.
GOOD AFTERNOON WE'RE GOING
STARTED WITH OUR INFORMATIONAL
HEARING. A UTILITY WELCOME TO
UTILITY AND ENERGY COMMITTEE.
WE'RE HERE TODAY TO A DISCUSS
AS YOU'LL SEE ON OUR AGENDA OF
THE.
.
CALIFORNIA FIRES FOR TWO
THOUSAND SEVENTEEN AND WE HAVE
AS OUR SPECIAL GUEST.
THE PRESIDENT OF THE CPUC OF
MICHAEL J. PICKER.
HOW AS ALL OF YOU KNOW AND ARE
NOT? A LOT OF OUR STAFFS AND
CERTAINLY OUR.
CONSULTANT STAFF HAVE BEEN
WORKING AND DEALING EXTENSIVELY
WITH DISCUSSIONS AROUND. OF THE
IMPACTS OF THE TWO THOUSAND
SEVENTEEN WILDFIRES ON OUR
COMMUNITIES.
AT EFFORTS TO REBUILD AND
PLANNING TO PREVENT THESE
TRAGEDIES IN THE FUTURE.
AND WE HAVE A UNIQUE
RESPONSIBILITY IN THIS COMMUNITY
IN THIS COMMITTEE. TOEXAMINE
THE EFFECT OF THOSE FIRES HONOR
UTILITY INFRASTRUCTURE.
ELECTRIC AND THE IMPACT ON
REPAIRS AND THAT IS THE PURPOSE
TODAY'S HEARING.
OUR DISCUSSIONS HERE WILL LIKELY
LEAD TO FURTHER HEARINGS ON
FIRE.
THREAT IN CALIFORNIA AND WHAT
STEPS CAN BE TAKEN TO MITIGATE
FIRE HAZARDS.
TO OUR UTILITY INFRASTRUCTURE
PROTECT RATE PAYER EXPOSURE.
TWO RELATED EXPENSES
AND SOME INSTANCES UTILITY
INFRASTRUCTURE MAY CONTRIBUTE TO
OUR OR BE THE CAUSE OF FIRE. AS
SUCH IT IS IMPORTANT FOR US TO
UNDERSTAND THE INTERSECT OF FIRE
SAFETY AND UTILITY
INFRASTRUCTURE.
WE MUST ALSO BE COGNIZANT OF THE
DISTINCTION BETWEEN CAUSATION
AND NEGLIGENCE AS IT RELATES TO
UTILITY LIABILITY.
THE LAY THE FOUNDATION OF THESE
ISSUES WE NEED TO EXPLORE THIS
YEAR. WE HAVE TODAY AS I
MENTIONED EARLIER OF THE
CHAIRMAN. OF THE CALIFORNIA
PUBLIC UTILITIES COMMISSION.
MICHAEL PICKER
AND SO WELCOME HIM A TO COME
FORWARD.
AT THIS POINT IN JOINING HIM.
IS THE DIRECTOR OF CPC CPUC
SAFETY ENFORCEMENT DIVISION.
ELIZA DATA.
MALASHENKO.
FEEL LIKE I'M AT THE OLYMPICS
OPRAH DID A GOOD JOB IN.
I DIDN'T PUT YOUR NAME TO BET.
WELCOME TO BOTH OF YOU.
HERE.
SPEAK A LITTLE BIT ABOUT THEIR
ACTIONS.
SURE.
HOUSES BETTER.
OKAY.
THANKS KINDA HARD TELL FROM
HERE.
.
AND TALK A LITTLE BIT ABOUT THE
ISSUES WE EXPECTED FACE THIS
YEAR.
BUT I THINK THAT WE WERE ALL
VERY VERY MINDFUL OF LAST YEAR'S
CATASTROPHIC FIRES AND WE'VE
SPENT A LOT OF TIME BOTH LOOKING
AT THEM AND PARSING THE MOUNTAIN
SPEAKING TO OTHER LEGISLATIVE
COMMITTEES.
I I DO WANT TO TAKE A SECOND TO
INTRODUCE OUR NEW EXECUTIVE
DIRECTOR ALICE STEBBINS.
SHE'S THE FIRST WOMAN.
TO ACTUALLY ACT IS THE
EXECUTIVE DIRECTOR AT THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION WERE VERY PLEASED TO
HAVE ATTRACTED OR TO COME TO
WORK WITH US.
SHE IS CURRENTLY BASIN
SACRAMENTO MOST BE SPLITTING HER
TIME I THINK IT'S IT KINDA
SPEAKS TO OUR NEED TO
DECENTRALIZE AND TO BE CLOSER TO
THE DIFFERENT PARTS OF THE STATE
WHO LIVE WITH THAT THE YOU THAT
THE. BENEFITS IN THE CHALLENGES
OF THE UTILITIES THAT WE
REGULATE.
AND ALSO MARY MET WHOSE OUR
DEPUTY DIRECTOR FOR SAFETY.
DEPUTY EXECUTIVE DIRECTOR
SORRY.
THESE ARE IMPORTANT ISSUES IN
TERMS TO RANK.
SO I'M GONNA GIVE YOU A LITTLE
BIT OF A SNAPSHOT OF WHAT WE
HAVE SEEN AS WE LOOK AT LAST
YEAR'S ADVANCE AND THEN I WILL
TALK SOME ABOUT. THE THE THINGS
THAT WE HAVE ADOPTED AS THE IN
THE COURSE OF OUR WORK WITH CAL
FIRE. TRYING TO MITIGATE THE
IMPACT OF.
ELECTRIC INFRASTRUCTURE ON.
FOREST IN WILD LANDS AND I
COMMUNITIES AND ACTUALLY PROTECT
THAT INVALUABLE INFRASTRUCTURE
AGAINST FIRES ITSELF WHETHER
THEY ARE CAUSED BY LIGHTNING OR
BY.
BY OTHER UTILITIES ARE SOME
OTHERS HOW FORCE.
SO JUST KIND OF A FRAME.
SINCE THE SINCE I'VE I'VE GOTTEN
TO THE P. YOU SEE I DON'T THINK
WE'VE HAD A YEAR WHERE THERE
ISN'T SOME KIND OF A CATASTROPHE
THAT WAS NOT SOMETHING THAT WE
HAD ANTICIPATED.
WE ACTUALLY PREPARE FOR MOST OF
THEM BUT WHEN THEY OCCUR THEY
TEND TO REALLY OCCUPIER
ATTENTION AND TEND TO.
DISTRACT FROM THE MANY OTHER
TASKS THAT WE HAVE IN FRONT OF
US.
COMMISSIONER PETER MAN WHO'S
BEEN THERE LONGER AND I HAVE
KIND OF REPORTS THAT THIS IS HER
OBSERVATION AS WELL.
.
AGAIN.
THE DAY THESE THESE THESE THESE
CHALLENGES ARE NOT REALLY
SIMILAR THEY INCLUDE SUCH
DIVERSE THINKS IS THE SUDDEN
CLOSURE OF A NUCLEAR POWER PLANT
LOCATED WEEK PORTION THE
TRANSMISSION GRID.
GAS PIPELINE EXPLOSIONS
UNCONTROLLED LEAKING UNDERGROUND
GAS STORAGE WELLS DROUGHTS
FLOODS AND MUDSLIDES
AND NOW WE WILL ON THAT THEM
THOSE THE STATE'S MOST
CATASTROPHIC FIRES WHICH A CAR
AND WHAT LOOKS TO BE EXCEPT FOR
TODAY. AAAH A YEAR ROUND FIRE
SEASON.
SIR THIS IS THE FACT THAT OUR
COLLEAGUES AT THE. A A A IS THE
HAVE AT THE HEAD HELLFIRE IS
ALSO OBSERVING.
SO I'M PERSONALLY AFRAID THAT
DESPITE THE PREPARATIONS THE P.
YOU SEE AND OTHER AGENCIES ARE
MAKING.
THE SCALE THE SEVERITY IN THE
FREQUENCY OF THESE MAJOR
DISASTERS WITCHER SOME WHAT
YOU'RE LIKELY TO BE LINKED TO
CLIMATE CHANGE.
MAY PROVE TO OVERWHELM OUR
PLANNING ARE TIGHTER RULES IN
OUR RESOURCES THE THE FEROCITY
OF LAST YEAR'S WIND STORMS AND
THE RELATED FIRES ARE FAR BEYOND
PAST EXPERIENCE.
AND I DON'T KNOW WHETHER THAT'S
BECAUSE WE JUST DON'T HAVE MORE
THAN A HUNDRED AND FIFTY YEARS
OF METEOROLOGY.
IN THE STATE OF CALIFORNIA WHERE
THEY WERE SEEING THE CUTTING
EDGE OF OF CLIMATE CHANGE.
BUT ANYWAY THE YOU LOOK AT IT
THIS IS NOT SOMETHING FOR WHICH
WE HAVE A REASONABLE BASIS TO
PREPARE.
SO TWO THOUSAND SEVENTEEN WE
ENDED THE MOST SEVERE DROUGHT IN
CALIFORNIA'S RECORDED HISTORY.
COMPANY BY A MASSIVE DIE OFF OF
PINE THE FROM PARK PEEL
INFESTATIONS. THERE WERE
SPREADING DUE TO WARMER A WINTER
TEMPERATURES THE NOW LEAVE US
WITH A LEGACY OF FUEL FOR HIGH
FIFTH OWNERS SIERRA FOREST
FIRES.
THIS DROUGHT ENDED WITH THE ONE
OF THE WETTEST SEASONS ON
RECORD.
WHICH RESULTED IN SIGNIFICANT
FLOODING.
PHONE.
THAT WET SEASON ALSO CREATED
ADDITIONAL FIRE FUELS AND MUCH
OF THAT THE LOWER ELEVATIONS AND
IN THE WILDLAND INTERFACE THAT
DUH THAT. CONSTITUTES WHERE
PEOPLE'S COMMUNITIES ACTUALLY
ARE POSITIONED WELL WITHIN.
HIGH HAZARD FEEL AREAS.
AND THEN.
THOSE FIRES AGAIN OR.
ARE OUTSTANDING EVEN IN THE
STATE LIKE CALIFORNIA THAT'S NO
STRANGER TO.
TURF TURFED OUR REGULAR FIRES.
THE FIRES ON A REGULAR BASIS THE
THOMAS FIRE IS THE STATE'S
LARGEST IN RECORDED HISTORY THAT
FIRE RESULTED AND OVER TWO
HUNDRED EIGHTY TO NINETY ONE
THOUSAND ACRES BURN TWO HUNDRED
TEN THOUSAND STRUCTURES
DESTROYED. AND.
TRAGICALLY FORTY SEVEN SIX A
HOME LIVES LOST
QUOTING THE FIRES IN NORTHERN
CALIFORNIA THE CONDITIONS FOR
THE THOMAS FIRE. ARE NOTABLE
BECAUSE THEY GENERALLY DEPICT
THIS NEW NORMAL THAT WERE LIVING
IN.
THIS IS THIS IS NOT SOMETHING
THAT WE EXPECTED TEN YEARS AGO
BUT IT'S BECOMING THE NEW NORMAL
NOW.
CALIFORNIA REPORTED ZERO TWO ONE
PERCENT HUMIDITY CONDITIONS AND
THIRTY ONE THOUSAND ACRES BURNED
IN JUST THE FIRST FEW HOURS OF
THE THOMAS FIRE.
AND I THE SANTA ANA WINDS WERE
FAR LESS FORGIVING THAN THEY
HAVE EVER BEEN AND LASTING FOR
TEN STRAIGHT DAYS.
THERE'S ARE THERE'S LITTLE
QUESTIONS THAT SEVERE WEATHER
EVENTS WE'RE EXPERIENCING ARE
BECOMING MORE FREQUENT LONGER.
SO WE'VE BEEN PERFORIN FOR A
RANGE OF POTENTIAL HAZARDS AND
ALL DISCUSS SOME OF THE EFFORTS
THAT WE PUT INTO PLAYED A MAN
MITIGATE THE RISK OF FIRE. WE
GOT TO BE PREPARED TO PREVENT
FIRES WERE WE CAN.
WHERE THE ROOT CAUSES MAY POINT
ELECTRIC INFRASTRUCTURE IS A
SOURCE OF IGNITION?
WAR WHERE THEY'RE EXCITED FROM
OTHER SOURCES AND WHERE WERE
PROTECTING A VERY VALUABLE
INFRASTRUCTURE THAT RATE PAYERS
WHO'VE SPENT A LOT OF MONEY TO
PUT INTO PLACE.
SO ONE OF THE MOST IMPORTANT
ONGOING EFFORTS HAS BEEN TO
REBUILD OUR SAFETY ENFORCEMENT
DIVISION AT THE CPUC.
OUR I WON'T SPEND TIME HERE.
HOA SINCE ARE THE DIRECT OF THE
VISION LISA VADA MALASHENKO IS
JOINING US HERE FROM FROM THE
LOS ANGELES US.
CAN SPEAK TO SUM OF THE STUFF
WE'VE DONE WITHOUT AROUND FIRE
SAFETY.
BUT I THINK THAT ONE OF THE
FIRST AND MOST IMPORTANT STEPS
WE TOOK WAS TO HIRE HER IS
EXCEPTIONALLY CONFIDENT DIVISION
DIRECTOR TO HELP BUILD THE TEAM
SPECIALIST TO FOCUS ON PUTTING
SAFETY FIRST.
ANOTHER IMPORTANT IMPROVEMENT
HAS BEEN TO WORK MORE CLOSELY
WITH OTHER STATES SAFETY AGENCY
SO UNDER OUR.
DIRECTOR MALASHENKO IS
LEADERSHIP WE'VE ADOPTED TWO OH
AGREEMENTS TO WORK CLOSELY WITH
THE CALIFORNIA OFFICE OF
EMERGENCY SERVICES. AND WITH CAL
FIRE
STATES OF FIREFIGHTING IN
FORESTRY MANAGEMENT AGENCY.
A PRIMARY FOCUS OF OUR WORKING
CAO FIRE SPIN TO TRANSFORM THE
STATE FIRE MAPS FROM ONE OF THE
MODELS GENERAL FIRE HAS USED TO
THE STATE OF THE ART MODEL WHICH
FOCUSES ON IGNITION RISKS.
DUTY TILITY INFRASTRUCTURE IN
DROUGHT EXTREME FIRE WIND
EVENTS.
SO WE'VE ALSO ON STRENGTHENED
THE RULES FOR MANAGING
VEGETATION IN RELATIONSHIP TO
ELECTRONIC AND TELECOMMUNICATION
PULLS AND DISTRIBUTION.
I DON'T MEAN TO TO TO PUT ALL
THE WEIGHT HOA AND.
HIGH AND THE ELECTRIC
INFRASTRUCTURE SOME FIRES ARE
CLEARLY RELATED TO FAILURE OF
FULL OF TELECOMMUNICATION
INFRASTRUCTURE COLOCATED ON
THOSE POLLS WITH ELECTRIC.
LINES.
SO WE'RE ALSO STARTING TO
DEVELOP A A COMPREHENSIVE
DATABASE OF THE FOUR POINT TWO
MILLION.
BORDEN POLL SICK CARRYING
CRITICAL INFRASTRUCTURE WHO OWNS
THEM.
THEY'RE UPDATED CONDITIONS.
WHAT'S ATTACHED TO THEM.
AND THEY'RE LOADING OF
INFRASTRUCTURES THAT COULD BE
AFFECTED BY WINS AND THEN
SPENDING ACTUALLY CREE
INCREASING THE POTENTIAL FOR
FAILURE IN HEAVEN AND RISK OF OF
OF PUBLIC SAFETY HAZARD.
SIR REFINING NEW RULES FOR
ENFORCEMENT WHICH WERE LACKING
WHEN.
TELECOM EQUIPMENT ISN'T WELL
MANAGED OR ISN'T CHANGED OVER A
DIE IN A TIMELY FASHION OLDER
WEAKER POLLS TO NEW PALTZ. ZA
COMMON PROBLEM WHERE AT THE TO
SEVERAL DIFFERENT UTILITIES ARE
ALL USING A WOODEN POLE. DON'T
MAKE THE CHANGEOVER TO A NEW
STRONGER PULL ALL THE SAME TIME.
SO I'LL LEAVE IT TO DIRECT EMAIL
SHE COULD DISCUSS OUR WORK WITH
CAL FIRE IN THE NEW HAS YOUR
FIRE HAZARD MAPS THESE ARE VERY
IMPORTANT WE DOCKED AT OUR FIRST
FIRE HAZARD MAP IS IN TRUMP. IN
TWO THOUSAND TWELVE ON THE
RECOMMENDATION OF CALIFORNIA
THEY WANTED THEIR FIRE
SCIENTISTS TO GO OUT AND
ACTUALLY COLLECT MORE DATA. IN
THE COURSE OF THAT PROCESS THE
SCALE OF THAT DONUT THAT FIRE
HAZARD. INCREASED DRAMATICALLY.
BUT I THINK WHAT I WILL DO IS
POINT OUT TOP LINE THAT MORE AND
MORE PEOPLE ARE MOVING INTO
THESE AREAS OF.
ELEVATED AND SEVERE FIRE RISK
THEY'RE MOVING INTO THE TO THE
HILLSIDES ARE MOVING INTO THE
CHAPARRAL THEY'RE MOVING INTO
THE WELL FOR US.
IN THIS IS WHAT WE CALL THE
WILDLAND URBAN INTERFACE OCCURS
BOTH IN.
IN SOME OF THE MAJOR URBAN
AREAS SENATE DICKERSON SOME OF
THE THOUGH THE LAST DANCE
COUNTIES.
WELL WE FIND THAT NEARLY FOUR
MILLION CALIFORNIA'S NOW LIVE IN
THIS FOR HIGH FIRE.
RISK AREAS THAT ARE DEFINED BY
THE NEW FIRE HAZARD MAP. THAT'S
TEN PERCENT OF CALIFORNIA'S
POPULATION.
THIRTY NINE POINT EIGHT COACH
PEOPLE.
YEAH AT THE SAME TIME AGAIN THE
THE SIZE OF THE FIRE RISK AREAS
GROWN DRAMATICALLY THE PREVIOUS
FIRE MAP. WHICH IS INTERFERE
THREAT MAP COVERED THIRTY ONE
THOUSAND SQUARE MILES THE NEW
MAP MORE THAN DOUBLES THAT AT
SEVENTY ARE PLUS THOUSAND SQUARE
MILES. THAT'S FORTY FOUR PERCENT
OF CALIFORNIA'S LANDMASS.
FORTY FOUR PERCENT OF OUR TOTAL
STATE DOES SURFACE AREA.
THE NEW MAP ALSO INCLUDES THE
THE TREE MORTALITY.
HIGH HAZARD ZONES.
WHICH ENCOMPASS NEARLY MINE
MILLION ACRES IN ABOUT.
HUNDRED TWENTY NINE MILLION
TREES THAT DIE DUE TO DREW
DROUGHT AND EMBARK BEATLES MUCH
OF THAT IS IN THE HIGH SIERRAS
WHICH IS LESS DENSELY POPULATED
HAS LESS ELECTRIC
INFRASTRUCTURE.
SO WHEN PEOPLE MOVE FURTHER OUT
FROM.
THE DENSER URBAN CONCENTRATIONS
THEIR NEED AND DEMAND FOR
ELECTRICITY AND
TELECOMMUNICATIONS IS
INFRASTRUCTURE CONTINUES.
WE HAVE AN OBLIGATION UNDER THE
LAW TO MAKE SURE THAT THOSE
POLLS THOSE WIRES GO OUT TO
THOSE HOMES AND PROVIDE THEM
WITH ELECTRICITY AND
TELECOMMUNICATIONS SERVICES.
.
BUT.
AND THIS IS THIS IS WHAT'S
ESSENTIAL IS THAT WE'VE CREATED
THIS VAST NETWORK OF POLES AND
WIRES IT CONNECTS EVERY HOME.
EVERY BUILDING EVERY BUSINESS IN
THE STATE OF CALIFORNIA BRINGS
NOT ONLY ELECTRICITY.
BUT PHONE SERVICE.
CABLE SERVICE AND FOOTBALL GAMES
AND IT BRINGS PEOPLE ARE AND THE
INTERNET.
THAT BECOMES ENORMOUSLY VALUABLE
PER DOLLAR SPENT.
THOSE WOODEN POLES AND THE
INFRASTRUCTURE THE SONNET IS
PROBABLY THE MOST IMPORTANT. THE
TO CONSUMER INVESTMENT AND
CONSUMER VALUE. THAT WE MAKE.
ON THE THEN YOU HAD THE
ANCILLARY INFRASTRUCTURE OF ALL
THE DIFFERENT TECHNOLOGIES TO
CONTROL AND MANAGE.
THE RESOURCES THAT PEOPLE GET
OVER THOSE POLLS WERE TALKING
ABOUT A VAST MACHINE.
THAT IS ENORMOUSLY VALUABLE
PROBABLY MORE VALUABLE THAN FOR
EXAMPLE THE COMMODITY ELECTRONS
THAT FLOW LONG.
SO ARM.
THAT SAME TIME THOUGH THERE'S
ONE POINT FOUR MILLION HOUSING
UNITS AND AND THREE POINT NINE
PEOPLE WHO LIVE IN THOSE AREAS.
THIS IS DID ABOUT TAUGHT TO IN
A THOUSAND MILES OF OVERHEAD
ALL.
LINES THAT CROSS THROUGH THE
EXPANDING FIRE HOUSES ZONES TO
SERVE THOSE POPULATIONS THAT ALL
COMES WITH AN INHERENT RISK OF
FAILURE.
KERN THERE'S NO DOUBT THAT ALL
OF THIS WILL REQUIRE A SUSTAINED
EFFORT BY THE ELECTRIC UTILITIES
BUT IT'S GOING TO REQUIRE ALL OF
US TO STEP UP.
ANNA AND DON'T THINK IT'S JUST
THE ELECTRIC UTILITIES THE
REGULATORS WE SEE A LARGE NEED
FOR LOCAL LAND USE PLANNERS TO
BEGIN TO DEAL WITH THIS. I THINK
THERE ARE OTHER ISSUES THAT OUR.
REALLY. A CHALLENGE BUT WE NEED
REAL CENTRAL MANAGEMENT OF THIS
VALUABLE GRID.
AND.
VEGETATION MANAGEMENT IF YOU GO
INTO THE TO THIS NEW NORMAL AND
I JUST SAY PARENTHETICALLY.
THAT I'M.
I'M NOT.
I'M NOT REALLY.
FOR UTILITIES AGAINST UTILITIES
HAVE NOT FOR OTHER FOR WAYS THAT
PEOPLE GET THEIR ENERGY OR
AGAINST THEM.
I AM HERE TO SPEAK FOR THE THAT
THAT INANIMATE INFRASTRUCTURE
THAT SO VALUABLE TO US THAT THAT
NEVER HAS A VOICE.
I REALLY THINK IT'S IMPORTANT
FOR SOMEBODY TO SPEAK TO THAT
NETWORK.
ALL THE EQUIPMENT THAT MANAGES
THE FLOW OF ELECTRICITY AND
TELECOMMUNICATIONS ALONG THAT
NETWORK THAT CONNECTS OF THOSE
HOMES.
AND BUSINESSES IN COMMUNITIES
AND BRINGS THEM INTO THE TO TO
THE CALIFORNIA.
COMMUNITY AS A WHOLE THINK THAT
THAT'S PROBABLY THE ONE THING
THAT I STAND FOR HERE. IS.
BOTH.
BUILDING THE INFRASTRUCTURE.
MAINTAINING IT.
KEEPING IT SAFE BECAUSE SAFE
INFRASTRUCTURE DOESN'T HURT
OTHER PEOPLE DOESN'T HURT THE
ENVIRONMENT.
AND ENSURING THAT WE CONTINUE TO
REPLENISH IT AS TIME GOES ALONG
THAT IS MY MY MISSION IN AT THE
P. C. STUDENT REALLY SPEAK FOR
THE UNANIMOUS.
IT'S IT'S HARD IT'S A HARD
CONCEPT TO GET ACROSS.
BUT WITHOUT SOMEBODY TO REALLY
STAND FOR THAT.
IT WILL FAIL.
WE CAN'T JUST BE A POLICY AGENCY
WE CAN'T JUST BE A FINANCE
AGENCY.
WHO HAVE A MUCH MORE COMPLICATED
ROLE TO BE ABLE TO PROVIDE THE
GOOD THINGS THAT PEOPLE WHINING
CALIFORNIA WHO ARE ULTIMATELY
THE BENEFICIARIES? ALLOWING THE
WAY SOMEBODY'S GOT TO BE THAT
VOICE FOR THE INANIMATE.
SO TIME AND I DON'T THINK THAT
THE GRID ITSELF IS SOMETHING
THAT CAN BE PIECE MAILED OUT
EASILY. IT'S NOT SOMETHING THAT
YOU CAN GIVE TO FIFTY A.
KICK COUNTIES IN FOREIGN FIFTY
EIGHT CITIES AND EXPECTED TO
WORK.
EFFECTIVELY.
IT'S GOT TO HAVE SOME
CENTRALIZED MANAGEMENT SO THAT
AT THE AT THE BORDERS OF ALL THE
DIFFERENT POLITICAL
JURISDICTIONS YOU DON'T HAVE
DIFFERENT VOLTAGES.
YOU DON'T HAVE DIFFERENT DOES
OWN CYCLES OF ELECTRIC FLOW YOU
DON'T HAVE CHANGES IN THE THE
TELECOMMUNICATIONS PROTOCOLS.
SO SOMEHOW YOU HAVE TO HAVE THAT
CENTRAL MANAGEMENT THAT IS
UNLIKELY TO GO AWAY ANY MORE
THAN THEY NEED TO HAVE. ONE ROOF
CENTRALIZED AGENCIES TO POLICE
THAT INFRASTRUCTURE AGAINST THE
OF ENCROACHMENT BY VEGETATION.
AND TO PROTECT PEOPLE AGAINST
THE THE RISK OF FIRE
ELECTROCUTION.
SO I'D I'D I'D BOY JUST KINDA
SAY.
THAT.
PEOPLE HAVE FLEXIBILITY WHERE
THEY CAN CLING GET THEIR
ELECTRICITY.
NOT HAVE A LOT OF FLEXIBILITY ON
THE POLLS.
AND SO.
.
HER NEW FIRE RULES ARE JUST THE
TOUGHEST IN THE COUNTRY AND
THEY'LL BE VERY EXPENSIVE TO
IMPLEMENT.
TO WE CAN GET BETTER AT SETTING
STANDARDS AND WE CAN REQUIRE
MORE EXPECTATIONS AND MORE
MAINTENANCE.
BUT WITH THIS EXPANDING FIRE
RISK FROM ALL DIRECTIONS WITH
THE SEVERITY OF THE FIRES THE
FREQUENCY THE FIRES THE GROWING
POPULATION THIS FIRE ZONES.
THE ON GOING REQUIREMENTS FOR.
INFIX RUPTURE THEY CARRY
RESIDUAL RISK IN A IS AT RISK OF
FIRE IS PERFECT SAFETY IS REALLY
GOING TO BE DIFFICULT TO
ACHIEVE.
SAYS THE GOVERNOR SAID IN HIS
STATE OF THE STATE LAST MONTH WE
CAN'T JUST FIGHT NATURE WE HAVE
TO LEARN HOW TO GET ALONG WITH
HER.
SO I GUESS WE'RE GRAPPLING WITH
THIS NEW NORMAL AND DIE WE NEED
TO START OPERATING DIFFERENTLY
FROM THE GROUND UP. AND THAT WE
ME MAY MEAN THREE HINKING WHERE
AND HOW DEVELOPMENT HAPPENS AND
HOW AND THE NATURE THAT
DEVELOPMENT WE HADN'T ON BONK
WHERE THE FIRE SCIENTISTS IN THE
FIRE ENGINEERS ARE VERY CLEAR.
THAT WE NEEDED TO DESIGN HOMES
NEW HOMES IN THESE FIRE HAZARD
AREAS TO BE MORE RESISTANT TO
FIRE.
AND THOSE BUILDING CODES ARE NOT
SOMETHING THAT THE P. YOU SEE
CAN EITHER SAT.
OR ENFORCED SO WE NEED TO HAVE
THAT KIND OF PARTNERSHIP BOTH
WITH THE FIRE AGENCIES. BUT WE
NEED TO HAVE THAT THAT UP AND
DOWN THE RELATIONSHIP WITH LOCAL
GOVERNMENTS TO BE ABLE TO MAKE
THIS WORK.
SELL OUT ALL SHOWED UP HERE IN
THE AND.
EITHER TAKE YOUR QUESTIONS OR
TURN IT TO DIRECTOR MALASHENKO.
GOOD AFTERNOON THANK YOU FOR THE
OPPORTUNITY TO SPEAK HERE TODAY.
AND LEAD THE SAFETY AND
ENFORCEMENT PROGRAM AT THE CPUC
WHICH INCLUDES OVER SLATE OF
UTILITY AND RAIL INFRASTRUCTURE.
THE PRIME PRIMARY MANDATE OF THE
SAFETY AND ENFORCEMENT GROUP WAS
TO ASSURE COMPLIANCE WITH
APPLICABLE STATE LAWS CPUC
REGULATIONS. AND IN SOME CASES
PROGRAMS O.. FEDERAL LAWS AND
REGULATIONS AS WELL.
THIS WORK IS PRIMARILY DONE
THROUGH AUDITS INFRASTRUCTURE
INSPECTIONS IN THE FIELD AND
INCIDENT INVESTIGATIONS.
IN THE ELECTRIC SAFETY PROGRAM
THE GROUP CONDUCTS SOMEWHERE
BETWEEN TWENTY AND THIRTY AUDITS
A YEAR. NEEDS A COMPREHENSIVE
AUDITS THE TYPICALLY LAST WEEK
AND A HALF
AT THE HEART OF THAT TIME IS
SPENT ON INFECTIONS IN THE
FIELD.
AND AM DEAL THE GROUP ALSO
CONDUCTS MONTH THREE HUNDRED
INVESTIGATIONS OF SAFETY
INCIDENTS AND CUSTOMER
COMPLAINTS.
TODAY I AM GOING TO BEGIN BY
PROVIDING YOU WITH SOME
INFORMATION ABOUT THE RISK OF
WILDFIRES FROM UTILITY
INFRASTRUCTURE. AND THEN DISCUSS
THE ALBUM.
A HOW THESE RISKS CAN BE REDUCED
AND MITIGATED.
SINCE TWENTY FIFTEEN THE
COMMISSION HAS REQUIRED THE
INVESTOR OWNED UTILITIES TO
REPORT ALL KNOWN FIRE.
FIRES IGNITED BY ELECTRIC
INFRASTRUCTURE. OF THE UTILITIES
REPORT THAT INFORMATION ON AN
ANNUAL BASIS.
FOR THE YEARS FROM TWENTY
FOURTEEN THROUGH TWENTY SIXTEEN
WHICH IS THE LATEST DATA THAT WE
HAVE THE UTILITIES HAVE REPORTED
ROUGHLY FOURTEEN HUNDRED FIRE
IGNITION INCIDENTS.
MOST OF THESE ARE MINOR
INVOLVING FIRES THAT A LESS THAN
A QUARTER OF AN EAGER. AND ARE
EASILY PUT OUT SO OR EVEN GO OUT
BY THEMSELVES.
HOW OVER THIS DATA PROVIDES GOOD
STARTING POINT FOR BETTER ON THE
STANDING THE RISK OF WILDFIRE
ADMISSIONS FROM ELECTRIC
INFRASTRUCTURE?
ABOUT WHAT DOES THE TO SHOWS IS
THAT THE NUMBER ONE OVERALL
BECAUSE OF FIRE IGNITIONS IS
CONTACT FROM OBJECT MOST
FREQUENTLY VEGETATION.
CONCEPT FROM VEGETATION WITHOUT
A FACILITY FAILURE LEADING UP TO
THE CONTACT ACCOUNTS FOR ROUGHLY
TWENTY FIVE PERCENT OF ALL
EXTENSIONS.
SO THAT'S AN EXAMPLE OF A TREE
FALLING DOWN OR BRANCHES FALLING
OFF AND A GOING INTO ENERGIZED
ELECTRIC INFRASTRUCTURE AND
CATCHING ON FIRE.
THE SECOND LEADING CAUSE OF
ADMISSIONS IS UTILITY EQUIPMENT
FAILURE MOST FREQUENTLY A
CONDUCTOR WILL CONDUCT DISPLACE
FAILURE.
FAILURE OF CONDUCTORS AND
SPLICES ACCOUNT FOR JUST UNDER
TWENTY PERCENT OF ALL
ADMISSIONS.
THEREFORE AN AGGREGATE
VEGETATION CONTACT AND CONDUCT
THE FAILURE ACCOUNT FOR ALMOST
HALF OF WILL OF THE IGNITION'S
ASSOCIATED WITH ELECTRIC
INFRASTRUCTURE.
ONCE YOU GET BEYOND THOSE TWO
CAUSES THERE AREN'T VERY CLEAR
DRIVERS OF IGNITIONS AND
IGNITION NUMBERS FOR EACH
INDIVIDUAL BECAUSE TEND TO BE
MUCH SMALLER.
SOME OF THE OTHER ONES INCLUDES
A VEHICLE ACCIDENTS ANIMALS
BALLOONS OF WIRE TO WIRE CONTACT
AND OTHER THINGS.
A WELFARE NEEDS THREE THINGS IN
ORDER TO DEVELOP ONE IS FUEL.
SECOND IS ADMISSION FORESTS AND
THREE WEATHER CONDITIONS.
WHEN WE THINK OF WILDFIRE RISK
REDUCTION POLICIES WE CAN THINK
OF THE MOST STORY GETTING
SPECIFIC PARTS OF THE SLOW
WHAT'S KNOWN AS A FIRE TRIANGLE.
FIRST WE CAN LOOK AT REDUCING
AVAILABILITY OF FUEL.
THIS PARTICULAR GIVES TO
ADDRESSING THE TWENTY FIVE
PERCENTS OF UTILITY RELATED
TECHNICIANS
THAT ARE WELL OU TO VEGETATION
COMING INTO CONTACT WITH
ENERGIZED FACILITIES.
FOR UTILITIES OPERATIONS
PERSPECTIVE THIS IS THE DOMAIN
OF VEGETATION MANAGEMENT.
WELL IT'S ONE OF THE LARGEST.
OPERATIONS AND MAINTENANCE
EXPENSES OF FOUR OF FOR ANY
UTILITY.
IN OUR CALIFORNIA THE INVESTOR
OWNED UTILITIES WELL SPEND.
PROBABLY.
OVER ROUGHLY FOUR HUNDRED
MILLION DOLLARS A YEAR AND THEIR
OPERATION AND MAINTENANCE
EXPENSES AND IF YOU REALLY COUNT
OF ALL OF YOU FACILITIES SO THAT
MEANS. THE GAS UTILITIES THAT
MAINTAIN RIGHT OF WAYS OF THE
TELECOMMUNICATION COMPANIES OWE.
IT WE'RE TALKING SOMEWHERE
BETWEEN A HALF A BILLION IN THE
BILLION DOLLARS A YEAR THAT ALL
OF THE UTILITIES IN CALIFORNIA
SPENDING JUST IN TRIMMING TREES.
SO IT'S A MAJOR EXPENSE IN THE
MAJOR ACTIVITY FOR ALL OF THEM
IT'S VITALLY IMPORTANT EL FOR
THE L. FOR THE REASONS THAT I
JUST MENTIONED.
HOME IN EL CALIFORNIA WE HOW OF.
SOME OF THE MOST STRINGENT SET
OF REQUIREMENTS ANYWHERE ó NOT
JUST THE UNITED STATES WITH THE
WORLD. EL IN THE UNITED STATES
ó WE KNOW THAT THE
REQUIREMENTS OF THE FEDERAL
LEVEL FOR VEGETATION CLEARANCES
THAT THE TRANSMISSION LEVEL.
THAT WERE PUT IN PLACE UP TO
NORTH THESE BLACKOUTS IN TWO
THOUSAND THREE.
L. AT THE DISTRIBUTION LEVELS
THE ONLY STATES THAT HAVE OF THE
REQUIRED CLEARANCE LEVELS ARE
CALIFORNIAN WHERE AGAIN. ELM AND
WE KNOW HOW FOR SOME THE
STRICTEST DEL REQUIREMENTS WITH
THE FIRE AMOUNTS THAT FURTHER
RESTRICTS. ó HOME HOLE ó. TO.
CLEARANCES REALM LOW OF IN THE
HIGH FILE THREADS LOANS.
ELVES SOON WE IN CALIFORNIA ARE
ALREADY DOING ALL ALONG WHAT'S
IN TERMS OF OUR POLICIES AND
REGULATIONS AL FAR MORE THAN
ANYWHERE ELSE IN THE COUNTRY.
CALM HOWEVER.
THIS CONTINUES TO BE.
THE SINGLE HOME.
MAIN DRIVER OFF IGNITIONS AND WE
NEED TO CONTINUE TO THINK ABOUT
WHAT WE CAN DO IN THE AREA OF
VEGETATION MANAGEMENTS TO REDUCE
THOSE RISKS.
THERE'S SOME ADVANCED
TECHNOLOGIES THAT CAN BE USED
THE OUT THERE'S BEEN A LOT OF
PROGRESS DONE THAT WOULD LIGHT
OR.
TYPE SURVEYING ó YOU CAN LET
GO UPLOADS DATA AND USE EL AL
ADVANCED ANALYTICS TO BETTER
PINPOINTS. O. GROWTH PATTERNS
AREAS WHERE.
YOU ME HOW OF WELL VEGETATION
COMING INTO CONTACT SO THEY EVEN
THOUGH WE'VE DONE A GREAT DEAL
ALREADY IN CALIFORNIA ON THAT
WAS STOLE CAN BUILD UPON THIS
PROGRAMS AND LOOK AT FURTHER.
ELM
FUEL REDUCTION AT ALL POLICIES
RELATED TO UTILITY VEGETATION
MANAGEMENT AS A AND THE STATE AS
A WHOLE.
SECOND WE CAN LOOK AT THAT
MISSION CONTROL POLICIES.
SO THIS IS AN AREA TO FOCUS ON
HARDENING YEAH UTILITY
INFRASTRUCTURE.
GOING BACK TO COMMISSION SOURCE
THAT THE STAKES OF THIS IS WHERE
UTILITIES CAN WORK TO MINIMIZE
CONDUCTANCE PLACE FAILURE. ALL
THROUGH FOR EXAMPLE CONDUCT THE
REPLACEMENT PROGRAMS.
IN USING INFRARED SCANNING TO
IDENTIFY POTENTIAL WELL SPLICES
THAT MIGHT BE HAVING ISSUES.
ALSO INVESTMENTS IN GRID MORE IN
THIS NATION OR SMART GRIDEL
LEASE IN THE PORT AND FOUNDATION
FOR WELL IGNITION CONTROL. OF
THIS A LAW THAT CAN BE DONE AT
TO PREVENT THAT MISSION BY
ADVANCE FULL.
ANALYTICS AND REMOTELY
ADJUSTING SETTINGS ON THE.
PROTECTIVE DEVICES SUCH AS
RECORDERS
SO THIS IS SOMETHING THAT ONE OF
THE IMPOSSIBLE.
EVEN YOU KNOW FIVE YEARS AGO
THE FROM COULD NOT TEN YEARS AGO
BECAUSE TRADITIONALLY WHEN YOU
HOW DID WE CLOSER IN AND THE
PROTECTIVE DEVICE YOU HALL OF.
SETTINGS THAT COME WITH THAT YOU
INSTALL IT IN THE FIELD AND THEN
IF YOU HAVE TO MODIFY THE HOME
YOU HAVE TO SEND THE CREW OUT TO
ACTUALLY DO SOMETHING TO THAT
THE VICE IT'S VERY VERY WELL
COST PROHIBITIVE TO CHANGE THE
SETTINGS ON THE FREQUENT BASIS.
IN IF YOU SET THEM TO BEAT SO
SENSITIVE THAT REALLY BECOMES A
MAJOR RELIABILITY PROBLEM
BECAUSE ANYTIME YOU KNOW THE
SQUIRREL NINA JUMPS ON THE LINE
IT TRIPS IN THE U. HOPES THEN
THE CREW AND RESET THE WHOLE
THING.
SO SMART GRID INVESTMENT THE
SOMETHING THAT'S BEEN REALLY
IMPORTANT ALBUM IN THE STATE AND
THEN PUT POLICY THAT THE
COMMISSION HAS PROMOTED. THAT
AGAIN A THING FROM A TECHNOLOGY
POINT OF VIEW LAYS ON THE PORT
AND FOUNDATION THAT WE CAN BUILD
UPON SO NOW USE ELM THOSE
DEVICES USE THE A COMMUNICATIONS
NETWORKS THAT WE GET SOLID IS
HELP THE POOR ID. ALAM AND
REALLY BE. SOULES ALUM.
TO GET MORE ADVANCED WITH.
HOW UTILITIES ARE MANAGING OWE
THEIR ELECTRIC SYSTEMS
PARTICULARLY DISTRIBUTION BUT
HAS TRADITIONALLY? HAVE BEEN
THAT THE THE LESS
TECHNOLOGICALLY ADVANCED THAN
TRANSMISSIONS ABOUT STARTING TO
CHANGE AND WE HAVE. IN THAT
AREA.
LASTLY EL PROGRESS ON WELFARE
PREVENTION CAN BE MADE BY
FOCUSING ON WHETHER PREPAREDNESS
AND RESPONSE.
AND TWENTY SEVENTEEN THIS
PRESIDENT PICKERS MENTION WE'VE
WELL WITH SISSY AND REALLY
SEVERE WEATHER WE HAD THE
HARDEST SOMEWHERE IN THE HUNDRED
AND TWENTY TWO YEARS OF STATE
HISTORY. EL FOLLOWED BY
UNUSUALLY LONG THIRTY IN THE
THIRTEEN DAY PERIOD OF SANTA ANA
WINDS MOVES EXTREMELY LOW
HUMIDITY.
EL THE COMBINATION OF THE WINDS
WITH GUSTS OF SEVENTY MILES PER
HOUR. OWE AND AVAILABILITY OF
FUEL WITH EXTREME GRAY
CONDITIONS CREATE THE ULTIMATE
ENVIRONMENT FOR MAJOR WILDFIRES
TO SPREAD.
.
AND WE REALLY NEED TO START
TREATING THESE CONDITIONS
LEADING UP TO THE WILD FIRES THE
SEEM AS THOUGH APPROACHING
HURRICANES AND TREATED ON THE
EAST COAST.
WELL WE HAVE SOME AREAS LIKE
INSANE G. AGO THAT DEALT WITH
AND YOU CAN GAS AND ELECTRIC THE
HELP INVESTED QUITE HEAVILY OVER
THE LAST SEVERAL YEARS IN THE
WEATHER ANALYTICS.
THEY ACTUALLY HELP WHAT THE
STATION IN EVERY SINGLE CIRCUIT
IN HI FI HI FI A THREAT ZONES.
AND THE A THEY GET AT TEN MINUTE
INTERVALS INFORMATION BACK FROM
THOSE WEATHER STATIONS ABOUT
ABOUT THE WIND CONDITIONS L.
HUMIDITY TEMPERATURE AL AND
OTHER INFORMATION ELM THE RUN IN
HI FI IS THREATS.
CONDITIONS A MILLION
SIMULATIONS AND THEY USING A
SUPERCOMPUTER. TO DETERMINE.
AND RISKS OF WILDFIRE IGNITIONS
AND THEY'RE ABLE TO PIN. OF THE
OF WITH QUITE HIGH ACCURACY OR
WHERE WELL FIRES ARE LIKELY TO
START. AND THEY CAN THEN STAGE
WELL CREWS.
AND ALERT THE FIRE DEPARTMENTS
TO WEAR ALL THOSE AREAS ARE. AND
WELL IT SEEK HOME.
SOME ADDITIONAL STEPS.
TO EITHER PREVENTS
THE FIRE FROM SPARKING IN THE
FIRST PLACE BOY IF THAT'S NOT
POSSIBLE TO PLEASE BE ON ALERT
BECAUSE YOU'RE REALLY WHEN
YOU'RE WHEN YOU'RE TALKING ABOUT
WILD FIRES IT'S A RACE AGAINST
TIME. ENDS QUICKER YOU CAN PIN
POINTS EL THAT THE IGNITION HAS
TAKEN PLACE AND DEPLOY A EL OF
FIREFIGHTING CREWS TO PUT
SOMETHING OUT. OF THE THE HIGH
YOU CHANCES ARE THAT YOU'LL
ACTUALLY BE ABLE TO PREVENTS ELM
A DISASTER.
A ONE OF THE ELBOW PROGRAMS THAT
SAN DIEGO GAS AND ELECTRIC USES
IS THEY PROACTIVELY DE ENERGIZE
ELECTRIC LINES EL. AS THE. LAST
RESORT MEASURE FOR L. RISK
REDUCTION.
CALM IT'S A POLL A PROGRAM THAT
THE P. C. HOUSE AUTHORIZED FORCE
AND YOU GAS ELECTRIC.
AND SO WE ARE CURRENTLY
ANALYZING HOW IT'S BEEN WORKING
FOR THE ALMOND AND LESSONS
LEARNED THAT CAN BE APPLIED THE
TO THE REST OF THE STATE'S.
BUT ONE OF THE CORNERSTONES OF
THAT PROGRAM FOR THEM IS THAT
THEY DO HOME OF THIS VERY
GRANULAR BEAD AND SITUATIONAL
AWARENESS.
YEAH AND OWE A LOT OF SMART GRID
TECHNOLOGIES ON THEIR SYSTEMS
FOR THE ABLE TO SURGICALLY
PINPOINT THE EXACT CIRCUIT THE
EXACT LINE WHERE THEY MAY HAVE A
PROBLEM. IN WHEN THEY'RE.
DOING D. ENERGIZING. THE HOW OF
OLD METHODS IN PLACE TO TRY TO
MINIMIZE THE IMPACT.
SO THAT'S AN EXAMPLE ALL OF THE.
A POLICY THAT CAN BE CONSIDERED
IN THE SPACE OF ABOUT WHETHER
PREPAREDNESS IN WHAT THE
RESPONSE. AND HOW WE REALLY CAN
BE ERA GETTING BETTER AT THE
STATE'S. O. OF MOBILIZING ELM
AHEAD OF A FIRE STARTING.
AND REALLY TREATING THOSE FIRE
THREAT CONDITIONS OWE THEM AS
WELL AS THE STORM AS AN
EQUIVALENT.
IN THE DISTANCE WORKING ON
POLICY THE CPC IS INVESTIGATING
THE TWENTY SEVENTEEN FIRES IN
PARALLEL WITH CAL FIRE. LAST
YEAR WAS SIGNED IN THE
MEMORANDUM OF UNDERSTANDING WITH
ALL THAT IN THE BILL'S THE TWO
AGENCIES TO BETTER COORDINATE
AND COLLABORATE ON INCIDENT
INVESTIGATIONS. HELP PRIOR TO
THE SIGNING OF THIS AMMO YOU EL
THE CPC STAFF CUTS WAITS UNTIL
THE CONCLUSION OF THE CALIFORNIA
EAR O. INVESTIGATION AND. NO TO
DETERMINE BECAUSE BEFORE WE
COULD BEGIN OUR OWN
INVESTIGATION.
SO THIS IS ACTUALLY BEEN THE
MAJOR IMPROVEMENTS WELL WE KNOW
LONGER HAVE TO WAIT SIX MONTHS
TO A YEAR FOR THE CALIFORNIA OR
TWO TO FINISH INCOME WITH
CONCLUSIONS WERE SHARING
INFORMATION. WELL WITH EACH
OTHER AS OUR INVESTIGATIONS ARE
GOING ALONG WITH HEALTH
DIFFERENT FOCUSES ALAKAL FIRE
INVESTIGATION IS REALLY LOOKING
AT HOLD THE FIRE GOODNIGHT AND
HOW THAT IT SPREAD OUR
INVESTIGATION OF THE CPU SEE. IS
LOOKING OUT THE UTILITY
INVOLVEMENTS ASSAULT WOULD WHO
IS THAT WHEN YOU SEE OF
VIOLATIONS OBVIOUSLY COMMITTED
BUT ALSO EVEN BEYOND VIOLATIONS
WERE THERE AND YOU BEST
PRACTICES AS ANY LESSONS LEARNED
SO OUR FOCUS WAS MORE
SPECIFICALLY UTILITIES.
AND WORK HEALTH WIRES PROVIDING
US WITH THE EXPERTISE THAT
SPECIFIC EL TO FIREFIGHTING.
AND FIRE MITIGATION ALL WE'RE
PROVIDING HELLFIRE WITH
EXPERTISE AROUND UTILITY LINES
IN AND OUT HOW UTILITY EL
NETWORKS WORK.
SO IT'S BEEN A VERY FRUITFUL OUR
RELATIONSHIP AND I THINK WE CAN
THE L.. BUILDING ON THE I FELT
THE TWO AGENCIES WERE ONLY BE
ABLE TO EVEN BETTER WELL PREPARE
AND RESPOND. CALM IN THE FUTURE.
.
WE GO WHEN OUR INVESTIGATIONS
WELL CONCLUDE AT ALL THE C. P.%
C. L. HOUSE ABILITY TO TAKE
ENFORCEMENT ACTIONS AGAINST
UTILITIES WE CAN FIND THEM UP TO
FIFTY THOUSAND DOLLARS PER
VIOLATION PER DAY. AND ALSO
ASSESS ADDITIONAL PENALTIES
DEPENDING ON THE NATURE OF THE
SITUATION. SO THAT'S THAT'S THE
FEES THAT WE GET INTO AFTER THE
INVESTIGATIONS ARE DONE.
WELL RIGHT NOW OUR FOCUS IS
OBVIOUSLY TO CONDUCT
INVESTIGATIONS AND TO FIGURE OUT
EXACTLY WHAT HAPPENED. AND SO
ALSO CALLED.
THINK ABOUT. HOW WE CAN BUILD
UPON THE FOUNDATION THAT WE ARE
DE HOW OF ELM IN THINK ALL OF
NEW WELL MEASURES THAT CAN BE
PUT IN PLACE?
FROM ALL OF THE RESEARCH THAT
I'VE DONE IT'S REALLY DIFFICULT
FROM A POLICY PERSPECTIVE TO
FINDING YOU LOW HANGING FRUIT AT
THOSE POINTS. WE'VE ALREADY DONE
MORE IN CALIFORNIA THAN ANYWHERE
ELSE IN THE UNITED STATES FROM
WHAT I'VE BEEN ABLE TO FIND. EL
IN YOU LESSONS LEARNED EL. A
REALLY COMING FROM. OTHER
COUNTRIES AUSTRALIA HAS DONE THE
LOTS IN NEW ZEALAND'S IN TERMS
OF FIRE PREVENTION AND ALSO
WE'RE LOOKING AT THE BEST
PRACTICES THERE BUT IT'S GOING
TO TAKE A LOT OF INNOVATIVE
THINKING. ELM TO REALLY MOVE
WELL PAST
ALL THE LEVEL OMIT WHICH WERE AT
TO FIGURE OUT OF HOW TO ADDRESS
THE CHALLENGES THAT WE'RE FACING
AS THE STATE'S.
HOWEVER I THINK WITH THE.
WARRANTS CHRONOLOGY THIS AND
WITH THE COLLABORATIVE
RELATIONSHIPS THAT WE HAVE AMONG
THAT THE FRIENDS AND CITIES IN
CALIFORNIA. EL WHICH WE CAN'T DO
HAVE OPPORTUNITIES AND WE CAN
OUT MADE FURTHER PROGRESS.
TWO WELL PREVENT SUCH
CATASTROPHIC EVENTS FROM
HAPPENING IN THE FUTURE.
HOME SO THERE'S A LOT MORE WORK
TO BE DONE AND LOOK FORWARD TO
CONTINUING TO WORKING WITH YOU
THE CPC LEADER CHAPA CAL FIRE.
L..
TWO I'LL FIGURE OUT WHAT ELSE WE
CAN DO FOR THE FUTURE. AND THANK
YOU VERY MUCH FOR YOUR TIME AND
ATTENTION WILL BE HAPPY TO
ANSWER ANY QUESTIONS.
PRESIDENT BAKER.
I'D LIKE TO THANK YOU BOTH FOR
YOUR PRESENTATION. WAS VERY
COMPREHENSIVE.
AND AS YOU KNOW WERE ALL TRYING
TO GET OUR ARMS AROUND.
THIS ISSUE AND HOW IT HAS SO
MANY DIFFERENT COMPONENTS TO IT
AS AS AS IT RELATES TO THIS
COMMITTEE. CERTAINLY WE ARE
INTERESTED IN UNDERSTANDING HOW.
ALL UTILITY INDUSTRY IS GOING TO
BE IMPACTED ARE. CLEARLY OVER
STARTED ORIENTED OUR SESSION.
AT IN THE LAST YEAR. IS WAS NOT
NECESSARILY THE TOPIC THAT I
THOUGHT WAS GOING TO. HEARTACHE
OF ALL THE ENERGY FORCE BUT TO
NO PUN INTENDED.
BUT HERE WE ARE AND IT IS
IMPORTANT THAT WE DO FOCUS ON IT
AS YOU POINTED OUT TRY TO
EXPLORE BEST PRACTICES TRY TO
LOOK AT. WHAT THIS NEW REALITY
MEANS TO CALIFORNIA? AS WE
CONTINUE INTO A DROUGHT YEAR
AGAIN. AT A DROUGHT SEASON AND
SO.
I WAS JUST INTERESTED IN ALL.
THIS IS A TIME WHERE MEMBERS
WILL ASK QUESTIONS AND RESPOND
TO. OTHERS QUESTIONS IN YOUR
PRESENTATION HOW WILL ALSO ONCE
THE COMMITTEE HAS EXHAUSTED. ITS
QUESTIONS AND HAD DIALOGUE WITH
YOU WILL SEE IF THERE'S ANYONE
FROM THE AUDIENCE WHO WOULD LIKE
TO. OPPOSE A QUESTION AS WELL IF
I COULD I'D LIKE TO JUST SORT
OF.
JUMP IN THERE IF I COULD AROUND
THE ISSUE OF UTILITIES AND IT'S
BEEN REPORTED THAT.
P. GENIE. HAS APPROXIMATELY
NINE BILLION DOLLARS IN
LIABILITY.
EXPOSURE.
.
EIGHT HUNDRED MILLION. AND
INSURANCE LIABILITY INSURANCE.
WHAT?
BECAUSE IT'S GOING TO IMPACT ON.
THE UTILITY HOW'S IT GOING TO.
IMPACT ON THE ELECTRIC.
SECTOR AND ALSO IN THE
TRANSPORTATION SECTOR.
WILL WANT ME WORK BACKWARD FROM
MY.
FAVORITE SUBJECT WHICH IS ALL
THE INFRASTRUCTURE.
SO WE USE UTILITIES IS A WAY TO
FINANCE INFRASTRUCTURE THEY WE
KIND OF GIVE THEM A.
A FRANCHISE
AND DOES SAY YOU WON'T HAVE
COMPETITION WITHIN THIS
FRANCHISE AREA.
AND DIED MEANS THAT YOU HAVE TO
THEN X. A JUSTIFY ALL YOUR
EXPENDITURES AND THE WAY THAT
YOU RECOVER YEAR EXPENSES FROM
RATE PAYERS TO US AND WE DO THAT
THROUGH WHAT KIND OF A TECHNICAL
COURT LIKE THE ADMIRALTY COURTS
USED TO. DIVIDE UP THE PRIZE
MONEY FROM.
FROM NAVAL BATTLES.
AND IT'S LITIGATED IN ITS LONG
PROCESS AND EVERYBODY HAS AN
OPINION AND WE GIVE EVERYBODY A
SHOT AT HAVING THEIR SAY. AND
CAN GET DRAWN OUT FOR A LONG
TIME.
WHEN NGUYEN UTILITIES GO OUT TO
BORROW MONEY.
THEY GET CHEAP RATES
THEY GET REALLY GOOD RATES
BETTER THAN LOCAL GOVERNMENTS
BETTER THAN THE STATE OF
CALIFORNIA FREE QUALITY BECAUSE.
THE INVESTORS TO INVEST IN THEIR
SHARES WHICH IS ONE METHOD OF
FINANCING. KNOW THAT THEY'RE
GONNA GET A DIVIDEND.
AND WHEN THEY BORROW FROM BANKS
USUALLY IN THE FORM OF BONDS
THEY KNOW THAT THOSE BONDS WILL
GET PAID BACK BECAUSE THERE'S A
GUARANTEED STREAM OF INCOME TO
THEM.
SO PEOPLE WERE WILLING TOLEND
FAIRLY CHEAPLY THOSE.
DOES UTILITIES GO AND BUY THAT
INFRASTRUCTURE UP FRONT.
AND COLLECT THE COSTS OVER
TWENTY THIRTY YEARS.
AND THAT'S A REMARKABLY SIMPLE
SYSTEM TO BUILD THAT
INFRASTRUCTURE THAT WE NEED.
WHEN YOU'RE TRYING TO GET A
STATEWIDE GRID FOR EXAMPLE WHEN
YOU'RE TRYING TO MODERNIZE THAT
CREATED TO DEAL WITH NEW
TECHNOLOGIES WHEN YOU'RE TRYING
TO ACTUALLY SPEND A LOT OF MONEY
TO MEET IN NEW. ON FIRE HAZARD
DUH AND VEGETATION MANAGEMENT
SYSTEM.
YOU REALLY WANT IT YOU REALLY
WANT TO BORROW THEM MONEY CHEAP.
IF.
THE INVESTMENT COMMUNITY STARTS
TO FEEL LIKE PERHAPS IT'S RISKY.
TOLAND TO THOSE INSTITUTIONS
THEN THEY CHARGE MORE MONEY.
WHICH GETS PASSED ALONG TO RATE
PAYERS SO WHEN YOU HAVE THESE
KINDS OF FIRE DAMAGES.
AND THERE'S NO INSURANCE AND THE
MONEY IS GOING TO BE COMING FROM
THE UTILITIES TO PAY FOR THE
DAMAGES.
I HOPE THEY START TO WONDER
WHETHER THEY'RE GOING TO GET
PAID BACK.
THERE'S A COUPLE OF WRINKLES
HERE AT ALL JUST TAKE COUPLE
SECONDS TO TO TALK ABOUT BUT I
WILL SAY THAT.
YOU KNOW THAT IT GETS HARDER TO
FINANCE ALL THE GOOD THINGS THAT
WE'RE TRYING TO DO IN THE SYSTEM
LIKE ELECTRIFYING TRANSPORTATION
LIKE BATTERY STORAGE.
LIKE VEGETATION MANAGEMENT IF IT
COSTS A LOT MORE MONEY TO BORROW
AND MAYBE WE HAVE TO PRIORITIZE
I'M JUST SAYING THAT THAT'S A
CONCERN THAT THAT THAT I HOLD.
SO THE REASONS WHY WE'RE SORT OF
IN THIS BOX HAS TO DO WITH THE
FACT THAT THE CPUC ACTS COLONEL
LIKE A A COURT. AND WE FOLLOW
THE LAW.
WE HAVE A LONG PROCESS.
WE AND THEY PREVIOUS.
.
SETTING MADE.
NOTE OF TWO DIFFERENT PROBLEMS
THAT WE HAVE CAME UP WITH WHEN
WE ARE MAKING DECISIONS BECAUSE
THAT'S BEEN APPEALED.
AND AS THE JUDICIAL ACTOR AND
HALF TO SOMEBODY WHO HAS TO
DECIDE ON THAT APPEAL. BERMAN A
STICK TO WHAT'S ALREADY IN THE
PUBLIC RECORD AND TRYING NOT TO
GET.
TO DEEP INTO WHAT HAPPENED
THERE.
ALTHOUGH YOU CAN CERTAINLY ASK
ME QUESTIONS ABOUT THE BROAD
PRINCIPLES.
BUT TERM.
WE'RE CONCERNED THAT THE
APPLICATION OF INVERSE
CONDEMNATION TO UTILITIES AND
ALL EVENTS OF PRIVATE PROPERTY
LOSS WOULD FAIL TO RECOGNIZE
IMPORTANT DISTINCTIONS BETWEEN
PUBLIC AND PRIVATE UTILITIES.
AND THAT THE FINANCIAL PRESSURE
ON UTILITIES FROM INVERSE
CONDEMNATION MAY LEAD TO HIGHER
RATES FOR RATE PAYERS.
INVESTOR OWNED UTILITIES ARE
PARTIALLY DEPEND ON CAPITAL
MARKETS TO RAISE MONEY IN THE
INSURANCE MARKET TO MITIGATE
FINANCIAL RISK IF STRICT
LIABILITY IS IMPOSE FOR DAMAGE
ASSOCIATED WITH WILDFIRES CAUSED
IN WHOLE OR PART BY A UTILITY
INFRASTRUCTURE.
THE RISK PROFILE THE INVESTOR
OWNED UTILITY MAY BE QUESTIONED
BY INVESTORS AND INSURANCE
PROVIDERS ALIKE.
THE INCREASE OF AND COST OF
CAPITAL AND THEN SHE IN SPENCER
SO SHE ADDED WITH INSURANCE
COULD LEAD TO THE HIGHER RATES
FOR RATE PAYERS EVEN IN
INSTANCES WHERE THE INVESTOR
OWNED UTILITY.
COMPLIED WITH THE AND AND I
COMMISSION SAFETY STANDARD.
CHAU.
.
THE OTHER ISSUE IS THE HIGH
BURDEN OF PROOF THAT WE HAVE IN
OUR PROCEEDINGS IT'S A PRUDENT
SEE STANDARD.
IT PORT PUTS THE UTILITY AND THE
POSITION OF HAVING TO PROVE.
THAT THEY WERE PRUDENT.
THAT THEY TOOK STEPS ABOVE AND
BEYOND WHAT WE REQUIRE.
AND THAT THEY WERE THOUGHTFUL
AND ACTUALLY TOOK EVERY STEP
POSSIBLE IN EVERY WAY OF GIVING%
A BROAD INTERPRETATION OF THAT.
I DISCOVERED IN THE COURSE OF
INVESTIGATION THAT'S NOT STATUTE
BUT IT'S AN EIGHTY YEAR OLD
PRECEDENT IT WILL BE VERY
DIFFICULT FOR US TO CHANGE
WITHOUT CONSTANT LITIGATION.
BOTH OF THESE COULD BE RESOLVED
EITHER BY THE COURTS.
REFINING THEIR FINDING THAT
CREATED THIS DEFINITION OF
INVERSE CONDEMNATION.
WHERE BY THE LEGISLATURE TAKING
ACTION
SO WE HAD SO WE CALLED FOR THAT?
IN. AN ADDENDUM TO OUR DECISION
TO COMMISSIONERS.
DISAGREED IN PART WITH THE
PROCESS AND CALLED ON THE
LEGISLATURE TO DO THAT.
AND I THINK THAT'S ONE OF OUR MY
KEY POINTS TO YOU IS THAT THERE
IS RISK TO THE UTILITY IS TO
CONTINUE TO FINANCE
INFRASTRUCTURE AND TO MANAGER TO
REPLENISH IT AND TO MODERNIZE
IT.
EFFICIENTLY.
AND THAT WE ARE STUCK
BECAUSE OF OUR OUR PRECEDENT AND
BECAUSE OF THE COURT'S
DECISIONS.
WE ARE OUT WE WOULD CERTAINLY
INVITE SOME DIRECTION FROM THE
LEGISLATURE AS TO HOW WE CHANGE
OUR PRACTICE.
WERE DIRECTION FROM THE
LEGISLATURE TO POTENTIALLY HAN
HI CHANGED THE LAW THATTHE
COURTS TO USING TO FIND THIS.
STRICT LIABILITY TEST
SO SORRY I'LL BE HAPPY TO
EXPLAIN MORE BUT I'M TRYING TO
AVOID GETTING TOO DEEP INTO THE
TO THE SPECIFIC PROCEEDING.
APART QUIRK.
ON.
I'M JUST TRYING TO SEE WHAT THE
ACTUAL ABILITY THAT WE HAVE.
TO WORK IN THIS AREA IS.
SO.
MY UNDERSTANDING THAT IS THAT
IT'S ARTICLE ONE SECTION
NINETEEN OF THE CALIFORNIA
CONSTITUTION. WHICH ALLOWS FOR
INVERSE CONDEMNATION.
JUST TO DEFINE THAT. IT MEANS.
ARE IF A FIERY STEAMED BECAUSE
BY SAY VEGETATION BEING BLOWN BY
SEVENTY MILE AN HOUR WIND.
INTO A.
LIVE POWER LINE.
THAT.
UNDER COURT DECISIONS AND AGAIN%
NOTHING AND AND JUST AN
INTERPRETATION OF THE
CONSTITUTION.
ARE THERE WILL BE.
OF THE RESPONSIBILITY.
OF THE
I ENTITY.
THE INVESTOR OWNED UTILITIES.
PAY FOR THAT DAMAGE REGARDLESS
OF WHETHER PEOPLE HAVE INSURANCE
OR NOT SO HAVE I GOT THAT RIGHT
SO FAR. THAT'S CORRECT THEY ARE
CONSIDERED BY THE COURTS TO BE
STRICTLY LIABLE SO IT MEANS THAT
THEY ARE THE PERSON THAT THAT
PAYS IF THEY ARE RESPONSIBLE FOR
ONE PERCENT OF THE DAMAGE THEN
THEY COVER THE WHOLE THING IF
THEY ARE THE PER.
WHO WAS FOUND TWO BE RESPONSIBLE
FOR THAT ONE PERCENT?
THEY STILL THEY COVER THE WHOLE
THING EVEN IF THEY'RE
RESPONSIBLE FOR ONE PERCENT.
THAT'S MY UNDERSTANDING AND THEN
AND THEN WHAT THEY DO IS RECOVER
FROM OTHER PARTIES.
AND SO FOR EXAMPLE IN THE CASE
OF A FIRE THAT WAS ACTUALLY
CAUSED BY TELECOMMUNICATIONS
INFRASTRUCTURE THAT CAME LOOSE.
ARCTIC OVER ELECTRIC LINES
CAUSES THEM TO FAULT BUT IT WAS
THE THE THE TELECOMMUNICATION
INFRASTRUCTURE THE TOUCH THE
GROUND.
BECAUSE IT WAS ON A ELECTRIC
POOL.
HOME THEY WERE FOUND TO BE THE
ELECTRIC COMPANY WAS FOUND TO BE
A RESPONSIBLE PARTY THEY DID
SETTLE.
AND RECOVER SOME OF THOSE
OVERALL COST SO IT'D MECHANISM
FOR THE COURTS
OF ACTUALLY FINDING AN
EXPEDITIOUS WAY.
FOR ACTUALLY PAYING THE DAMAGES
AND FOR BEGINNING TO ALLOW
PEOPLE TO REBUILD THEIR
COMMUNITIES.
SO THAT I THINK IS THE IS THE
THE POLICY BEHIND THE LEGAL
THEORY.
WELL BUT IT IS A LEGAL THEORY
THAT COMES FROM THE CONSTITUTION
IT'S NOT CLEAR TO ME.
ARE THAT WE CAN CHANGE INVERSE
CONDEMNATION LAW ARE INVERSE
CONDEMNATION PRACTICE.
NOW JUST THE FACT THAT THE
UTILITY PAYS NOT WHETHER ITS THE
STOCKHOLDERS TO THE RATE PAYERS
GET INTO THAT LATER. BUT IT'S
NOT CLEAR TO ME THAT YOU CAN
CHANGE THAT WITHOUT A
CONSTITUTIONAL AMENDMENT.
I CAN'T ANSWER THAT I CAN ONLY.
TELL YOU WHAT MY ATTORNEYS HAVE
TOLD ME I'M NOT A LAWYER SOME
WELL YOU THEIR BEST WISDOM AND
IF FIRE IF YOU.
.
CARE DEBATE THEM I'M SURE I'M
NOT GOING TO.
AB THAT WOULD HAVE USEFUL TO ME
TO TO UNDERSTAND OUR MY MY
UNDERSTANDING IS IT'S
CONSTITUTIONAL.
ARMED DOES ANYONE AND DOCTOR
MELANAU SKI DO YOU HAVE.
OR DO ANY OF YOUR STAFF THAT
ARE HERE. A MISTER PACKER HAVE
ANY OPINIONS ON THIS THAT IT IS
CA CONSTITUTE THE END FIRST
CONTEST.
INVERSE CONDEMNATION COMES FROM
THE INTERPRETATION OF THE E..
CALIFORNIA BECAUSE I TO CAVE
SHAKE IT TODAY WITHOUT THE
PROTECTION OF LAWYERS NOW.
I'M ALSO NOT AN ATTORNEY.
ALRIGHT WELL I THINK. AS I
UNDERSTAND THE CASES AND SUCH.
ARM.
WHEN I DIDN'T KNOW IF IT REALLY
IS A CONSTITUTIONAL QUESTION THE
SECOND QUESTION IS.
WHETHER THE RATE PAYERS PAY FOR
THAT OR WHETHER IT'S THE.
ARE YOU UTILITY STOCKHOLDERS.
ARE IF IT'S THE UTILITY STOCK
HOLDERS OF COURSE WHAT HAPPENS
IS THAT THE ABILITY OF THE
UTILITY TO.
BORROW AT GOOD RATES DISAPPEARS
AND THE RATE PAYERS PAY ANYWAY.
ARM.
BUT YEAH WHAT YOU'RE ALSO SAYING
I JUST WANNA VERIFY THIS.
IS THAT UNDER YOUR PROCEEDING.
IT'S NOT A MATTER OF PEOPLE
PROVING THAT.
THE UTILITY IS AT FAULT BUT THE
UTILITY PROVING THEY'RE NOT AT
FAULT GUILTY UNTIL PROVEN
INNOCENT.
OKAY AND YOU'RE NODDING YES THAT
WE WILL I MY UNDERSTANDING IS
THAT THAT UNDER THE PRUDENT SEE
STANDARD WE OPERATE UNDER THE
NAPOLEONIC CODE NOT.
OKAY CHILDREN THAT COULD BE
CHANGED.
ARM BY.
ARE BY LEGISLATION AS TO WHETHER
IT'S THE RATE PAYERS OR THE.
I YOU TO THE OR THE UTILITY
STOCKS THERE THINK IT ON A MORE
NUANCED THAN THAN THAT AND YANK
CHANGING THE THE TEST BY WHICH
WE DECIDE THE DECREE.
OF INVOLVEMENT SO WHERE WAS THE
THIRD THEY IN THE INVERSE
COMBINATION WORKS OUT
DIFFERENTLY FOR THE PUBLICLY
OWNED UTILITIES.
SO PUBLICLY OWNED UTILITIES
BASICALLY JUST COLLECT THE MONEY
FROM RATE PAYERS IF YOU'RE SMART
WHERE LADWP FOR EXAMPLE.
THE BOARD JUST SAYS OKAY WE
GOTTA PAY THIS WILL JUST PAY
THIS.
HERE WE GO THROUGH THIS LONG
LITIGATED PROCESS TO DECIDE
PRUDENT SEE AND THEN FIGURE OUT
HOW MUCH COMES FROM. RATE PAYERS
OR HOW MUCH GUY SHOULD ME HOW
MUCH COMES HOW MUCH.
HOW MUCH GUILT THERE IS AND IF
WE FIND GUILT THEM WE?
WE DO RECHARGE IT ALL TO THE
SHAREHOLDERS OKAY CHALLENGE IS
THAT WE DON'T HAVE MUCH NUANCE
IN HOW WE APPROACH THAT.
ALRIGHT WELL SEND ME YOUR
LAWYERS OKAY THANK YOU HAPPY TO
DO THAT AND LET ME LET ME JUST
UNIT IS USED SOME OF THEM I WILL
SEND YOU WILL YOU CAN KEEP.
MELANIE JUST SOMEONE I WANT I
CAN KEEP THANK YOU. FOR
LET ME JUST SAY THAT CERTAINLY
AS WE START TO FIND ESOS
DRIFTING INTO LEGAL. DEFINITIONS
AND CERTAINLY NUMBERS
COMBINATION WOULD FALL INTO THAT
CATEGORY. I THINK WE'RE ALL
GOING TO BE LIMITED ON THIS
SUBJECT FOR TODAY I THINK WE'RE
GOING TO DO IS SORT OF UNDER
STORE UNDERSCORE.
THE TYPES OF THINGS THAT WE NEED
TO START THINKING ABOUT AND HOW
TO BE BETTER PREPARED TO LIVE IN
THIS NEW NORMAL AND HOW TO.
ENCOURAGE INVESTMENT AROUND OUR
OUR INFRASTRUCTURE.
UP BUT WE WITH THIS WILL NOT BE
THEY'LL THE FIRST AND LAST
DISCUSSION WILL HAVE ON THIS
TOPIC IN THE NEXT TIME WILL
OBVIOUSLY. LOOK TO SPEND A
LITTLE BIT MORE TIME AND MAYBE
HAVE COUNSEL HERE. TO EXPLORE A
LITTLE BIT MORE THE NUANCES THE.
.
THE FULL RAMIFICATIONS OF
INVERSE CONDEMNATION AND WHAT
THAT MEANS TO THE EXTENT OF.
HAVING NEW LEGISLATION THAT
GIVES YOU DIFFERENT DIRECTION
AND WHAT THE.
THE GOOD BAD AND UGLY OF THAT
MIGHT REPRESENT AND I THINK
THAT'S JUST A WHOLE NOTHER
CONVERSATION FOR ANOTHER DAY
BUT.
ON THIS ALL TURN TO OUR OUR
VICE CHAIR WELCOME BACK MAKE IT
PATTERSON GOOD TO BE BACK.
FOR A TIME LIKE THIS.
WE HAVE AN IMMEDIATE CRISIS.
ARM.
THAT IS LITERALLY GOING TO
AFFECT SEVENTY PERCENT.
THE POPULATION OF THE STATE OF
CALIFORNIA THAT RECEIVES ITS
ELECTRICITY FROM.
UTILITIES ON PROBLEM IS THAT BEN
PRETTY.
WELL DIRECTLY STATUS STRICT
LIABILITY STANDARD.
UTILITIES ARE BEING HELD HER
PERCENT LIABLE EVEN IF THEY'RE
ONE PERCENT.
EVEN IF THEY FOLLOWED ALL
APPROPRIATE RULES AND
PROCEDURES.
AND IT EL.
DEBT THAT THIS HAS LED TO ENSURE
ABILITY.
IT HAS.
PROBABLY.
.
TURNED INTO.
.
AT LEAST FOR. PROBABLY AN
INVESTOR FOR FREEZE OF OF
ABILITY DEBT TO RAISE RATES
CAPITAL UNDER THE CIRCUMSTANCES.
.
WE WE'VE ALREADY HEARD ABOUT ONE
I OWE YOU GIVEN A PREMIUM OF A
HUNDRED TWENTY MILLION DOLLARS
FOR THREE HUNDRED MILLION
DOLLARS WORTH OF COVERAGE.
THAT'S NOT INSURANCE.
BJ IS BBB PLUS.
RIGHT NOW.
BILLIONS
OF DOLLARS IN MARKET LOSSES
EDISON TOOK A SIX
BILLION DOLLAR.
HIT
RECENTLY.
.
AYE AM REALLY CONCERNED THAT IF
THIS.
TREND AND IF THIS ARC OF FACTS
CONTINUE.
I THINK WE'RE HEADED TOWARD
BANKRUPTCY PRIOR USE.
I REALLY THINK THIS IS A.
COMING.
ARE.
THE CRISIS.
ARE.
AND SO I MY FIRST QUESTION IS.
DO YOU CONCUR THAT THIS SET OF
FACTS CREATES A CRISIS.
SO AYE TH TH SHE A CONTINUUM OF
CONSTRAINTS ON THE UTILITY
CERTAINLY I THINK THAT THEY'RE
GONNA FIND IT HARDER TO BORROW I
THINK IT'S GOING TO BE
IMPOSSIBLE TO GET IF INSURANCE
IN THE FUTURE. THOSE ARE TWO OF
THE EFFECTS THAT I SEE AT A AT A
MINIMUM.
THEY MAY HAVE LIQUIDITY CRISES
OF THEY MAY CHOOSE TO TO GO FOR
BANKRUPTCY BUT I DON'T THINK
THAT WERE CURRENTLY AT THAT
POINT.
BUT I'M CONCERNED.
COULD YOU HELP US UNDERSTAND.
THERE'S A LOOK AT THAT AND LOOK
UP WE.
AND I JUST THINK WE GOTTA BE
PRETTY BLUNT PRETTY PRETTY
DIRECT. HERE.
.
DOES THE P. UC THINK THIS
WRITTEN RISES TO A LEVEL OF
CRISIS AND ARE YOU GOING TO STEP
IN AND DO SOME SERIOUS WORK ON
.
A DON'T THE REGULATORY YOU HAVE.
OR OR OR DO WE JUST LET THIS
UNFOLD.
I DON'T THINK THAT THE COMMITTEE
HERE IS TAKING STEPS TO WHAT'S
ON FALL THEY ASSUME THAT THAT'S
ONE OF THE REASONS OR HAVING
THIS CONVERSATION HERE TODAY IT
IS TO BEGIN TO UNDERSTAND. THE
DIMENSIONS WATER THE APPROPRIATE
THINGS DUE TO RESPOND. NOW WE'VE
BEEN PRETTY AGGRESSIVE IN TERMS
OF BOTH.
LOOKING AT WHAT WE DO TO
MITIGATE THE RISK BY IMPROVING
OF FIRE PREVENTION.
SPENT A LOT OF TIME TALKING TO
OTHER STATE AGENCIES ABOUT WHAT
IT LOOKS LIKE IT'S THESE KINDS
OF CATASTROPHES. OUR. NOT SURE
THAT THE ONLY KATANA KIND
CATASTROPHE THAT WE ARE GOING TO
SEE GET MORE SEVERE AND MORE
FREQUENT IS FIRE.
HOME YOU KNOW TODAY CLEARLY IS
NOT A FIRE RISK DAY IF ANYBODY
CAME OUTSIDE THAT WE HAVE
UNSEASONABLE HAIL STORM HERE IN
SACRAMENTO.
WE'RE LIKELY TO SEE SOME MUD
SLIDES IN THE COASTAL RANGE THAT
HAS IMPACT ON INFRASTRUCTURE.
SO I I'M I YOU KNOW I SEE A LOT
OF DIFFERENT THINGS AND NEED TO
HAPPEN WERE WORKING AS HARD AS
WE CAN WE'VE HAD A VARIETY OF
DIFFERENT DISCUSSIONS WITH THE
WITH THE FINANCIAL COMMUNITY. I
WILL SAY THAT THE LEGISLATURE
ADOPTED RULES THAT MAKE IT VERY
HARD FOR US TO HAVE
CONVERSATIONS WITH THEM ABOUT
THESE THINGS TO HAVE BOTH HERE
THEIR IDEAS OR TO TELL THEM WHAT
WE'RE DOING.
WHAT THEY ARE NOW CONSIDERED TO
BE INTERESTED PARTIES ANY
COMMUNICATIONS THAT WOULD TAKE
PLACE WITH THEM IN THE CONTEXT
OF THIS APPEAL? IS CONSIDERED TO
BE AN EX PARTE COMMUNICATION
WHICH IS REPORTED WE ACTUALLY
HAD ONE.
INVESTOR GROUP WHO TALKING TO A
STAFF PERSON ACTUALLY BREACHED
EX PARTY WE HAD TO THEN FILE AN
EX PARTY NOTICE ON OUR SIDE
WHICH IS ALSO PART OF THE
REQUIREMENTS THE LEGISLATURE
RECENTLY PUT TO US.
AND WHEN THEY DIDN'T IN FACT
MEET THE DEADLINE AND DO THEIR
OWN.
FILING FOR EX PARTY WE REFERRED
IT TO THE AJ THIS DOES NOT LEAD
TO THE P. YOU SEE BEING A BODY
THAT THE THE FINANCIAL COMMUNITY
IS GOING TO LEAD TO. THAT IS
PROBABLY SOME OF THE REGULATORY
UNCERTAINTY THAT YOU'RE SPEAKING
OF AND I DON'T KNOW THAT WE CAN
WISH THAT AWAY THAT IS YOUR
DIRECTION TO US AND WE'RE TRYING
TO SCRUPULOUSLY OBSERVED.
I HAVE GOT I NEED TO PROCEED I.
GIVE HIM ANOTHER FIVE MINUTES
THREE MINUTES.
I HAVE THREE FOUR FOUR MASSIVE
QUESTION BUT I WANT A COMPLETE
COMPLETE YES TO GET.
WE HAVE TO LOOK I THINK WE HAVE
GOT THE LATEST STANDARD DOWN
HERE.
WHAT WE WE ARE TALKING DO YOU
CONSIDER A CRISIS IMMINENT OR
NOT?
PLEASE ANSWER THE QUESTION I
DON'T WANT TO SPEAK FOR THE
PRESIDENT BUT I THINK WHAT WE'RE
TRYING TO DO HERE IS TO GATHER
INFORMATION WILL HAVE A
OPPORTUNITY FOR OTHERS FROM THE
AUDIENCE TO.
ASK QUESTIONS AND SUPPOSED
STATEMENTS ARE WITHIN A LIMITED
TIME FRAME. BUT.
WE ARE AS A COMMITTEE.
AS I SAID EARLIER ON TRYING TO
TAKE THIS ISSUE AS IT HAS THE
IMPACT WOULD BE ON THE UTILITY
AND ENERGY A SECTOR AND.
IT IS NOW CLEARLY A MAJOR ISSUE
BUT WE WANT TO MAKE SURE THAT WE
YOU DON'T STEP TOO FAR LAST AND
THAT I I I I WILL BUT I'LL DEFER
TO THE. ADVICE OF THE CHAIR. WE
HANDLE THOUGH CRISES DIFFERENT
THAN WE DO CIRCUMSTANCESFOR
WHICH WE DON'T THINK THERE'S A
CRISIS.
I THINK WE ARE HEADED TOWARD AN
ENERGY.
A CRISIS
THAT IS THAT IS MADE BY THE SET.
OF FAX
AND I UNDERSTAND THE INVERSE A
CONDEMNATION AND ALL OF THAT AND
WHO WHO IS TO BLAME AND WHO'S
GOING TO PAY.
IS I WANT TO EXPLORE WHETHER
THERE IS ARE LEGITIMATE SHARED
RISK AND LIABILITY FACTORS
HERE.
DON'T THE OTHER PLAYERS.
IN ALL OF THIS
HAVE CERTAIN INCLUDING OF THE P.
UC.
CALIFORNIA OTHERS.
TO.
DO BEST PRACTICES TO
SHOW UP ARE ON TIME. VERY
QUICKLY I'LL USE FOR EXAMPLE ARE
PENALIZED EVEN IF THEY HAVE.
GOOD INTENTION BUT THE P. YOU
SEE CONCLUDES THAT THEY DIDN'T
ARRIVE IN A TIMELY MANNER IN A
FIRE.
DO WE NOT QUESTION WHETHER CAL
FIRE ARRIVES IN A.
TIMELY FASHION DO WE NOT ASK
WHETHER.
A THE FOREST MANAGEMENT.
WHETHER IT'S A.
.
THE STATE FOREST FEDERAL FOREST
WE HAVE.
ALL FALLEN TREES AND CUT DOWN
TREES AT ALL OVER THE STATE OF
CALIFORNIA. THIS IS.
GROWING FUEL FOR THESE.
TOM
EXPLOSIONS.
UP.
IS WHAT DO YOU THINK THERE ARE
WAYS IS THAT LITIGATION IS A
THROUGH THE COURTS AS IT THROUGH
LEGISLATION.
WHERE?
IT YOU CAN LEGITIMATELY EXPLORE.
THE LIKELIHOOD THAT OTHER.
PLAYERS IN THIS.
HAVE SOME DEGREE OF
RESPONSIBILITY. IN THE RESULTS
OF A PARTICULAR FIRE INCIDENT.
SO LAST FALL COMMISSIONER
GUZMANIA SERVICE AND I.
CEFIC COOLEY RAISE THAT ISSUE
AND WALK TO THE LEGISLATURE FOR
SUMMIT ATTENTION TO THIS
QUESTION EVENT FIRST
CONDEMNATION. AND FRANKLY ARE WE
APPEAL TO YOU TO GIVE US
DIRECTION ON THIS QUESTION OF
PRUDENT SEE VERSUS A DIFFERENT
TESTS SUCH AS REASONABLENESS.
SO THAT IN OUR LITIGATED
PROCESSES WE HAVE THAT KINDS OF
OF OF TOOLS ALLOWS TO BE NUANCED
IN JUST THOSE WAYS THAT YOU
SUGGESTED.
SO WE HAVE A COUPLE OF EXAMPLS
HERE. OUT THAT ANSWERS THE
QUESTION.
WHAT ARE YOU DOING ABOUT THIS
AND WHAT DO YOU NEED FROM THE?
LEGISLATURE AND AM AND I'M I'M
GONNA END THIS CRAP HERE. OP I
THINK WE ARE IN A CRISIS I THINK
THAT TO HANDLE THIS AS JUST A
NORMAL ROUTINE AND WAIT FOR ALL
THE TIME GO BY AND ALL THAT
LITIGATION I THINK WE HAVE A.
CRISIS ON OUR HANDS IS GOING TO
REQUIRE. A YOU TO START THINKING
DIFFERENTLY US TO START THINKING
DIFFERENTLY AND FOR US TO START
ENGAGING IN A. IN A WITH THEM
LEGISLATIVE ASSISTANTS AS YOU
HAVE SUGGESTED WITH RESPECT TO
PRUDENCE PURSES REASONABLE SO I
APPRECIATE THAT AND I'VE TAKEN.
SOME GOOD NOTES IN THE NEXT
TIME I THINK WE.
I ENGAGE IN THIS AYE I REALLY
WOULD LIKE US TO HAVE. A MENU OF
SOLUTIONS THAT THIS LEGISLATURE
NEEDS TO.
UP IT ARAB. ENGAGE IN NUMBER ONE
AND NUMBER TWO SOME KIND OF
ASSURANCE FROM THE REGULATORS
AND THE POLITICAL.
.
PEOPLE INVOLVED IN THIS DEBATE
UNDERSTAND HOW SERIOUS THIS IS
AND THAT IN FACT THE REGULATORY
UNCERTAINTIES.
THE RECOVERABILITY ISSUES THE
LIABILITY ISSUES THE INSURANCE
ISSUES THAT.
CREDIT RATING ISSUES WOULD
SERIOUSLY BE ADDRESSED AND
CONSIDERED AS WE GO ALONG
FAILURE TO DO THAT IS GOING
WE'RE GONNA BE AROUND HERE.
.
WHEN WE GOT SEVENTY PERCENT OF
THE.
BUT.
ELECTRICITY. I YOU I USE
PROVIDING TO SEVENTY PERCENT OF
POPULATION STATE CALIFORNIA EVER
GOING TO END UP I THINK WAS
SERIOUS BANKRUPTCY ISSUE I
REALLY THINK THIS IS.
THE CRISIS AND REALLY NEEDS SORT
OF A CRISIS APPROACH TO IT. AND
I THINK THERE ARE OTHERS WHO ARE
SAYING WE WOULD REALLY NEED TO
HAVE THE P. YOU SEE BE THINKING
IN TERMS OF CRISIS BUT I THINK
WE NEED TO BE THINKING.
THAT THIS IS A CRISIS AND I
WOULD HOPE THAT THE GOVERNOR
WOULD CONSIDER CRISIS IS WELL.
LIKE I SAID I THINK YOU MIGHT
WANNA KEEP SOME OF THE LAWYERS
WILL SEND OVER FOR AWHILE TO GET
TO GET THE BEST.
OPTIONS AVAILABLE FOR THE
LEGISLATURE OUT THAT I KNOW WHAT
I WOULD ALSO TO MISTER CHAIRMAN
OF THAT WE SHOULD ENGAGE OUR OUR
LAWYERS THAT. THE LEGAL COUNSEL
FOR THE.
LEGISLATURE TO BE IN THAT ROOM
AND TO HEAR THOSE THOSE
CONVERSATIONS AND TO ADVISE
OFFICE.
AS YOUR LAWYERS ADVISE YOU ARE.
BUT BECAUSE I THINK WE HAVE TO
ENGAGE
SERIOUSLY ON THIS AND SOON.
I THEY WERE ENGAGING IN I'M
SORRY SERIOUS I KNOW WE ALL ARE.
COME BACK TOMORROW MISTER MAYES.
I'D DIED.
JUST WANNA DIE THANK YOU FOR
COMING AND.
HAVING THIS THIS CONVERSATION
I'VE READ SOME OF THESE REPORTS
ON FROM WALL STREET AND I. KNOW
THAT THERE ARE PEOPLE THAT ARE
WATCHING.
US RIGHT NOW.
AND I'M SURE THERE THE WATCHING
WHAT WE'RE SAYING IN THERE
WATCHING THE WORDS THAT ARE
COMING OUT OF. OUR MOUTH AND I'M
I THINK THAT THAT THAT SOME OF
THE STUFF I'VE READ HERE SEAT IN
THIS THIS QUESTION OF WHETHER
WHERE THERE'S AN URGENCY.
ON OUR PART TO SOLVE THIS
PROBLEM I CAN TELL YOU AS A
MEMBER OF THIS COMMITTEE THAT
THERE'S URGENCY. OUT TO SOLVE
THIS PROBLEM BY I THINK I'VE
HEARD FROM THE VICE CHAIR IN THE
CHAIRMAN AND THE CONVERSATIONS
THAT I'VE HAD THAT THERE'S
URGENCY. THAT TO BE ABLE TO TO
SOLVE THIS PROBLEM I ALSO KNOW
THAT I'VE BEEN.
THAT ELECTED OFFICIAL NAM FOR I
DON'T KNOW A LONG TIME IT SEEMS
LIKE A SIXTEEN YEARS OR
SOMETHING THAT FIFTEEN YEARS.
AND IT SEEMS LIKE ONE OF THE
THINGS WE ALSO LIKE TO BLAME IT
ON OTHER PEOPLE NAM BE INSTEAD
OF I WAS A CITY COUNCIL MEMBER.
AND WHEN I WAS ON THE CITY
COUNCIL WE BLAME THE COUNTY WE
BLAME THE STATE OF THE CHIEF OF
STAFF FOR.
A COUNTY SUPERVISOR AND THEN WE
BLAME THE CITIES AND THE STATE
AND THEN I GOT HERE THE STATE WE
STARTED BLAMING CITIES AND AND
AND COUNTIES.
THAT BUT THE REALITY IS THE CPU
SEE YOU GUYS SERVE THE PUBLIC
JUST LIKE WE SERVE THE PUBLIC IN
AS THE VICE CHAIR SAID THERE
SEVENTY PERCENT. OF THE OF THE
FOLKS IN CALIFORNIA THAT ARE
THAT ARE IMPACTED BY THIS AND
YOU ALSO.
THAT CHAIRMAN ALSO TO GIVE A
VERY. CLEAR UNDERSTANDING OF WHY
WE HAVE INVESTOR OWNED UTILITIES
IN THE STATE IN MAKING SURE THAT
THEY ARE A FINANCIALLY
FINANCIALLY SOUNDS WITH BE VERY
CAREFUL. OF OUR LANGUAGE IN THE
WORDS THAT WE ARE WITH THE WE
ARE SAYING.
AND SO THAT THE ONE QUESTION
THAT I THAT I HAVE IS DO YOU
FEEL LIKE YOU HAVE A PARTNER A
WITH THE LEGISLATURE GOING TO
PUT THE RESPONSIBILITY BACK ON
US. WE KNOW WHAT THE PROBLEM IS
WE KNOW THAT THERE SOME LEGAL
IMPLICATIONS WE KNOW WHAT THE
CONSTITUTIONAL LANGUAGE IS BUT
LOOK I'VE GOT THREE ACA'S I
THINK I'VE INTRODUCED THIS YEAR
AND DOWN. IN EVERY OUT THERE
GONNA GET THROUGH BUT WE HAVE
THE CAPACITY IS LEGISLATORS TO
BE ABLE TO TO TO FIX IT SO YOU
FEEL LIKE YOU'VE GOT A PARTNER
AND IF YOU. IF IF YOU DON'T THEN
LET'S LET'S SEE WHAT WE CAN DO
TO FIGURE THAT OUT.
I AM FEELING MUCH
CLEARER THAT THE LEGISLATURE IS
ENGAGED IN THIS I I I I I WENT
THROUGH A LONG FALLOW PERIOD
AFTER MY KNEE SURGERY SITTING
AROUND AND FRETTING ABOUT THIS
AND NOT. NOT HAVING
COMMUNICATIONS WITH MEMBERS NOW
THAT I'VE HAD SOME TIME TO GET
OUT AND TO TALK TO YOU AND
PARTICULARLY HERE TODAY. I SEE
THAT YOU'RE VERY STE MOTIVATED
YOU'RE LOOKING FOR THE LIMITS OF
WHAT WE CAN DO. HERE EXPLORING
THE THE NECESSITY OF YOUR OWN
ACTION.
HIGH A SAY THAT THIS IS GOING TO
SHARPEN I KNOW THAT I SAW THAT.
ASSEMBLY MEMBER CUNNINGHAM IS
LOOKING AT THAT SAME STANDARD
AND POOR'S REPORT THAT I GOT
TODAY. THEY DOWNGRADED THE
CREDIT ON A SOLAR FACILITY IT'S
A LARGE FULLER SOLAR FACILITY
ONE OF THE LARGEST IN THE STATE
FIVE HUNDRED AND FIFTY
MEGAWATTS.
AND NON AND.
ASSEMBLYMEMBERS BACKYARD.
AND THEY DID IT BECAUSE THE CAT
AND THE THE THE RATING AGENCIES
ARE CONCERNED ABOUT THE CASH
FLOW FROM THE UTILITY.
PAY FOR THAT ELECTRICITY.
THIS DID THIS IS WHAT IS BEHIND
OUR SUCCESS IN TERMS OF
RENEWABLES THE UTILITIES ARE BIG
* CARRIERS THEY GET UP TO
SPEED REALLY QUICKLY THEY GET
CHEAP MONEY TO DO IT THEY ACT
THEY CAN SCALE.
AND IF IN FACT
WE'RE SEEING THIS KIND OF
REACTION FROM CAPITAL MARKETS TO
A SOLAR FACILITY THAT'S ALREADY
BEEN PRODUCING ELECTRICITY
RELIABLY FOR PROBABLY SIX YEARS.
A PROJECT I WORKED ON A LOT WHEN
IT WAS A CITING PERMITTING
INTERCONNECTING LARGE RENEWABLE
ENERGY PROJECTS.
AGAIN IT'S ONE OF THOSE PIECES
INFRASTRUCTURE THAT I REALLY
CARE ABOUT SO GOOD PROVIDES GOOD
THINGS FOR THE CITIZENS OF THE
STATE OF CALIFORNIA.
I WORRY ABOUT THAT
INFRASTRUCTURE IF THIS THIS THIS
FINANCING MECHANISM IS STARTS TO
FRAY.
I THINK THAT THAT'S EQUALLY TRUE
OF OUR AB OUR ABILITY TO
CONTINUE TO HAVE TO TO DRIVE.
TO MARKET SCALE AND TO COST
EFFECTIVENESS BATTERY STORAGE
BATTERY STORAGE PRICES HAVE BEEN
COMING DOWN. LARGELY BECAUSE
CALIFORNIA HAS BEEN ONE OF THE
BIGGEST INVESTORS YES REPAIR
COST FOR BEING EARLY. ON IN THIS
PROCESS BUT WITH THE BENEFIT IS
THAT WE'VE CREATED A LOT OF
DEVELOPERS WHO ACTUALLY CAN
DELIVER. CHEAP RENEWABLE SOON
WILL HAVE DEVELOPED WHICH CAN
DELIVER CHEAP BATTERIES.
AND I THINK THAT I ALSO FEAR
THAT IF WE CONTINUE TO SEE
EROSION OF CONFIDENCE IN
INVESTORS THAT WE MAY FIND IT
HARD TO FINANCE ELECTRIC VEHICLE
INFRASTRUCTURE.
SO THESE ARE ALL THE REASONS
THAT I FOCUS ON THE UTILITY IS
NOT FOR THE UTILITY SAKE ALONE.
BECAUSE
IT BRINGS ME BACK TO ALL THOSE
INANIMATE OBJECTS THAT I FEEL
LIKE I HAVE TO BE THE VOICE FOR.
I THINK NOT TO I THINK REPEAT
WILL MY COLLEAGUE FROM FRESNO IN
PALM DESERT IS SAD.
.
WE WE KNOW WE ARE AT A CRISIS
LEVEL AND WE VERY MUCH TO WANT
TO.
PARTNER.
I'D.
JUST LIKE TO ACKNOWLEDGE.
MY COLLECTION PALM DESERT'S
COMMENTS THAT LOOK MEET ITS.
NO ONE WINS IN THIS BLAME GAME
THE END OF THE DAY IS.
WE AS A STATE NEED TO HAVE.
RELIABLE RECENTLY PRICE
ELECTRICITY.
TO OUR.
TO OUR CONSTITUENTS TO THE
POPULATION TO OUR BUSINESSES
THAT'S.
HARM SOMETHING THAT IS PARAMOUNT
FOR OUR ECONOMY MANY OTHER
THINGS.
THE YOU TALKED ABOUT THAT WE'RE
EVEN SOMEWHAT INSULARITY
SECONDARY TO THAT TERMS OF CLEAN
ENERGY ELECTRIC VEHICLES THOSE
ARE ALL THINGS THAT WE'VEBEEN
VERY SUPPORTIVE AND. WE'VE HAD
AN OPPORTUNITY BILL THOSE
INDUSTRIES THEY'VE CREATED JOBS
AND.
YOU KNOW THEY'VE CREATED JOBS
ALL OF THE STATE THEY'VE BEEN A
HUGE ECONOMIC INDICATORS
ARM.
WELL WHAT I WAS LOOKING FOR US
PRESIDENT JUST REALLY TRY TO
UNDERSTAND NEXT UP SOME
DIMENSION LIKE OFFICE THAT WE
NEED TO GET.
CAN ARE LAWYERS THE CHAIR THE
VICE CHAIR WE CAN WE CAN ALL GET
TOGETHER IN A ROOM.
TRY TO HASH.
THIS OUT BUT I THINK IT'S.
I'M.
VERY IMPERATIVE THAT WE. MAKE IT
VERY CLEAR.
THAT.
IT IS OUR JOB AS A STATE.
TO ENSURE THAT WE CONTINUE TO.
PROCURE ELECTRICITY DELIVER HIGH
TRICITY. GET ELECTRICITY WE WE
CAN'T GO.
A FEW HOURS OF ELECTRICITY FROM
ECONOMIC POINT OF YOU MEAN. WHEN
INNOVATION ECONOMY IF THE
BIOTECH INDUSTRY THE TECHNOLOGY
INDUSTRY. YOU KNOW ENTERTAIN
INDUSTRY THERE HAVE ELECTRICITY
GET YES WHERE THERE'S NO.
THERE'S NO JOB THERE'S NOBODY
GOING TO WORK SO. ON.
YOU KNOW I THINK I THINK WE ARE
DEATHLY AT.
HOME.
AT A VERY.
RISKY POINT NOT JUST FROM A
INTO UTILITY INDUSTRY
PERSPECTIVE THAT'S.
THAT THAT SECRETARY I THINK IT'S
REALLY THE FOUNDATION OF THE
ECONOMY FOR OUR STATE IS HAS
VERY MUCH I RECITE YES.
WHAT YOU KNOW WHAT CAN WE
CONTINUE TO GATHER DO ABOUT US
NOTHING BUT WHAT CAN YOU DO WHAT
CAN WE ALL DO ABOUT IT'S I
THINK?
YOU NO IT'S CAN AFFECT THE BAY
AREA THE SAME WAY AFFECT THE
PALM DESERT OR FRESNO OR LA IT'S
HOGAN AFFECT US.
WELL WE LOOK FORWARD TO WORKING
WITH YOU I MIGHT SENSE IS THAT
TO THE TO THE FINANCIAL
COMMUNITY AND TO GIVE THEM
ASSURANCES THAT THERE IS A
SOLUTION HAVE BEEN FOND FLAT.
THEY'RE WAITING TO SEE WHAT ARE
THE ACTIONS THAT CALIFORNIA'S
GOING TO TAKEAND SO I'M
HEARTENED TO HEAR ABOUT YOUR
RESOLVE AND AGAIN I JUST LOOK
FORWARD TO TO WORKING WITH YOU.
SNOT THERE'S THERE'S A RANGE
DIFFERENT THINGS TO CONSIDER AND
DID SOME OF THEM ARE GOING TO BE
DIFFICULT TO TO THINK THROUGH.
BUT I'M CONFIDENT THAT WITH YOUR
LEADERSHIP AND AND ARE HELPFUL
GET THEIR.
WELL I THINK THAT IN TERMS OF I
WAS LOOKING AT FROM THE INVESTOR
SIDE MEAN THEIR. APOLOGISTS
ASSUMING THERE'S GONNA BE.
YOU KNOW.
HUNDREDS OF THOUSANDS OF
LAWSUITS
COMING.
THAT ARE GOING THERE ARE YOU
THERE THEY WORRY THERE RIGHT SO
LONG.
BEGINNING HER YOU KNOW.
BILLIONS OF DOLLARS OF OF
LIABILITIES I THINK.
WHAT WHAT WE CAN DO TO ADDRESS?
THAT ISSUE I THINK MANAGE THAT
ISSUED THE END OF THE DAY IS.
HARM.
ELECTRICITY IS NOT SOMETHING
THAT'S A LUXURY SOMETHING THAT
WE ARE COMPLETELY DEPENDENT ON
INDIVIDUALLY AS.
AT A CITIZENS AND AYE
ECONOMICALLY AS A STATE.
SO I THINK YOU KNOW WE WE WE
NEED I THINK YOU ARE YOUR HELP
AS WELL IN YOUR GUIDANCE TO. THE
FIGURE OUT HOW BEST TO MOVE
FORWARD IN THIS PAN OUT.
IN I DON'T COME BACK TOMORROW
OKAY THANK YOU WAS BURKE.
HOW YOU DOING? AYE.
AYE PHILIP THERE EITHER URGENCY
OR THERE ISN'T. AND.
THE FACT THAT WERE COMING BACK
LIVE ATTORNEYS AREN'T THEY'RE
HERE TO PRESENT AS SOME OF WHAT
THE SOLUTIONS MIGHT BE I THINK
IT'S SOME OF THE FRUSTRATION YOU
MAY BE HEARING FROM SOME OF OUR
COLLEAGUES IS THAT.
YOU KNOW INVESTORS ARE WAITING
INSURANCE IS GETTING MORE
EXPENSIVE NO MATTER WHAT OUR
REPAIRS ARE GOING TO BE HIT.
AND I THINK AT THE END OF THE
DAY THERE'S NOTHING WORSE FOR
INVESTORS TO HEAR THAT WE'RE
GOING TO KICK THE CAN DOWN THE
ROAD TO ANOTHER HEARING TO
ANOTHER HEARING TO ANOTHER
HEARING I THINK THAT'S ONE OF
THE THINGS ARE MOST AFRAID OF.
AND I THINK THAT I'M HOPING THAT
THE CHAIR AND THAT YOU HOPEFULLY
IN THE VERY NEAR FUTURE WILL SIT
DOWN WITH YOUR ATTORNEYS AND
HOPEFULLY WE ALL GET TO BE PART
OF THAT CONVERSATION BUT I WOULD
RATHER MOVE QUICKER THAN SLOWER.
I THINK THAT WE HAVE A VERY BAD
REPUTATION WHETHER IT'S WITH
INVESTORS ARE WITH OUR
CONSTITUENTS THAT WE TAKE
TOO LONG WE TAKE FOR EVER AND
HERE WE NOW FIND OURSELVES AT
YES BUT I WOULD CONSIDER CRISIS.
SO I DON'T PUT THE BLAME ON YOU
THIS IS OUR RESPONSIBILITY TO
ONLY LOOK AT SHARED RISK IRAQ
RELIABILITY I THINK SOME OF
THEIR ABOUT RELIABILITY IN THE
RISK HAS BEEN OUR OWN FAULT.
SOME OF THE REASON THESE FIRES
HAVE BEEN SO BAD.
ARE BECAUSE THE STATE HAS NOT
DONE OUR FAIR SHARE.
HOWEVER.
LIKE I THINK I AGREE WITH MY
COLLEAGUES AT THE BLAME GAME IS
OVER AND RIGHT NOW WE NEED TO
MOVE. AND SO I IMPLORE YOU AND
YOUR ATTORNEYS IF WE HAVE TO
HAVE ANOTHER HEARING THAT IT
SOON. THAT
WHAT WHEN THEY COME HERE THEY
COME HERE WITH SOLUTIONS AND
THEN WITH MY COLLEAGUES AND I
WHEN WE COME BACK HERE WE COME
BACK WITH SOME SOLUTIONS OF OUR
OWN. SO THAT WE CAN REALLY MOVE
THE BAR FORWARD ON THIS BECAUSE.
YOU KNOW WE CAN CALL THE CRISIS
ALL DAY LONG. AND WE CAN BE
UPSET ABOUT IT ALL DAY LONG BUT
AT THE END OF THE DAY INVESTORS
MOVE QUICKLY.
THEY MOVE OUT OF THINGS QUICKLY
THE MOVE INTO THINGS QUICKLY AND
I WOULD HATE TO SEE US GET ANY
IN TO ANY MORE DAMAGE THAN WE
HAVE WE HAVE PUT OURSELVES IN.
WELL I THINK YOU YOU SEE THERE'S
A CONSENSUS THAT THERE'S A LOT
OF INTEREST IN WANTING TO.
A MOVE FORWARD.
I THINK IT ALSO IS IMPORTANT A
NO SO THAT THIS IS ONE OF MANY
COMMITTEES WITHIN THIS
INSTITUTION THAT HAS A PIECE OF
THIS.
ISSUE YOU HAVE NATURAL RESOURCES
YOU HAVE JUDICIARY YOU HAVE. A
NUMBER. INSURANCE.
ARE ALL OF THESE COMMITTEES
TOUCH ON THIS ISSUE.
ARE WE ARE TRYING TO DEMONSTRATE
TODAY OUR COMMITMENT ARE AS IT
RELATES TO THE UTILITY AND
ENERGY SECTOR. THAT WE ARE ALL
IN AND TRYING TO HELP FIND A
SOLUTION.
BUT IT IS A GOD TO BE A
COORDINATED ONE BECAUSE THERE'S
A HOLISTIC SOLUTION THAT NEEDS
TO BE ADDRESSED. AND IT'S NOT
GONNA FALL JUST SIMPLY ON THIS
COMMITTEE.
BUT WE ARE HERE TO START THE
PROCESS AND TO ENGAGE ON THE
ISSUE.
A BUT IT IS GOING TO TAKE ALSO.
WEAVING AND INSURANCE.
BECAUSE THEY HAVE TO BE PART OF
THE CONVERSATION IS NOT JUST
BRING AN ATTORNEY AND TO THIS.
ROOM OR IN A BACK ROOM AND.
US FIGURE IT OUT OF THERE IT
CROSSES OVER TO MANY OTHER LINES
IN JURISDICTIONS AND THIS
COMMITTEE'S JURISDICTION IS VERY
CLEAR. AND DEFINED STATUTES SO.
I WILL SAY THAT.
WE ARE HAPPY TO.
.
WITHIN THE CONTEXT IN THE
CONTOUR THIS COMMITTEE HAVE
ANOTHER CONVERSATION IN AREAS
WHERE WE CAN GET. SOME LEGAL.
DIRECTION AND ALSO TO REALLY BE
IN A POSITION TO BRING THAT OUT
INTO A PUBLIC CONVERSATION I'M
JUST NOT SURE AT THIS POINT WHAT
ALL OF THE. RAMIFICATIONS WILL
BE.
AND.
AS WAS POINTED OUT.
A WHAT IS SAID FROM THIS.
DIES.
HAS TREMENDOUS IMPACT.
AND WE WANNA BE THOUGHTFUL.
ABOUT WHAT WE SAY WE WANT TO BE
CAREFUL.
ABOUT WHAT WE SAY.
IF SOMEONE TAKES ANYTHING OF
WHAT SAID HERE TODAY OUT OF ANY
KIND OF CONTACTS.
IT COULD POTENTIALLY CHANGE
MARKETS.
WE'RE COGNIZANT OF THAT.
AND SO I THINK IT'S IMPORTANT
FOR US TO BE CLEAR THAT THIS IS
AN IMPORTANT ISSUE I THINK IT'S
BEEN SAID VERY CLEARLY TODAY.
BUT WE CAN'T BE SO.
.
EAGER.
TO JUMP OUT THERE WITH THAT WE.
I HAVE AN UNINTENDED CONSEQUENCE
BY ANY OF OUR ACTIONS.
AND WE ALSO ARE CONCERNED
RIGHTFULLY SO ABOUT REPAIRS BUT
WE'RE ALSO CONCERNED ABOUT AND.
INVESTORS BUT WERE.
VARYING CONCERNED ABOUT RATE
PAYERS.
BECAUSE WHATEVER COMES OUT AS A
SOLUTION IS GOING TO HAVE AN
IMPACT ON THE RATE PAYERS.
YOU MAY SOLVE A INVESTOR PROBLEM
AND CREATE. A REPAIR PROBLEM.
SO WE'RE GOING TO BE VERY
DELIBERATE.
.
WE'RE GONNA BE VERY CLEAR AND
THOROUGH.
SO WHEN WE SPEAK IN WILL HAVE.
WE'LL FIGURE OUT A PROCESS OF
WHAT SOLUTIONS LOOK LIKE WHAT
THEY'RE GOING TO BE HOLISTIC
SOLUTIONS THAT ARE ALSO GOING
TO.
INVOLVE THE INSURANCE.
A COMMITTEE.
NATURAL RESOURCES COMMITTEE.
AND MANY OTHER COMMITTEES AS
WELL SO WITH THAT LET ME JUST.
TURN
TWO OF THE PUBLIC EYE WILL TAKE
SOME TIME TO HEAR FROM YOU IF
THERE ARE ANY.
SPEAKERS ARE WOULD LIKE TO
ADDRESS THIS WITH THE QUESTION
OR STATEMENT.
TAKE A MINUTE TO DO SO AND GIVE
US AN OPPORTUNITY SPAWNING.
MISTER CHAIRMAN AND MEMBERS
SCOTT WHICH IN BEHALF THE
CALIFORNIA COALITION OF UTILITY
EMPLOYEES.
I REPRESENT THE MEN AND WOMEN
WHO GO OUT AND RISK THEIR LIVES
IN WEATHER LIKE WE HAVE TODAY.
TO KEEP THE SYSTEM RUNNING.
I FEEL MISTER CHAIRMAN LIKE I'VE
STEPPED INTO A PARALLEL UNIVERSE
HERE TODAY.
BECAUSE THE PRESENTATION BY THE
PRESIDENT.
AND HIS STAFF.
ABOUT HOW THE COMMISSION PLACES
THE HIGHEST PRIORITY ON SAFETY.
DOES NOT RESEMBLE ANYTHING THAT
WE WITNESSES AT THE ACTUAL
PROCEEDINGS IN SAN FRANCISCO.
I WOULD SUBMIT TO THE TO THIS
COMMITTEE THE IF YOU APPLIED
PRUDENT CARE TEST.
TO THE ACTIONS OF THE COMMISSION
OVER THE LAST DECADE YOU'D FIND
THEM.
A LIABLE OF FOR THE MAJORITY OF
WHAT WE'RE FACED WITH.
I WOULD SUBMIT THAT THE
COMMISSION'S SPENDS LESS THAN
FIVE PERCENT OF THEIR TIME.
PROBABLY CLOSER TO TWO PERCENT
OF THEIR TIME WHEN REVIEWING IT
GENERAL RATE CASE IN DECIDING
HOW MUCH.
MONEY AND RESOURCES.
PLACE INTO INVESTING INTO THE
SYSTEM.
OR GIVE YOU ONE EXAMPLE IN THE
LAST SOUTHERN CALIFORNIA EDISON
CASE.
WE SUBMITTED TO THE COMMISSION
DATA THAT SHOWED AND
DEMONSTRATED THE NEEDS REPLACE
BRITTLE AND DANGEROUS POLLS.
THE AMOUNT OF MONEY THAT WAS SET
ASIDE BY THE COMMISSION. WOULD
HAVE ALLOWED OF EDISON TO
REPLACE THEIR BRITTLE POLLS WERE
ACTUALLY ALL OF THEIR POLLS IN
ABOUT TWO HUNDRED YEARS.
I HAVEN'T COME ACROSS A POLL YET
THAT LASTS TWO HUNDRED YEARS.
THEY BECOME SO ENAMORED WITH
SHINING.
SHINY NEW TECHNOLOGIES AND
PROGRAMS.
BUT THERE COR.
FOCUS ON SAFETY.
HAS BEEN LOST.
TWO GRAY IN TAKE AWAYS FROM MY
CLIENTS TODAY IS THAT THE
PRESIDENT HAS THIS COMMITMENT TO
SAFETY ANY SUPPORTED SOME REALLY
CAPABLE PERSON HAD THE
DEPARTMENT.
OUR CONFIDENCE.
IT'S SORT.
I'LL GIVE YOU FEW EXAMPLES.
THERE IS NO THE PROBLEM WITH THE
PROCESS THE P. YOU SEE IS.
WHEN THEY INVENT WHEN THEY.
DIRECT AM I YOU TO PUT MONEY
INTO MAINTAINING THE SYSTEM.
REPLACING FAULTY TRANSFORMERS
ARE READY TO EXPLODE REPLACING
BRITTLE POLLS.
THEY NEVER GO BACK AND REQUIRE
THE UTILITY TO COME BACK AND
DEMONSTRATED WAS ACTUALLY SPENT
THE WAY IT WAS MEANT TO BE
SPENT.
NOW I THINK BECAUSE
IT'S BEEN RAISED TO EXTENT.
GOING FORWARD.
STARTING WITH THE SEPARATE CASE
IN THREE YEARS FROM NOW WE'LL
FIND OUT IF THEY SPENT THE MONEY
IN THIS LAST RATE CASE.
THE WAY IT WAS MEANT TO BE
SPENT.
AND I'M I'M SORRY I I THINK KIND
IF DID MENTION OF WE HAVE A
MINUTE TO EITHER MAKE THEM OUT
ALRIGHT WATCHES OR CHAIR OF THE
STATE.
IF I WOULD ASK THE.
COMMISSION HELMI ON BUNKS IN
THE LAST DECADE A DECADE HAVE
YOU HAD ONE ON FIRE SAFETY AND
SAFE OR SAFETY OF THE SYSTEM
BEFORE THESE FIRES.
IN ROUND NUMBERS I THINK THAT
WOULD BE ZERO.
THE WAY THAT THAT THE MISTER
CHAIRMAN THE FOR THE THE PROBLEM
IS IS THAT WHEN REEF WE WILL
MAKE DECISIONS THE P. UC.
ONE.
EXPENSIVE THINGS LIKE NET
METERING OR HOW MUCH WE'RE GOOD
INVEST IN FUEL CELLS.
THERE'S NO PRIORITIZATION IS NO
SUSPENSE FILE IF YOU WILL AT THE
P. YOU SEE SO I DON'T THINK WITH
THIS MONEY BE BETTER SPENT.
INSURING THE SAFETY OF THE
SYSTEM.
MISTER CHAIRMAN WE'RE GONNA BE
SUBMITTING TO THE COMMITTEE AND
ITS MEMBERS A LIST OF ALL THE
FILINGS THAT WE'VE MADE.
WITH DOLLARS AND DOCUMENTATIONS
OF THE AMOUNT OF SAFETY
IMPROVEMENTS WAS DEATH WE'VE
ASKED THE COMMISSION TO ADOPT
OVER THE LAST DECADE. AND HOW
MUCH THEY ACTUALLY FUNDED FOR
THOSE. ACTIVITIES
THANK YOU
THANK YOU.
PLEASE TAKE OF THEM.
MOST WAS SO FIRM I WILL SAY THAT
NOT ONLY DID WE HAVE A ON BOND
SIMPLY TO LOOK AT WHEN POLLS AND
THEIR SAFETY RISK IN THEIR CARE
AND FEEDING WE PUBLISHED A
BOOKLET. CALLED THE NATURAL
HISTORY OF THE WOODEN POLE ALL
BE HAPPY TO GIVE ALL MEMBERS OF
THE COMMITTEE. I TOURED.
NOT ONE BUT TWO DIFFERENT SITES
OF DISASTERS THAT OCCURRED AS A
RESULT OF THE FAILURE WOODEN
POLES. HAD NUMBER OF
CONVERSATIONS WITH AYE BE LITTLE
W. LOCAL TWELVE FORTY FIVE STAFF
ABOUT THE ABOUT THIS BECAUSE
SAFETY. TALK TO UTILITY
ENGINEERS. THAT WE HAD A ARE ALL
PARTY TO SPECIFICALLY LOOK AT
THE EXPENDITURES THAT U. S.
SOUTHERN CALIFORNIA EDISON WAS
MAKING IN THAT CASE THE.
THAT.
ARM.
MISTURA ON SORRY.
BECAUSE MR WHICH WAS SPEAKING
ABOUT. AND. OUR CHALLENGES AGAIN
THERE WE'RE BOUND BY THOSE
THINGS THAT ARE IN THE RECORD
AND SO OTHER COMMISSIONERS FOUND
A OTHER ARGUMENTS VERY
COMPELLING I DON'T THINK WE
AGREED WITH.
WITH Q. ON THEIR ARGUMENTS I DO
AGREE THAT WE NEED TO MOVE VERY
QUICKLY I WILL NOTE THAT ONE OF
THE REASONS WHY WE HAVE A
BACKLOG IS THAT IN THE DOWN
ECONOMY OF TWO THOUSAND THROUGH
TWO THOUSAND AND TWELVE.
THERE WAS A RELUCTANCE ON THE
PART OF UTILITIES.
AND OF P. YOU SEE COMMISSIONERS
TO VOTE FOR RATE INCREASES TO
REPLACE WOODEN POLES I DISAGREE
WITH THAT WERE MOVING MORE
QUICKLY BUT I DON'T THINK THEY
WERE GOING TO REPLACE ALL FOUR
POINT TWO MILLION POLES. IN A
TIME CERTAIN.
I THINK WE ARE SEEKING TO
PRIORITIZE THEM WERE SEEKING TO
GET BETTER INFORMATION ON WHAT
THE TRUE LIFE OF A POLL IS THEIR
OPINION RANGE FROM SEVENTY YEARS
DOWN TO FORTY YEARS. KNOWING
COOPER COULD REALLY GIVE A
STRONG EVIDENCE EXCEPT THE
AVERAGE
SO I THINK.
WE'RE STILL STRUGGLING WITH IT
I DON'T KNOW THAT THEIR SEA
URCHIN ANSWER IN A LITIGATED DUH
SETTING TO THAT KIND OF A
QUESTION
BUT I DO FEEL LIKE WE SPENT SOME
TIME TALKING ABOUT THIS.
I'D BE HAPPY TO SHARE A COPY OF
OUR NATURAL HISTORY OF WOODEN
POLES.
CORPORATE THAT.
I DON'T SEE ANYONE ELSE
APPROACHING THE MICROPHONE SO
I'M GOING TO TAKE THAT TO MEAN
THAT THERE'S NO ONE ELSE WOULD
LIKE TO.
I TAKE THIS OPPORTUNITY TO GIVE
US PUBLIC INPUT.
AND IF THAT'S THE CASE ALL TURN
TO OF OTHER MEMBERS MISTER.
CUNNINGHAM YOU'VE NOT HAD AN
OPPORTUNITY TO SPEAK SO
RECOGNIZE YOU THANK YOU MISTER
CHAIR.
THANK YOU FOR COMING TODAY AND.
I WAS GOING TO ASK WHETHER YOU
ARE CONCERNED ABOUT THE
DOWNSTREAM EFFECTS OF THESE
ISSUES ON. PLACES LIKE TOPAZ
SOLAR FARM. BUT FROM YOUR
COMMENTS EARLIER.
IT SOUNDS LIKE THAT'S ON YOUR
RADAR. WELL YEAH I THINK IS A
GOOD THING BECAUSE ESSENTIALLY
WHAT WE'RE SEEING IN THE MARKET
IS A LINKAGE BETWEEN.
VIEWS OF I OR USE AND OTHER
COMPANIES THAT REQUIRE AND RELY
ON I USE FOR PURCHASE.
CONTRACTS
AND THEY'RE BEING PULLED.
WHATEVER MOVEMENT.
IS HAPPENING WITH I USE ITS
POLLING A LOT OF OTHER.
MOONS INTO THE ORBIT.
SO TO SPEAK AND.
I THINK THAT RAISES BIG.
ISSUES PARTICULARLY WITH RESPECT
THE.
.
THE GOALS WE HAVE SET FORTH IN
CALIFORNIA LAW.
A FOREIGN HAVE RENEWABLE.
TARGETS AND REPLACEMENT OF THE
LOST ENERGY PRODUCTION WENDY
ABLE CAN IT CLOSES.
WHICH IS AS YOU KNOW IS IN MY
DISTRICT.
SO JUST ANY AGAINST MY QUESTION
WOULD BE.
.
WHAT AREAS BESIDES SO WHERE ARE
WE SEEING THESE EFFECTS IN OUR?
ARE.
ARE YOU IS THERE ANYTHING
CONCRETE THAT YOU NEED US TO DO.
AT SOME POINT IN TIME.
TO HELP ADDRESS THAT ISSUE.
I THINK THIS CONTINUING DIALOGUE
AS TO WHAT THE LEGISLATURE
CONSIDERS TO BE THE APPROPRIATE
SOLUTIONS IS VERY IMPORTANT I
THINK THEY WE'VE BEEN TALKING
ABOUT PUBLICLY THEIR OVERALL
CONCERN. WE'VE BEEN TRYING TO
SPEAK TO THE ANXIETY OF THE
CAPITAL MARKETS BUT I THINK THEY
WANT TO SEE THAT ACTIONS THE
STATE IS ACTUALLY CONSIDERING.
SINCE NOT ALL OF THOSE ARE
WITHIN THE CPU SEIZE CONTROL I
THINK THAT IT'S IMPORTANT TO
FOLLOW UP. ON WITH EXACTLY WHAT
THE CHAIRS TALKING ABOUT WITCHES
SO I'M SERIOUS DISCUSSION ABOUT
WHAT FEASIBLE WE CAN BE DONE. I
DON'T THINK WE WANT TO SERVE UP
THINGS THAT LOOK GOOD.
BUT WHICH THEY DON'T THINK ARE
LIKELY TO ACTUALLY BEAR OUT
OVERTIME THEY WANT.
THEY WANT SOME FAIRLY CALM
CLEAR.
EFFECTIVE.
IDEAS PUT ON THE TABLE I THINK
THAT WILL WILL RESTORE THEIR
CONFIDENCE AND BOTH OF THE THE
THE HIGHEST POLICYMAKERS IN THE
STATE. AND THEN THE AGENCY THAT
EFFECTUATE YOUR POLICY THE CPU
SAY.
AGAIN THANK YOU FOR FOR COMING
OUT TODAY AND AS I SAID AT THE
VERY BEGINNING THIS IS NOT THE
FIRST IN THE END OF OUR
CONVERSATION IS NOT DESIGNED TO
JUST HAVE A.
A MEANDERING SERIES OF MEETINGS
IT IS TRYING TO GET TO A PLACE
WHERE WE CAN. BE IN A POSITION
TO GIVE WHAT YOU VAST FOR THE
VERY BEGINNING A SOME DIRECTION.
I KNOW THAT.
.
THERE ARE A LOT OF IMPORTANT
PIECES THEIR TO THE KIND OF
DIRECTION THAT I THINK WE'RE
GOING TO NEED TO GIVE AND THAT'S
GOING TO TAKE.
A MINUTE JUST TO COORDINATE.
HIS AS I SAY THIS IS NOT THE
ONLY COMMITTEE THAT HAS SOME
DEGREE OF JURISDICTION OVER THIS
ISSUE AND I THINK IT'S GOING TO
BE IMPORTANT IF WE'RE GOING TO
DO THE RIGHT THING.
AND DO THE FAIR THING
AND DO WHAT IS RIGHT NOT ONLY
FOR INVESTORS INVESTOR OWNED
UTILITIES POOR FOR THE RATE
PAYERS IN THE STATE. WE HAVE TO
BE SMART ABOUT HOW WE MOVE
FORWARD AND AND SO GATHERING
INFORMATION. AND INVADING IN A
BETTER POSITION TO THEN.
BE RESPONSIVE IS OUR GOAL SO
AGAIN THANK YOU FOR FOR COMING
OUT TODAY WE WILL ALL RESPECT
OUT TO ENSURE TERM APPRECIATE
YOUR WILLINGNESS TO COME BACK
EVEN TOMORROW.
TO MEET WITH US.
THIS INFORMATIONAL UNLESS
THERE'S A CLOSING ANYTIME AFTER
I'VE HAD MY SECOND CUP OF COFFEE
YOU GOT IT. THIS INFORMATION OR
HEARING IS ADJOURNED