SECOND CONCEPT IDENTIFIED IN
THE REPORT WOULD INVOLVE
CHANGING STRICTLY ABILITY TO A
FAULT BASED STANDARD.
APPLICATION OF A FAULT BASED
STANDARD IS INTENDED TO BALANCE
THE NEED FOR PUBLIC IMPROVEMENTS
IN THIS CASE AN ELECTRIC
DISTRIBUTION SYSTEM.
WITH THE PRIVATE HARM TO
INDIVIDUALS A CAGE OCCASION BY
THOSE IMPROVEMENTS.
THIS CHANGE WOULD IMPACT ONLY
CLAIMS FOR PROPERTY DAMAGES
SENSE CALIFORNIA GENERALLY
ALREADY APPLIES A NEGLIGENCE
STANDARD TO PERSONAL INJURY
WRONGFUL DEATH AND OTHER TORT
CLAIMS.
MOVING TO FALL BASE STANDARD HAS
THE IMPACT OF SHIFTING THE RISK
OF PROPERTY LOSS TO INSURANCE
COMPANIES.
AN UNINSURED OR UNDERINSURED
PROPERTY OWNERS IN THE CASE
WHERE THE UTILITY IS NOT A BAD
ACTOR.
IF YOU TELL THE IS AT FAULT
INCLUDING FOR NEGLIGENT RECKLESS
OR INTENTIONAL MISCONDUCT THAN
UTILITY WOULD STILL BE
RESPONSIBLE FOR PAYING THE
DAMAGES INCLUDING PUNITIVE
DAMAGES.
THE THIRD CONCEPT IDENTIFIED IN
THE REPORT IS WHAT WE DESCRIBE
AS A WILDFIRE FUND WHICH IS A
WELL CAPITALIZED FUND THAT WOULD
CREATE A BUFFER TO ABSORB A
SIGNIFICANT PORTION OF THE
WILDFIRE LIABILITY COSTS.
THAT MIGHT OTHERWISE BE PASSED
ON TO REPAIRS UNDER EXISTING LAW
WHAT PROVIDING TIME FOR
MITIGATION EFFORTS TO BE
ADVANCED.
THE THE PRIMARY DIFFERENCE
BETWEEN THIS FUND AND THE
LIQUIDITY ONLY FUND.
IS AT THE WILD FIRE FUND BOTH
ADDRESSES LIQUIDITY ISSUES AND
ALSO IT TENDS TO LIMIT THE COST
TO REPAIR IS BY BUILDING UP A
LIABILITY TOWER.
THAT THAT GOES FIRST TO FUNDS
THAT ARE PROVIDED BY UTILITIES.
THE REPAIR SAVINGS ARISE BECAUSE
THE UTILITY SHAREHOLDERS
CONTRIBUTING NON RECOVERABLE
DEPOSIT TO THE FUND WHICH WOULD
PAY CLAIMS FOR COST RECOVERY.
OR WOULD PAY CLAIMS WHICH COST
RECOVERY WOULD OTHERWISE BE
AVAILABLE TO LARGE THE
SHAREHOLDER CONTRIBUTION.
THE GREATER THE REPAIR SAVINGS
ARE THE BUFFER BECAUSE THERE'S A
SOURCE OF FUNDS TO PAY THOSE
BEFORE YOU GO TO REPAIRS.
LIKE A LIQUIDITY FUND THE
WILDFIRE FUND PROVIDES A SOURCE
OF IMMEDIATE FUNDING FOR CLAIMS
ASSERTED AGAINST THE UTILITIES
AND FOR CATASTROPHIC WILD FIRE
DAMAGES.
SOME OF THE FEATURES OF THE WILD
FIRE FUND CONSIDERED IN THE
REPORT IN YOUR ARE HIGHLIGHTED
IN THE REPORT.
INCLUDED THE FOLLOWING.
UTILITY SHAREHOLDERS WOULD BE
REQUIRED TO MAKE A SUBSTANTIAL
CONTRIBUTION TO THE FUNDS CLAIMS
PAYING RESOURCES.
IN ADDITION THE FUNDS CLAIMS
PAYING RESOURCES COULD BE
ENHANCED TO SOMETHING LIKE THE
EXTENSION OF THE D. W. ARE
CHARGED THAT WE TALKED ABOUT
BEFORE.
INSURERS WOULD ACCEPT THE CAP ON
SUBROGATION CLAIMS IN ORDER TO
LIMIT THE AMOUNT OF CLAIMS
AGAINST THE FUND.
THE CPUC WOULD BE ABLE TO RETAIN
JURISDICTION TO IMPOSE PENALTIES
ON UTILITIES THAT DO NOT ACT
PRUDENTLY BUT IN THE REPORT
BEYOND THE CBC PENALIZING THEM
THE FUND WAS LARGELY A NO FAULT.
FUND.
ON THE FUND COULD PULL CAPITALS
FROM ALL I USE.
MUNICIPAL UTILITIES COULD
PARTICIPATE AT THEIR OPTION.
THE FUND COULD BE LIMITED TO
CATASTROPHIC WILDFIRES HOWEVER
YOU DEFINE DID IN THE
LEGISLATION.
AND THE FUND COULD IF DESIRED
USE A TRUST FOR ADMINISTRATION
OF CLAIMS TO SPEED UP RECOVERY
NOT AS I INDICATED AT THE
BEGINNING OF MY REMARKS SOME OF
THOSE.
FEATURES COULD BE IMPORTED
ANOTHER FUND STRUCTURES BUT
THOSE WERE THE THINGS THAT OR OR
DROPPED ALTOGETHER BUT BUT THOSE
ARE THE THINGS THAT WE
IDENTIFIED IN THE REPORT.
THIS CONCEPT ALSO DOES NOT
SHIELD UTILITY CUSTOMERS FROM ON
CAP MY ABILITY FOR WILD FIRE
DAMAGES IT JUST CREATES A BUFFER
LAYER THAT I WAS TALKING ABOUT
BECAUSE THE UTILITIES PROVIDED
CONTRIBUTION UP FRONT -- AND
THERE ARE A COUPLE OF PLACES
WHERE.
ONCE THE FUND IS EXHAUSTED IF
THE UTILITY CONTRIBUTION COMES
WITH THE CHANGING COST RECOVERY
STANDARDS THEN IT MAY BE THAT
REPAIRS ACTUALLY PAY MORE ONCE
THE FUND IS EXHAUSTED SO THE
SIZE OF THE FUND BECOMES
IMPORTANT -- ALSO TO THE EXTENT
THAT.
THERE REALLY ISN'T THE WILDFIRE
DAMAGE THAT YOU EXPECT AND YOU
RAISE THE FUNDSAND THEN.
REPAIRS MAY HAVE PAID FOR
SOMETHING THEY DON'T NEED -- THE
REPORT IDENTIFIED NUMEROUS
QUESTIONS FOR EVALUATION BY THE
GOVERNOR AND THE LEGISLATURE IN
THE IN.
IN ACCORDANCE WITH EACH OF THESE
OPTIONS.
I'M NOT GONNA BE THE MALL
BECAUSE IT'S A LOT OF PAGES BUT
IN THE FUND'S STRUCTURE THERE
WERE SOME CRITICAL ONES THAT I
THINK POLICYMAKERS REALLY NEED
TO CONSIDER I DEVELOPING A FUND
ONE OF THEM AND IT'S WHAT MR
BOLICK WILL SPEAK TO IN A MINUTE.
IS HOW BIG DOES THE FUND HAVE TO
BE IN ORDER TO MEET ITS STATED
GOAL.
GENERALLY IN MY REMARKS
LIQUIDITY FUND IS SMALLER THAN A
CATASTROPHIC WILDFIRE FUND I'M A
LAWYER THAT'S ABOUT AS GOOD AS I
DO WITH NUMBERS.
BUT IT IS IT IS AN IMPORTANT
THING IN FUND DESIGNED TO THINK
ABOUT HOW BIG IT IS.
WHAT IN WHAT IS THE IMPACT ON
REPAIRS IN EACH OF THESE
ALTERNATIVES UNDER VARIOUS
ASSUMPTIONS BECAUSE THE IMPACT
ON REPAIRS DEPENDS NOT ONLY ON?
THE SIZE OF THE FUND HOW MUCH
THE UTILITY FUNDING IS BUT ALSO
HOW MUCH DO YOU THINK.
THE MITIGATION EFFORTS ARE GOING
TO WORK AND HOW MUCH ANNUAL WILD
FIRE DAMAGES ARE GOING TO BE AN
AND HOW LONG IT'S GOING TO TAKE
FOR THOSE MITIGATION EFFORTS TO
WORK.
SO ALL THOSE THINGS ARE
IMPORTANT FOR YOU TO CONSIDER
WHEN YOU DEVELOP YOUR FUND
DESIGN -- WELL THE FUND SATISFY
THE REQUIREMENTS OF THE CAPITAL
MARKETS TO STABILIZE RATINGS AND
HELP WITH THE PERCEPTION OF
UTILITIES CREDIT QUALITY.
IF THE FOR IF THE RATING
AGENCIES AND THE INVESTORS DON'T
BELIEVE THIS IS A SUSTAINABLE
SOLUTION THAN.
WE HAVEN'T SOLVED THE PROBLEM
WHAT SHAREHOLDER CONTRIBUTION
WOULD YOU REQUIRE TO CAPITALIZE
THE FUND.
HOW DO YOU DESIGN A FUND TO
CREATE THE PROPER INCENTIVES FOR
UTILITIES TO INVEST IN?
SAFETY AND PREVENTION MEASURES
NOT CREATE A FREE RIDER OR A
MORAL HAZARD PROBLEM.
HOW IS P. JEANNIE GOING TO RAISE
THE CAPITAL NECESSARY TO MAKE
ITS CONTRIBUTION TO THE FUND TO
GIVEN THAT IT'S IN BANKRUPTCY?
AND THE IS THE DEVELOPMENT OF
ANY FUND ACTUALLY TIED TO P.
JEANNIE EXITING FROM BANKRUPTCY
BECAUSE THAT HAS A TIMING ISSUE
ASSOCIATED WITH IT SO THOSE ARE
SOME CRITICAL ISSUES.
THAT THE STRIKE FORCE IDENTIFIED
AND THERE HAS BEEN SOME
CONTINUING WORK DONE ON SOME OF
THOSE.
THERE WAS ALSO FURTHER RESEARCH
OBVIOUSLY ON A CHAIR ON
ALTERNATIE TO YOU WHICH IS A
THE CHANGE TO A FULL BASED
SYSTEM.
SPECIFICALLY ONE OF THE CRITICAL
QUESTIONS IS HOW MUCH WOULD
MOVING TO A FAULT BASED SYSTEM
ACTUALLY REDUCE THE SETTLEMENTS
THAT UTILITIES WOULD.
PAY FOR WILD FIRE CLAIMS -- AND
THE SECOND ISSUE THAT WE
IDENTIFIED IS WITH THIS APPROACH
TO YIELD THE CERTAINTY NEEDED
FOR THE CAPITAL MARKETS
PARTICULARLY GIVEN POTENTIAL
LEGAL RISKS AND CHALLENGES THAT
I THINK YOU ALL ARE VERY AWARE
OF WITH REGARD TO CHANGE TO A
FAULT BASED SYSTEM.
SO WITH THAT THAT THOSE ARE MY
REMARKS ON PART THREE I THINK
MISTER POLLOCK IS GOING TO
PROVIDE YOU SOME OF THE
ADDITIONAL WORK AND THAT THE
STRIKE FORCE HAS DONE.
JUST IN PROVIDING SOME METRICS
RELATED TO HOW ONE MIGHT SIZE A
FUND.
THANK YOU NANCY.
NOT THANK YOU SENATOR DODD FOR
THE INVITATION TO ADDRESS THE
COMMITTEE THIS AFTERNOON.
MY NAME IS NATHAN POLLOCK ALSO
FROM PHIL SINGER ENERGY PARTNERS
WHICH I WILL REFER TO PATIENTLY
AS FTP.
AND I'M ALSO HERE REPRESENTING
THE GOVERNOR STRIKE FORCE.
TODAY I'LL BE TALKING ABOUT THE
THIRD CONCEPT AS DESCRIBED BY MS
MITCHELL THAT OF AN OPTION OF A
WILDFIRE FUND.
IS MISS MITCHELL MENTIONED ONE
OF THE KEY OPEN QUESTIONS -- IN
THE REPORT RELATES TO FUND
SIZING. TWO KEY DRIVERS OF FUN
SIZING OR THE FUTURE RISK
PROFILE OF WILDFIRE DAMAGE AS
WELL AS THE AMOUNT OF TIME IT
WILL TAKE FOR MITIGATION EFFORTS
TO TAKE EFFECT.
THE STRIKE FORCE HAS BEGUN
ANALYZING THIS QUESTION OF A
WILDFIRE FUNDS CLAIMS PAY
CAPACITY -- OVER TIME AND UNDER
CERTAIN SCENARIOS.
THE FOCUS OF THIS PARTICULAR
ANALYSIS [inaudible]
IS.
NOT ON SPECIFIC FUND STRUCTURES
BUT RATHER ON THE EXPECTED
DURABILITY OF A FIRE AND AND ITS
CLAIMS PAYING CAPACITY --
RELATIVE TO CAPITALIZATION.
IN ESSENCE THIS ANALYSIS IS
DESIGNED TO PROVIDE AN ESTIMATED
LIKELIHOOD THAT A FUND WILL
RETAIN CLAIMS PAYING CAPACITY AT
CERTAIN POINTS IN THE FUTURE.
BEFORE SHARING THE RESULTS OF
THIS INITIAL DURABILITY ANALYSIS
HOWEVER.
ALL ADDRESS THE AFOREMENTIONED
DRIVERS BEGINNING WITH THE LEVEL
OF POTENTIAL ECONOMIC DAMAGES
ASSOCIATED WITH UTILITY COST
WILDFIRE.
THIS REALLY TURNS ON HOW YOU
VIEW THE STATE'S RISK OF FUTURE
FIRE DAMAGE.
THE V. P. HAS MODELED A NUMBER
OF DIFFERENT SCENARIOS FOR THE
GOVERNOR'S OFFICE.
AND AT THIS TIME I'D LIKE TO
DIRECT YOUR ATTENTION TO THE
SLIDE TITLED MODELED WILD FIRE
FIND DAMAGE SCENARIOS -- WHICH
SHOWS TO THESE RISKS SCENARIOS
THAT'S ALSO ON THE SCREEN BEHIND
ME.
ON ONE END OF THE SPECTRUM IF
THE LAST TWO YEARS WERE OUT
LIARS.
A LONGER TERM HISTORICAL
ASSESSMENT OF WILD FIRE DAMAGE
INDICATES MANY YEARS OF MINIMAL
DAMAGE WITH A FEW LARGE EVENTS.
BASED ON THIS VIEW CALIFORNIA
WOULD NEED NO FUND OR PERHAPS A
SMALL FUND TO COVER THE
OCCASIONAL LARGE FIRE
[inaudible]
HOWEVER.
AS YOU HEARD FROM SECRETARY
CROWFOOT THE DESTRUCTIVENESS OF
CALIFORNIA WILDFIRES HAS
INCREASED DRAMATICALLY
PARTICULARLY IN THE PAST TWO
YEARS.
AS A RESULT HISTORICAL FIRE
DAMAGE ASSESSMENTS MAY
UNDERSTATE THAT RISK.
ON THE OTHER END OF THE SPECTRUM.
IF CALIFORNIA'S FUTURE LOOKS
LIKE TWENTY SEVENTEEN AND TWENTY
EIGHTEEN EVERY YEAR.
A WILDFIRE FUND ALONE IS ALSO
LIKELY NOT A WORKABLE SOLUTION.
WHERE AND HOW POLICYMAKERS
ULTIMATELY VIEW CALIFORNIA'S
FUTURE FIRE RISK ON THAT
SPECTRUM?
WILL IMPART DRIVE HOW LARGE A
FINE NEEDS TO BE.
GIVEN THE UNCERTAINTY
SURROUNDING FUTURE WILDFIRE RISK
THE STRIKE FORCED HIS ASKED IF
HE P. TO DEVELOP A MODEL TO
PROVIDE YOU ONE DATA POINT ALONG
THE SPECTRUM. ONE THAT ASSUMES
THE NEXT TEN YEARS LOOK MORE
LIKE THE LAST.
FIVE AND TO ANALYZE THE
RESILIENCY OF FIND THE SIZING
SCENARIOS UNDER THIS PARADIGM.
THIS IS AGAIN ONE DATA POINT AND
WE DOES CERTAINLY BE HAPPY TO
WORK WITH THE LEGISLATURE TO
MODEL AND ANALYZE OTHER
SCENARIOS.
A SECOND DRIVER OF FUN SIZE IS
HOW LONG -- POLICY MAKERS
BELIEVE THE FINE NEEDS TO LAST.
BASED ON DISCUSSIONS WITH WILD
FIRE AND SAFETY EXPERTS THE
STRIKE FOR STATUS FTP TO MODEL
THE DURABILITY OF A FUND OVER AN
EIGHT TO TWELVE YEAR PERIOD.
WHICH IS THE AMOUNT OF TIME
THESE EXPERTS HAVE INDICATED
MIGHT BE NECESSARY TO ACHIEVE --
MATERIAL MITIGATION A FAX.
VARIOUS SOURCES INDICATE THAT
THE LAST FIVE YEARS OF AVERAGE
AGGREGATE ECONOMIC DAMAGES --
RELATED TO WILDFIRES RANGE
SOMEWHERE BETWEEN SEVEN AND TEN
BILLION DOLLARS ANNUALLY.
BASED ON THAT.
FEP DEVELOPED A DAMAGE RISK
CURVE THAT REFLECTS A RISK OF
AVERAGE ANNUAL LOSS OF EIGHT A
HALF BILLION DOLLARS.
WITH A HIGHER PROBABILITY THAT
IS TO SAY HIGHER FREQUENCY.
OF FIVE BILLION TO FIFTEEN
BILLION DOLLAR LOSS YEARS.
THAN A LONGER TERM -- HISTORICAL
DATA MIGHT INDICATE. FOR THE
PURPOSE OF THIS ANALYSIS THE
STRIKE FORCE ALSO ASKED THAT THE
P. TO INCORPORATE A BLENDED
SETTLEMENT RATE OF 50%.
ON DAMAGE CLAIMS ACROSS BOTH
INSURED AND UNINSURED LOSSES.
SO THIS TIME I LIKE TO DIRECT
YOUR ATTENTION TO THE SECOND
SLIDE -- TITLE LAST FIVE YEARS
RISKS BURIAL RESULTS.
SIR TO RECONSIDER THE INPUTS AND
ASSUMPTIONS AS I JUST DESCRIBED
F. E. P. ANALYZED THREE SPECIFIC
FUND CITED SIZING SCENARIOS. TO
ESTIMATE THE PROBABILITY THAT A
FIND WOULD STILL HAVE CLAIMS
PAYING CAPACITY BY.
TWENTY THIRTY WE ANALYZE THE
FIND OF TEN BILLION DOLLARS.
A FUND OF TWENTY FIVE BILLION
DOLLARS AND A FUN SIZED AT FORTY
BILLION DOLLARS.
UNDER THE MODELS SET OF
ASSUMPTIONS A TEN BILLION DOLLAR
FUND HAS APPROXIMATELY A 98%
PROBABILITY OF EXHAUSTING ITS
CLAIMS PAYING CAPACITY BY.
TWENTY THIRTY ON THE SAME SET OF
ASSUMPTIONS A TWENTY FIVE
BILLION DOLLARS FUND HAS
APPROXIMATELY A 53% LIKELIHOOD
OF EXHAUSTING ITS CLAIMS PAYING
CAPACITY BY.
TWENTY THIRTY AND A FORTY
BILLION DOLLAR FIND HAS A 7%
PROBABILITY OF EXHAUSTING CLAIMS
PAYING CAPACITY BY.
TWENTY THIRTY AT THIS TIME IS
MITCHELL AND I ARE AVAILABLE TO
ADDRESS ANY OF THE COMMITTEE'S
QUESTIONS ON PART THREE OF THE
REPORT.
SENATE MCGUIRE THINK YOU WERE ON
THE PHYLLIS.
JOINT THE STRUGGLE.
THANK YOU SO MUCH FOR THE CHAIR.
HERE WANT TO TAKE A MOMENT TO
THANK YOU FOR ALL OF YOUR DUE
DILIGENCE ON PUTTING THIS
HEARING TO GET ALONG WITH YOUR
STAFF TEAM AS WELL -- INEQUALITY
THANK YOU TO THE PRESENTERS
WOULD LIKE TO BE A TO GO DOWN --
JUST IN THREE OF THE THREE
CATEGORIES A TWO CATEGORIES IN
ONE WE DID NOT TOUCH ON TODAY
JUST TO GET SOME FEEDBACK ON
FIRST FOUR WANT TO TAKE MOMENT
SAY THANK YOU MISTER CRAWFORD --
FOR ALL OF HIS WORK THE
GOVERNOR'S WORK.
ON A FIRE PREVENTION AND
RESPONSE ACROSS THE STATE -- IN
FOR BEING TRUE TO HIS WORD FOR
THOSE THAT COUNTIES THAT HAVE
BEEN IMPACTED BY WILDFIRE.
LADY HE MADE COMMITMENTS LAST
YEAR AND HE'S FALL THROUGH WITH
IN THIS YEAR -- IN VERY GRATEFUL
FOR THEM PLEASE PASS ON OUR
SINCERE THANKS -- ITEMS THAT
WOULD LIKE TO BE ABLE TO ADDRESS
AND I THINK WHERE THE STATE HAS
BEEN ONE OF THE PARTNERS IN
REGARDS.
TO OUR FEDERAL PARTNERS AND
INCREASING IN ABOUT A TWO
BILLION DOLLAR CUT SINCE.
TWO THOUSAND SIXTEEN CAN I SAY
IS FOR SERVICE BUDGET. HUNDRED
MILLION I WAS PUT IN OVER THE
LAST. SIXTEEN MONTHS -- FROM
STATE FUNDS 40% OF HAS BEEN
SPENT ON FEDERAL LAND.
I THINK THAT THE STATE HAS BEEN
WORKING.
TOGETHER TO STRENGTHEN THAT
PARTNERSHIP WITH OUR FEDERAL
PARTNERS -- IN JUST I THINK IT
IS A REALLY IMPORTANT TO POINT
OUT IS THAT THERE'S BEEN A LOT
OF HYPERBOLE -- IN THE
MARKETPLACE AND WANTING TO MAKE
SURE THAT FOLKS KNOW THAT STATE
IS ACTIVELY ENGAGED IN THE
PARTNERSHIP.
THANK YOUTO TOUCH ON THE THE
ENGINE SITS IN THE BUDGET. FOR
CALIFORNIA.
THANK YOU FOR MOVING ON THEM.
AT THE SAME TIME THE STATE IS
STILL THIRTY ONE CALIFORNIANS IN
SHORT OF OUR PEAK.
NUMBER ON THE ROAD WHICH IS BACK
IN.
NINETEEN SEVENTY FIVE SO -- I
KNOW THAT THERE ARE SEVERAL
FACTORS OF ONE NEED A HIGHER UP
TO BE TO GET THE ENGINE CREWS TO
TO BE A GOOD ENGINES -- THROUGH
THE MANUFACTURER BY.
WANTING TO BE A TO SEE WHAT THIS
LOOKS LIKE OVER THE YEARS AND I
THINK -- YOU POINTED OUT THE
NUMBERS SEVERITY.
OF THE DESTRUCTION THE SIZE AND
SCOPE -- WE NEED TO BE A TO GET
BACK TO WHERE WE WERE IN THE
SEVENTIES WHERE THE BURN RATE
WAS NOT EVEN.
A BLIP TO WHAT WE'RE SEEING
TODAY.
ANY COMMENTS ON THAT BECAUSE I
THINK THE THIRTEEN IS SIMPLY NOT
ENOUGH.
WELL I TAKE YOUR POINT FIRST OF
ALL IN A BRING THAT BACK TO THE
GOVERNOR -- AND OUR TEAM I IN
THE GOVERNOR'S OFFICE -- I WILL
NOTE THAT UNDER THE CAL FIRE
STRATEGIC PLAN THAT WAS ISSUED
THIS YEAR EITHER UNDERTAKING A
DETAILED ANALYSIS OF JUST WHAT
THE NEEDS ARE TO REALLY RIGHT
SIZE BOTH THE PERSONAL AND
EQUIPMENT -- AND SO WE HOPE THAT
WE WILL HAVE INFORMATION THAT
WILL GIVE US.
A BETTER SENSE OF REALLY WHERE
WE CAN AUGMENT AND HOW WE CAN
AUGMENT -- BUT OVERALL YOUR I
TAKE YOUR POINT AND AN AGREE
WITH THE FACTUAL BASIS WHICH IS
WE HAVE LESS FIRE ENGINES THAN
WE DID -- YOU KNOW FORTY YEARS
AGO AND THAT'S A CHALLENGE.
IN IN AGAIN IN CONVERSATIONS
WITH CAL FIRE AT THE GOOD BUT
JUST HAVE CHAIRS -- COMMITTEE.
THERE ARE FACTORS THAT GO INTO
ORDERING RIGHT WE HAVE TO BE IT
TAKES A CERTAIN AMOUNT OF TIME
ABOUT A YEAR PER ENGINE FROM.
WATER GOES INTO ACTUALLY COMING
OUT AND WE ALSO HAVE TO STEP BY
STEP UP TO PROVIDE THE TRAINING
IN AT THE SAME TIME THOUGH -- WE
GOT TO BE ABLE TO CONTINUE FOCUS
ON RESPONSE AND HAVING.
FEWER ENGINES ON THE ROAD TODAY
THAN WE DID NINETEEN SEVEN FIVE
IS NOT ACCEPTABLE.
YEAH I'LL JUST ADD THAT AN IMAGE
AND SURE YOU WOULD AGREE THAT
THAT YOU KNOW THE MEN AND WOMEN
OUT THERE FIGHTING THE FIRES
NEED YOU KNOW ADEQUATE SUPPORT
AND THEY NEED THE PERSONAL OUT
THERE.
YAH -- TO BOTH FIGHT THE FIRE
AND FOR THEIR OWN SAFETY AND SO
WE'RE TAKING THIS ANALYSIS BY
CAL FIRE AS IT RELATES TO RIGHT
SIZING THE FORCE VERY -- VERY
SERIOUSLY FOR THE OTHER ISSUE IS
THAT -- IN GREATLY APPRECIATE IN
REGARDS TO FINDING --
LEGISLATURE DANCE FUNNY LASHER
TWENTY FIVE KNOWN FROM GOVERNOR
BROWN TWENTY FIVE MILLION FROM
THE LEGISLATURE.
IN REGARD TO PRE POSITIONING --
IN WE'RE WE'RE JUST STARTING TO
BE ABLE TO GET INTO THE SWING OF
PRE POSITIONING. ONE OF THE
ITEMS THAT WOULD IF IF WE'RE NOT
GOING TO USE PRE POSITIONING
DOLLARS. ONE OF THE AREAS THAT
HAVE BEEN IDENTIFIED OF
WEAKNESSES IS HAVING
TRANSPONDERS ON LOCAL FIRE
ENGINE SO AT ANY ONE TIME WE
KNOW WE'RE LOCAL FIRE ENGINES
ARE AT WHEN THEY'RE DOING.
ADVANCING WITH MUTUAL AID.
SO THE STATE IS FINDING
TRANSPONDERS ARE LOCATORS FOR
CALIFORNIANS THE OR NOT FUNDING
FOR LOCAL. 85% OF OUR MUTUAL AID
IS COMING FROM LOCAL GOVERNMENT
AND TO ENSURE THAT THE MUTUAL
AID SYSTEM.
IS IN COORDINATION WE'RE GONNA
NEED THOSE SAME TYPE OF LOCATORS
UP FOR LOCAL FIRE AS WE DO WITH
CAL FIRE SO THAT EVERYONE'S ON
THE SAME SYSTEM.
I SAY THAT -- I THINK HAVING
SOME FLEXIBILITY FOR NOT GOING
TO USE THOSE -- IF WE DON'T USE
UP ALL OF OUR PRE POSITIONING
DOLLARS THOSE DOLLARS COULD ALSO
BE USED FOR THE TRANSPONDERS AND
THE GPS FOR LOCAL FIRE FOR THAT
SEASON -- AN ITEM I KNOW YOU
LOOKING AT GOING FOR BUT I THINK
THAT'S AN IMPORTANT ISSUE TO BE
ABLE TO ADDRESS.
I'LL TAKE THAT BACK TO CHIEF
PORTER A CAL FIRE AND GET BACK
TO YOU OFF LINE ON THAT.
THE OTHER CHALLENGE WEAKNESS I
THINK THAT WE CURRENT CURRENTLY
HAVE A ONE A ACKNOWLEDGE SENATOR
JACKSON'S SENATOR DODD TO OUR
TABLE -- AND ON ALL ISSUES OF
EMERGENCY ALERTS -- AND AT THE
SAME TIME THOUGH WHEN WE HAVE A
NINE ONE ONE OUT EACH IN THE
STATE.
THERE IS NO COMMUNICATION -- AND
THE LOCAL GUY.
DOES NOT KNOW WHEN NINE ONE ONE
GOES OUT WHEN IT'S CAN COME BACK
IN WHEN TELECOM IS IF TELECOM IS
WORKING.
GIVE ME SOME EXAMPLES IT TOOK
SIX HOURS. SIX HOURS DURING THE
CAMPFIRE FOR THE FCC. TO
CONTACTED PC.
HI THAT THERE IS AN OUTAGE -- IN
THE TO THE OFFICE EMERGENCY
SERVICES NEVER KNEW.
TOOK FIVE HOURS IN THE TUBS.
SO WHEN WE TAKE AND TAKE A LOOK
AT FIRE RESPONSE THERE NEEDS TO
BE THERE IS A SIGNIFICANT LACK.
OF COMMUNICATION IN FACT IT'S A
DARK HOLE IF LOCAL GOVERNMENTS
CAN'T SEND OUT EMERGENCY ALERTS.
AND OR NINE ONE ONE GOES DOWN.
THERE IS ABSOLUTELY NO
INFORMATION BEING SHARED BETWEEN.
BY TELECOM DIRECTLY IN THE
OFFICE EMERGENCY SERVICES I
THINK THAT'S ANOTHER ISSUE THAT
WE'RE WHERE WE NEED TO BE OUT OF
FOCUS AND IS PUTTING LIVES AT
RISK -- IN NO THEY NEED TO
EVALUATE THAT BUT JUST AS WE
MOVE FORWARD I THINK THAT THERE
ARE SOME REAL GAPS SAID.
IN LOW HANGING FRUIT THAT WE CAN
ADDRESS.
ANY -- SECURED A TO TALK ABOUT
THE CPUC BUT AN OLD A SECTOR
CROWFOOT BUT THE YOU MAKE BOTH
POINTS ARE WELL MADE AND NOW
I'LL TAKE THAT BACK TO CAL FIRE --
IN THE TEAM IN THE GOVERNOR'S
OFFICE AND GET BACK TO YOU THANK
YOU SO MUCH AS A TRAIN IN AGAIN
GRATEFUL FOR YOUR HELP RESPONSE
HAVE YOU BEEN.
ON ISSUE SI PC -- AND LOOK -- IN.
GRATEFUL FOR THEIR WORK WITH THE
CPC BUT I GOTTA TELL YOU IT'S
ONE OF THE MORE CHALLENGING
AGENCIES.
AS A MEMBER PUBLIC TO BETTER
PARTICIPATED.
WHERE I WOULD BE CONCERNED IS IF
THIS LEGISLATION THE GOVERNOR'S
LOOKING IN -- IN PROVIDING THEM
WITH MORE RESOURCES.
WHEN SIMULTANEOUSLY IN HOUSE BE
SIMULTANEOUSLY WE FIGURE OUT?
HOW TO BE ABLE TO READ THAT
AGENCY THE INTERVENOR STATUS --
IN A QUASI JUDICIAL PROCESS --
WHEN IT COMES TO THE ISSUE OF
REGULATORY REGULATING UTILITIES
AND IF WE ARE SERIOUS ABOUT
INVOLVING THE PUBLIC?
THE KWAZII JUDICIAL PROCESS.
CAN'T B PART OF THE EQUATION --
I'M UNFORTUNATE VERY FAMILIAR --
WITH THE INTERVENOR STATUS IN IF
I'M A NORMAL JOE.
COMING FROM COFFEE PARK.
AND MY HOUSES BURNED DOWN AND I
WANT TO BE A PARTICIPATE ON
WHATEVER THIS RESTRUCTURING MAY
BE FOR UTILITY I HAVE TO
ACTUALLY I IF WE ARE TO KEEP
THEIR CA AS A JUDICIAL
PROCESS.
I'D HAVE TO FILE TO BECOME AN
INTERVENOR AND THEN IT'LL HAVE
THAT STANDING TO BUILD INTERVENE
IN A PUBLIC PROCEEDING.
AND THAT IS HOGWASH SO -- WHAT I
WOULD?
EXPECT IS THAT.
IF WE'RE GOING TO INVEST IN
ADDITIONAL RESOURCES THERE HAS
TO BE TWO PARALLEL SIMULTANEOUS
EFFORTS TO BE ABLE TO GET RID OF
THAT -- INTERVENOR STATUS ON
THIS ISSUE AND I DON'T KNOW MISS
MITCHELL IF YOU WANT TO BE ABLE
TO JUMP IN ON THAT.
SO WITH REGARD TO THE SPECIFICS
OF THE INTERVENOR STATUS YOU%
PROBABLY HAVE MORE EXPERIENCE
WITH THAT THAN I DO I I WILL SAY
THAT AS PART OF THE STRIKE FORCE
REPORT.
AND I AND I DO THINK THAT THAT
THIS IS IMPORTANT TO RECOGNIZE I
THINK THAT THAT PROCESS BECAUSE
I DIGITAL PROCESS IS NOT WELL
SUITED. TO SOME OF THE THINGS
THAT NEED TO BE DONE AND AS PART
OF A PUBLIC POLICY SOLUTION IN
DISTRICT FOUR IS CLEARLY
INDICATED THAT THAT SOMETHING
THAT YOU GUYS NEED TO CONSIDER
IN IN THE TOTALITY OF WHAT
YOU'RE GONNA DO IS WELFARE
LIABILITY.
ALL I'M SAYING IS WE WE CAN'T
INVEST.
AND THEN MAKE THE DECISION IT
HAS TO BE DONE AT THE SAME TIME.
I AND WE HAVE TO MAKE IT MUCH
MORE FRIENDLY FOR THOSE WHO ARE
COMING FROM THE PUBLIC TO BETTER
PARTICIPATE AND I WON'T I KICKED
A DAY DE DOG UNDERNEATH THIS
DICE SO I BUT A MESSAGE KNOW
THAT POINT WELL TAKEN AND I WILL
TAKE IT BACK TO THE STRIKE.
FORCE IN LASTING MISTER CHAIR IS
JUST ON THE ISSUE OF INSURANCE --
AND WHETHER IT'S SENATOR DODD'S
DISTRICT SENATOR JACKSON'S
DISTRICT -- SENATOR CERN'S
DISTRICT WE'RE SEEN SIGNIFICANT
NUMBERS OF HOMEOWNERS RECEIVING
NON RENEWAL NOTICES.
EITHER THEY'RE IN THE WOOLLY.
THEY HAVE BEEN IN A COUNTY THAT
HAS BEEN IMPACTED BY WILDFIRE.
AND I THINK THAT WE ARE TEEN
OURSELVES UP RIGHT NOW FOR
CRISIS REGARDS TO THE LACK OF
INSURANCE AND GIVE YOU ONE LAST
ANGEL EXAMPLE.
IF YOU'RE IN THE HILLS ABOVE YOU
CAUGHT.
I THAT IS ON THE OTHER SIDE OF
THE RANGE WHERE WE'VE HAD
SIGNIFICANT FIRES IN LEE COUNTY.
YOUR HOMEOWNER'S INSURANCE WAS
HI IT WAS STILL ABOUT EIGHT
THOUSAND A YEAR.
OVER THE LAST YEAR FOLKS ARE
GETTING NON RENEWAL NOTICES
THEY'RE GONNA HAVE TO GO TO
INSURANCE OF LAST RESORT FOR THE
FAIR PLAN.
AND THEY'RE GONNA HAVE TO GET IN
OUT OF STATE WRITER THERE YOU
HAVE GONE FROM ABOUT EIGHT
THOUSAND DOLLARS SUMMER NOW
PAYING TWENTY FOUR THOUSAND
SUMMER PAIN THIRTY THOUSAND
DOLLARS -- AND THAT IS A GROWING
CRISIS IN THE STATE -- AND IT'S
IMPACTING COUNTIES ALSO THAT
HAVE BEEN IN BEEN IMPACTED BY
FIRES THAT ARE MAYBE IN THE
MOVIE.
SO I THINK THAT'S ANOTHER ISSUE
THAT WE NEED TO BE WE WE CAN'T
ADVANCE THESE ISSUES THAT ARE
BEING TALKED ABOUT TODAY WITHOUT.
ALSO HAVING THAT SAME --
CONVERSATION.
CENTER THINK IT'S AN EXCELLENT
OBSERVATION IT IS ONE OF THE
ISSUES THAT WAS IDENTIFIED IN
THE REPORT AND I DO THINK THE
NINE A ONE COMMISSION HAS DONE
SOME WORK ON THAT AS WELL SO.
YOU MAY BE HEARING FROM THEM ON
THAT THANK YOU SO MUCH AND THANK
YOU SO MUCH RESEARCH HERE THANK
YOU -- WE HAVE CENTER HERTZBERG
UP NEXT AND CENTER JACKSON IN
CENTER WOULD HOUSE [inaudible]
POLLOCK.
SECOND FRAME THAT SLIDES UP
THERE NOW.
FIRST IN FOR NEW INFORMATION
WE'VE HAD A THAN A REPORT THAT
WAS JUST RE READ TO US THOUGH
WE'VE ALL ALREADY.
A MONTH AGO.
BUT WHAT I WANT TO SHARE ASK YOU
IS WITH RESPECT TO THE GREEN
LINE THE 7% RISK PROFILE.
THAT YOU HAVE HERE IF USE IF YOU
LOOK AT THAT NUMBER RIGHT AT A
FORTY BILLION DOLLAR FUND -- TO
YOUR KNOWLEDGE.
BUT TO THE RATING AGENCIES LOOK
AT THAT RISK AND SEE THAT 7%
SUFFICIENT. FOR PURPOSES OF THE
GIVEN THE APPROPRIATE MAY THAT
WE NEED FOR THIS FUND IF YOU ANY
COMMUNICATIONS READY AND SHE'S
WORKED INDEPENDENT OPINION THAT
YOU MAY HAVE THAT THIS MODEL
WORKS -- THIS GREAT QUESTION
THANK YOU FOR THAT I HAVE NOT
HAD ANY DISCUSSION WITH THE
RATING AGENCIES PERSONALLY ON
THAT PARTICULAR QUESTION IF YOU
HAVE ANY EXPERIENCE DREAM JEEZ
HARPER.
INTO THIS BODY TO DETERMINE WHAT
DO YOU THINK THAT WORKS.
BUT NOT AT THIS MOMENT SO WHAT
WE'RE DOING HERE IN THIS
ANALYSIS IS LOOKING AT A NUMBER
OF DIFFERENT SCENARIOS AND AND I
WOULD LIKE TO STRESS THAT.
YOU KNOW THE TWO FUNDAMENTAL
DRIVERS WERE TWO OF THE
FUNDAMENTAL DRIVERS.
OF THE PROBABILITY OF OUTCOMES
RELEASE AROUND WHAT.
THE UP POLICYMAKERS AND AND THE
LEGISLATIVE BODY U. S. THAT RISK
PROFILE AT THESE DRIVERS I'M
TRYING TO GET TO THE ESSENCE
WHICH ARE RIGHT THE LAW.
OKAY YOU PROVIDE AND PARTICIPATE
IN REPORTED GAVE A SERIES OF
OPTIONS TO THIS BODY TO THAT
HELP US COME TO THE LAW.
THIS PIECE OF DATA IS IMPORTANT
IN MY JUDGMENT TO DETERMINE
WHETHER OR NOT HOW IF WE DECIDE
TO USUAL OPTION THREE WITH
RESPECT.
TO SECTION THREE OF THE REPORT
HOW DO WE SIZE THAT YOU ASK A
BUNCH OF QUESTIONS IS THE ONLY
DATA THAT WE'RE TRYING TO GET
SOME GUIDANCE ON IN TRYING TO
UNDERSTAND FROM YOU BY VIRTUE O
YOUR EXPERIENCE.
JUST ANYTHING YOU GIVE TO US
BEYOND OU WROTE THIS I DON'T
YOUR BACKGROUND IS.
HAVE YOU PROVIDE THIS KIND OF
STUFF BEFORE IS THIS HELPFUL CAN
BE RELYING ON THIS IS THIS
SOMETHING THAT GIVES GUIDANCE.
THAT IF WE DECIDE TO MAKE A
FORTY BILLION DOLLAR FINE HOW WE
DECIDE TO MAKE THE STACK.
IS THAT GOING TO WORK IN YOUR
JUDGMENT YOU'RE AN EXPERT
WORKGROUP WHAT WE'RE HERE FOR
SOME INFORMATION TO HELP US GIVE
SOME GUIDANCE.
ON HOW WE PROVIDE A SOLUTION NOT
A BUNCH OPTIONS THANK YOU FOR
THE OPTIONS BUT IT'S BE WE'RE UP
AGAINST A TIME LINE.
YOUR BOSS WHO HIRED YOU A SAYS
THAT LET'S GET SOMETHING BIG
DONE BY JULY TWELFTH OKAY I'M
TRYING TO GET SOME GUIDANCE DOES
THIS THIS IS THE NUMBER WE
SHOULD USE.
IN YOUR JUDGMENT.
SO IN MY JUDGMENT YES TO OUR
ASKING.
FOR NAY AND I APPRECIATE THE THE
WELL THOUGHT OUT QUESTIONS.
THE 7% NUMBER REPRESENTS ONE
RESULT UNDER A CERTAIN PROFILE
AT RISK AND NOT HERE TESTIFYING.
THAT THAT IS THE FUTURE PROFILE
OF RISK IN CALIFORNIA.
THAT'S ONE EXAMPLE [inaudible]
AND SO.
WHAT YOU BELIEVE THAT RISK TO BE
IS GOING TO CHANGE WHETHER 7% IS
THE NUMBER SO?
IF YOU'RE ASKING IS FORTY
BILLION THE RIGHT NUMBER.
I GUESS WHAT I WANT TO MEET BE
CLEAR ON IS FORTY BILLION AS A
7% RISK PROFILE IN TWENTY THIRTY
UNDER ONE VERY SPECIFIC.
RISK PROFILE ASSUMPTION I'M NOT
HERE TO TESTIFY THAT THAT IS
GOING TO BE THE FUTURE -- TRYING
TO GET SOME GUIDANCE AND GET
THAT.
WHAT IS THE ASSUMPTION TELL US
WITH THE ASSUMPTION IS AND
SECONDLY DO YOU HAVE ANY
EXPERIENCE WITH DIRECT
ASSUMPTION LOOK WE KNOW THAT WE
WENT THROUGH A THREE YEAR
EXERCISE WITH THE EARTHQUAKE
AUTHORITY WE KNOW THE RATING
AGENCIES THAT THEY SAID THAT
WERE COMFORTABLE WITH ONE OF THE
FOUR YEAR? TO VENTURE RICIN WE
KNOW THAT THEY DEVELOP THE STACK
THAT GAVE US ABILITY TO GET A
RATING FOR THE FOR THE
EARTHQUAKE AUTHORITY THAT 80% OF
THE AGENCY'S PARTICIPATED IN.
DEALING WITH THE ISSUE THAT
MISTER GORE TALKS ABOUT THAT WE
HAD A LEGISLATURE DECIDED
BECAUSE THE EARTHQUAKE RISK WE
DECIDED TO CREATE THIS AUTHORITY
AND MANDATE THIS 480% DECIDED TO
PARTICIPATE 20% DECIDED NOT.
TO THEY PRICE IT THEIR WAY THE
PEOPLE THAT PARTICIPATE YOUR
QUICK A TORY IT'S PRETTY GOOD
GUIDANCE BY VIRTUE OF PEOPLE
THAT HAVE A HISTORY WHAT I'M
TRYING TO UNDERSTAND YOU
SHOULDN'T BEFORE SHOULD EXPERT.
YOU PRESENTED THIS CHART THAT
YOU GAVE TO THE EXECUTIVE BRANCH
OF THE GOVERNMENT WE ARE THE
LEGISLATIVE BRANCH TRYING TO
WORK IN PARTNERSHIP WITH THE
EXECUTIVE BRANCH THEY HAVE
OUTLINED TO THEIR LAWYERS AND
EXPERTS A SERIES OF BROAD THINGS
ARE JOB HERE TODAY IS NOT TO LET.
YOU GUYS RE READ THE REPORT BUT
TO TRY TO COME UP WITH SOME
MOVEMENT FORWARD AND SOME
GUIDANCE BY THIS DATE OF LET'S
GET SOMETHING BIG DONE BY RECESS.
THAT'S WHAT WE'RE TRYING TO DO
HERE TODAY THAT'S WHAT THE
GOVERNOR SAID IN HIS PRESS
CONFERENCE.
HELP US GET THERE THAT'S ALL I'M
ASKING.
FOR AND THEN.
I'LL JUST CLOSE THE CANCER
QUESTION I DO BELIEVE WE'RE HERE
TO HELP YOU GET THERE -- WHAT?
WHAT'S REQUIRED THOUGH IS THIS
IS THE FIRST ITERATION OF SOME
OF THIS ANALYSIS.
IT IS A STAKE IN THE GROUND WHAT
I BELIEVE IS REQUIRED IS A
DIALOGUE.
WITH THIS BODY TO DO.
MORE -- WORK AROUND
UNDERSTANDING WHAT YOU VIEW THE
REQUIRED LONGEVITY OF THE FUND
TO BE. TO HELP THE TERM THAT
ANSWER I DON'T THINK.
THAT I'M HERE -- PORN POSITION
TODAY TO GIVE YOU AN AFFIRMATIVE
ANSWER ON THAT OTHER THAN TO
KNOWLEDGE THERE'S MORE WORK TO
BE DONE WE CAN DO THAT WORK IN A
FAIRLY SHORT ORDER.
BUT IT'S GONNA REQUIRE SMART
COLLABORATION AND I CAN DIRECTLY
SPEAK TO AT THIS MOMENT.
BECAUSE IT GOT MORE FOR
QUESTIONS SERVER NOT A MORE OKAY
QUESTION NEXT QUESTION IS.
IF WE DO NOTHING.
IN YOUR JUDGMENT IF WE DO
NOTHING IN THIS LEGISLATIVE
BRANCH AND THE GOVERNOR ONLY
DOES WITH THE JOB I CAN DO WITH
RESPECT TO EXECUTIVE ORDER
[inaudible]
WHAT HAPPENS?
WHAT HAPPENS TO CALIFORNIA?
WITH THERE'S ANOTHER WILDFIRE OR
WE DO NOTHING WITH RESPECT IS
WHAT HAPPENS IF WE DO NOTHING.
SO CENTERS WORK IF I COULD TAKE
THAT BECAUSE I WAS ACTUALLY PART
OF THE STRIKE FORCE
DELIBERATIONS A MISTER POLLOCK
IS ACTUALLY BEEN BROUGHT IN TO
DO SOME SUBSEQUENT MODELING.
AM I I BELIEVE THAT THE STRIKE
FORCES.
REPORT MAKES IT CLEAR THAT IT
DOESN'T BELIEVE THAT DOING
NOTHING IS REALLY A GOOD OPTION
FOR CALIFORNIA YOU HAVE
UTILITIES.
DEAR ON THE BRINK OF OF
BANKRUPTCY YOU HAVE RATING
AGENCIES ARE PUTTING SIGNIFICANT
PRESSURE ON CALIFORNIA AND YOU
HAVE P. JEANNIE IN IN BANKRUPTCY --
AND YOU HAVE A RISK OF A POST
PETITION FIRE.
SO I THINK THAT THE STRIKE FORCE
BELIEVES THAT ACTION IS IS
IMPORTANT.
IT TO ANSWER YOUR QUESTION ABOUT
DATA I I APPRECIATE YOUR
FRUSTRATION I I KNOW YOU'RE A
GUY WHO REALLY WANTS TO GET TO
THE ANSWER AND I APPRECIATE THAT.
I THINK IN THE CASE OF WHAT WHAT
MISTER POLLOCK PRESENTED TODAY.
IT IS A MODEL THAT THE
GOVERNOR'S OFFICE ASK US TO
BUILD THAT IS INHERENTLY
ITERATIVE AND SO THE IDEA IS TO
START THAT PARTICULAR DIALOGUE.
I DON'T THINK THAT MR BOLICK OR
I HAVE A VIEW ON EXACTLY WHAT
THE RIGHT ANSWER IS I DON'T
THINK THE RATING AGENCIES HAVE
TOLD US.
BUT TO THE EXTENT THAT YOU IN
THE GOVERNOR HAVE A VIEW ABOUT
THE FUTURE OF WILD FIRE RISK IN
CALIFORNIA YOU CAN FAIRLY EASY
EASILYMODEL AN OUTCOME -- AND I
THINK YOU CAN GET TO SOMETHING
THAT THEN YOU YOU WILL BE ABLE
TO PRESENT TO THE RATING
AGENCIES AND THEY WERE VIEWED AS
A POSITIVE MOVE FORWARD FOR FOR
CALIFORNIA.
FOLLOW LAST POINT I WANT TO MAKE
WAS.
IF YOU MARRY THESE TWO IDEAS
WHICH I'M TRYING TO GET.
TO IF WE HVE TO THE JULY
TWELFTH AND YOU LOOK AT THAT THE
FACT THAT THE GOVERNOR'S OFFICE
APPROPRIATELY IS DEEPLY ENGAGED
IN BUDGET NEGOTIATIONS IS NOT A
STANDALONE ISSUE.
THERE'S HUGE NUMBER OF ISSUES
THAT ARE FUNDING FOR THIS
LEGISLATURE AND BEFORE THE STATE
OF CALIFORNIA.
AND YOU LOOK AT THIS EVENT
HORIZON YOU LOOK AT THE TIMING
OF THE THE THE BILL PUSHED
LEGISLATIVE AGENDA AND WHAT
WE'VE GOT TO DO.
YOU KNOW I'M TRYING TO
UNDERSTAND THIS IS SOMETHING WE
CAN RELY ON HOW MUCH TIME WE
HAVE BECAUSE WE HAVE A CLOCK.
THAT IF WE HAVE TO DO SOMETHING
AND THIS IS ONLY THIS BROAD GAS
HOW DO WE GET THERE.
ARE A IN THAT TIME FRAME.
WHICH GOES UNDER THE IN THE
RUBRIC OF IF WE DO NOTHING.
I'M TRYING TO GET SOME GUIDANCE
FOR PURPOSES OF HELPING I
LEGISLATURE COME UP WITH SOME
ANSWERS IN COORDINATION WITH
GRAY PRITCHETT THAT AND I THINK
THAT THAT THERE'S A LOT OF WORK
THAT'S BEING DONE TO ADVANCE
THAT.
PARTICULAR BALL I DO THINK THAT
IN THIS CASE THIS IS ABOUT
PRESENTING YOU A SET OF METRICS
THAT YOU CAN USE.
I'M I DO THINK THAT SUBSEQUENT
DIALOGUE BETWEEN THE LEGISLATURE
AND THE GOVERNOR SHOULD BE ABOUT
EXACTLY WHAT YOU THINK THE
APPROPRIATE METRICS ARE.
THE MODEL IS FAIRLY EASY TO
OPERATE ONCE YOU START CHANGING
THE METRICS AND IT IS REALLY
SENSITIVE TO SOME OF THE METRICS
I THINK IT'S VERY IMPORTANT THAT
YOU COME TO A POLICY VIEW.
ON THOSE ISSUES.
I WOULD JUST CLOSE ON THAT PUT
THAT POINT SAY SUFFICE IT TO SAY
I THINK WE NEED MORE YEP
QUANTITATIVE ASSESSMENT ON THAT.
AND SO THAT WE CAN REALLY
UNDERSTAND WE WHAT THE
PARAMETERS ARE PUTTING AROUND
THESE THINGS ARE WE DON'T KNOW
WHAT -- YEAH PARAMETERS ARE IN
THAT SO WE JUST GETTING A GRAPH
AND SO.
DON'T WANT TO SHOOT THE
MESSENGER WE WANT TO KEEP
WORKING WITH YOU WE NEED THAT.
MORE ASSESSMENT THERE.
I CENTER JACKSON IS THANK YOU
VERY MUCH I WANT TO THE SHIFT US
BACK A MINUTE -- BECAUSE I DON'T
THINK WE'RE DOING NOTHING WE'RE
DOING A LOT -- YOU MENTIONED THE
FOR ITEMS STRENGTHENING THE
FIREFIGHTERS ABILITIES AND SO
FORTH.
WHEN WE DID AS I MENTIONED
EARLIER WE PASSED LEGISLATION
LAST YEAR TO ADDRESS THE
RESILIENCY IN COMMUNITIES -- A
LOT OF WORK WE DID. TO BUILD
AWARENESS TO HARDEN CREATE
DEFENSIBLE SPACE -- PROVIDING
EVACUATION ROUTES DOING MORE AND
LOCAL PLANNING -- ASSESSING OUR
VULNERABILITIES IN ADDRESSING
THEM -- PROVIDING -- IMPROVING
OUR FOREST MANAGEMENT HEALTH.
A LOT OF THINGS THAT WE'RE DOING
NOW -- AND IN MY POINT EARLIER
WAS THAT WE NEED THE FUNDING FOR
THESE THINGS WE'VE GOT THEM IN
PLACE WE'VE AUTHORIZED CAL FIRE
WE'VE AUTHORIZE FORCE MANAGEMENT.
SERVICE WE GOT TO WORK ON THE
FEDERAL GOVERNMENT IS GOING TO
STEP UP IT'S NOT GOING TO BE
WE'RE NOT GOING TO JUST BE ABLE.
TO TO TO TAKE A BROOM AND AND
CLEAN UP THE FORCE AND 56% OF
MORE FEDERAL ANYWAY I HAVE A LOT
OF MY DISTRICT -- SO WHEN WE HAD
OUR FIRES WE ACTUALLY PUSH THE
FIRE INTO THE BACK COUNTRY WHICH
IS FEDERAL LAND -- IN ORDER TO
PROTECT OUR OUR POPULATION IN
OUR IN OUR PROPERTY SO -- AND AS
WE LOOK GOING FORWARD AT WHAT
NEEDS TO BE DONE I I FIND MYSELF --
CONCERNED ABOUT WHAT I KNOW THE
UTILITY COMPANIES HAVE BEEN
FOCUSING ON THIS ISN'T THE
SAFETY BRAIN THE FACT THAT -- IN
THE FIRST NINE MONTHS OF LAST
YEAR -- P. JEANNIE SPENT OVER
EIGHT MILLION DOLLARS LOBBYING
THIS BUILDING. FOR A TO GET RID
OF THEIR STRICT LIABILITY AN
INVERSE CONDEMNATION THAT THEY
OVER THE PAST DECADE HAVE GIVEN
OUT MORE THAN FOUR BILLION
DOLLARS TO THE TO THEIR
SHAREHOLDERS -- I LOOK AT THAT
IS MONEY THAT COULD HAVE BEEN
USED AND SHOULD HAVE BEEN USED
TO HARDEN THEIR INFRASTRUCTURE
TO TO PROTECT AGAINST THESE
FIRES.
AND SO -- ONE OF THE ISSUES THAT
WAS MENTIONED IS THIS INVERSE
CONDEMNATION I'M NOT SURE -- I'M
NOT REAL CLEAR ON WHETHER THAT
IS INCORPORATED INTO THOSE THREE
ITEMS THE THREE OPTIONS YOU
TALKED ABOUT.
BUT FIRST OF ALL AS YOU KNOW --
INVERSE CONDEMNATION IS A
CONSTITUTIONAL REQUIREMENT SO I
DON'T I DON'T BELIEVE THE
LEGISLATURE CONTRAST -- CHANGE
WHAT IS A CONSTITUTIONAL MANDATE --
BY LEGISLATION OUR STATUTORY
AUTHORITY DOES NOT EXTEND TO THE
CONSTITUTION -- IF WE WANT TO DO
A A BALLOT INITIATIVE A P.
JEANNIE WANTS TO DO A BALLOT
INITIATIVE I WOULD SUSPECT THAT
THE POPULATION IS NOT GOING TO
BE JUMPING.
AT THE IDEA OF REDUCING THE
LIABILITY OF THESE COMPANIES.
AND IN PART OF IT CENTER WITH
WITH WITH ALL DUE RESPECT CAN
YOU JUST LIMIT YOUR YOUR
QUESTIONS TO WHAT WE TALKED
ABOUT HERE WE HAVEN'T REALLY.
IS FAR AS WE'RE CONCERNED HERE
TODAY IN VERSE IS NOT.
WELLIN VERSE WAS ONE ON ITEMS
WHAT'S THAT IN VERSE WAS THE
SECOND OF THE THREE SIX CONCEPTS
THAT WAS PRESENTED HERE AND I
JUST WANT TO I HEARD THAT BUT I
DON'T THINK ANYBODY INDIVIDUALLY
IS COME UP WITH A PLAN ON HOW IN
VERSE WOULD BE CHANGED.
AT THIS TIME I JUST WHAT WE'VE
GOT IS THE NEXT SPEAKERS ARE
GOING TO BE -- YOU HAVE TO LEAVE
HERE AT THREE FORTY FIVE SO WE
GOT TO KIND OF MOVE.
WELL THEN WHY DON'T I PUT IT
FRIEDMAN IN THE TERM OF A
CONTEXT THE QUESTION BECAUSE IT
WAS REYES WAS IT IS ONE OF THE
AND SO.
BUT BOTTOM LINE IS I WANTED YOUR
THOUGHTS ON THE WHOLE
CONSTITUTIONALITY ISSUE AND WHY
THAT IS BEING PROPOSED WHEN WE
CAN'T GET THEM TO DO SAFETY --
WHERE THEY HAVE STRICT LIABILITY
HOW DO YOU ARE HOW DOES ANYONE
IS PROPOSED THAT?
SUGGESTS THAT THEY'RE GOING TO
BE MORE RESPONSIBLE WITH LESS
LIABILITY THOSE ARE MY QUESTIONS.
I THINK THOSE ARE GOOD QUESTIONS
SENATOR JACKSON AND LET ME THANK
YOU THE FOLLOWING TWO THINGS THE
FIRST IS ON THE SAFETY
INCENTIVES I THINK THAT THE
REPORT IS A CLEAR THAT ANY
SOLUTION.
WHAT YOU OPTED AND THAT COULD BE
OPTION TO IT COULD BE CONCEPT
ONE IT COULD BE CONCEPT THREE
THAT THAT FROM A PUBLIC POLICY
PERSPECTIVE IT IS VERY IMPORTANT
TO MAKE SURE THAT YOU CREATE
INCENTIVES FOR THE UTILITIES TO
ACT?
IN A SAFE AND PRUDENT MANNER.
REGARDLESS OF WHAT YOU DO WITH A
LIABILITIES STANDARD OR NOT A
LIABILITY STANDARD THE REPORT
DOES NOT RECOMMEND NOR DO I
THINK ANY OF YOU WOULD FIND IT
ACCEPTABLE. TO ALLOW UTILITY
INVESTORS OFF THE HOOK FOR BAD
ACTIONS I'M IN SO I I THINK THAT
THAT IS AN IMPORTANT COMPONENT
OF ANY SOLUTION WITH REGARD TO
THE CONSTITUTIONALITY.
INVERSE CONDEMNATION IS A
CONSTITUTIONAL DOCTRINE I THINK
IT IS CLEAR FROM A FROM A LOT OF
THE THINGS THAT HAVE BEEN MADE
PUBLIC THAT THERE ARE.
POTENTIALLY WAY IS THAT THE
LEGISLATURE MAY BE ABLE TO
INFORM THE APPLICATION OF
INVERSE CONDEMNATION AND WHAT
OPTION TWO IS TALKING ABOUT IS
AN EXPLORATION WITH REGARD.
TO THE THE POSSIBILITY OF
CHANGING INSTEAD OF CHANGING THE
STANDARD OF LIABILITY WHICH MAY
NOT BE EIGHT EIGHT
CONSTITUTIONAL DOCTRINE I'M NOT
GONNA TELL YOU THERE AREN'T
LEGAL RISKS ASSOCIATED WITH THAT
I THINK THE REPORT CLEARLY
CALLED OUT THAT YOU WOULD HAVE
TO FURTHER EVALUATE THAT.
BUT WE'RE NOT TALKING ABOUT A
CONSTITUTIONAL AMENDMENT AS PART
OF OPTION TWO WERE TALKING ABOUT
LEGISLATIVE THE LEGISLATURE
EXERCISING ITS APPROPRIATE ACT --
AS THE LEGISLATIVE BOY TO
INFORM THE THE APPLICATION OF
INVERSE CONDEMNATION.
SIR WITH HOUSEKEEPING.
COMING BACK TO PART THREE THE
PRINCIPLES -- I THINK YOU TALK
ABOUT -- REQUIRING EQUITABLE A
STAKEHOLDER CONTRIBUTIONS AND
FLY YOU TALK ABOUT THE VICTIMS
AND LOCAL GOVERNMENTS AND
INSURANCE WE DON'T INCLUDE THE
ELEVEN MILLION PEOPLE WHO LIVE
IN THE WILDLIFE.
URBAN INTERFACE -- BECAUSE THAT
SET THE AND I WANT TO KNOW IS
THAT.
JUST AN OVERSIGHT OR IS IT YOU
KNOW WE'VE WE'RE LOOKING AT A
DIFFERENT POPULATION THAT HIS
CHOOSING TO LIVE IN AN AREA THAT
NOW BECAUSE OF CLIMATE CHANGE
HE'S GOT A MUCH HIGHER RISK.
I JUST WANTED TO KNOW WHERE
WHERE THEY CAN MAKE
CONTRIBUTIONS ALSO OTHER THAN
THEIR INSURANCE COVERAGE.
SO.
I'M CENTER CASKEY WITH REGARD TO
THAT ANYTHING THAT THE PURPOSE
OR THE PRINCIPLE THAT WAS LAID
OUT THERE IS TO MAKE THE POINT
THAT.
NO ONE CONSTITUENCY.
CAN AFFORD TO PAY THE TOTAL COST
OF THE WILDFIRE DAMAGE DEPENDING
ON WHAT YOUR ASSUMPTION IS ABOUT
THE FUTURE OF OF WILDFIRE
DAMAGING IN CALIFORNIA GOING
FORWARD.
IS SO.
FROM MY PERSPECTIVE AS AN
ADVISER WHAT I WOULD TELL YOU IS
THAT YOU HAVE THE THE POLICY
MAKERS HAVE THE UNFORTUNATE.
JOB I'M TRYING TO FIGURE OUT HOW
TO BETTER SPREAD THOSE COSTS.
THE PURPOSE OF THAT PARTICULAR
POINTIS ONLY THAT WHATEVER YOU
THINK IS THE APPROPRIATE SHARING.
OF AMONG THE CONSTITUENTS THAT
THAT ARE AFFECTED BY THIS WHICH
IS REALLY EVERY CALIFORNIAN IN
ONE WAY OR ANOTHER.
HE IS A DECISION THAT YOU'RE
GOING TO HAVE TO MAKE IS A
LEGISLATURE BUT THAT LEAVING THE
COST OR PUTTING THE COST ON ONLY
ONE GROUP OF STAKEHOLDERS.
IS PROBABLY NOT A VIABLE LONG
TERM SOLUTION I GUESS MY MY
OBSERVATION WITH TO BE PART OF
THE PREVIOUS ADMINISTRATIONS
DEALING CAP AND TRADE WAS -- TO
REPEALS THE S. R. A FEE OF A
HUNDRED FIFTY DOLLARS THAT
PEOPLE THAT WERE LIVING IN THAT
THE WILDLIFE URBAN INTERFACE
WERE PAYING SO IT APPEARS THAT.
THEY'RE NOT MAKING ANY
CONTRIBUTION OTHER THAN YOU KNOW
THAT BEING VICTIMS BEING VICTIMS
ARE JUST SPOT THAT ISSUE BECAUSE
THAT'S A DISCUSSION THAT WE'RE
HAVING.
HERE AND ON MY SIDE I GUESS THE
OTHER QUESTION IS ON THE AND
USE DECISIONS THERE'S NO
DISCUSSION OF PENALTIES FOR
LOCALITIES AND I WAS WONDERING
IF THAT WAS YOU KNOW IF YOU
DON'T USE THE BEST.
IF WE DEVELOP BEST.
PRACTICES IN PLANNING IN.
SOME OF THESE LOCALITIES WE'VE
HAD OTHER LEGISLATION THAT WE'VE
TAKEN IT JUST SORT OF BLOW US
OFF WHEN IT'S SUCH A GIVEN THE
CLIMATE CHANGE GIVEN THAT.
THE THE CONSEQUENCES OF NOT
FOLLOWING THESE BEST PRACTICES
IF YOU GUYS HAD ANY IDEAS ON
THAT.
WELL POINT TAKEN ON I I THINK
THERE -- THE POINT YOU'RE MAKING
REGARDING.
THOSE RESIDENTS THAT LIVE IN THE
WILD MAN URBAN INTERFACE AND
YOUR POINT YOUR POINT IS THAT.
I THINK IS PERHAPS THAT THEY
SHOULD THEY SHOULD BE CONSIDERED --
CONTRIBUTORS TO THIS EFFORT SO I
THINK THAT'S A FAIR CONTRIBUTION
THE DISCUSSION.
AS IT RELATES TO LAND USE YOU
KNOW WE'VE DEFINITELY CALLED OUT
THE NEED. TO FOR FOR LOCAL
GOVERNMENTS TO PLAN MORE
CAREFULLY.
HI AND TO BUILD FOR EXAMPLE THE
THE PUBLIC SAFETY ELEMENTS
SHRINK THE PUBLIC SAFETY ELEMENT
OF THE GENERAL PLAN.
BUT YOU'RE RIGHT WE DON'T CALL --
FOR YOU KNOW PENALTIES -- AROUND --
COMPANIES FOR INCORPORATED TOWNS
FOR THE WAY THAT THEIR WITH
THEIR BUILDING.
I MEAN I'M NOT GOING TO WIN ANY
AWARDS AND BEING COMPASSIONATE
BUT I I UNDERSTAND I I NOTE THAT
THE GOVERNOR CAME IN WITH --
MONEY FOR BIãU COUNTY FOR
THREE YEARS TO PAY THE LOSS THAT
THEY HAD AD REAL ESTATE REAL
PROPERTY TAXES BUT THERE WASN'T
ANY CONDITION THEY HAD TO CHANGE
ANY PRACTICES AND AND WE'VE HAD
BEFORE SUB TO WE'VE HAD WATER
DISTRICTS THAT DON'T WANT TO
CHANGE ANYTHING.
CERTAINLY NEED THE MONEY SO I
THINK I'VE GOT THOSE WE GOT THE
POINT APPRECIATED BRING THAT UP
THAT TO THINK THAT SOME ARE
GONNA HAVE TO TALK ABOUT --
CENTER STERN.
CENTER RUBIO DID YOU WANT ONE
QUESTION.
WE JUST NEED TO WE NEED US YEAH
WE ARE LET'S KEEP MOVING -- ONE
QUICK QUESTION MISTER CHAIR AT
OKAY AB WE'RE GONNA GET INTO.
I WANT TO GET INTO THE COST OF
INACTION REFINE THAT A BIT MORE
IN THE NEXT PANEL BUT WHAT WE
HAVE YOU HAVE YOUR MR SECRETARY
THANKS FOR BEING HERE --
CHAPARRAL AND THE UNIQUE
CHALLENGES OF THE SOUTH I KNOW
THAT WE'RE VERY FOCUSED ON BIG
TREES I APPRECIATE THE
CALIFORNIA FUEL MITIGATION PLAN
WAYS BIG TREES VERY HEAVILY IN
THEIR METHODOLOGY.
LOOKS IT BIG CARBON.
BUT I STILL THINK WE'RE LACKING
A REAL PLAN FOR SOUTHERN
CALIFORNIA AND NON TIMBER
ORIENTED WILD FIRE RISK.
JUST WANTED TO GET YOUR YOUR
QUICK TAKE ON THAT I DON'T THINK
PRESCRIBED BURNS I JUST SAY FOR
THE RECORD I DO NOT THINK
PRESCRIBED BURNS WORK WELL IN
THE CHAPARRAL.
YOU DESTROY THAT HABITAT AND
IT'S GONE FOREVER AND YOU LOSE
ANY OF BROWN OFF ANOTHER ISSUE
SO WHEN YOU GET YOUR QUICK
COMMENTS ON THAT SECOND THE
COMMENTS ON HARDENING AND PASTRY
ENCOURAGED TO SEE WHAT COMES
FORWARD ON THAT BECAUSE THAT'S
GOING TO BE A PEOPLE I DISLIKE
QUESTION.
I HEARD SO -- SO THOUGHTS ON
THAT REGION I THINK YOU RAISE A
GOOD POINT IS A REALLY TO
CHAPARRAL I THINK THAT.
TRADITIONAL EFFORTS HAVE BEEN
FOCUSED ON THE FORESTS AND
CHABROL QUITE DIFFERENT.
QUITE DIFFERENT IN TERMS OF FIRE
SAFETY IT'S QUITE DIFFERENT IN
TERMS OF A COLLEGE E. -- SO I
THINK -- A MORE INTENSE FOCUS ON
CHAPARRAL IN SOUTHERN CALIFORNIA
IS WARRANTED.
I WILL KNOW THAT SOME OF THE
EMERGENCY PROJECTS WERE DOING
OUR WHICH CHAPARRAL IN SOUTHERN
CALIFORNIA BUT I THINK YOUR
POINT IS WELL TAKEN THAT THERE
HASN'T BEEN -- ENOUGH FOCUS.
PERFECT THANK INCLUDES -- THIS
PANEL I REALLY APPRECIATE THE
THE TIME AND THE TALENT NAY
INFORMATION THAT -- WILL WAS
PRESENTED -- AND WE'RE GONNA
HAVE TO HAVE A LOT TO MORE
DISCUSSIONS THANK YOU ALL VERY
MUCH LET'S BRING THE NEXT PANEL
UP PLEASE [inaudible]
YOUR SPOT
.
WELCOME I'LL LET YOU GUYS
DETERMINE HOW YOU'RE GONNA START
[inaudible]
GOOD AFTERNOON.
HI GOOD AFTERNOON CHAIRMAN DODD
AND COMMITTEE MEMBERS THANK YOU
FOR THE INVITATION TO JOIN YOU
TODAY.
I'M CURRENTLY PETERMAN I'M CHAIR
OF THE COMMISSION ON
CATASTROPHIC WILDFIRE ACOSTA
RECOVERY.
AND I'M JOINED BY.
MICHAEL WORE A TIME THE SENATE
WILDFIRE COSTS IN CATASTROPHIC
COVERAGE.
THANKS FOR HAVING ME AND FOR
HAVING US TODAY.
ALL OF YOU.
WE WERE ASKED TO PROVIDE AN
UPDATE ON THE WILDFIRE
COMMISSION AND OUR ACTIVITIES
AND WHAT WE'VE DONE TO DATE.
SO I'LL JUST START WITH A BRIEF
OVERVIEW THERE AND WE'RE HAPPY
TO ANSWER ANY QUESTIONS THAT YOU
HAVE.
SENATE BILL NINE OH ONE DIRECTED
THE GOVERNOR'S OFFICE OF
PLANNING AND RESEARCH TO CONVENE
A COMMISSION ON CATASTROPHIC
WILDFIRE COSTING RECOVERY.
AND THE FOCUS OF THE COMMISSION
IS TO EXAMINE ISSUES RELATED TO
UTILITY BECAUSE THE WILDFIRES.
AS WELL AS PROVIDE
RECOMMENDATIONS OR CHANGES OF
THE LAW TO THE LEGISLATURE AND
THE GOVERNOR TO SHORE IN ACTUAL
DISTRIBUTION OF COSTS ARISING
FROM WILDFIRES.
WE ARE REQUIRED BY LEGISLATION
TO HAVE RECOMMENDATIONS TO THE
LEGISLATURE -- BY JULY FIRST
ALTHOUGH WE ARE AIMING TO ISSUE
DRAFT RECOMMENDATIONS BY THE END
OF MAY IN ORDER SUPPORT YOU IN
MEETING THE TIME LINE THAT YOU
HAVE BEFORE YOU.
THE COMMISSION IS COMPOSED OF
FIVE COMMISSIONERS APPOINTED BY
THE LEGISLATURE AND THE GOVERNOR.
YOU HAVE MYSELF I PREVIOUSLY
SERVED THE STATE AS A
COMMISSIONER OF THE CALIFORNIA
ENERGY COMMISSION AT THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION.
WE HAVE DOCTOR MICHAEL LARA A
WELL RENOWNED EXPERT ON ENERGY
AND UTILITY ISSUES.
WE ALSO HAVE PEDRO NOT OF A
FORMER ASSEMBLYMEMBER INSURE THE
LITTLE HOOVER COMMISSION.
DAVE JONES A FORMER INSURANCE
COMMISSIONER AND ASSEMBLY MEMBER
AND MICHAEL KAHN A LONG TERM
ENERGY ATTORNEY.
THE FIVE OF US BRING A RANGE OF
EXPERTISE -- FROM ECONOMICS TO
LAW TO REGULATION.
THE COMMISSION IS SUBJECT TO
OPEN MEETING ACT REQUIREMENTS
AND SO AS A BODY WE ONLY I
DISCUSS ISSUES IN PUBLIC
MEETINGS.
WE ARE SUPPORTED BY STAFF FROM
THE OFFICE OF PLANNING.
AND RESEARCH AS WELL AS
CONSULTING AGENCIES THE
CALIFORNIA DEPARTMENT OF
INSURANCE AND THE CALIFORNIA
PUBLIC UTILITIES COMMISSION.
WE ADOPTED A SCOPE OF WORK IN
FEBRUARY AND OUR SCOPE OF WORK
INCLUDES THREE ITEMS DIRECTLY
STEMMING FROM THE LEGISLATIVE
AUTHORITY.
FIRST ASSESSMENT OF THE CURRENT
STATUS OF UTILITY LIABILITY FOR
DAMAGES CAUSED BY WILDFIRES IN
CALIFORNIA.
AND RELATED RECOMMENDATIONS ON
DISTRIBUTION OF COST. TO IMPACT
OF CHANGES IN LIABILITY ON THE
COMMERCIAL AND RESIDENTIAL
INSURANCE MARKETS AND RELATED
RECOMMENDATIONS ON MITIGATING
THE IMPACT OF THESE CHANGES TO
COMMUNITIES.
AND THEN THIRD SPECIFIC
RECOMMENDATIONS ON A FUND OR
ANOTHER FINANCIAL MECHANISM TO
ASSIST IN THE PAYMENT OF DAMAGES
STEMMING FROM WILDFIRES.
WE'VE HAD FOR PUBLIC MEETINGS
BETWEEN FEBRUARY FOURTH A SORRY
BETWEEN FEBRUARY AND APRIL
ACROSS THE STATE.
EACH MEETING FOCUSED ON A SUBSET
OF ONE OF THE TOPICS IN SCOPE
AND IN THESE MEETINGS WE HAD
SEVERAL PANEL PANELS OF EXPERTS
PROVIDING TESTIMONY FROM A
DIVERSE RANGE OF PERSPECTIVES
AND BACKGROUNDS.
I LIKE TO USE OPPORTUNITY THANK
EVERYONE WHO HAS COME TO SPEAK
TO US THAT ARE FOR PUBLIC
MEETINGS.
IN ADDITION TO EXPERTS WE'VE
ALSO HAD MEMBERS OF THE PUBLIC
WE'VE HEARD DIRECTLY FROM WILD
FIRE VICTIMS -- INVESTOR AND
PUBLIC OWN YOUTH ELECTRIC
UTILITIES WATER UTILITIES RIGHT
PAYER ADVOCATES INSURANCE
COMPANIES -- INVESTORS.
I REALLY APPRECIATED THAT
EVERYONE HAS COME TO THE TABLE
RECOGNIZING THAT ALL
STAKEHOLDERS HAVE TO WORK
TOGETHER TO GET TO A SOLUTION.
AND I HAVE FOUND THE DISCUSSIONS
AT PRODUCTIVE.
I THINK AS A BODY WE WERE
PARTICULARLY AFFECTED A MOVED BY
THE TESTIMONY OF SHARE AND
SHERRY MCCARRON.
WHO IS THE?
CHIEF ADMINISTRATIVE OFFICER FOR
THE BUTTE COUNTY BOARD OF
SUPERVISORS -- IN HER TESTIMONY
SHE WAS ABLE TO SHARE WITH US
THE PHYSICAL EMOTIONAL AND
FINANCIAL TOLL.
THAT THE WILD FIRES HAVE TAKEN
ON HER COMMUNITY AND THAT THEY
CONTINUE TO GO THROUGH THROUGH
THE LONG PROCESS OF RECOVERY.
SO ARE FOUR MEANINGS WERE IN
SACRAMENTO REDDING SANTA ROSA
AND VENTURA.
THE SACRAMENTO MEETING FOCUSED
ON BACKGROUND AND CONTEXT
SETTING WHAT WORK HAS ALREADY
BEEN DONE WHAT ARE SOME OF THE
QUESTIONS BEFORE IS STILL.
THE SECOND MEETING IN REDDING
FOCUSED ON THE TOPICS OF STRICT
LIABILITY AND YOU TOTALLY
INSURANCE.
THE THIRD MEETING AND SANTA ROSA
FOCUSED ON HOMEOWNERS INSURANCE
AND UTILITY RISK FINANCING.
AND IN OUR FOURTH MEETING AN
VITARA FOCUSED ON SPECIFIC
PROPOSALS THAT STAKEHOLDERS HAVE.
A FOR A DRESSING THESE THREE
ISSUE AREAS.
WE WELCOME WRITTEN COMMENTS ANY
POINT IN OUR PROCESS BUT WE
SPECIFICALLY ASKED STAKEHOLDERS
TO SUBMIT WRITTEN COMMENTS -- BY
APRIL TWENTY SECOND.
WITH IDEAS RELATED TO THOSE
THREE TOPICS OF LIABILITY
INSURANCE AND FINANCIAL
MECHANISMS.
THIS DUE DATE FOR THE COMMENTS
WERE STRUCTURE.
TO BECOME AFTER THE STRIKE TEAM
REPORT WAS RELEASED.
AND SO WE DID HAVE FEEDBACK IN
THOSE COMMENTS ABOUT PARTICULAR
ANIMAL IMMENSE OF REPORT THAT
WAS PROVIDED.
WE RECEIVED THIRTY SEVEN SETS OF
COMMENTS FROM A RANGE OF
STAKEHOLDERS.
INCLUDING LOCAL GOVERNMENTS RATE
ADVOCATES AND EVEN -- EVERY DAY
CALIFORNIANS WHO JUST SENT US AN
EMAIL WITH THE TECHNOLOGY IDEA
OR SOMETHING SPECIFIC TO THEIR
COMMUNITY WE ALSO RECEIVED
WRITTEN TESTIMONY WITH SPECIFIC
FINANCIAL MODELS AND PROPOSALS
AROUND FIND IDEAS.
AS I MENTIONED WE ARE COMMITTED
TO GETTING RECOMMENDATIONS OF
THIS BODY AS QUICKLY AS POSSIBLE.
SO WE'RE AIMING TO A RELEASED
TRAFFIC EMENDATIONS BY THE END
OF MAY.
AND TO DISCUSS THEM AS A BODY
SOMETIME IN EARLY JUNE.
IN ORDER TO MOVE FORWARD I SENT
TO THREE SUBCOMMITTEES.
THE FIRST SUBCOMMITTEE UTILITY
WILDFIRE LIABILITY AND COST
RECOVERY STANDARDS INCLUDES
COMMISSIONER KHN AND
COMMISSIONER NAVA.
THE SECOND COMMITTEE.
ON WILDFIRE FUND AND ANY OTHER
FINANCIAL MECHANISMS IS MYSELF
AND COMMISSIONER WARRANT.
AND IN THE THIRD COMMITTEE ON
HOMEOWNERS INSURANCE
AVAILABILITY AFFORDABILITY AND
COMMUNITY WHILE FIRE MITIGATION
NEEDS -- INCLUDES COMMISSIONER
JONES AND COMMISSIONER WAR.
THE SUB COMMITTEES ARE WORKING
TOGETHER TO SUPPORT STAFF IN
PUTTING TOGETHER A COMPREHENSIVE
SET OF RECOMMENDATIONS TO BE
ISSUED.
WE WILL -- IN THOSE
RECOMMENDATIONS REFER TO THE
TESTIMONY THAT WE'VE RECEIVED AS
WELL AS ALL OF THE PUBLICLY
AVAILABLE INFORMATION THAT'S OUT
THERE INCLUDING WHAT'S COME
BEFORE US TODAY IN YOUR HEARING.
OUR REPORT IS NOT A DIRECT
RESPONSE TO THE STRIKE TEAMS
REPORT.
BUT IT WILL TOUCH UPON THE SOME
OF THE IDEAS THAT WERE REASON
THAT REPORT AND I'LL SAY WHAT
WE'VE BEEN WHAT WE SAW IN THAT
REPORT IS CONSISTENT WITH WHAT
WE'VE BEEN HEARING AN EXPERT IN
PUBLIC TESTIMONY.
ON OUR FORUM IN TERMS OF WHAT
ARETHE ISSUES AND POSSIBLE
OPTIONS -- AND SO WITH THAT I'LL
CONCLUDE MY OPENING COMMENTS AND
WELCOME ANY QUESTIONS YOU HAVE
ABOUT OUR PROCESS WE REMAIN
AVAILABLE TO YOU AFTER WE ASSURE
I DRAFT REPORT TO ANSWER
SPECIFIC QUESTIONS.
THE QUESTIONS ARE
RECOMMENDATIONS.
MISSOURI ARE YOU DO YOU HAVE
PREPARED REMARKS OR DO YOU WANT
TO GO TO QUESTIONS WE SHOULD
JUST GO TO QUESTIONS GIVEN TIME
I WANT TO HAVE AS MUCH TIME AS
POSSIBLE FOR THE COMMITTEE.
HERE START CENTER RUBIO.
A SENATOR NIELSEN AND CENTER
STERN I'M GONNA GIVE YOU -- TIME
AND ENERGY HERTZBERG NEXT.
YOUR HONOR.
OKAY SORRY BOUT THAT CHIEF.
OKAY SO WE'RE GOING TO GO NOW
CENTER NIELSEN.
I KIND OF GO BACK TO THE
PREVIOUS PANEL BUT IT REACHES
YOURS AS WELL.
I ARGUE THE CHARGE.
IS TOO NARROW.
YOU INDICATED THAT THIS WAS
RELATED TO UTILITY COST FIRES.
ARE PROBLEMS WITH FIRES AND
DISASTERS AND THESE INCLUDE
FLOODS THAT INCLUDES IS STILL
WAY.
THERE ARE BILL.
IT'S THAT WAS FIFTY YEARS OF
NEGLECT.
BUT THE STATE OF CALIFORNIA AND
ITS RESPONSIBILITIES. FOR THAT
SPILLWAYS.
IN THE FORCE IN THE WILD LANDS.
OUR PROBLEMS ARE PRODUCTS OF
DECADES.
THE STATE AND FEDERAL POLICY.
IT ISN'T FORCE MAJEURE.
SO MUCH IS STATE AND FEDERAL
POLICY.
SO WHEN YOUR FINGER POINTING
CERTAINLY UTILITIES DESERVE THE
FINGER POINTED AT BUT SO DOES
OUR GOVERNMENT.
AND THE NEGLECT OF OUR OWN
LEGISLATURE'S STATE AND FEDERAL
[inaudible] FOR MANAGING. FOUR
FOUR SEN WHILE LANCE MANAGING.
WE HAVE NOT DONE THAT.
I SUBMIT.
AS YOU GO FORWARD WITH
RECOMMENDATIONS.
OKAY SO HE'D. TO THOSE CAUSATIVE
FACTORS PLEASE.
THANKS SIR NIELSEN -- IT'S
CENTER DR MAY I PLEASE.
I WOULD SAY THAT I I THINK THAT
THERE I AGREE WITH YOU
COMPLETELY THERE ARE MANY
FACTORS CAUSING THE CRISIS THAT
WE FACE IN THE STATE WITH
RESPECT TO WILDFIRE.
AND ONE THING WE'VE HEARD
CONSISTENTLY FROM COME ACROSS
THE SPECTRUM OF TESTIMONY --
THAT WE'VE HEARD IN THE VARIOUS
HEARINGS IS THAT.
AND I THINK THIS IS SOMETHING WE
STRUGGLE WITH ON THE COMMISSION
WERE CHARGED WITH ASSESSING HOW
TO FINANCES SOCIALIZED COST.
OF THIS PROBLEM. ONE OF THE MOST
EFFECTIVE WAYS TO MANAGE THE
PROBLEM IS TO MAKE IT SMALLER.
AND TO TAKE A VARIETY OF ACTIONS
THAT MEMBERS OF THIS COMMITTEE
AND THE NINE A ONE COMMITTEE AND
ALL THE WORK THAT WAS DONE LAST
YEAR AND IS HAPPENING THIS YEAR.
ARE ACTING TO TAKE AS A STATE
SOME.
WELL I JUST LAST OBSERVE ONE OF
THE FAILINGS.
OF THE SO CALLED FIRE TAX
[inaudible]
THE THANK GOD SHE'S GONE NOW.
THE MONIES WERE NOT USED FOR
WHAT THEY WERE POMISED.
YEAH WE USED BY THE PEOPLE I DID
THIS TO YOU -- CENTER JACKSON
AND AN OFFICE JUST LET'S JUST
pFOCUS HERE -- CENTER STERN I CUT
YOU OFF SO LITTLE ALL OF YOU GO
NEXT [inaudible]
GOOD POINT [inaudible]
ALL RIGHT.
THANK YOU MISTER CHAIR.
MY CENTRAL CONCERN HERE IS THAT.
LOOK THE SOLUTIONS MAY BE
COMPLEX BUT I WORRY.
WE'VE PUT THE CART BEFORE THE
HORSE A BIT AND I I DON'T THINK
OTHER THAN THE MEMORANDA WE SAW.
RELEASED LEADING UP TO THE
STRIKE FORCES REPORT -- FROM
PROFESSOR WEISSMAN.
THERE HAVE BEEN ANY ANALYSES OF
THE ACTUAL COST OF INACTION I
KNOW THAT THE LAST PANEL TALKED
ABOUT -- YOU KNOW ALL THE THINGS
THAT THE ADMINISTRATION'S BEEN
UNDERTAKING AND YES WE PASS SOME
LAWS BUT I THINK.
I I I STILL NEED TO HEAR THE
SORT OF BEYOND THE P. JEANNIE
TERRITORY RIGHT WHERE WE DO HAVE
A LITTLE MORE GRANULARITY WHAT.
WHAT AT WHAT WHAT DO RATE WHAT A
RATE PAYERS FACING LIKE WHAT
WHAT WHAT WHAT SCENARIOS MIGHT
THEY FACE -- IF SAY WE JUST
RELIED ON WHAT WE DID LAST YEAR
BECAUSE I I APPRECIATE LAST
HOUSES -- WE'RE WORRIED BUT
UTILITIES GOING BANKRUPT WELL
THAT'S THAT'S NOT WHAT OUR
CONSTITUENTS WHOSE HOUSES WERE
JUST BURNED DOWN ARE CONCERNED
WITH BUT THEY ARE CONCERT WITH
ADDING INSULT TO INJURY AND
HAVING.
TO DEAL WITH RECOVERY AND DEAL
WITH THE INSURANCE PROCESS AND
THEN HAVE THEIR BILLS. UP SO DO
YOU HAVE SOMETHING.
MORE GRANULAR THAN JUST --
SOMETHING DIRECTIONAL TO SAY
THERE'S A RISK.
I MEAN IF YOU GUYS ACTUALLY
LOOKED.
MORE DEEPLY AT WHAT RATE PAYERS
ARE ON THE STATE MAY FACE BOTH A
MUNICIPAL TERRITORY AS WELL AS
OTHER AYE YOU TERRITORIES.
I APPRECIATE THE QUESTION AND
WE'LL DO OUR BEST IN OUR REPORT
TO TOUCH UPON THAT ISSUE -- AS
YOU KNOW WE ARE WORKING WITH
LIMITED TIME AND WE DON'T HAVE A
TEAM OF CONSULTANTS BUT WE WILL
GATHER THE DATA THAT WE CAN.
AT TO INFORM THAT QUESTION.
ANY FURTHER COMMENTS MISTER
WHERE I KNOW THERE WAS OF THE
ARE YOU I DO KNOW THE MEMO I'M
REFERRING TO YOU FAMILIAR WITH
THE THE I THINK HE SAID THE UC
I'M FAMILIAR WITH IT YES SO DO
YOU CONCUR WITH THAT THE RICH
THE CONCLUSIONS OF THAT.
WEISMANN MEMO.
I THINK DIRECTIONALLY THE
WEISSMAN MEMO IS.
IS PROBABLY IN THE BRADY I A IS
ACCURATE I THINK THAT THERE ARE
SO MANY FACTORS TO INTERVENE.
BETWEEN THE CREATION OF THESE
LIABILITIES DURING CATASTROPHIC
WILDFIRES AND YOU KNOW WHAT RATE
PAYERS AND UP PAYING AND WHEN
THEY CAN BE HARD TO PIN DOWN THE
EXACT DOLLAR VALUE BUT I THINK
IT'S SAFE TO SAY.
THAT SIGNIFICANT -- WE SAW AS
WAS MENTIONED IN THE PREVIOUS
PANEL RECENTLY THAT -- THE ALL
OF THE I. O. USED TO PUT IN FOR
LARGE COST OF CAPITAL INCREASES
THAT WAS PREDICTABLE -- AND THE
CREDIT QUALITY OF ALL OF THE I
USE HAS BEEN DETERIORATING OVER
TIME.
AND I THINK THAT IS ANOTHER KIND
OF SIGN OF FUTURE INCREASED
REPAIR COSTS IF NOTHING HAPPENS.
CAN YOU FOR THE FOR THE LAY
PEOPLE TURNING IN. FOR OTHERS IN
THE PUBLIC WATCHING WHO DON'T
UNDERSTAND HOW THE COST OF
CAPITAL PROCEEDING WORKS Y. Y.
E. WHAT IS THAT ACTUALLY IMPACT
RATES AND WHAT WILL THAT DO SURE
SO IN ESSENCE -- UTILITIES USE
RATES TO PAY FOR THEIR EXPENSES
THEIR OPERATING EXPENSES AND TO
PAY FOR THE COST.
TO THE THE INTEREST ON THE MONEY
THAT THEY USED TO FINANCE AND
BUILD ALL OF THE INFRASTRUCTURE.
AND THE CALL THE INTEREST RATE
ESSENTIALLY IS GOING UP.
IN CALIFORNIA THE YOU KNOW WE
YOU COULD THINK OF IT IN VERY
YES SIR TO TO BE SPEAKING VERY
METAPHORICAL TERMS HERE.
YOU KNOW IT USED TO BE THAT WE
COULD GET SORT OF A THIRTY YEAR
MORTGAGE ON OUR TO FINANCE AND
BUILD OUR OUR INFRASTRUCTURE.
AND WE'RE EVOLVING TOWARD A
SITUATION WHERE WE HAVE TO BUILD
IT WITH HEY PUT ON A CREDIT CARD
AND PAY CREDIT CARD INTEREST
RATE.
RATHER THAN A HOME MORTGAGE
RATES.
AND THAT'S BECAUSE THE MARKETS
ARE NERVOUS ABOUT THE FINANCIAL
INTEGRITY OF THE UTILITIES AND
SO THEY DEMAND A HIGHER INTEREST
RATE. TO LOAN TO THEM EITHER
LOAN IN THE FORM OF OF DEBTS
RIGHT BONDS OR EQUITY.
AND SO DO YOU THINK THERE'S A
PROBLEM JUST LIMITED TO P.
JEANNIE OR DO YOU THINK IT'S
ACROSS UTILITIES AROUND THE
STATE IN THEIR PUBLIC STATEMENTS
THE CREDIT RATING AGENCIES HAVE
MADE IT VERY CLEAR THEY CONSIDER
THIS A CALIFORNIA WIDE PROBLEM.
WE HEARD TESTIMONY ALSO IN THIS
THIS JUST TO GO TO YOUR PUBLICLY
ON UTILITY QUESTION WE HEARD --
MULTIPLE ROUNDS OF TESTIMONY
FROM PUBLICLY OWNED UTILITIES
THAT INDICATED THAT THEY ARE
HAVING.
A DIFFERENT KIND OF PROBLEM
THEY'RE STRUGGLING TO GET.
BY A GENERAL LIABILITY COVERAGE
FOR THEIR OPERATIONS -- IT
BECAUSE THE INSURANCE COMPANIES
THAT WOULD GENERALLY COVER THEM
ARE GETTING REALLY NERVOUS
BECAUSE OF THIS FIRE ISSUE
[inaudible]
AND SO.
IN A IN A PRUDENTLY MANAGED
UTILITY IS THIS STILL.
IS THIS STILL A RISK FOR
RATEPAYERS IN THOSE TERRITORIES.
EVEN IF EVEN IF -- SEMPRA OR
PIERRE OR EDICION OR D. W. P. OR
SMUD.
HAVE WENT FULL STEAM AHEAD WITH
THEIR NINE OH ONE MITIGATION
PLANS AND WE HAD A WHOLE HOME
HARDENING SYSTEM DO YOU STILL
ANTICIPATE INCREASED RATE
SIGNIFICANT INCREASES AND REPAIR
COSTS AROUND THE STATE -- I
THINK FOR THE TIME BEING UNTIL
THERE'S A TRACK RCORD.
PERHAPS AND THIS IS ME SPEAKING
MY PERSONAL CAPACITY I'M NOT ON
THE AFTER THE COMMISSION I'M
WONDERING IN YOUR INITIAL
JUDGMENT I THINK IN MY INITIAL
JUDGMENT YOU KNOW THE THE
MARKETS ARE VERY NERVOUS ABOUT.
THE KIND OF RISK REWARD PROFILE
OF CALIFORNIA UTILITIES.
AND PART OF THE PART OF THE JOB
OF THE COMMISSION IS TO PROTECT
RATE PAYERS FROM THOSE IMPACTS
AS BEST WE CAN TO SAY YES.
YES.
WE DO ANTICIPATE SIGNIFICANT
COST INCREASES IF IF THINGS
CONTINUE LIKE I THINK WHEN WHEN
YOU ADD THE COSTOF THE
WILDFIRES THAT HAVE ALREADY
HAPPENED IF THOSE END UP BEING
H. A TRIP YOU KNOW PAID FOR BY
RATE PAYERS. TO THE COST OF THE
WILDFIRE MITIGATION PLANS AS
PROPOSED AND CURRENTLY BEING CAN
YOU KNOW IMPLEMENTED BY THE
UTILITIES. TO THE COST OF
INCREASED COSTS OF EQUITY AND
DEBT.
THEY'RE LIKELY TO BE HIGHER
COSTS FOR ELECTRICITY REPAIRS IN
CALIFORNIA MOVING FORWARD.
AND IS THERE ANYTHING IN THE
STATUS QUO UNDER THE UNDER THE
CURRENT SCENARIO SO WITHOUT
LEGISLATIVE ACTION.
THIS YEAR DID YOU HAVE SOMETHING
THAT.
THIS ONE TO MAKE TWO OTHER
POINTS AND ONE THAT REGARDLESS
OF ACOSTA SOCIALLY WITH
WILDFIRES THERE ARE PRESSURES ON
RATES GENERALLY -- DUE TO NEED
TO REPLACE AGING INFRASTRUCTURE --
AND SO THE STATUS QUO ALSO
INCLUDES THOSE INVESTMENTS.
AND THEN THE SECOND JUST TO MAKE
THE GENERAL POINT ABOUT THE ROLE
OF REPAIRS VERSES INVESTORS RATE
PAYERS DO YOU PAY FOR THESE
INVESTMENTS BUT THEY PAY OVER A
VERY LONG TIME HORIZON.
SO WHEN THE UTILITY IS APPROVED
TO GO OUT AND INVEST IN WIRES
AND POLES THEY HAVE TO GO UT
AND RAISE THAT MONEY SOMEWHERE
FIRST TO MAKE THE INVESTMENTS.
AND THAT'S WHAT YOU GO TO THE
INVESTORS FOR AND SO IF THERE IS
A BELIEF THAT THERE IS MORE RISK --
AND AT RISK OF NOT CAN BE
MITIGATED IMMEDIATELY ALTHOUGH
IT MIGHT BE OVER TIME THAT WILL
LEAD TO A HIGHER COST OF OUR OWN.
THANK YOU -- CENTER RUBIO
[inaudible]
THANK YOU.
THANK YOU FOR BEING HERE -- JUST
REAL QUICKLY WE KNOW THAT TWENTY
SEVENTEEN TO TWENTY EIGHTEEN
WERE YOU KNOW THE HIGHEST COST
THAT WE HAD IN TERMS OF FIRES.
SO FAR I'M JUST WONDERING --
SINCE RETRAIN SO MANY PEOPLE I
TALK ABOUT WE HEARD -- HERE ARE
NOT GETTING RENEWED -- RIGHT
WHAT TOOLS ARE AT THE INSURERS
DISPOSAL TO AVOID CONCENTRATOR
RISK OTHER THAN JUST COUNSELING
POLICIES CAN GIVE US
[inaudible]
ANY INSIGHT.
WE HEARD FROM THE DEPARTMENT OF
INSURANCE -- IN COMMISSION
TESTIMONY THAT.
RATES ARE INCREASING -- WHAT'S
CALLED THE WILDFIRE LOADING --
IN UTAH IN INSURANCE RATES IS
INCREASING -- AND IT A NUMBER OF
VERY LARGE NUMBER OF RATE
INCREASE FILINGS HAVE HAPPENED
HAVE OCCURRED -- AT THE ENTRANCE
COMMISSION WHICH INDICATES THAT
IN ADDITION TO NON RENEWAL --
INTEREST COVERAGE TRYING TO
PRICE THE INCREASED RISK INTO
POLICIES.
WE ALSO HEARD FROM NEW JERSEY
STREET I THINK IN THEIR VIEW AT
LEAST TO SOME DEGREE THEY CANNOT
FULLY PRICED AT RISK BECAUSE OF
THE STRUCTURE OF INTEREST
REGULATIONS STATE WE HEARD FROM --
INSURANCE -- REPAIR ADVOCATES
THAT -- THAT THAT CLAIM IS IS
CONTROVERSIAL -- TO SAY THE
LEAST.
AND SO BUT BUT THE THE THE MAIN
WAY -- THE OTHERS ARE TWO
OPTIONS TO STE OUR NON RENEWAL
AS SENATOR MCGUIRE MENTIONED.
OR PRICING.
AND ARE BOTH A CHALLENGING FOR
THE STATE AND FOR HOMEOWNERS AND
WHAT FIRE AREAS OBVIOUSLY.
NOT MUCH OF A SOLUTION MEHRI
INTO SO STILL THEA.
HOMEOWNERS AND THE VICTIMS ARE
THE ONES VERY THE BRUNT OF IT.
THANK YOU DID ANSWER MY QUESTION
THINKS CENTER HILL THAN SENATOR
WE CAL SKI THANK YOU MISTER
CHAIR IN EITHER.
JUST FOLLOWING UP A LITTLE BIT
ON ON SENATOR HERTZBERG'S
COMMENTS FROM IN THE PRIOR PANEL
YOU'RE YOU'RE CHARGED WITH A LOT
OF ISSUES TO LOOK AT I MEAN THE
THREE THAT WE TALKED ABOUT.
WHETHER IT'S THE LIABILITY COST
RECOVERY FINANCIAL ASSISTANCE OR
INSURANCE IN THOSE ISSUES THERE.
YOU ANTICIPATE WHEN YOU MAKE
YOUR RECOMMENDATIONS TO MAKE A
SPECIFIC SINGULAR RECOMMENDATION
ON EACH ONE OF THESE ISSUES OR
KIND OF A A SELECTION.
CHOICE IS THAT WE CAN WORK WITH
THEIR SINGULAR RECOMMENDATION
FOR I WOULD HOPE YOU.
FRANKLY COME TO BECAUSE YOU
WOULD THINK IT'S THE BEST IN
LOOKING AT THE INFORMATION THAT
WE JUST SAW.
EARLIER TRYING TO LOOK AT THE
LAST FIVE YEARS RICH SCENARIO
AND WE IF YOU COME UP WITH A
RECOMMENDATION THAT AS THAT
MOVES THROUGH OUR LEGISLATIVE
PROCESS.
IT WILL GIVE US AN OPPORTUNITY
TO THAN TWEAK IT IN A WAY THAT
MAKES SOME OF THE NEEDS OF THE
STAKEHOLDERS AND OTHERS SO WHAT
IS THE AND THE TIME LINE AND I
THINK WE KNOW THAT CERTAIN IN
JULY BUT JUNE BUT WHAT WHAT IS A
TIME LINE SPECIFICALLY.
AND WHAT IS THAT -- ANSWER ON
THAT -- THE ISSUE OF THE TYPE OF
RECOMMENDATION.
THANK YOU FOR THE QUESTION I
MEAN OUR SOLE FOCUS AND PURPOSE
IS TO HELP YOU GET TO A DECISION.
AND SO -- MY ANTICIPATION IS
THAT WE WILL MAKE AS MANY
PREFERRED RECOMMENDATIONS AS
POSSIBLE EVERY RECOMMENDATION
HAS ITS PROS AND CONS SO I THINK
IT'S OUR RESPONSIBILITY TO TELL
YOU WHY RECOMMENDING SOMETHING.
AND THEN THE PROS AND CONS OF
THAT OF THAT -- EACH ISSUE AREA
THEY ALSO MAY HAVE A A CLEAR
RECOMMENDATION THAN OTHERS AND
SO WE WILL TRY TO BE.
AS FORTHCOMING AS THOROUGH AS
POSSIBLE TO UNDERSTAND WHERE
THERE'S DISAGREEMENT AMONGST THE
COMMISSIONERS AND WHERE THERE'S
CONSENSUS.
I MEAN I THINK THE MAIN THING
THAT OUR PROCESS HAS BEEN ABLE
TO BRING TO THIS DIALOGUE IS
THAT WE'VE BEEN ABLE TO HEAR
FROM INDIVIDUALS AND COMMUNITIES
AND DIFFERENT STAKEHOLDERS.
THEIR SPECIFIC PROPOSALS AND
IDEAS WE'VE HAD THAT FORUM GOING
ON FOR THE LAST FOUR MONTHS A
FORM THAT'S OCCURRED AFTER THE
P. GINNY BANKRUPTCY AFTER THE
CAMPFIRE AND SO THOSE TWO EVENTS
I THINK HAVE -- FOCUSED THE
ATTENTION OF STAKEHOLDERS AND
WE'RE GOING TO BRING THAT
TESTIMONY INTO ANY
RECOMMENDATIONS WE OFFER TO YOU.
THANK YOU SIR -- CASKEY.
WHEN WE CONTINUE ON THE FUNDS --
BECAUSE AS I SEE IT IF WE HAVE.
THE PRESENTATION WAS FORTY
BILLION WE'RE TRYING TO FIGURE
OUT WHAT THE COMPOSITION OF THE
FUND WOULD LOOK LIKE IF THAT'S
GOOD FOR YOU.
ONCE AGAIN IN THE SPIRIT OF
SPREADING NAY THE THE THE RISK
OUT TO DIFFERENT FOLKS AS I SEE
THE BANKRUPTCY.
ONCE WE ESTABLISH WHAT THE FUND
IS THEN WE A PORT.
PROPORTION WHAT WE THINK P.
JEANNIE WOULD HAVE TO PAY WHICH
INFORMS THE JUDGE IN THE DEBTOR
IN POSSESSION I'M WHAT.
THEIR FEASIBILITY OF THEIR PLAN
COSTS THERE'S A DIRECT
CORRELATION.
THE RISK I GUESS YOU EVERYBODY
CONTINUES TO THINK IS WHAT'S THE
RIGHT NUMBER NO WE WE'RE WE'RE
THE POLICY MAKERS WE GOT TO
FIGURE OUT WHAT THE WHAT THE HOW
MUCH WE'RE IN.
FOR AND HOW MUCH WE THINK IF P.
JEANNIE HAS 40% IN THE SERVICE
AREA THAN THAT THE UNKNOWN
THAT'S THE REMAINDER I I WOULD
THINK BUT HELP US OUT HERE
BECAUSE IT IS THE CUT MY
COLLEAGUE FROM THE THE GREAT SAN
FERNANDO VALLEY WAS.
WAS -- CONCERNED WE'VE GOT WHERE
THEIR TIME PRESSURES IS ARE YOU
AND WE'RE TRYING TO KNOW IS
FORTY BILLION IN THE BALLPARK
AND WHAT ARE THE RISKS.
IF WERE TOO LOW.
START WITH AN ANSWER BUT A
DOCTOR WAR HAS LOOKED AT THESE
ISSUES EXTENSIVELY SAUSAL WILL
TURN TO HIM.
AND I THINK THE REALITY IS THAT
WILD FIRE RISK MODELING IT'S
MUCH LESS MATURE THAN OTHER
CATASTROPHIC EVENTS THAT THE
COUNTRY HAS DEALT WITH ITS LESS
MATURE THAN EARTHQUAKES AND
HURRICANES.
AND SO THERE ARE.
LEGITIMATE MODELS THAT RESULTS
IN DIFFERENT RESULTS AND ONE OF
THINGS WE HAVE BEEN ABLE TAKE
TESTIMONY IS ON WHAT THEIR RANGE
OF MODELS -- IS WHAT YOU HEARD A
LOT OF MILES ARE STRUCTURED
AROUND HOW BIG A FIRE CAN THE
FIND A COMEDY IN ANY GIVEN YEAR
AND SO THOSE ARE THE PARAMETERS
THAT -- YOU NEED TO ADJUST -- I
THINK WE WILL GIVE YOU SOME
INSIGHT IN OUR RECOMMENDATIONS
REGARDING -- THE OTHER TYPES OF
LIABILITY AND RISK THAT YOU
WOULD COVER WITH ANY ADDITIONAL
SIZE FUND.
BUT I DO THINK AS THE LAST PANEL
MENTION IT ULTIMATELY WILL COME
DOWN TO ALSO SOME POLICY CALLS
BECAUSE A BIGGER FUN ALSO IS
MORE COSTLY AND WILL RAISE
AFFORDABILITY ISSUES WHICH IS AN
IMPORTANT PRINCIPLE AND THE
STRIKE TEAM REPORT AS WELL AS IN
YOU IN YOUR DELIBERATIONS.
SO I HOPE THAT WE CAN.
ADD FLESH TO THE BNES OF SOME
OF THE RECOMMENDATIONS THAT YOU.
SAW ON THE STRAIGHT TEAM REPORT
BUT I DID WANT TO HIGHLIGHT THAT
THE SCIENCE ITSELF IS SO
VARIABLE THAT IS TRUE THERE'S
NOT ONE DEFINITIVE ANSWER.
WOULD YOU AGREE THAT THE THAT
THE DEBTOR IN POSSESSION IS
LOOKING FOR A PLAN THAT'S GOING
TO GET NEW MONEY INVESTED INTO
IT AND IF THEY HAD SOME
CERTAINTY ON THAT.
THAT BASED ON THE FUN BUT WHAT
THE PUT THE PLATE WAS THEN THEY
CAN WORK BACKWARDS WHETHER IT'S
ENOUGH TO MAKE PEOPLE INVOLVED
IN IT AND YOU KNOW IN PUT THAT
NEW MONEY AND THAT'S MY CONCERN.
I APPRECIATE THAT WHICH IS WHY
WE WANT TO SUPPORT NUMBER WE
CAN'T COME UP WITH.
A PLAUSIBLE AND LIKELY NUMBERS
FOR SUCH A FUND BUT I AGREE THAT
CAN BE AN IMPORTANT INPUT IN THE
BANKRUPTCY DISCUSSION
[inaudible]
CENTER HERTZBERG.
YEAH I JUST WANT TO FOLLOW UP ON
SENATOR HELMS ARE ACCOUNTS HE'S
QUESTIONS FIRST YOU SAID ON A
COMMISSIONER PETERMAN THAT EARLY
JUNE WHAT IS OUR REGION WE WERE
DOWN WHERE WOULD THIS IS URGENT
IN OUR JUDGMENT I THINK WE ALL
SENSE THAT THAT'S WHAT WE'RE
HERE TODAY IN.
THE PRO TEM AND BLOWING HIS
COMMITTEE WHAT IS EARLY JUNE IS
THAT JUNE THIRD IS THAT JUNE
FIFTEENTH.
A SO IN TERMS OF THE DRAFT
RECOMMENDATIONS BEING RELEASED
WE'RE TARGETING BY THE END OF
MAY SO I THINK MAY THIRTY DAYS
STILL MAYBE THIRTY ONE SO
WHATEVER THAT LAST DAY IS WHAT
WE'RE TARGETING -- AND THEN WE
WILL PUBLICLY DISCUSS IT IN THE
FIRST HALF OF JUNE SECOND.
IS THAT GIVEN THE URGENCY IN THE
MANAGEMENT OF THE ISSUE GIVEN
OUR CHALLENGES OUR SCHEDULE IS
THERE A WAY THAT YOU CAN SEVER
OFF.
PRIORITIZE AND SAY OKAY INSTEAD
OF DELIVERING THE FULL BOOK AT
ONE TIME JUST AS THE CHAIR OF
THE COMMITTEE SAID LOOK WE
RICHARD SECTION ONE AND SECTION.
THREE I THINK WE AS A
LEGISLATURE AND ALL BUT BOTH
HOUSES PRIORITIZE THAT BECAUSE
WE KNOW THE URGENCY OF THIS.
AND GIVEN THE GOVERNOR'S A
STATEMENT ABOUT THE THE TWELFTH
AND ALL THE PROCESSES WE HAVE TO
GO THROUGH BETWEEN BOTH HOUSES.
I DON'T KNOW IF IT'S POSSIBLE I
JUST SHARED WITH YOU IS IT
POSSIBLY COULD SEVER OFF PIECES
THE THOUGHT PROVES TO THE GIVING
US THE WHOLE BOOK GIVE US A
COUPLE OF CHAPTERS.
THAT YOU'VE THOUGHT THROUGH
EARLY ON TO YOUR SUBCOMMITTEE
PROCESS -- THAT ALLOWS US TO GET
TO WORK EARLIER BECAUSE WE'RE
SITTING HERE AND SAYING WELL WE
WANT TO EAGLE NINE OH ONE OVER
HERE MISTER NINE A ONE CREATED
THIS AND THEN WE NO ONE
ANTICIPATED THE SITUATION WE'RE
IN NOW SO HOW DO WE TRUNCATE
THAT. TO BE ABLE TO ALLOW THIS
LEGISLATURE TO DO ITS WORK
EARLIER OR RATHER JUST WAITING
AND ALL OF A SUDDEN IT'S THE
FIFTEEN TO WHATEVER IT IS THE
BUDGET COMES OUT WE GET THE
ASSEMBLY BILLS IN THIS HOUSE
THEY HAVE OUR BILLS OUR ABILITY
TO GET THIS DONE.
IS DRAMATICALLY IMPAIRED ANY
THOUGHTS EVEN IF YOU DON'T HAVE
AN ANSWER NOW IF YOU COULD AT
LEAST TAKE THAT TO HEART.
THE OTHER COUPLE OF POINTS YOU
JUST QUICKLY WANT TO RAISE.
IS AGAIN FOLLOWING UP ON CENTER
HILLS COMMENTS WITH X. REALLY
IMPORTANT IS A MAKE
RECOMMENDATIONS RIGHT HE IT'S
COOL TO TO BE ABLE TO SAY HERE'S
THE POSITIVE NEGATIVES
CRITICALLY IMPORTANT.
BE IF YOU CAN DRAFT THOSE
REGULATIONS AND STATUTORY
LANGUAGE YOU KNOW IN A WAY THAT
COULD WORK BETTER THAT AGAIN
TIME TIME IS EVERYTHING IT TAKES
US A WEEK TO TAKE YOUR DOCUMENT.
AND THEN TRANSLATED INTO
STATUTORY LINE WHICH GET LOWERS
TO HELP YOU DO THAT.
TO GIVE US BACK UP PLANS ON THE
DATA SAID THAT YOU UTILIZING
WHAT WE JUST SAW HERE WE HAD
SOME BASIC DOCUMENT WE COULDN'T
GET ANYTHING BECAUSE THE REASONS
THAT WERE EXPRESSED.
SO GIVE US DOCUMENTS THREE IF
THERE'S A WAY I DON'T KNOW IF
IT'S POSSIBLE LAST POINT.
CAN YOU TALK TO THE RATING
AGENCIES IN YOUR EXAMINATION
DON'T KNOW IF THEY'LL TALK TO
YOU BUT CAN YOU MAKE AN EFFORT
SO THAT AGAIN.
PART OF ALL OF THIS IS INFORMED
BY HOW THE FINANCIAL MARKETS SEE
THIS IF W COME UP WITH THE PLAN
BUT THEY DON'T ACCEPT.
IT MAY BE GREAT FOR US WE ALL
MAY CELEBRATED BY THE DOZEN
ACHIEVE THE THE DELIVERABLE OR
TRYING TO CHEAT IS TO STABILIZE
THE MISSILE INVESTOR OWNED
UTILITIES.
IN THIS EARLY THING AND THEN
LATER OBVIOUSLY WE CAN DEAL WITH
SOME OF THE OTHER REGULATORY
PIECES BUT THE POINT THE CHAIR
MADE.
IN STRESSING WHAT HE DID IN THE
OPENING WAS LET'S FOCUS ON
LIABILITY IN THE MITIGATION
PIECES BECAUSE A MITIGATION
PIECE INFORMS THE WITH THE RISK
PROFILE IS ULTIMATELY DOWN THE
LINE.
AND I THINK WHAT WAS TESTIFIED
TO HERE'S IT'S GONNA TAKE IS
EIGHT YEARS THAT MITIGATION PLAN
TO ACTUALLY IMPLEMENT THE
IMPLEMENTED THE WAY THAT HAS A
BROAD ENOUGH IMPACTS SO.
HELPING US GET THERE AS EARLY AS
POSSIBLE IN FORMING THE PROCESS.
RATHER THAN WAITING FOR THIS
LINEAL APPROACH COULD BE
EXTREMELY IMPORTANT I THINK.
CENTER HERTZBERG AGAIN I
APPRECIATE THE URGENCY OF TIMING
AS YOU KNOW THIS COMMISSION HAS
HAD RELATIVELY VERY LITTLE TIME
TO CONVENE A DELIVER
RECOMMENDATIONS WE'VE ONLY BEEN.
INFORMATION -- AN ACTIVE SINCE
FEBRUARY -- REGARDING A TO MAKE
ONE COMMENT ABOUT THE RATING
AGENCIES WHICH UNDERSTANDABLY
GIVEN THEIR ROLE I THINK THEY
ARE.
CAUTIOUS AND FRANKLY NOT WILLING
TO SAY WHAT WILL CHANGE THEIR
VIEW -- THEY SPEAK THROUGH THEIR
PUBLISHED REPORTS AND THEY'RE
PUBLISHED REPORTS HAVE EXPRESSED.
THEIR SINCERE CONCERN FOR AT
HEALTH OF CALIFORNIA TO LADIES
IN TERMS OF PROVIDING YOU.
INPUT IN MORE OF A PIECEMEAL
FASHION ONE OF THE BIG TAKEAWAYS
FROM THE INPUT WE'VE GOTTEN SO
FAR IS THAT THE THREE ISSUES
THAT WE'RE LOOKING AT A
FUNDAMENTALLY INTER RELATED --
YEAH THE SUCCESS OR LACK OF
SUCCESS OF A FUND IS SOMEWHAT
TIED TO HOW YOU THINK ABOUT
LIABILITY AND WHAT HAPPENS IN
THE INSURANCE MARKET -- SO I
WOULD BE UNCOMFORTABLE RELEASING.
DIFFERENT PARTS ALSO GIVEN A AS
A BODY -- WE WILL JUST IT'LL BE
A STAFF REPORT AND THEN WE WILL
MEET TO COMPETE.
OUR RECOMMENDATIONS TO GATHER --
BUT WE WILL PROVIDE YOU WHAT WE
CAN IN A TIMELY MANNER AS
POSSIBLE.
AND WE'RE GOING TO DOUBLE YOUR
VOLUNTEER SALARIES THE JURY FOR
DOING ALL THIS HEAVY LIFTING
BLESS YOU FOR MENTIONING THAT --
THE CITY CENTER MCGUIRE THAT
SENATOR JACKSON CENTER RUBIO.
THANK YOU SO MUCH FOR TO CHEER
ON MAKE THIS FOR THE QUICK -- TO
BOTH USE THE LAST THING FIRE
SURVIVORS. ONE HEARS THAT
THEY'RE GONNA BE EXPECTED TO BE
ABLE TO PAY INTO WHETHER IT'S A
A RATE STABILITY ACCOUNT.
OR VICTIMS COMPENSATION FUND IF
YOU WILL.
SO BESIDES A A LUMP SUM PAYMENT
FROM FOR EXAMPLE P. JEANNIE.
IS THERE A FORMULA THAT WOULD
ALLOW ONE ON GOING.
DEDICATED SOURCE FROM
SHAREHOLDERS TO BE ABLE TO HELP
ESTABLISH THAT.
STABILIZATION ACCOUNT OR A
COMPENSATION FUND IN YOUR
THOUGHTS ON THAT.
I THINK THAT YEAH COMMISSIONER
AT WARREN ARE WORKING ON THE
IDEA OF WHETHER FIND IS WORTH
RECOMMENDING OR NOT AND WE SHARE
THE STRIKE TEAM VIEW THAT THE
MORE STAKEHOLDERS THAT
CONTRIBUTE TO FIND THE BETTER.
AND SO WE ARE EXPLORING WHAT OUR
DIFFERENT PERMUTATIONS OF THAT.
I'M NOT PREPARED TO SAY ANYTHING
FOR THE EXACTLY HOW YOU WOULD GO
ABOUT DOING THAT CONTRIBUTION
BUT THOSE ARE THE TYPES OF
QUESTIONS THAT WE HAVE BEFORE US
WHICH IS STRUCTURALLY HOW DO YOU
MOVE FROM SAYING THAT.
EVERYONE SHOULD HAVE SOME SKIN
IN THE GAME TO PRACTICALLY
ENSURING THAT BECAUSE YOU DON'T
WANT TO STAND UP OF FUN THAT IT
ENDS UP NOT BE EVERY CAPITALIZE
THE WAY YOU ANTICIPATE INTO
SOMETHING MORE OFFENSIVE THAN
ASKING THOSE.
WHO JUST LOST THEIR HOME TO BE
ABLE TO PAY INTO FUNDS TO BE
ABLE TO HELP PROP UP UTILITIES
THAT?
POTENTIALLY COULD BE AT FAULT --
FOR THAT FIRE THAT DESTROYED
THEIR HOME AS WELL.
SO I THINK THAT'S THE ISSUE SO
THAT IS SOMETHING THAT YOU'RE
TAKING A LOOK AT AS FAR AS IN
NOT AT ALL DOING THE DEEP DIVE
INTO THE DETAILS.
BUT IT'S ON THE TABLE OF LOOKING
AT HOW SHAREHOLDERS CAN
CONTRIBUTE I DO BETTER PROP UP
WHATEVER TYPE OF FUNDS.
YES EVERYTHING IS STILL ON THE
TABLE THANK YOU [inaudible]
YEAH.
YES THANK YOU.
OUR TWO TWO POINTS ONE ON THE
INSURANCE ISSUE -- IF YOU COULD
COME UP WITH SOME
RECOMMENDATIONS WE HAVEN'T
REALLY.
TAKEN A HARD LOOK AT THE
INSURANCE INDUSTRY WE DO CAP
THEIR RATES BUT WE DO KNOW THAT
THEY'RE A PARTICULARLY AT THIS
POINT IN TIME THE PEOPLE WHO
HAVE BEEN IN THE FIRE ZONES.
ARE ARE BASICALLY BEING -- A
STRANGLED WHEN IT COMES NOT ONLY
TO TRYING TO REBUILD OR REPAIR
WHAT'S GOING ON BUT INCREASING
THE COST OF INSURANCE FOR NON
RENEWING.
IT'S IT'S AN EPIDEMIC.
THAT THEY APPARENTLY SEEM TO BE
ABLE TO GET AWAY WITH.
PERHAPS OR SOMETHING THAT WE CAN
DO TO TRY -- TO EITHER
INCENTIVIZE OR CREATE A CARROT
AND STICK APPROACH I DON'T KNOW
THE ANSWER BUT I DO KNOW THAT IS
HAVING A SIGNIFICANT IMPACT IN
MY COMMUNITY AND IS.
A CENTER MCGUIRE INDICATED IN
HIS AS WELL.
THAT WOULD BE AN ASK -- THE
SECOND ASK IS FOR ME IT'S SO
FRUSTRATING TO HEAR HOW WE ARE
SO DEPENDENT ON THESE RATING
AGENCIES MOST OF WHICH DON'T
EVEN KNOW WHAT THE GOLDEN GATE
BRIDGE LOOKS LIKE I MEAN THEY'RE
ALL BASED IN NEW YORK -- THEY
ARE NOT PARTICULARLY SYMPATHETIC
TO CALIFORNIA ARE THERE SOME
OTHER AVENUE SOME OTHER FUNDING
MECHANISMS THAT WE MIGHT BE ABLE
TO LOOK AT SO WE'RE NOT SO
BEHOLDEN TO WALL STREET INTO
THESE.
ARE A COMPANIES WHO.
REALLY I DON'T THINK UNDERSTAND
CALIFORNIA UNDERSTAND OUR
CIRCUMSTANCE FOR EXAMPLE IF
WE'RE ABLE TO DO A LOT OF THIS
HARDENING IN THE PLANNING AND
THE THINNING IN THE THINGS THAT
WE NEED TO DO. TO REDUCE THE
THEY'RE NOT AS CATASTROPHIC CAM
WHICH IS SOMETHING THAT WE'RE
ALL I THINK.
A PLEDGING TO DO AN ALREADY
WORKING ON IS OR SOME OTHER SOME
OTHER OPTIONS AVAILABLE TO US
BECAUSE OBVIOUSLY WE DON'T KNOW
THE ANSWERS TO THESE QUESTIONS.
THEY'RE NOT THEY'RE HOLDING
THEIR CARDS VERY CLOSE TO THEIR
THEIR VESTING WON'T TELL US --
SO WE ARE REALLY AT THEIR MERCY
IS THERE SOME WAY WE CAN AVOID
THAT -- HERE IN CALIFORNIA SET
UP A ROOM FUND DO SOMETHING SO
THAT WE DON'T HAVE TO BE SO
DEPENDENT UPON THE VAGARIES IN
THE WHIMS OF WALL STREET AND AND
THE FOLKS IN THE RATING
COMPANIES INTERESTED SIR.
I THINK VERY FRUSTRATING TO THE
PEOPLE HERE TO THE TO KNOW THAT
HAVING LOST A HOUSE IN THE
PROCESS OF TRYING TO REBUILD.
AND THAT'S IT WHERE WE ARE NOW
IT'S SUCH AS RECOVERY TO REBUILD
IT'S TAKING FOREVER INSURANCE
COMPANIES AREN'T COMING THROUGH --
WE WE WONDER WHAT'S GOING TO
HAPPEN IN TERMS OF DELIVERY OF
OUR BASIC NEEDS ELECTRICITY
TETRA TO SOMETHING WE CAN DO
INDEPENDENTLY IS A STATE. TO TRY.
TO SHORE UP OUR RESOURCES
WITHOUT HAVING TO RELY UPON
THOSE FOLKS BACK EAST.
AT ALL ALL FOR TWO POINTS WHICH
IS WHAT WE HAVE.
HEARD FROM ACROSS THE FINANCIAL
COMMUNITY AND IT'S NOT JUST --
THE BANKS AND LENDERS BUT ALSO
THE INSURANCE INDUSTRY THE
REINSURANCE INDUSTRY THAT THE
MORE WILDFIRE MEDICATION WE CAN
CONDUCT.
AND THAT IS SUCCESSFUL THAT WILL.
MAKE IT EASIER ADD TO INVEST
GREATER AMOUNTS IN CALIFORNIA --
AND THEN JUST YOUR BROADER
QUESTION IT I MEAN I THINK THE
REALITY IS THE UTILITIES BOTH
PUBLIC AND PRIVATE.
HAVE TO RELY RIGHT NOW IN THE
FINANCIAL MARKETS TO FUND THE
BILLIONS OF DOLLARS OF
INVESTMENTS THAT WE EXPECT TO
KEEP OUR SYSTEM SAFE AND
RELIABLE -- SO WE DO NEED TO
CONTINUE TO DEMONSTRATE THAT
WE'RE LOWERING RISK BUT MY SENSE
IS THAT IT'S AGAIN IT'S NOT
PERSONAL CALIFORNIA IT'S WHAT
THE SS AS RISKY AND IF WE CAN
DEMONSTRATE WERE LESS RISKY --
THEN THE FINANCIAL RESOURCES
WILL BE AVAILABLE TO US AT LOWER
COST THANK YOU AND THAT'S A
GREAT WAY. FOR ME TO IN MY
QUESTIONS THANK YOU.
SENATOR RUBIO IS A LAST QUESTION
THAT WE'RE GONNA GO TO PUBLIC
COMMENT.
THANK YOU CHAIR AM AND THIS IS
REALLY BASED ON THE LAST --
POWNAL SYFY MAGES.
FOR UP FOR RECORD -- I'M JUST A
LITTLE CURIOUS BECAUSE I THINK I
JUST HEARD -- THE GOOD SENATOR
FROM SAN FERNANDO SEE EXPRESSES
FRUSTRATION THAT WE HAVE A TIME
LIMITATION HERE AND WE NEED.
TO EXECUTE THIS N. DA HUNTER AT
SOME OF THE CONSIDERATIONS
OFFERED.
IN EACH CONCEPT UNDER NEED
THERE'S ALSO ALL THE RESEARCH
THAT'S REQUIRED TO GET.
TO WHAT A GOOD VIABLE OPTION SO
SO FOR ME IT'S JUST
CLARIFICATION PURPOSES SINCE
THIS RESEARCH GONNA FALL ON OUR
LAP OR THERE'S STILL GOING TO
CONTINUE TO WORK ON ON THE
RESEARCH NEEDED TO SEE IF.
THE OPTIONS ARE ADEQUATE SO I
DON'T KNOW THEY CAN ANSWER THAT
OR WE CAN JUST PUT IT OUT THERE
AND HOPEFULLY WE'LL GET THE
ANSWER TO THAT THANK YOU CHAIR.
THANK YOU SENATOR I APPRECIATE --
YOUR INDULGENCE WITH THE TIME IN
THE LAST COMMITTEE -- PANEL SO
WE'RE GONNA HAVE ONE MINUTE --
BUT THE PUBLIC COMMENT EACH
SPEAKER PLEASE STATE YOUR NAME.
YOU KNOW.
BEFORE WE DO THAT I WANT TO
THANK BOTH OF YOU -- FOR YOU THE
THE TIME AND ATTENTION AND YEAH
JUST THE DILIGENCE THAT YOU'RE
PUTTING INTO THIS FOR THE PEOPLE
OF THE STATE OF CALIFORNIA. FOR
NOTHING -- IF I HAD TO DO ALL
OVER AGAIN I WOULD HAVE A BUDGET --
FOR THIS IN SB NINE OH ONE BIT
YOUR WORK AT AND HAVE AND WHAT
YOU'RE DOING IS JUST --
INVALUABLE WE WANT TO THANK YOU
VERY MUCH.
AND PLEASE THANK YOU CENTER AND
IF I MAKE MAKE A PLUG FOR A
WEBSITE -- PR DOT COM FORWARD
SLASH WILDFIRE KNOWLEDGE BEING
LISTENER HERTZBERG CENTER ON
TIMING A BIG PART OF WHAT WE TRY
TO DO WITH THE COMMISSION.
IS PUT ALL OF OUR INFORMATION UP
ON THE WEB PUBLICLY AVAILABLE
ALL THE TESTIMONY IS THERE ALL
THE DISCUSSION.
AND WE DO HOPE THAT STAKEHOLDERS
WILL TAKE SOME OF THE IDEAS OUT
THERE ARE READY AND BE DOING
THAT RESEARCH CENTER AT RUBIO
THAT YOU HIGHLIGHTED -- SO THAT
THEY CAN BRING THAT TO YOU AS
WELL ONCE WE PUT OUT OUR
RECOMMENDATIONS WE DO EXPECT
VERY STAKEHOLDERS TO START TO DO
THE PENCIL SHARPENING AROUND THE
IDEASWE PUT FORWARD TO REALLY
HELP YOU COME FOR AT REACH A A
REASONABLE A SOLUTION TO THESE
CHALLENGES.
SO THANK YOU FOR YOUR TIME.
THANK YOU.
I I WOULD JUST SAY I THINK WE'RE
CONTINUING TO ADVANCE THE STATE
OF KNOWLEDGE ON THE QUESTIONS
AND WE RECEIVED A LOT OF
COLLABORATION FROM.
THE ENTIRE EXECUTIVE BRANCH IN
THE WORK THAT THE STRIKE TEAM
DID AS WELL SO WE'RE I THINK
THERE'S GONNA BE FORWARD
PROGRESS TOWARD THE END GOAL
EVEN IN OUR REPORT.
THANK YOU.
ALL RIGHT PUBLIC COMMENT STATE
YOUR NAME.
QUICKLY AND MOVE THROUGH.
MICHAEL.
MISTER CHAIRMAN THANK YOU
MICHAEL BOCA DOOR ON BEHALF OF
THE AG ENERGY CONSUMERS
ASSOCIATION VERY QUICKLY WE
STRONGLY SUPPORT THE STRIKE
FORCE REPORT RECOMMENDATION THAT
WE REVIEW LIABILITY REFORM THAT
HAS TO HAPPEN.
NONE OF THIS IS SUSTAINABLE
UNLESS THAT HAPPENS FRANKLY.
SECONDLY I WANT TO ADDRESS POINT
MR STERN RAISE THE QUESTION HE
RAISED ABOUT RATES IN CALIFORNIA
THE TIPPING POINT.
DOCUMENT THAT'S BEEN HANDED OUT
CALIFORNIA'S RATES ALREADY 6290%
HIGHER THAN THE NATIONAL AVERAGE
WHAT WE'VE DONE TODAY IS
PROJECTED OUT WE'RE P. GENIES
RATES ARE HEADED.
JUST WITH THE RATE INCREASES
THAT ARE PENDING AT THE PUBLIC
UTILITIES COMMISSION TODAY AND
BY TWENTY TWENTY THEY'LL GO TO
TWENTY SEVEN CENTS WHICH IS MORE
THAN TWO AND A HALF TIMES.
THE NATIONALAVERAGE IS ABOUT AN
EIGHT CENT INCREASE OVER WHERE
THEY ARE TODAY THAT'S WITHOUT A
SINGLE PENNY.
OF LIABILITY COSTS BEING PUT
INTO THOSE RATES SO IF ON TOP OF
THAT WE'RE TALKING ABOUT
ADDITIONAL REPAIR CONTRIBUTIONS
BEYOND WHAT WE'RE ALREADY GOING
TO BE FACING.
WE WOULD BE WELL ABOVE THIRTY
CENTS A KILOWATT HOUR THIRTY
FIVE CENTS A KILOWATT I CALL
THAT'S UNSUSTAINABLE THANK YOU
THANK YOU.
NEXT BAKER THANK YOU SENATOR
DIED IN MEMBERS PATRICK MCCALLUM
REPRESENTING -- UP FROM THE
ASHES.
WE APPRECIATE YOUR FOCUS AND
ENERGY TO TRY TO CREATE A SAFER --
A HEALTHY UTILITY AND TO RESPOND
TO VICTIMS AND WHERE WE GO AND
CALIFORNIA.
LET ME JUST TALK ABOUT WHAT YOU
ADDRESS TODAY.
THE FIRST ISSUE IS WE HAVE A
VERY SPECIFIC PROPOSAL ON A
SIZEABLE WHILE FOR FUN.
THE CRITICAL POINT THE D. AS YOU
DO YOUR ANALYSIS IS THE P. GENIE
IS NOW AS A DE ENERGIZING POLICY.
IF THEY HAD DONE THAT IN CAMP IN
TUBS I WOULDN'T BE HERE
TESTIFYING TODAY.
SECONDLY WE HAVE PROPOSAL AROUND
PRUDENT MANAGER THAT'S WHERE YOU
CAN ADDRESS SOME OF THE
LIABILITY ISSUES.
THIRD WE HAVE VERY SPECIFIC
RECOMMENDATIONS ON SAFETY ARE
TOURNEY'S ARE ACTIVE WITH THE
CPUC THE JUDGE ALSOP
RECOMMENDATIONS FOLLOWED TWO OF
OUR ATTORNEYS.
WE THINK WITH THOSE
RECOMMENDATIONS IN DE ENERGIZING
THE SIZE OF THE FUND IS MUCH
LESS LET'S TALK ABOUT.
LET ME JUST ADD A HUMAN
DIMENSION AS YOU ALL KNOW I'M A
VICTIM FROM THE TUBS FIRE ALMOST
PERISHED.
FROM AT GOING TO WRAP UP ACT ON
THIS MORNING SORRY STRUGGLE WITH
SLEEP THE SITE'S EGGS I AT THE
AND LOSS OF BUSINESS.
WE LEARNED THAT THE DECISION WAS
MADE BY PT NEED TO KEEP POWER ON
DESPITE EXPECTING EIGHTY PLUS
WINDS.
THAT DECISION CHANGED HER LIFE
FOREVER I HAVE A TUB VICTIM AND
A THOMAS VICTIM THE CAME IN THIS
MORNING I GET THESE EVERY DAY.
AND SO THERE'S THE HUMAN SIDE OF
THIS AND I JUST WANTED TO TOUCH
ON TODAY THANK YOU MICHAEL.
I MEAN PATRICK.
THANK SPEAKER GOOD AFTERNOON
STACY HEAT RURAL COUNTIES IT
RURAL COUNTY REPRESENTATIVES OF
CALIFORNIA REPRESENTING THIRTY
SIX ROLE COUNTY STATEWIDE.
I JUST WANTED TO TOUCH ON A FEW
THINGS FIRST OF ALL WERE VERY
SUPPORTIVE OF A LOT OF THE
THINGS THAT ARE CONTAINED IN THE
GOVERNOR'S REPORT.
PARTICULARLY WITH REGARDS TO THE
NEEDS AND CONTINUE MANAGING OUR
FORESTS AND I WANTED TO ALSO
THINK AS SENATOR MCGUIRE FOR HIS
COMMENTS ON THE INSURANCE ISSUE.
THE ISSUE OF NON RENEWALS AND
CANCELLATIONS IS HUGE AND OUR
MEMBER COUNTIES AND WE'RE
HEARING ABOUT IT ALMOST EVERY
DAY -- I'D ALSO WANT TO EXPRESS
THAT ALTHOUGH WE DON'T HAVE
OFFICIAL POLICY ON THE
SECURITIZATION FIND ISSUE WE ARE
VERY MUCH IN OPPOSITION TO ANY
SORT OF REFORM OF INVERSE
CONDEMNATION.
LOCAL GOVERNMENTS ARE SUBJECT TO
ICY AND THAT WE BELIEVE THAT
SHOULD ALSO REMAIN IN PLACE FOR
THE UTILITIES.
AND JUST ONE FINAL THING -- WE
ARE COMMITTED TO WORKING ON THE
LAND USE AND LANNING ISSUE
WE'VE BEEN VERY INVOLVED WITH
SENATE BILL ONE EIGHTY TWO UP TO
THIS POINT.
AND THE NOT DON'T BUILD BUILD
YOU MUST BUILD FOR LOCAL
GOVERNMENTS RIGHT NOW IS A VERY
COMPLICATED ISSUE WE'RE WE'RE
TOLD WE DON'T WANT US BUILDING
IN THE MOVIE BUT YOU HAVE TO
BUILD IN THE WE WE AND NOT
SOMETHING THAT.
WE IS RECOGNIZED IN THE REPORT
AND THAT WE REALLY THINK NEEDS
TO BE ADDRESSED AND WORK OUT
WITH LOCAL GOVERNMENTS AND I
THANK YOU FOR YOUR TIME TODAY
THANK YOU NEXT SPEAKER.
GOOD AFTERNOON CARE MORTENSEN ON
BEHALF OF THE CALIFORNIA STATE
ASSOCIATION OF COUNTIES ALL
REITERATE THE COMMENTS OR
ASSOCIATE MYSELF WITH THE
COMMENTS OF THE VICTIMS
COALITIONS AND OUR WORLD COUNTY.
COUNTERPARTS WE HAVE BEEN
WORKING AS A COALITION AND WE
REALLY WANT TO FOCUS ON
SOLUTIONS INTOTHAT AND WE DO
SUPPORT A CATASTROPHIC WILD FIRE
PHONE WE DO SUPPORT CLEAR COST%
RECOVERY LANGUAGE AND WE
FUNDAMENTALLY OPPOSED.
CHANGES TO INVERSE CONDEMNATION
AND WE SUPPORT THE WORK THAT
THIS LEGISLATURE'S ACTUALLY
DOING TO ACCOMPLISH THE LAW A
LOT OF THE GOALS THAT ARE
CURRENTLY IN THE REPORT. TO TO
INCREASE THE SAFETY TO INCREASE --
OTHER POLICIES THAT WILL PREVENT
THESE FIRES BECAUSE SAFETY IS
OUR BEST -- INSURANCE POLICIES
THANK YOU.
CARE WELL DONE.
GOOD AFTERNOON GOOD AFTERNOON
SEVEN TAYLOR FOR THE PERSONAL
INSURANCE FEDERATION CALIFORNIA
WE REPRESENT LARGE PROPERTY
CASUALTY INSURERS.
JUST LIKE TO SAY THAT THE STRIKE
FORCE REPORT CONTEMPLATES A VERY
COMPLEX.
ISSUES AND WE APPRECIATE THE
COMMITTEE'S EFFORTS EXPLORE THEM
THOUGHTFULLY -- PIPP IS PART OF
A COALITION INCLUDES VICTIMS
CITIES AND COUNTIES AND THE
CONSUMER ATTORNEYS -- AS WE ALL
CONSIDER THE GOVERNOR'S REPORT
AND FOCUS OUR COLLECTIVE EFFORTS
ON MORE CONCRETE SOLUTIONS WE
BELIEVE IT'S IMPORTANT TO
PRIORITIZE A FEW KEY ELEMENTS.
WAS FIRST EFFORTS TO HELP FIRE
VICTIMS RECOVER AND REBUILD
SECOND FOCUS ON SAFETY TO REDUCE
THE INCIDENCE AND SEVERITY OF
WILDFIRES.
THIRD TO CONTINUE TO PROTECT THE
CONSTITUTIONAL RIGHTS OF FIRE
VICTIMS FOURTH PROVIDE CLEAR AND
FAIR STANDARDS FOR UTILITY COST
RECOVERY.
AND FIFTH TO CREATE A WILDFIRE
FUND SPECIFICALLY TO ADDRESS
COSTS ASSOCIATED WITH UTILITY
BECAUSE WILDFIRES.
WE LOOK FORWARD TO WORKING WITH
ALL OF YOU IN THE GOVERNOR TO
MAKE OUR STATE MORE RESILIENT
THANK [inaudible]
NEXT SPEAKER.
I GET AFTERNOON TURN MEMBERS
THEIR DOLPHIN HAPPILY CALIFORNIA
CITIES.
LIKE TO THINK THAT -- CHAIR DIED
IN THE LEGISLATURE FOR THE GREAT
WORK ON SB NINE ONE LAST YEAR
AND ONE TO SAY THAT THE LEAGUE
STANDS READY TO CONTINUE PARTNER
WITH THE LEGISLATURE TO CRAFT
POLICIES. TO ADDRESS CALIFORNIA
CHALLENGES WITH CATASTROPHIC
WILDFIRES I'M OUT OF THE OPTIONS
THAT LATE -- PUT FORTH IN THAT
THE STRIKE FOR SUPPORT THE LEGAL
SUPPORT OF THE CREATION OF A
WILDFIRE FUND PROVIDE ADDITIONAL
COVERAGE TO UTILITIES PROMOTE
THAT IT ADOPTION.
OF STRICT UTILITY SAFETY
MEDICATION POLICIES AND HELP
VICTIMS WAS A RECEIVE
COMPENSATION IN A JUST AND
TIMELY MANNER -- WE LOOK -- FOR
TO WORKING WITH YOU ON THIS IN
AND PLEASE USE US AS A RESOURCE
AS YOU'RE MOVING FOR THANK YOU
VERY MUCH.
THANK YOU NEXT MISTER CHAIR
MEMBERS CHAIR RUMORS ABOUT THE
AMERICAN PROPERTY CASUALTY
ASSOCIATION OR ASSOCIATION OF
BOTH HOMEOWNER INSURERS IN A
LARGE COMMERCIAL INSURERS
INCLUDING INSURERS PROVIDING.
INSURANCE AND REINSURANCE
UTILITIES -- WE WE APPRECIATE
THE THE CONVERSATION TODAY WE
APPRECIATE STATE STRAIGHT FOR
SUPPORT AND THE COMMISSION'S
WORK -- I THINK THERE ARE NUMBER
OF OF TOPICS THAT ALREADY BEEN
ADDRESSED WE AGREE WITH.
THE RESILIENCY THE MITIGATION
EFFORTS -- WE ARE HAPPY TO
EXPLORE FIND -- I ASSOCIATE
MYSELF WITH THE COMMENTS OF OUR
OUR COUNTERPART OR COALITION
COUNTERPARTS IN THE COUNTIES THE
LOCAL GOVERNMENTS I'M WITH PATH --
IN THAT WE THINK THAT WHILE I'M
LOOKING AT A WILDFIRE FIND -- IS
IMPORTANT WE THINK THE LIABILITY
STANDARDS -- SHOULD REMAIN THE
SAME WE'RE HAPPY TO ADDRESS
NUMBER INSURANCE ISSUES -- ON
THE CONVERSATIONS GOING FORWARD
SO THANK YOU.
IN [inaudible]
THANKS.
AT YOUR CALL TO THE CALIFORNIA
MUNICIPAL UTILITIES ASSOCIATION
REPRESENTING OVER FORTY PUBLICLY
OWNED NOT FOR PROFIT MUNICIPAL
UTILITIES THAT PROVIDE
ELECTRICITY TO UP TWENTY FIVE
PER 2% OF THE STATE.
IN ABOUT 10% OF THE STATE THAT'S
DESIGNATED AS A HIGH FIRE THREAT
DISTRICT.
MEMBERS TO APPRECIATE YOUR
LEADERSHIP ON THIS ISSUE
APPRECIATING GAUGING WITH THE
CHAIR OF THE COMMISSION AND AND
THE MEMBERS THAT COMMISSION AS
WELL WE HAVE FILE SUBSTANTIVE
COMMENTS WITH THAT COMMISSIONER
SHARE THEM WITH YOUR STAFF.
THE THE GOVERNOR'S REPORT
OUTLINES FIVE SECTIONS AND WE
HAVE -- ON THE LIABILITY
QUESTION WE ARE INTERESTED IN
MOVING A DISCUSSION FOR IT ON
STRICT LIABILITY AND WE
UNDERSTAND THAT THERE ARE ISSUES
WITH THE HOMEOWNERS INSURANCE
MARKET AND NON RENEWALS BUT AT
THE END OF THE DAY.
WHEN A FIRE HAPPENS -- WITH AN
ELECTRIC UTILITY AT SELECT
RETAIL IT'S PUTS IT PUT IN THE
POSITION OF BEING INSURER OF
LAST RESORT SO WE LOOK FOR TO
GET YOUR CONVERSATION WITH THAT.
WHEN IT COMES A CATASTROPHIC
FUND?
THOSE ARE BIG NUMBERS THAT WE
SAW TODAY WE NEED MORE DETAILS
ON THAT IT REALLY NEEDS REMAIN
OPTIONAL FOR PUBLIC IN DETAIL HE
SAID THEY CAN ASSESS WHAT THE
RISK IS AND WHETHER IT'S WORTH
IT FOR THEIR RATE PAYERS TO
PARTICIPATE NOT FIND YOU.
AND FINALLY ON THE ISSUE.
THANK YOU.
NEXT BAKER PLEASE.
HELLO MY NAME IS LED TRAM WITH
ANGIE MANY OF YOU KNOW MY
COMPANY WE DON'T LOT OF ENERGY
PROJECTS IN YOUR DISTRICTS AND
THANK YOU FOR YOUR TIME AND WORK
ON THIS -- I WANT TO ADDRESS THE
ISSUE OF FRAGMENTATION OF OUR
ENERGY SECTOR -- BECAUSE I
FUNDAMENTALLY BELIEVE THAT
THAT'S THE WRONG
CHARACTERIZATION AND THAT WE
NEED TO BE FOCUSING ON
DECENTRALIZATION AND RISK
MITIGATION WE ARE DIVERSIFYING
OUR ENERGY PORTFOLIO BY LOOKING
TO MAKE IT SMALLER AND MAKE IT
MORE DECENTRALIZED WE NEED TO BE
INVESTING IN MORE DISTRIBUTED
ENERGY RESOURCES.
AND FRANKLY MINIMIZING UTILITY
CAPITAL SPENDING TO THE BEST OF
OUR ABILITY WE'RE GONNA PAY 16%
INTEREST BRUTALITY CAPITAL
SPENDING THAT SHOULD BE
MINIMIZED AS MUCH AS POSSIBLE.
SO WE SHOULD LOOK TO INVEST IN
PUBLIC PRIVATE PARTNERSHIPS
INCENTIVIZE PRIVATE CAPITAL LIKE
VENTURE CAPITAL COMPANIES LIKE
MINE THAT ARE WORKING ON THESE
THINGS WORKING WITH THE PUBLIC
SECTOR.
AND WE ALSO NEED TO LOOK AT IT
WE'RE GOING TO BE PAYING 16%
INTEREST WE ALSO BE LOOKING AT
UTILITIES BEING REGULATED MORE
BASED ON PERFORMANCE.
AND POTENTIALLY LOOKING OUT OF
PERFORMANCE BASED REGULATION
SCHEME SIMILAR TO THAT IN HAWAII
AND WHAT WASHINGTON STATE JUST
PASS THIS YEAR THANK YOU.
THANKS [inaudible]
THANK SPEAKER.
MISTER CHAIR AND MEMBERS LAN
TRAN REPRESENTING CONSUMER
ATTORNEYS OF CALIFORNIA I WOULD
LIKE TO ASSOCIATE MY COMMENTS
WITH OUR COALITION PARTNERS IN
THE INSURANCE INDUSTRY.
AND THE CITIES AND COUNTIES AND
ESPECIALLY CARROTS BECAUSE THEY
WERE SO GOOD -- I DID WANT TO
EMPHASIZE THAT WE ARE VERY MUCH
INTERESTED IN WORKING WITH THE
COMMITTEE AND MEMBERS AND
LEGISLATURE ON A SUSTAINABLE
FUND AND WOULD LIKE TO BE PART
OF ANY OF THOSE DISCUSSIONS AND
OFFER OUR HELP IN THAT REGARD
THANK YOU AGAIN FOR YOUR
LEADERSHIP.
THANK YOU MISTER SPEAKER
[inaudible]
HI.
MY NAME IS GETTING TO MAKE YOU
AN WHO LOST HER HOME -- IN
SEPTEMBER TWENTY FIFTEEN IN THE
BUTTE FIRE IN CALAVERAS COUNTY.
WE LOST EVERYTHING WE OWNED THE
INSURANCE ON THE HOME WAS
SUPPOSED TO BE ENOUGH TO RECOVER
TO COVER REBUILDING BUT IT
WASN'T.
WITHOUT A HOUSE WELLS FARGO
CALLED IN THE LOAN AND LEFT US
WITH THE DEED TO TEN BURNED
ACRES.
WE'VE BEEN OUT OF POCKET SINCE
THEN WE LIVED ON OUR PRINTER
PROPERTY AND A FOUR HUNDRED
SQUARE FOOT TRAILER FOR THREE
YEARS AND RECENTLY MOVED INTO A
RENTAL HOME BECAUSE WE HAVE
SIGNED SETTLEMENT AGREEMENT WITH
P. JEANNIE IN NOVEMBER.
TWENTY EIGHTEEN WHICH THEY CHOSE
NOT TO PAY BEFORE FILING
BANKRUPTCY WE KNOW THIS BECAUSE
THEY CHOSE TO PAY OTHER
SURVIVORS THAT SIGNED AGREEMENTS
AFTER US.
NOW ANY RESTITUTION MAY COME IN
A FEW YEARS IF AT ALL.
WE'RE STILL IN SURVIVAL MODE
SINCE THE FIRE.
THE STORE IS TAKEN.
SEC THIS IS TAKING A TOLL ON
MYSELF MY HUSBAND AND MY
CHILDREN IMMEASURABLY SO THANK
YOU FOR YOUR TIME.
THANK YOU VERY MUCH FOR COMING
OF THE CAPITAL TELLING YOUR
STORY WE VERY MUCH I'M SORRY FOR
WHAT YOU HAD TO GO THROUGH.
MY NAME'S NEIL MCEWEN I HAVE A
MASTER'S ENVIRONMENTAL PLANNING
FOR MEMBERS TO COLORADO.
AND BEING FINANCE AND THERE'S NO
DOUBT IN MY MIND THAT HUMAN
GREENHOUSE GAS EMISSIONS.
OR EXHILARATING GLOBAL CLIMATE
CHANGE THIS FACT DOES NOT
ABSOLVE P. JEANNIE FROM THEIR
PREVIOUS CRIMINAL NEGLIGENCE.
THEY CHOSE NOT TO PROPERLY
MAINTAIN THEIR LINES THROUGH A
SIMPLISTIC COST BENEFIT ANALYSIS.
JUST AS THEY CHOSE NOT TO
IMPLEMENT A PART EMERGENCY POWER
DISCONNECT PROGRAM.
A BEFORE PARADISE THE VP OF
CUSTOMER ENERGY SOLUTIONS ERIN
JAY JOHNSON ACKNOWLEDGE RED FLAG
WARNINGS THREE DAYS PRIOR TO THE
CAMPFIRE DURING A PRESENTATION
REGARDING THE EMERGENCY POWER
DISCONNECT PROGRAM.
IN THE CALAVERAS COUNTY
SUPERVISORS CHAMBERS EVEN THOUGH
THESE WARNINGS WERE PRE
CONDITION FOR SHUTTING OFF THE
POWER THEY CHOSE NOT TO
IMPLEMENT IT.
P. GINNY COULD NOT BE ALLOWED TO
LOOK GET OFF THE HOOK WITH AN
EXPENSIVE AD CAMPAIGN BLAMING
GLOBAL WARMING AND HIDING IN
BANKRUPTCY.
SHAREHOLDERS MUST ALSO BE HELD
ACCOUNTABLE FOR CALVET CORPORATE
MALFEASANCE. TO ALLOW P. JEANNIE
TO SNEAK IN THE RIGHT TO PASS IT
ALL ON THE CONSUMERS WAS
DESPICABLE AND YOU HAVE THE
OPPORTUNITY TO MAKE A CHANGE
THANK YOU THANK YOU SIR.
GOOD AFTERNOON JOHN FISKE WITH
BARON AND BUDD -- IN ADDITION TO
REPRESENTING ALL OF THE CITIES
AND COUNTIES IN NAPA SONOMA.
VENTURA AND SANTA BARBARA
UNFORTUNATELY I'M BACK THIS YEAR
REPRESENTING LOS ANGELES COUNTY
CITY MALIBU COUNTY OF BUTTE.
AND THE TOWN OF PARADISE.
I THE LAST THING I WANT TO ADD
WITH HERE.
IS THAT EVERYBODY ON THIS PANEL
SHOULD HAVE OCTOBER TWO THOUSAND
NINETEEN ON YOUR CALENDAR.
THAT IS THE FIRST MONTH THAT
ALTERNATIVE LIVING EXPENSES WILL
EXPIRE FOR ABOUT SEVEN THOUSAND
OR EIGHT THOUSAND FAMILIES.
SOME OF THESE ALIE POLICIES ARE
MONEY POLICIES THAT RUN OUT.
SOME OF THEM ARE TIME POLICIES
SOME OF THEM RUN UP IN A YEAR
SOME OF THEM RUN UP IN TWO YEARS
SO MR HERTZBERG WE APPRECIATE
YOUR SENSE OF URGENCY AND THE
SENSE OF URGENCY OF THIS PANEL.
BECAUSE REAL LIVES WILL BE
AFFECTED WHEN AN INSURANCE
POLICY NO LONGER ALLOWS YOU TO
PAY FOR ALTERNATIVE LIVING
EXPENSIVE.
WHEN THIS SESSION EXPIRES IN
AUGUST OR SEPTEMBER OF TWO
THOUSAND NINETEEN NOT BUT A
MONTH OR TWO LATER WILL
THOUSANDS OF FAMILIES WHO WERE
INSURED WILL BE WITHOUT
ALTERNATIVE LIVING EXPENSES?
AS OF THE TIME TO ACT FOR TWENTY
THOUSAND FAMILIES ACROSS THE
ENTIRE STATE OF CALIFORNIA IS
RIGHT NOW THANK YOU.
WELL THAT CONCLUDES THE THE
SELECT COMMITTEE -- MEETING
TODAY I WANT TO THANK EVERYBODY
FOR COMING AND FRANKLY STAYING
IN CONTRIBUTING AN IDEA AND I
KNOW IT'S BEEN A LONG AFTERNOON
WE'VE GOT A LOT OF WORK TO DO.
I APPRECIATE ALL THE MEMBERS
BEING HERE FROM THE VERY
BEGINNING TO THAT TO THE VERY
END THANK YOU WE'LL.
SEE YOU LATER
[inaudible]
THEY