I'D LIKE TO CALL TO ORDER OF THE
ASSEMBLY COMMITTEE ON UTILITIES
AND ENERGY THIS IS OUR ANNUAL
OVERSIGHT HEARING --
FOR ANY REVIEW OF THE CALIFORNIA.
PUBLIC UTILITIES COMMISSION AND
THE PUBLIC ADVOCACY OFFICER
OFFICE.
WE ARE HAVING A HEARING SO WE'RE
GOING TO WELCOME MEMBERS AS THEY
AS THEY MAKE THEIR WAY --
HERE -- WE
WON'T HAVE ROLL CALL BUT WILL
HAVE AN OPPORTUNITY --
HOPEFULLY AT SOME POINT TO HAVE
A MAJORITY OR OF OUR COMMITTEE
PRESIDENT --
I'D LIKE --
TO WELCOME BACK THOSE MEMBERS
WHO ARE PART OF THIS COMMITTEE
AND RECOGNIZE THAT IN THE
OBVIOUSLY HAD A LOT OF ACTIVITY
TAKING PLACE THAT.
REVOLVE AROUND OF THE IMPORTANCE.
OF RESPONSIBILITIES OF THIS A
COMMITTEE.
AT ALSO --
EVEN THOUGH SHE IS NOT HERE JUST
YET WE HAVE.
ONE NEW MEMBER --
WHO WILL BE JOINING OUR
COMMITTEE ASSEMBLY MEMBER WENDY
CARILLO?
OF FROM THE LOS ANGELES AREA WE
REALLY LOOK FORWARD TO HER
PARTICIPATION --
WE ALSO WELCOME BACK ALL OF THE
MEMBERS WHO.
WERE PART OF THIS COMMITTEE LAST
YEAR WE HAVE ALSO THE WE'VE BEEN
BLESSED WITH TWO NEW PEN MEMBERS
OF OUR STAFF --
THAT HAVE JOINED US THIS YEAR OF
SOME OF YOU I THINK WE'VE HAD A
CHANCE TO MAKE OUR WAY THROUGH.
EVERY MEMBER OF THE COMMITTEES
OFFICE TO INTRODUCE MY YOU
ALREADY KNOW MERRY.
US LAST YEAR SHE WAS WITH THE
CALIFORNIA.
INDEPENDENT SYSTEM OPERATOR AND
HAS BEEN INVOLVED IN.
A UTILITY ENERGY WORLD FOR MANY
YEARS --
WE'RE ALSO SO WELCOME MERRY --
WE ALSO JOINED BY HIM AS TAYLOR
WHO IS OUR COMMITTEE ASSISTANT.
AND AND AS HAS BEEN A PART OF
THE CAPITAL COMMUNITY FOR MANY
YEARS AND SHE JOINS US AND WE
ARE SO.
PROUD TO HAVE HER BE A PART OF
THIS TEAM A KELLY SMITH.
WILL BE CONTINUING. TO BE A PART
OF OUR COMMITTEE STAFF AS A
RETIRED ANNUITANTS SO THERE'S A
LITTLE DOWNTIME BEFORE WILL.
A C. KELLY BACK WHICH WILL BE A
PART OF OUR EFFORTS GOING
FORWARD.
I CERTAINLY.
OF FIND THIS APPROPRIATE --
THAT WE START THIS LEGISLATIVE
SESSION BY HOLDING THIS ANNUAL
OVERSIGHT HEARING OF THE CPUC.
AND THE OFFICE OF THE PUBLIC.
WE ENDED LAST SEASON THEIR LAST
SESSION.
WITH THE PASSAGE OF THE WILDFIRE.
PROTECTION ACT SB NINE A ONE
THAT MEASURE SET IN MOTION A
SERIES OF CRITICAL ACTIONS.
THAT THE CPUC HAS BEEN MANDATED
TO UNDERTAKE.
TRAGICALLY.
AFTER THE PASSAGE OF THAT
LEGISLATION A DEVASTATING AND
DESTRUCTIVE AND DEADLY FIRE
CONSUME THE TOWN A PARADISE.
AND OTHER NEARBY COMMUNITIES
LEAVING A PATH OF DEATH.
AND DESTRUCTION.
THIS HEARING PRESENTS OUR FIRST
FORMAL OPPORTUNITY HERE FROM THE
CPUC ABOUT HOW THEY ARE
IMPLEMENTING THE IMPORTANT
PROVISIONS OF THE WALL FIRE
PROTECTION ACT SB NINE A ONE
THIS IS PARTICULARLY IMPORTANT
BECAUSE ACCORDING TO THE CBC.
THERE ARE NEARLY FOUR MILLION
CALIFORNIANS WHO LIVE IN HIGH
RISK FIRE RISK AREAS WHICH MAKES
UP 44% OF CALIFORNIA'S LAND MASS.
THERE ARE ONE POINT FOUR MILLION
HOUSING UNITS WITHIN THE HIGH
FIRE THREAT AREAS.
FURTHER IT IS ESTIMATED THAT
FOUR POINT TWO MILLION WOODEN
POLE UTILITY POLES.
AND TWO HUNDRED THOUSAND MILES
OF OVERHEAD ELECTRIC LINES
CROSSING THROUGH THESE EXPANDING
HIGH FIRE.
HAZARD AREAS.
ARE SERVING GROWING POPULATIONS.
THIS INSTITUTION RECOGNIZE THE
CHALLENGES THAT CLIMATE CHANGE
PRESENTS [inaudible]
CALIFORNIA'S INGENUITY AND TO
NASA THE WILL SERVICE WELL AS WE
WORK TOGETHER TO HARDEN AND
INNOVATE OUR ENERGY
INFRASTRUCTURE SO THAT
COMMUNITIES THROUGHOUT THE STATE.
COULD WITHSTAND THE PERILS OF
OUR CLIMATE CHANGING.
AS YOU KNOW YESTERDAY PACIFIC
GAS AND ELECTRIC FORMALLY FILED
FOR BANKRUPTCY REORGANIZATION
UNDER CHAPTER.
ELEVEN THE FOCUS OF THIS HEARING
IS NOT P. JEANNIE RECENT
BANKRUPTCY FILING [inaudible]
HOWEVER.
I WOULD ASK THAT.
IN PRESIDENT PICKERS
PRESENTATION --
THAT THERE BE ADDRESSING OF THE
COMMISSION'S ROLE IN THE
BANKRUPTCY PROCEEDINGS IN THE
PROCESS.
I'M ALSO SURE THE MEMBERS OF
THIS COMMITTEE WILL JOIN ME IN
SUPPORTING THE IMPORTANCE AND
MAINTAINING THE RELIABILITY AND
SAFETY OF THE ENERGY
INFRASTRUCTURE.
THE STABILITY OF RATES AND THE
ONGOING ADMINISTRATION OF OUR
PUBLIC PURPOSE PROGRAMS.
IT IS ALSO IMPORTANT THAT THE
VICTIMS OF THESE TRAGIC FIRES DO
NOT AGAIN BECOME VICTIMS AND THE
CHAPTER ELEVEN PROCESS.
WE'RE LOOKING FORWARD TO THE
RESULTS OF THE BLUE RIBBON TASK
FORCE.
THAT WAS ESTABLISHED IN SB NINE
A ONE AND WILL CONTINUE TO WORK
IN CONCERT.
WITH THE GOVERNOR.
AND OUR COLLEAGUES IN THE
LEGISLATURE AS THE BANKRUPTCY
PROCESS UNFOLDS.
NOW IF I COULD I'D LIKE TO A
WELCOME MICHAEL PICKER PRESIDENT
OF CPUC.
AND HIS TEAM IF HE LIKE TO BRING
THE FOUR TO JOIN US AT THE TABLE.
A LET ME JUST ALSO SAY THAT THE
THE A COMMITTEE MEMBERS WILL
HAVE.
THE OPPORTUNITY TO ASK QUESTIONS
OF PRESS PRESIDENT PICKER --
AS HE CONCLUDES HIS PRESENTATION.
AND WE'RE ALSO JOINED BY
ELIZABETH ACKLES DIRECTOR OF THE
OFFICE OF PUBLIC ADVOCATES.
WHO WILL PROVIDE HER BRIEF
PRESENT VERSION?
OF THE CPUC PRESENTATION.
OF THEN WE WILL AT THE
CONCLUSION OF MEMBERS --
QUESTIONS WILL TURN TO THE
PUBLIC -- TO
RECEIVE QUESTIONS OR RECEIVE
COMMENTS FROM THE PUBLIC.
AGAIN --
PRESENT PICKER WE THANK YOU.
FOR JOINING US AS YOU ALWAYS DO
IT IS ANNUAL REVIEWS --
WE SPECIALLY LOOK FORWARD TO
YOUR PRESENTATION TODAY IN THE
HOW THE PC IS LOOKING TO ADDRESS
THE ISSUES OF IMPLEMENTATION OF
NINE A ONE THANK YOU.
WHICH WHEN.
CONTROL YEAH YEAH WITH A PARTIAL.
HOUSES BETTER --
I MICHAEL PICKER AND WITH ME
TODAY IS OUR EXECUTIVE DIRECTOR
ALICE EVON SHE WAS BRAND NEW
LAST YEAR WHEN I SPOKE TO YOU
AND THE OUR SAFETY IN
ENFORCEMENT DIRECTOR LISA VEDA
MALASHENKO AND THE ED RANDOLPH
WHO'S ARE GONNA ENERGY DIVISION
DIRECTOR.
SO AS WE GET INTO QUESTIONS AND
AND YOU HAVE THE NEEDED SOMEBODY
WHO CAN ANSWER MORE CLEARLY OR
IN MORE DETAIL QUESTIONS THE YOU
HAVE THEN I CAN.
THEIR HERE.
I KNOW THAT YOU HAVE A LOT OF
QUESTIONS ABOUT IMPLEMENTATION
OF SB NINE ONE AND I'M SURE THAT
THERE ARE FOLKS WHO HAVE
QUESTIONS ABOUT UTILITY
BANKRUPTCIES.
BUT BEAR WITH ME BECAUSE I FEEL
LIKE BECAUSE THIS IS THE DAY
THAT WERE SUPPOSED TO DELIVER
OUR ANNUAL REPORT TO YOU THAT I
HAVE TO ACTUALLY SPEAK ABOUT
SOME OF THE THINGS THAT WE'VE
DONE IN ADDITION TO THAT.
SO JUST A SNAPSHOT OF WHERE WE
ARE IN CLEAN ENERGY HERE IN
CALIFORNIA.
IN TWO THOUSAND SIXTEEN PACIFIC
GAS AND ELECTRIC BASICALLY
SERVED ALL ABOUT 33% OF THE
ELECTRICITY TO THEIR CUSTOMER
FROM RENEWABLE ENERGY SOURCES.
ARE IN TWENTY TWENTY WE PROJECT
THAT THAT AMOUNT WILL BE ABOUT
50% OF THEIR ELECTRICITY SUPPLY
COMING FROM.
RENEWABLE ENERGY SOURCES
SOUTHERN CALIFORNIA EDISON IN
TWO THOUSAND AND SIXTEEN WAS SET
AT 28% BY TWENTY TWENTY THEY
SHOULD BE AT 40%.
ESTY JEANNIE SANDY --
GAS ELECTRIC IS CURRENT WITH
INTO THE IN TWENTY TWENTY
THEY'LL BE AT FORTY FIVE PLUS
SOME CHANGE PERCENT.
THIS IS ALL IN ADVANCE OF THE
STATUTORY EXPECTATION THAT THEY
WOULD BE AT 33%.
THE ARE THESE CONTRACTS IS FOR
FOR RENEWABLE PORTFOLIO STANDARD
PROJECTS THAT THE CLEAN ENERGY --
PROJECTS --
THE PRICES FELL ABOUT NINE POINT
5%.
EACH YEAR BETWEEN TWO THOUSAND
SEVEN AND TWO THOUSAND FIFTEEN
SO WE WERE SUCCESSFUL IN OUR
ASSUMPTION THAT THIS KIND OF
BALL PORTRAIT PURCHASING WOULD
ACTUALLY HELP TO DRIVE DOWN
PRICES IN THE MARKET AND GAIN
EFFICIENCIES IN COMPETITION
WITHIN THE FIELD.
THE TWO THOUSAND SEVENTEEN
AVERAGE PRICE ACROSS THE
PORTFOLIO IN CALIFORNIA WAS FOUR
POINT SEVEN CENTS PER KILOWATT
HOUR THAT'S COMPETITIVE WITH THE
NEW NATURAL GAS PLANT.
A VERY HIGHLY COMPETITIVE WITH
MOST OTHER --
KIND OF CONVENTIONAL GENERATION.
SOME UNVERIFIED REPORTS THAT ARE
IN THE SOUTH WEST OF TO CENTS
PER KILOWATT HOUR DESERT SOLAR
AND FOUR CENTS PER KILOWATT HOUR
FOR FOR SOLAR PLACE BATTERIES
THAT COMES FROM OUR ARE THE
COULD EVERYTHING KEPT FOR THE
LAST THE THE UNVERIFIED REPORTS
COMES FOR OUR ANNUAL.
RENEWABLE PORTFOLIO STANDARD
REPORT WHICH WAS DELIVERED.
LAST OCTOBER TO THE LEGISLATURE
[inaudible]
SO.
SOME THINGS ARE WORKING VERY
WELL -- I
JUST WANT EVERYBODY TO HAVE
HEART THEY WERE ACTUALLY
DELIVERING THE THE REQUIREMENTS
OF THE LEGISLATURE AND MAKING
PROGRESS ABOVE AND BEYOND THAT.
I THINK IT WILL BE ABLE TO HIT
THE THE TWENTY THIRTY GOALS FOR
CLEAN ELECTRICITY IN IN SB ONE
HUNDRED WHICH ADOPTED LAST YEAR.
HANDILY 60% IF WE'RE AT THESE
LEVELS NOW AND AT A GOOD PRICE
THE CHALLENGE WILL BE.
MEETING YOUR CARBON áUCTION
GOAL SINCE WE GOT 2100%
RENEWABLES AND STILL MESS ARE
TWENTY THIRTY AND TWENTY FIFTY
CARBON WILL ALSO COME BACK TO
THAT IN A BIT.
SO A LOT OF MAJOR FOCUS
INTERNALLY TRYING TO BUILD THE
BUSINESS SYSTEMS THAT THE CPUC
NEEDS TO SUPPORT EVER OTHER
EFFORTS TO MODERNIZE --
WE HAVE A NEW EXECUTIVE DIRECTOR
ENGAGING IN A LOT OF INTERNAL
RESTRUCTURING --
WE HAVE STRONGER BUSINESS
SERVICES BUT I THINK WE HAVE A
LONG WAYS TO GO LIKE ALL OTHER
STATE AGENCIES WE HAVE A LOT
CHALLENGES AND TAKING ADVANTAGE
OF NEW THINGS IN INFORMATION
TECHNOLOGY --
WE'RE WORKING WITH CAL I. T. AND
WE HAVE A NEW I. T. DIRECTOR TO
SOMEBODY WHO IS REALLY FRESH AND
HAS EXPERIENCE ELSEWHERE WITH
MODERNIZING THEIR SYSTEMS.
A AND WE HAVE NEW INTERNAL AND
EXTERNAL AUDITORS. TO THE RECENT
HIRING OF JENNY ALLEN IN
ASUNCION FROM --
FROM A ONE OF THE STATE'S HEALTH
AGENCIES WITH A LOT OF
EXPERIENCE AN INTERNAL AUDITING
BRINGING NEW RIGOR.
I THINK THAT THAT WAS --
US A TREMENDOUS STEP FORWARD
BECAUSE OF HER EXPERIENCE
WORKING IN STATE GOVERNMENT
PROGRAMS.
UP PROGRESS IN RESOLVING OUR OUR
PROCEEDINGS WITHIN THE TIME
LINES THAT YOU'VE ESTABLISHED
FOR US WE LAST YEAR WE RESOLVED
TWO HUNDRED NINE PROCEEDINGS IN
WITHIN THE TIME LIMITS THAT THAT
WE ARE SO EXPECTED TO REACH.
THIRTY THREE OF THEM ARE
RESOLVED WITH EXTENSIONS RANGING
FROM TWO WEEKS TO SIX MONTHS
MOST OF THOSE WERE TO
ACCOMMODATE A SETTLING PARTIES
OR TO DEAL WITH SOME
CONTROVERSIAL ISSUE THAT THAT
THE PARTIES ARE STUCK ON NONE OF
THESE.
WERE RESOLVED LATE --
TWO HUNDRED EIGHTY SIX ARE STILL
UNDER WAY WE HAVE ABOUT --
ABOUT.
SIX HUNDRED THE PROCEEDINGS A
YEAR THAT WE DEAL WITH --
THERE'S ONE EXCEPTION WHICH IS
BECAUSE OF THE COMPLEXITY FOR
THE LARGE ENERGY AGENCIES OF
THEIR GENERAL RATE CASES.
THERE IS ACTUALLY REQUEST FROM
SOME OF THE PARTIES AND FROM
SOME OF THE UTILITIES THAT
RATHER THAN DO THIS ON A THREE
YEAR ROLLING BASIS WE GO TO A
FOUR YEAR BASIS.
SO WE JUST WANT TO SIGNALED THAT
THERE'S NOT ONLY AN EXPECTATION
THAT THIS IS BECOMING MORE
COMPLEX GOING TO TAKE MORE.
TIME ON OUR PART BUT ALL THE
OTHER PEOPLE COME BEFORE US AND
ARE HIGHLY LEGALISTIC LITIGATED
PROCEEDINGS ARE ASKING FOR MORE
TIME.
I'LL POINT TO SOMETHING I'VE
TALKED ABOUT BEFORE WHICH IS
THAT WE HAVE OVERLAPPING
AUTHORITY WITH OTHER STATE
AGENCIES SO IN ORDER TO REALLY
ACCOMPLISH THE STATE'S GOALS WE
HAVE TO LEARN HOW TO WORK
CLOSELY WITH OTHER STATE
AGENCIES SO ARE EXAMPLES ARE.
WE HAVE AN AMMO YOU A MEMBER AND
OF UNDERSTANDING WITH CAL FIRE
AND THE OFFICE OF EMERGENCY
SERVICES.
WE HAVE FOCUSED A LOT TOGETHER
HOW DO YOU DE ENERGIZE WHOLE
SEGMENTS OF THE ELECTRIC SYSTEM
IN HIGH RISK AREAS TO REDUCE THE
RISK OF FIRE.
WHEN AT THE SAME TIME YOUR
SOMETIMES CUTTING SERVICES TO
THOSE EMERGENCY RESPONDERS WHO
NEED TO BE ABLE TO HAVE
ELECTRICITY TO PUMP WATER OR FOR
TELECOMMUNICATIONS --
IT'S OF ENORMOUSLY COMPLICATED.
WE KNOW THAT IT CAN HELP TO
REDUCE RISK BUT WE ALSO KNOW
THAT IT CREATES A DIFFERENT KIND
OF RISK.
WE HAVE CONTINUED TO WORK WITH
CAL FIRE GOING BACK TO THEIR
FIRE -- FUEL
HAZARD MAPS --
WHICH THE THEY PRODUCED FOR US
IN THE NEW VEGETATION STANDARDS
WHICH ARE NOW BEING IMPLEMENTED --
WE'VE BEEN WORKING A LOT WITH
THE CALIFORNIA ENERGY COMMISSION
WHERE WE ACTUALLY RATHER THAN
HIRING MORE STAFF TO DEAL WITH
LAND USE PERMITTING AND AND
CALIFORNIA OF OUR MIDDLE QUALITY
ACT PROCEEDINGS.
WE HAVE USED THEIR STAFF HAS THE
AMOUNTS OF PERMITTING THAT THEY
DO GOES DOWN BECAUSE A LOT OF
THE TECHNOLOGIES ARE ACTUALLY.
IN THE HANDS OF LOCAL
GOVERNMENTS.
WHO ARE JUST VERY RECENTLY WE
COMPLETED A NEW MEMBER OF
UNDERSTANDING WITH CAL RECYCLES
ON WHAT DO YOU DO WITH BATTERIES
AND?
AND SOLAR PANELS AT THEIR END OF
LIFE AS WE AS WE START TO SEE A
LOT OF THE OLD PEAVY PANELS
AGING.
THEY'RE GONNA GO SOMEWHERE
WHAT'S THE RIGHT WAY TO HANDLE
THEM CAN BE RE MANUFACTURE.
A SIMILARLY WITH BATTERIES OR
HAS NOT BEEN A LOT OF STUDY WE
DON'T WANT TO CREATE THE KIND OF
PROBLEM THAT WE SAW WITH CATHODE
RAY TUBES.
WERE THE ONLY PLAN THAT TH
STATE OF CALIFORNIA HAD WAS
SHIPPED TO CHINA.
BECAUSE THE CHINESE ARE NOT
TAKING THEM ANYMORE STATE WE
HAVE TO COME TO GRIPS WITH THIS.
AND THEN WE CONTINUE TO WORK
WITH THE ENERGY COMMISSION AND
THE CALIFORNIA INDEPENDENT
SYSTEM OPERATOR TO REGULARLY
MEET TO MONITOR AND PLANNED FOR
RELIABLE ELECTRICITY AND GAS
SERVICE WE RECENTLY HAD ACE A
HEARING AT THE CALIFORNIA ENERGY
COMMISSION. TO TALK ABOUT THE
CHALLENGES OF BRINGING A SEE AN
FOR HOME HEATING AND COOKING AND
FOR BUSINESS IN THE SOUTHERN
CALIFORNIA REGION WITH A NUMBER
OF IMPORTANT GAS LINES GOING OUT
OF SERVICE AND THE THE REDUCED.
CAPACITY AT THE LEASE OKAY ANY
GAS STORAGE FACILITIES.
NUMBER OF NEW POLICY INITIATIVES
WE APPROACH THIS YEAR INCLUDE --
SOMETHING ON BUILDING D.
CARBONIZATION IS CALLED FOR IN
SB THREE FIFTY AN SP FOURTEEN
SEVENTY SEVEN AND IN THE
INTERVIEW COMMISSION'S NET ZERO
BUILDING STANDARD.
OF IT IS IMPORTANT TO UNDERSTAND
THAT TO GET TO OUR TWENTY THIRTY
AND TWENTY FIFTY CUT GREENHOUSE
GAS EMISSION REDUCTION GOALS WE
CAN'T JUST DO WITH CLEAN
ELECTRICITY WE HAVE TO USE
REDUCE THE USE OF GAS.
IN IN IN EXCEPT IN THE MOST
CRITICAL AREAS SIMILARLY WE HAVE
TO LOOK TO USE OF CLEAN ELECTRIC
FUEL'S AS A AS AS A PART OF OUR
TRANSPORTATION SYSTEM.
WE DID STANDARDS ON
DISCONNECTION IT SHOULD BE WE
SET STANDARDS FOR DISCONNECTION
AND AFFORDABILITY IT WERE --
WE DEVELOPED A BUNCH OF CRITERIA
WERE FIGURE OUT HOW TO APPLY
THEM AS WE START TO SEE SOME OF
THE THE NEW CHANGES IN
EXPENDITURES THAT UTILITIES HAVE
MADE AT THE REQUEST OF THE
LEGISLATURE.
WE WILL SEE THOSE COSTS WE WANT
TO MAKE SURE THAT THAT DOESN'T
HURT RATE PAYERS IT DOESN'T
SHOCK THEM THAT WOULD THERE'S
THERE THERE'S A SMOOTH SCALE UP
TO PAY FOR THESE NEW
TECHNOLOGIES.
IT'S NOT ALL BAD WE KNOW THAT
OVER THE LAST FORTY YEARS THE
EXPENDITURES THAT WE'VE MADE IN
CALIFORNIA ON ENERGY EFFICIENCY.
HAVE ACTUALLY REDUCED THE AMOUNT
OF ELECTRICITY THAT PEOPLE USE
SO THE EVEN WHILE OUR
ELECTRICITY RATES GROW.
AND ARE IN THE TOP QUADRANT
NATURALLY.
OUR ELECTRIC BILLS ARE IN THE
LOWEST QUADRANT NATIONALLY.
AND SO THAT'S THAT THAT'S PROVEN
TO BE A WISE STRATEGY AND WE
THINK THAT WE CAN WORK AROUND
THE AFFORDABILITY ON ON ON SOME
OF THESE OTHER EXPENDITURES.
ARE AT THE LEGISLATURE GAVE US
IT'S FOR MORE BATTERY STORAGE TO
OUR SMALL GENERATOR INCENTIVE
PROGRAM WE'RE STARTING TO WORK
ON THAT.
WE HAVE GONE THROUGH A COUPLE OF
ROUNDS OF OF OF OF ACTING ON THE
REQUEST OF OF ONE OF THE
UTILITIES AND CLOSURE OF THE X.
TO MEET P. JEANNIE ON THE
CLOSURE OF DIABLO CANYON NUCLEAR
POWER PLANT.
AND WE ARE DEALING WITH THE
LEGISLATURE'S REQUIREMENT THAT
WE ACTUALLY FIND A LOT OF THE
COMMUNITY PROGRAMS THAT NEED
SUPPORT AS A RESULT IN THE LOSS
OF THE EMPLOYMENT IN THE TAX
REVENUE IN THE COMMUNITY.
AND THEN TRANSPORTATION
ELECTRIFICATION WE POINT WE WE
DID --
FOURTEEN PILOTS.
THAT.
THAT WILL ACTUALLY BRING MORE
CLEAN TRANSPORTATION A LOT OF
THAT'S FOCUSED ON FLEETS AND
PARTICULARLY AROUND THE PORTS.
AND THAT'S BECAUSE AS WE MOVE
INTO THESE NEW TECHNOLOGIES
HAVING.
THE ABILITY TO HAVE FLEET
MANAGERS WHO CAN LEARN TO
UNDERSTAND HOW TO BEST USE THESE
HOW IT FITS INTO THE GRAD
CENTRALIZED MANAGEMENT.
AND THE ABILITY TO CARE FOR THE
TECHNOLOGY BECOMES REALLY
VALUABLE IT HAS THE ADDED
BENEFIT OF REDUCING AIR
POLLUTION.
IN AREAS THAT HAVE BEEN HEAVILY
IMPACTED BECAUSE OF DIESEL TRUCK.
AND SO IT IT HAS THAT KIND OF
BENEFIT IN GREENHOUSE GAS
[inaudible]
AS WELL SOME BONA OVERALL
BENEFIT TO THE LANDLOCKED PORTS
AND GOODS MOVEMENT INDUSTRY.
I WANTED POINT TERROR --
THE OUR ON GOING --
UTILITY DIVERSITY CONTRACTING
PROGRAM WHICH RECALL PASSED THE
UTILITIES ON A VOLUNTARY BASIS
TO DIRECT SOME OF THEIR
CONTRACTING TO SMALL BUSINESSES
DEBATE DISABLED FAT AFRICAN
AMERICAN BUSINESS COMMUNITY.
DATE OF AN AMERICAN INDIAN
COMMUNITY.
THIS YEAR LAST YEAR IN OCTOBER
WHEN WE HAD OUR ANNUAL REPORT WE
CAN IDENTIFY TEN POINT FIVE
BILLION DOLLARS OF CONTRACTING
AND SUBCONTRACTING FROM
CALIFORNIA UTILITIES.
THAT DID NOT GO OUT OF THE STATE
IT'S STATING COMMUNITIES AND IT
WAS AVAILABLE TO PEOPLE WHO
MIGHT OTHERWISE HAVE A HARD TIME
DEALING WITH LARGE CORPORATIONS.
IT'S BECOME A VERY POPULAR
PROGRAM THE THE BLADE OF THE
LARGE UTILITIES EMBRACE IT.
WE FIND THAT THE
TELECOMMUNICATIONS PARTICIPATION
IS DOWN.
BUT OVERALL THE PROGRAM
CONTINUES TO GROW THAT TEN AND A
HALF BILLION DOLLARS THAT MIGHT
OTHERWISE LEAK OUT OF THE STATE
OF CALIFORNIA TO NATIONAL
CONTRACTORS.
BECOMES VERY IMPORTANT AND
CERTAIN PARTS OF OUR STATE.
WE ARE ALSO WRESTLING WITH THE
CHALLENGE OF FIVE THAT ANNA TALK
ABOUT NEXT OF THESE THIRD
PARTIES TO PROVIDE ELECTRICITY
AND ENERGY.
WHO DON'T REALLY FIT AS
REGULATED ENTITIES ARE NOT
PARTICIPATING AND THEY ARE
SHRINKING THE AMOUNT?
OF DOLLARS THAT COULD
POTENTIALLY GOING TO THAT
PROGRAM.
I'M REALLY I'M GONNA COME.
TO SOME OF THE MORE TOPICAL
ISSUES IT PROBABLY YOU WOULD
LIKE TO HEAR ABOUT
IMPLEMENTATION OF SB NINE A ONE
AND DONE IN THE RECENT ACTIONS
BY NEED TO DECLARE BANKRUPTCY
BUT I THOUGHT THAT I WOULD TALK
TO YOU ABOUT THREE TRENDS THAT
ARE.
IN THE BACKGROUND THAT ARE
IMPORTANT IN WILL MAKE A
DIFFERENCE IN BY JUST FEEL LIKE
IT'S MY OBLIGATION TO TALK A
LITTLE BIT ABOUT IT [inaudible]
SO ARE.
FIRST IS THAT.
PARTICULARLY IN THE ELECTRIC
INDUSTRY BUT A LITTLE BIT IN THE
GAS INDUSTRY WE'RE SEEING A LOT
OF FUN REGULATED PARTICIPANTS IN
MARKETS THEY ACTUALLY BY
ELECRICITY OR THE BY NATURAL%
GAS AND SERVE IT DIRECTLY TO
CUSTOMERS THIS IS A PHENOMENON
THAT WE'RE FAMILIAR WITH HEARING
CALIFORNIA.
SO A A AN EXAMPLE OF THAT KIND
OF BUSINESS IS THE DIRECT ACCESS
PROVIDERS TO SELL TO COMMERCIAL
INDUSTRIAL CUSTOMERS.
CAN BEAT THE UTILITY PRICE THEY
BASICALLY PAY A FEE TO WE'LL
ELECTRICITY OVER THE WIRES TO
CUSTOMERS.
BUT AS THE UTILITIES LOSE.
CUSTOMERS EITHER FROM THE THE
CLEAN COMMUNITY AGGREGATORS.
THE THE THE CCA'S OR IN THE GAS
INDUSTRY THROUGH THE CONTRACT
AGENTS.
THEY THOSE UTILITIES HAVE A
DIFFERENT MODEL FOR BEING
COMPENSATED THIS BASED ON THEIR
SALES SO I'LL COME BACK TO SOME
OF THE CHALLENGES THAT WE FACE
HERE.
IT IT IT WE'RE ALSO SEEING A LOT
OF INDIVIDUAL CHOICE.
IN IN IN IN THESE INDUSTRIES
THAT ARE RESHAPING THEM.
SO FOR EXAMPLE --
THE LARGEST GROWING SECTOR FOR
PURCHASES OF OF RENEWABLE ENERGY
IN IN OTHER PARTS OF THE COUNTRY
AND I SUSPECT HEARING CALIFORNIA.
IS CORPORATE PURCHASES DIRECTLY
OF THEIR OWN GENERATORS AND THEY
PAY A FEE TO WE'LL THEIR
ELECTRICITY TO THEIR FACILITIES
OVER THE WIRES.
THERE'S A LOT OF DISTRIBUTED
ENERGY AS MUCH AS FIVE GIGAWATTS
OF ROOFTOP SOLAR.
THERE IS.
THE ABILITY FOR FOR SOME
COMPANIES USE NATURAL GAS FUEL
CELLS AS A WAY THAT THEY CAN
INCREASE THEIR RELIABILITY SO
THE OLD NOTION THAT EVERYBODY IS
SEEKING CHEAP.
IS ACTUALLY BEING TURNED ON ITS
HEAD BY THESE TECHNOLOGIES
BECAUSE SOME PEOPLE FOR HOME
ELECTRIC RELIABILITY IS THE MOST
IMPORTANT THING OVER PRICE.
ARE PAYING AND BUYING THEIR OWN
SOURCES SO THAT THEY CAN HAVE
ADDITIONAL RELIABILITY --
WE ARE SEEING A LOT OF OF CHANGE
IN THESE INDUSTRIES AND IF YOU
LOOK AT SOME OF THE THE
DOCUMENTS THAT LEAD UP TO THE
RECENT --
ARE PROBLEMS OF P. JEANNIE
PEOPLE POINT TO THE FACT THAT
THEY ARE LOSING CUSTOMERS AS
BEING ONE OF THE STRESSES.
THAT ACTUALLY THE ELECTRIC
UTILITIES ARE UNDERGOING.
I WORRY FAR MORE ABOUT SOME
OTHER PROBLEMS THAT WE COULD
FACE THIS IS IN SOME WAYS
SIMILAR TO THE SITUATION WE
FOUND OURSELVES IN.
TWO THOUSAND ONE WAY AND A LOT
OF THE ELECTRICITY HAD GONE INTO
THE HANDS OF THESE THIRD PARTY
PROVIDERS.
NOT ALL OF THEM WERE READY FOR
OR WHAT CAN BE FEROCIOUS AND
VOLATILE ACTRESS CITY MARKETS
SOME OF THEM FAILED.
AND THAT ENDED UP WITH PROBLEMS
THAT WE SAW AS BLACKOUTS.
I DON'T THINK WERE THERE BUT IF
WE DON'T BEGIN TO PLAN FOR WE
COULD EASILY DRIFT INTO THOSE
KINDS OF PROBLEMS.
SIR WE PRODUCED THIS REPORT.
AND HAD HEARING THREE PUBLIC
HEARINGS A LOT OF RESEARCH.
ON A PUBLIC WE WORK VERY CLOSELY
WITH OUR COLLEAGUES AT THE
CALIFORNIA ENERGY COMMISSION.
AND WE STUDIED STE OTHER STATES
THAT HAVE ACTUALLY DEREGULATED
THEIR ELECTRICITY SUPPLY TO SEE
HOW THEY DID IT WHAT KINDS OF
PROBLEMS THEY FACED.
AT THE END OF THAT WE TOOK ALL
THE PUBLIC TESTIMONY FROM ALL
THE DIFFERENT FOLKS WHO CAME
BEFORE US RATE PAYER ADVOCATES
RENEWABLES DEVELOPERS ON THE
ROOFTOP SOLAR DEVELOPERS BATTERY --
WHOLE RANGE OF OF DIFFERENT
KINDS OF COMMERCIAL CUSTOMERS.
AND WE PUT IT TOGETHER IN THIS
GAPS ANALYSIS WHICH WERE
PROVIDING TO YOU TODAY I HAVE
TWO COPIES YEARS IS COMBINED IN
ONE SINGLE SOURCE.
BUT WE KNOW THAT WE NEED TO BIG
THINK THROUGH WHAT HAPPENS WHEN
ONE OF THE SMALL PARTIES FAILS.
WE KNOW THAT THEY CAN'T ALWAYS
MEET ALL OF THE LECTURE CITY
SUPPLY OF THEIR CUSTOMERS WITHIN
THEIR PARTICULAR SERVICE AREA.
BECAUSE OF GEOGRAPHIC
CONSTRAINTS OR THE NEED FOR THEM
TO BE ABLE TO BUY FOR THOSE
REALLY HOT DAYS WE CALL THAT
RESOURCE ADEQUACY THAT'S PUBLIC
UTILITIES CODE THREE EIGHTY
THAT'S A REQUIREMENT THAT THE
LEGISLATURE SET.
LAST YEAR WE ISSUED ELEVEN
WAIVERS TO THE SMALLER PROVIDERS
BECAUSE THEY COULDN'T.
AT GETTING ACCESS. TO THAT
RESOURCE ADEQUACY.
AND THAT TO ME IS A WARNING SIGN
THAT WE COULD BE A PROBLEM IN
TROUBLE WERE WRESTLING WITH THAT
INTERNALLY.
WE THINK THERE MAY BE SOLUTIONS
BUT I DON'T WANT TO SEE ANYMORE
THOSE WAIVERS BECAUSE OF SINGLES
PROBLEMS FOR TO FOR ME.
WE TALK ABOUT HOW DO YOU PROVIDE
HOW DO YOU CREATE A PROVIDER OF
LAST RESORT TO ALWAYS BE THERE
FOR CUSTOMERS IN CASE EVERYTHING
ELSE GO SOUTH.
WE TALK A LITTLE BIT ABOUT HOW
DO WE ACTUALLY MAKE SURE THAT
UTILITIES ARE COMPENSATED FOR
THOSE THINGS THAT THEY WILL
REMAIN DOING THEY DON'T OWN
GENERATION THEY'RE ALL
CONTRACTING FOR ANYBODY ELSE CAN
DO THAT.
TOO BUT SOMEBODY HAS TO PAY FOR
THE WIRES THE POLLS THE METERS
THE OPERATIONS WITHOUT THAT.
PEOPLE WILL HAVE TO GO TO THEIR
OWN --
PROVIDER WITH CARRY THEIR
ELECTRONS HOME.
SO IT JUST DOESN'T WORK WITHOUT
THAT -- SO
I'LL JUST COMMAND THIS REPORT TO
YOU IF YOU WANT TO TALK TO US IN
MORE DETAIL ABOUT SOME OF THE
ISSUES THAT WE FACE THERE ARE
LOTS OF OPPORTUNITIES FOR GAMING
HERE WE ALREADY KNOW OF PROBLEMS
IN ROOFTOP SOLAR IN --
IN PACE LOANS AND IN THE THE GAS
AGENTS WHERE THEY ARE ACTUALLY
CRAMMING AND SLAMMING OR
OTHERWISE CHEATING CUSTOMERS WE
DON'T HAVE AUTHORITY OVER THEM.
IT MAY BE TIME TO DO THAT TO WE
WANTED TO STRESS TEST FOR ALL
THESE THIRD PARTY PROVIDER SO WE
HAVE SOME SENSE.
OF THEIR STRENGTHS AND
WEAKNESSES DO WE NEED BETTER
DISCLOSURE OF WHAT PEOPLE ARE
ACTUALLY GETTING FROM THEIR
THIRD PARTY SUPPLIERS IN TERMS
OF THE QUALITY OF THE
ELECTRICITY IS A CLEAN IS IT NOT
CLEAN.
AIR THE BUYING FROM SOMEBODY WHO
IS ACTUALLY SELLING THEM THEY'RE
CLEAN ELECTRICITY BUT RAMPING UP
THERE.
COAL PLANTS WE NEED TO REALLY
START TO DIG INTO THIS SORRY
HAVE GONE ON SINCE THE DAY WAS
SPENT A LOT OF TIME ON IT
BECAUSE I'M CONCERNED IF WE
DON'T PAY ATTENTION TO IT WILL
ACTUALLY COME BACK TO BITE US.
WE TALKED A LOT ABOUT CLIMATE
CHANGE IN THE PAST WE CONTINUE
TO TO THINK THAT THE SCALE OF
THE KINDS OF CHANGES WE'RE
SEEING IN THE WORLD AROUND US.
MEANS THAT WE'RE GONNA HAVE TO
APPROACH A LOT OF THINGS
DIFFERENTLY IT'S NOT SO MUCH
JUST TRYING TO CLEAN UP THE
ELECTRICITY SUPPLY. TO PREVENT
CLIMATE CHANGE IS WHAT DO WE DO
NOW THAT IT'S HERE AND WE'RE
SEEING THAT IN TERMS OF FIRES.
SO ONE OF THE THINGS THAT WE
HAVE DONE IS GONE AWAY FROM
SOLELY RELYING ON THOSE HARD AND
FAST STANDARDS THE THE
COMPLIANCE STANDARDS.
THAT WE ADOPT EVERYBODY STILL
SHOULD MEET THOSE AND WE NEED TO
GO OUT AND BE BETTER AND MORE
EFFECTIVE IN AUDITING AND
POLICING THEIR THEIR COMPLIANCE.
BUT IT DOESN'T MAKE SENSE TO
TREAT EVERY SECTION OF GAS
PIPELINE EVERY POLL EVERY WIRE
THE SAME SOME ARE MORE LIKELY TO
IN IN IN A CHANGING WORLD CREATE
PROBLEMS.
HOW DO YOU DEFINE THEN?
THE BEST WAY TO GO ABOVE THOSE
STANDARDS DON'T LET THOSE
STANDARDS BECOME OF A CEILING
HOW DO YOU ACTUALLY IDENTIFY
HAZARDS AND RISKS.
THAT STAND OUT AND ALSO FOCUS ON
THEM SO ONE OF THE EFFORTS THAT
WE'VE HAD UNDERWAY FOR SOME TIME.
IS ACTUALLY JUST THAT WE ASK
UTILITIES COME IN AND GIVE US A
RISK MAP AND THEN TELL US HOW
ALL THEIR EXPENDITURES ACTUALLY
REDUCE THOSE RISKS.
SO WE GET MORE SAFETY AND MORE
SAFE BETTER AT THIS.
WE THINK THAT WE NEED TO GET
BETTER AT THE USE OF TECHNOLOGY
TO ACTUALLY POLICE.
IF WE ESTIMATE THAT IF WE WERE
TO ACTUALLY GOOUT AND POLICE
EVERYONE OF THOSE POLLS AND ALL
THOSE HUNDREDS OF THOUSANDS OF
OF MILES OF WIRE.
WE PROBABLY NEED FIFTEEN TO
TWENTY THOUSAND NEW STAFF PEOPLE.
THAT'S JUST NOT GOING TO WORK
THAT WOULD BE A HUGE MANAGEMENT
CHALLENGE SHOULD BE A BIG COST.
BUT ON THE OTHER HAND WE CAN
BEGIN TO FLY THEM WITH DRONES
THIS IS SOMETHING UTILITIES DO.
YOU KNOW WE CAN DEVELOP PATTERN
RECOGNITION OVER TIME --
JUST AS WITH THE ENERGY IS ATION
WE CAN LEARN TO USE TECHNOLOGY
MACHINE LEARNING AND OTHER
TOLSON UL ON OUR OUR SAFETY
ENFORCEMENT DIRECTOR HAS
ACTUALLY GONE SO FAR.
AS TO PULL TOGETHER THE WORLD'S
FIRST WILDFIRE IN TECHNOLOGY
CONFERENCE WHICH IS CO SPONSORED
BY THE P. YOU SEE --
WE ASK CAL FIRE UC SAN DIEGO
WHICH HAS BEEN LOOKING AT THESE
ISSUES C. S. U. S. AND THEN A
COUPLE OF LARGE TECHNOLOGY
PROVIDERS AS A WAY TO BEGIN THAT
CONVERSATION WHAT'S OUT THERE
WHAT SHOULD WE BE USING HOW DO
WE ACTUALLY.
GET BETTER THAN THAN THIS HOW DO
WE OVERCOME THE CHALLENGES THE
SCALE OF THESE --
INFRASTRUCTURE IN CALIFORNIA AND
ACTUALLY GET TO WHERE WE NEED TO
BE.
SO I WILL SAY THAT ON TOP OF
THAT WE ALSO ARE GOING TO ADD
ANOTHER HUNDRED INSPECTORS. TO
DEAL AND I'LL COME BACK TO THIS
IN SB NINE THE NEW CONSTRUCTION
IN THE WORK THERE IT'S ORDERED
THROUGH THE ADVANCED VERY WILD
FIRE MITIGATION PLANS THAT YOU
YOU YOU THAT YOU SET FORTH IN SB --
NINE OH ONE SO I THINK THAT DE
WE CAN'T ABANDON.
THOSE TRADITIONAL THINGS BUT WE
HAVE TO GO WAY BEYOND THAT THE
SCALE OF WHAT WE'RE EXPERIENCING
HERE ELSEWHERE.
IS REALLY A CHALLENGE.
AND LASTED THESE --
THESE TRANCES THAT WE SPENT A
LOT OF MONEY AT THE
LEGISLATURE'S DIRECTION ON
ELECTRIC VEHICLE TECHNOLOGY.
AND IT'S VALUABLE AND I THINK
THAT WE'VE TRIED TO BE WISE AND
CHOICES.
BUT A LOT OF THAT IS BUILT
AROUND THE STATE CALIFORNIA'S
ASSUMPTION THAT IS GOING TO BE
INDIVIDUAL OWNERS OF A LECTURE
IT VEHICLES.
AND AS WE SEE AUTONOMOUS
VEHICLES STARTING TO EMERGE
THERE'S THREE COMPANIES NOW HAVE
LICENSES TO ACTUALLY DRIVE THEM
HEARING CALIFORNIA.
DOES YOUR FLEET'S.
THEY'RE NOT OWNED BY INDIVIDUALS.
THAT'S A DIFFERENT KIND OF
ELECTRIC CHARGING INFRASTRUCTURE.
I KEEP LOOKING FOR THE PLACING
K. CITY CALIFORNIA THAT CAN TELL
ME.
HOW THIS IS GOING TO PLAY OUT?
I TALK TO PEOPLE ALL THE TIME
ABOUT WHAT IS IT MEANS THAT YOU
HAVE A LECTURE TO SCOOTERS AND
ELECTRIC BICYCLES NOW THAT
PEOPLE ARE USING MORE AND MORE
FOR THEIR SHORT TRIPS.
IN SAN DIEGO THE UTILITY
DESCRIBES TO ME THAT ONE OF THE
SCOOTER COMPANIES HAS A DEAL
WHERE IF YOU TAKE SIX SCOOTERS
HOME IN CHARGE AT HOME.
AT THE END OF THE DAY THAT YOU
GET FREE USE AND SPECIFIC
ELECTRIC IMPACT.
IF YOU DO THAT ON THE AUTONOMOUS
VEHICLE CHARGING IT'S GOING TO
BE MUCH MORE PRONOUNCED.
THESE SIR TRENDS THAT ARE
EMERGING VERY QUICKLY AND I WANT
YOU TO HAVE SOME UNDERSTANDING
OF THEM BECAUSE I AM LEARNING
ABOUT THEM STRUGGLING WITH THEM.
AND I THINK THAT.
IT'S IMPORTANT FOR YOU IS THE
UTILITY COMMITTEE TO START TO
THINK ABOUT THE DIRECTION THAT
ALL THE STATE AGENCIES NEED IN
TERMS OF SOME OF THESE THINGS.
SO MY APOLOGIES FOR GOING ON A
MINUTE OF THE TALK A LITTLE BIT
ABOUT --
IMPLEMENTATION OF SB NINE A ONE
BECAUSE THAT'S SOMETHING THAT
WE'VE WORKED OUT REALLY QUICKLY.
SO WE HAD PREVIOUSLY ADOPTED AS
PART OF OUR WORK WITH CAL FIRE --
BOTH OF THE WHAT WE CALL OUR
VEGETATE HOW WILD FIRE HAZARD
MAPS.
I WON'T GO INTO THE DETAILS OF
THEM BUT THAT TOOK SEVERAL YEARS
OF WORK WE DON'T UNDERSTAND
FIRES WE DON'T UNDERSTAND.
ON A TIMBER FORESTRY OR OR OR
DAHLE LANDSCAPE ISSUES WE DO
INFRASTRUCTURE --
ANSWER WE DEPENDED ON THEM WE
WORK CLOSELY WITH THEM TO
DEVELOP WHAT IS NOW AT THIS
POINT THE WAR THE US IS
STRONGEST VEGETATION --
STANDARDS IN TERMS OF CLEARANCES
FOR POLES AND WIRES.
ON THE LEGISLATURE ADDED SOME
ADDITIONAL REQUIREMENTS AND
TEETH WE'VE WORKED VERY QUICKLY
TWO TO IMPLEMENT THAT THOSE NEW
PLANTS ARE BEING --
REVIEWED WILL BE ADOPTED THIS
SPRING HERE'S FIRE SEASON.
WE ARE WE AT THAT'S THAT'S THE
RULING UNDER WHICH WE EXPECT TO
BRING ON A HUNDRED NEW
INSPECTORS SPECIFICALLY TO FOCUS
ON HIGH HAZARD SO WE'LL FOCUS A
LITTLE BIT A NEW CONSTRUCTION.
AND THEN WE'LL START TO GO INTO
THE HIGHER HAZARDOUS TO GO BACK
TO THAT THAT TO WHAT I WAS
DISCUSSING OF OF NOT TREATING
EVERY POLL SOME OF WHICH ARE ARE
NOT GOING TO BE A PROBLEM NOT
EVERY WIRE.
BUT REALLY LOOKING AWARE WE
THINK THERE'S THE BEST OWN
BENEFIT FOR THE FOR THE SAFETY --
WE'VE BEEN WORKING A LOT ON
MECHANISMS TO ADDRESS COST
RECOVERY --
THERE WE HAVE A PROCEEDING IN
UNDER WAY WE SHE HAD EXPECT THE
LATE -- FOR
EVERY WORKSHOP WHICH WILL BE
LOOKING AT BEST PRACTICES ACROSS
THE THE US.
AND THE QUICK QUESTION HERE IS
IF THE UTILITY GETS IN TROUBLE
AND AND THEY CAN'T FINANCE ALL
OF THE COSTS.
WHAT WE DO NEW BILL YOU GAVE US
DIRECTION SB NINE HUNDRED TO THE
STRESS TESTS AND THEN TO
ACTUALLY SET A LIMIT AS TO HOW
MUCH THE UTILITY?
SHAREHOLDERS SHOULD SHOULD BE
EXPECTED TO SECURITIZED THAT
AGAINST FUTURE REVENUES SO THAT
THEY CAN WITHSTAND THE PRESSURES.
ON HOW I WILL SAY THAT SOME
PEOPLE HAVE ASKED ME THE
QUESTION WHY WE DIDN'T JUST
START WITH THAT NUMBER.
AND I'LL JUST POINT TO THE
CHALLENGES THAT WE'VE SEEN
RECENTLY WHERE CAL FIRE ISSUED
RECENTLY IT'S IT'S PHONE A
REPORT ON THE TUBS FIRE.
AND FOUND THAT P. JEANNIE WAS
NOT.
RESPONSIBLE FOR THAT READ THAT
REDUCE THEIR THEIR OVERALL RISK
IF WE GIVEN THE A NUMBER IN
ADVANCE OF THAT FINDING WOULD BE
BACK READJUSTING THAT NUMBER
RIGHT TODAY IN THE DANGER IS IF
THEY HAD ACTED ON THAT AND WE
HAVE ALLOWED THEM SECURITIZED.
BASED ON THAT THAT WOULD BE.
THAT WOULD BE A RISK TO RATE
PAYERS SO THAT'S WHY WE THINK WE
NEED RULES WE THINK THAT WE
SHOULD PROBABLY WAIT TILL THEY
FILE A A A A PRECEDING A REQUEST
TO RECOVER.
AFTER ALL THE COSTS ARE KNOWN.
AS OPPOSED TO UP FRONT. ONE
PLEASES THE THE THE THE THE
BANKS BECAUSE THEY KNOW WHAT
THEY'RE RISK IS.
BUT THE OTHER POOR BUT THAT ALSO
PUTS RATEPAYERS AT RISK SO WE
CHOOSE TO TO TAKE A MORE SLOW
PROCESS AT THE BACK AND SO THE
WE HAVE A CHANCE TO REALLY --
BE FAIR TO THE UTILITIES BUT
ESPECIALLY TO FOCUS ON RATE
PAYER INTERESTS --
SO I JUST GOTTA KEEP GOING HERE
ON ON SOME OF THE OTHER --
WILDFIRE IMPLEMENTATION EFFORTS
SO WE HAVE UNDER WAY AND THEN
I'LL COME BACK TO TO A LITTLE
BIT TO WHAT OUR ROLE IS IN IN
TERMS OF THE BANKRUPTCY.
SO JULY WE DID RULES FOR D.
ENERGIES ATION OF POWER LINES.
IS BASED ON AND CLOSE ARE OF
OBSERVATION OF THE EFFORTS THAT
SCENE DIEGO GAS ELECTRIC HAS
BEEN DOING SINCE THEIR TWO
THOUSAND AND SEVEN FIRES.
AND BASICALLY THEY HAVE REALLY
PUT OUT A LOT OF TELEMETRY THEY
COLLECT A LOT THEY HAVE --
THEY HAVE BEEN STUDYING WIND
PATTERNS THEY KNOW THAT THE
NATIONAL WILD SERVICE WIND --
ON MEASUREMENTS FOR EXAMPLE ARE
TAKEN IT PEAKS CAUSES MOSTLY
AIMED AVIATION.
BUT IF YOU'RE CONCERNED ABOUT
FIRE YOU REALLY WANT TO BE
LOOKING AT THE BOTTOMS OF THE
CANYON.
SO THEY HAD TO CREATE A WHOLE
NEW WEATHER SYSTEM WITHIN THEIR
SERVICE AREA THEY DEVELOPED NEW.
MODELING TO BEGIN TO THINK ABOUT
WHAT THAT MEANT NOT JUST ACROSS
THE REGION WHICH IS WHAT THE
NATIONAL WILDLIFE WHILE THE
NATIONAL FEATHER WEATHER SERVICE
DOES.
BUT IN EACH CANYON.
SO THAT WHEN THEY ACTUALLY CUT
OFF POWER BECAUSE THEY'RE
CONCERNED ABOUT HIGH WINDS AND
POTENTIAL FOR HAD DOWNED POWER
LINE.
THEY ONLY DO IT WHERE THEY NEED
THEY DON'T TAKE OUT THOUSANDS OF
CUSTOMERS.
BUT IT'S TAKEN OF ABOUT SEVEN
YEARS TO REALLY DEVELOP THIS NAY
WHO I'VE BEEN WATCHING SINCE I
FIRST CAME TO WORK ON RENEWABLE
ENERGY PROJECTS BECAUSE IT
SEEMED LIKE IT WAS AN IMPORTANT.
APPLICATION OF TECHNOLOGY AND
RISK MANAGEMENT TO INCREASE
SAFETY.
AND I THINK IT'S PROVED ITSELF
WE'VE ORDERED THE OTHER
UTILITIES TO DO IT BUT IF YOU
THINK ABOUT THE SCALE THAT THE
SAID THE UTILITIES ARE OPERATING
AT AND THE FACT THAT THEY DEPEND
ON THE NATIONAL WEATHER SERVICE
WHICH WHEN IT IN SHOES A WIND
WARNING DOES IT ACROSS. SIX OR
SEVEN COUNTIES.
NOT WITHIN AN INDIVIDUAL CANYON
TO WHAT I SAID ABOUT THE THE
WHEN YOU WHEN YOU DE ENERGIZE
YOU CAN ALSO CUT OFF OF
IMPORTANT SERVICES THAT
EMERGENCY RESPONDERS NEED
[inaudible]
SO.
WE'VE FIVE WE HAVE --
OPEN THE WAY TO ME IN IN OCTOBER
CPC CALLOW S. AND AND CAL FIRE
ISSUED A JOINT LETTER UTILITIES
WITH FURTHER INSTRUCTIONS THAT
WERE AIMED AT SPECIFIC NEEDS
THAT THEY HAVE BOTH IN TERMS OF
WARNING AND PRE PREPARATION.
IN THE END ABOUT DECEMBER THE
UTILITIES FILED THEIR FIRST SAID
A REPORTS ON THIS AND WERE
EVALUATING THAT WILL CONTINUE TO
REFINE THE PROCESS.
SO APRIL TWO THOUSAND EIGHTEEN
WE ADOPTED PROTECTIONS FOR
CONSUMERS SO ON WHAT HAPPENS TO
PEOPLE WHO LOSE THEIR PHONES TO
WHAT IS OUR EXPECTATION OF THE
TELL BECAUSE WHAT WE DO IN TERMS
OF MAKING SURE THAT THERE'S
WATER BACK ON WHEN THEY GO BACK
TO THEIR HOMES.
HOW DO WE PROVIDE OTHER KINDS OF
VITAL SERVICES THAT THEY NEED
BOTH BEFORE DURING AND AFTER WE
MOSTLY FOCUSED ON THE IMMEDIATE
CRISIS OF PEOPLE WHO ARE IN FIRE
SHELTERS?
WERE STARTING TO LOOK AT NOW IS
WHAT IS THE RESPONSIBILITY OF
ALL THESE UTILITIES IN TERMS OF
HELPING TO PREPARE FOR
EMERGENCIES --
THEY'RE THEY'RE BIG GAPS IN
WARNINGS AND TELECOMMUNICATION I
ENCOURAGE YOU TO LOOK AT ARE
PROCEEDING.
ON THE COUNTY OF CINEMAS
EMERGENCY MANAGEMENT PROGRAM
REALLY.
SHARP YOUNG FIREFIGHTERS ACT
CAMEL ACTUALLY DID ALLOW A BACK
CAST AND LOOKED AT THE
PERFORMANCE OF THE TELEPHONE
COMPANIES IN TERMS OF ACTUALLY
RELAYING WARNINGS THAT THE
COUNTY AND OTHER PROVIDERS PUT
OUT.
HE THOUGHT THAT THE 50% WAS
FAILURES AND TECHNOLOGY
DIFFERENCES IN TECHNOLOGY.
A MISMATCH BETWEEN WHAT LOCAL
GOVERNMENTS HAD EXPECTATIONS OF
SO WE THINK THAT THERE'S A LONG
WAY TO GO ARE CHALLENGES THAT
THE TELCOS DO THIS ON A
VOLUNTARY BASIS IF THE USE
CERTAIN TECHNOLOGIES THAN WE
DON'T HAVE THE AUTHORITY TO
ORDER THEM TO DO THINGS.
THIS WILL COME UP IN THE YEAR --
RECONSIDERATION OF SB ELEVEN
NINETY WHICH DE REGULATED VOICE
OVER INTERNET PROTOCOLS --
YES SOUTHERN CALIFORNIA EDISON
DID HIS HAS COME FORWARD WITH
THE NOVEL PROPOSAL FOR GRID
HARDENING.
SUPPOSED UNDER GROUNDING IN
MOUNTAINOUS AREAS WHICH IS
LARGELY INEFFECTIVE YOU'RE GOING
UP AND DOWN RAVINES OR SUBJECT
TO TO INTRUSION BY WATER --
THEY THEY FOUND THAT A BETTER
WHICH SOLUTION WAS WAS COATED --
IMPROVED COATINGS AND CONDUCTORS
SO THERE IS A WE'VE GIVEN WE ARE
CONSIDERING GIVING THEM
PERMISSION TO MOVE AHEAD WITH
THAT --
EXPECT THAT TO TO BE DONE
SOMETIME THIS MONTH.
HER SAFETY CULTURE --
I WE'VE BEEN LOOKING VERY
CAREFULLY AT AT CONTINUED
FAILURES ON SAFETY WITHIN P.
JEANNIE AND TRYING TO FIGURE OUT
WHAT IS IT THAT WE USE TO
CONDITION THEIR AUTHORITY TO DO
BUSINESS IN CALIFORNIA TO DO
THAT BETTER IS A CHANGE IN THE
BOARD IS A PUBLIC
REPRESENTATIVES ON THE BOARD.
HIS IS SPLITTING UP THE GAS FROM
THE ELECTRIC UTILITY IS IT
SMALLER DIVISIONS.
ARE THOSE ARE ALL BIG QUESTIONS
WE HAVE FOUND THAT THERE'S A
NEED THIS IS ONE OF THOSE VERY
HIGHLY LITIGATED EFFORTS THAT
REQUIRE US TO COLLECT A LOT OF
EVIDENCE YOU CAN'T PROCEED TO
BREAK UP.
A PROPERTY LIKE THAT WITHOUT
SOME THAT WERE AT THAT POINT.
I'LL COME BACK TO HOW WE WILL
USE OUR FINDINGS AND WHAT WE
THINK ARE IMPORTANT LEARNINGS
FROM OUR NEXT PHASE WHICH IS THE
REMEDIES WHAT DO YOU DO.
WHEN YOU FIND THE COMPANY HAS
NOT MET ITS --
IT'S RESPONSIBILITIES --
WE FIND THEM WE FIND IN THE
BIGGEST UTILITY FINE EVER.
AND NOT A SINGLE BOARD MEMBER
LAUGHTER AND THERE ARE NO MAJOR
CHANGES A STAFF SO THAT TELLS ME
THAT IT'S NOT FINES ARE JUST NOT
ENOUGH -- WE
NEED TO GO FURTHER IN TERMS OF
UNDERSTANDING HOW DO YOU GET
TRUE SAFETY OUT OF OUT OF THESE
LARGE ORGANIZATIONS.
THAT WILL PROBABLY PLAY INTO THE
BANKRUPTCY STUFF I ALSO WANT --
TO MENTION THAT --
EXCUSE ME.
IT WILL BE VOTING TOMORROW ON
AND THE CHANGES THAT YOU ASKED
US TO MAKE FOR REQUIREMENTS FOR
BIOMASS FACILITIES WILL BE
MEETING HERE IN SACRAMENTO IF
FOUR HUNDRED R. STREET SO WILL
BE --
FINALIZING OUR DELIBERATIONS ON
THAT -- SO
THAT'S A SNAPSHOT OF WHERE WE
ARE IN SB NINE A ONE
IMPLEMENTATION IF YOU HAVE MORE
QUESTIONS AND YOU THE RIRE IT AT
A RELEASE OF VATICAN.
CAN ANSWER THAT.
SO IT IN TERMS A BANKRUPTCY.
WE TOOK WHAT WHAT IS NOT REALLY
AN EXTRAORDINARY STEP FOR US OF
LAST EARLIER THIS WEEK WE
ACTUALLY ADJUSTED THE RATIO
BETWEEN THEIR DATA.
AND THEIR EQUITY AND THAT
HAPPENS FROM TIME TO TIME WITH
UTILITIES THEY GROW.
THE THEY HAVE SPECIAL
CIRCUMSTANCES WHEN THEY NEED TO
CHANGE THAT BUT THAT'S A METRIC
THAT WE USED TO TO REALLY KIND
OF KEEP.
THE COST FROM BEING PASSED ON TO
RATE PAYERS IS PARRIS TO
INVESTORS WITH IT'S A TOOL THE
USED TO MONITOR EFFICIENCY OF
THEIR USE OF CAPITAL.
ON THERE'S A LOT OF REASONS WHY
WE MAKE THEM COME BACK TO US
WHEN THEY WANT.
TO DO ADDITIONAL FINANCING
THAT'S GOING TO CHANGE THE SO --
WHAT WHAT HAPPENED IS THE LAST
WEEK WE GOT AN APPLICATION FROM
P. GINNY ASKING TO CHANGE THEIR
RATIO?
AT THE SAME TIME THAT THEY WERE
TELLING US THAT THEY WERE GOING
INTO BANKRUPTCY.
NOW FRANKLY WE PROBABLY WOULD
HAD TO MAKE THE SAME KIND OF
DECISION EVEN IF THEY HADN'T
GONE INTO BANKRUPTCY BUT HAD GOT
MORE DEBT FINANCING.
THAT WOULD HAVE BEEN PRETTY
NORMAL HERE THERE'S A LOT OF
INTEREST BECAUSE IT WENT INTO --
THIS THE INTO THIS DISCUSSION OF
BANKRUPTCY.
WE THINK THAT IT WAS REALLY
IMPORTANT THAT WE DID THAT
BECAUSE WE MADE A DECISION IN
ADVANCE OF THEIR DECLARING
BANKRUPTCY.
BY DOING THAT WE PROTECT OUR
ABILITY TO AT SOME POINT IN THE
FUTURE REQUIRE THEM TO COME
BEFORE US AND SHOW THE CP YOU
SEE.
THAT THEY'RE THEY'RE THEY'RE
BORROWING AND THEIR EXPENDITURES
WERE REASONABLE.
AND IN THE BENEFIT RATE PAYERS.
IT ALSO ALLOWS US TO SET STE
REQUIREMENTS ON WHAT THEY USE
FOR COLLATERAL FOR THAT PARTY.
SO FOR THOSE REASONS IN ORDER TO
PROTECT RATE PAYERS WE THOUGHT
THAT WE NEEDED TAKE THIS STEP IN
ADVANCE OF THEIR DECLARATION OF
BANKRUPTCY OTHERWISE THE JUDGE
MAY HAVE SIMPLY SAID WELL.
HE DIDN'T GET PERMISSION FROM
THE C. P. YOU SEE I'M GONNA GIVE
YOU PERMISSION BUT I'M NOT GONNA
PUT STRINGS ON IT.
SO FAR FROM OUR PERSPECTIVE WE
NEEDED TO DO THAT TO REALLY
ENSURE THAT WE CONTINUE TO PLAY
OUR ROLE OF PROTECTING THE RATE
PAYERS AND TO MAKE SURE THAT THE
JUDGE WHO HAS TO MAKE A LOT OF
OTHER KINDS OF DECISION
UNDERSTOOD.
THIS WAS ALREADY A REGULATORY
REQUIREMENT ADVANCE OF
BANKRUPTCY --
SO I CAN TELL YOU THAT WE ARE
WORKING CLOSELY WITH THE
GOVERNOR ARE COURT GOALS HERE
ARE TO PROTECT THE INTERESTS OF
THE STATE OF CALIFORNIA.
ACCESS TO SAVE A RELIABLE AND
AFFORDABLE SERVICES KEEPING THE
LIGHTS ON MAKING SURE THAT
THERE'S GAS.
FLOWING FOR PEOPLE IN NORTHERN
CALIFORNIA FOR HEATING COOKING
AND FOR BUSINESS.
THAT THEY CONTINUE TO REPLACE
WOODEN POLES ON THE SCHEDULE
THAT THEY'VE BEEN REQUIRED TO DO
THAT THAT THE REDUCE THE
VEGETATION HAZARDS ALL THE
THINGS THAT THEY NEED TO HAVE
OPERATING CAPITAL TO DO.
CAN'T.
PAY YOUR YOUR CONTRACTORS YOUR
STAFF ON PROMISSORY NOTES YOU
NEED PEOPLE WHO WILL CONTINUE TO
OPERATE TO NUCLEAR POWER PLANT
EVEN THOUGH IT'S EXPECTED SHUT
DOWN IN SEVERAL YEARS.
WE WANT TO TRY TO MAKE SURE THAT
THE AND THE EMPLOYEES.
ARE TREATED FAIRLY HE'S
EMPLOYEES PARTICULARLY ARE ARE
WHAT MAKES P. JEANNIE WORK WE
NEED FOR THEM TO MAINTAIN THAT
KNOWLEDGE AND SKILL SET TO USE
THE EXAMPLE.
OF THE LINE SUPERVISOR IN SAN
BRUNO WHO'S DRIVING ON THE
FREEWAY HEARD IN THE NEWS
REPORTS KNEW EXACTLY WHERE THE
BREAK WAS.
KNEW EXACTLY WHERE HE NEEDED TO
GO SHUT IT OFF YOU EXACTLY WHAT
TOOLS YOU NEED STOPPED ON HIS
WAY PICKED UP THE TOOLS WENT AND
SHOWED OFF.
BECAUSE P. GENIES COMMAND CENTER
WAS DOWN.
THEY COULDN'T COMMUNICATE THE
COULDN'T TELL WHERE IT WAS.
WE NEED THOSE PEOPLE TO STAY
WITH THE ORGANIZATION.
WE NEED FOR THEM TO BE THERE
BOTH AFTER BANKRUPTCY BUT DURING
THIS TIME TO MAINTAIN OPERATIONS
AND TO MAKE SURE WE GET THE
SERVICES WE NEED SAY.
FOR WE GOT TO KEEP MAKING
PROGRESS ON A CLEAN ENERGY --
GOALS IN REDUCING CLIMATE
HAZARDS AND SO ALL THIS REQUIRES
THEM TO ACTUALLY COMMIT. TO
CONTINUE TO DO THOSE THINGS.
AGAIN ALL THESE ISSUES OF
BORROWING AND RELATED
EXPENDITURES WILL COME BACK TO
US AT SOME POINT FOR REASONABLE
IN THIS REVIEW WE NEED TO DO
THAT TO PROTECT THE RATE PAYERS.
THE JUDGE IN THIS CASE ACTUALLY
UNDERSTANDS THAT HE WAS OF THE
KIT JUDGE IN THE TWO THOUSAND
AND ONE BANKRUPTCY.
AND DIE AND HE HAS FAMILIARITY
WITH US HE IN THAT CASE HE DID
DEFERRED US HE CHOSE OUR
REORGANIZATION PLAN.
OVER THE REORGANIZATION PLAN.
IT WAS YOU KNOW THERE ARE
COMPROMISES BUT ULTIMATELY I
THINK WE PREVAILED AND AS A
RESULT WE GOT A COMPANY THAT.
DID PROVIDE GOOD [inaudible]
CLEAN ENERGY --
I THINK THAT THAT WE PROBABLY
WILL THINK ABOUT THINGS WE WANT
TO DO DIFFERENTLY THIS TIME.
WE WILL BE PARTY'S.
WE ARE REPRESENTED BY A A WHITE
CHIU WALL STREET THE FIRM I SAY
THAT THE IT BECAUSE THEIR
KNOWLEDGE.
THEIR PLAYERS EVERYBODY KNOWS
THEM THEY'VE THEY'VE BEEN
INVOLVED IN A LOT OF OTHER
CORPORATE WORKOUTS MERGERS AND
ACQUISITIONS AND BANKRUPTCIES --
THE JUDGE WOULD KNOWS THEM THEY
HAVE REPRESENTED THE P. YOU SEE
CONTINUOUSLY SINCE TWO THOUSAND
AND ONE SIR WE ACTUALLY HER
FIRST HEARD ABOUT.
GINNY'S PLANTS FROM THEM WE'VE
MADE IT CLEAR THAT THAT WASN'T
OUR PREFERENCE THAT YOU DID THAT
P. JEANNIE PROJECT.
PROCEED DOWN THIS COURSE.
BUT THAT WAS THEIR CHOICE AND SO
NOW WE'RE IN A WE ALSO HAVE
HIRED A FAIRLY --
WELL KNOWN AND AFFECTIVE A
FINANCIAL ADVISER WHO ALSO
SPECIALIZES IN IN THESE EVENTS.
SAID NGUYEN P. JEANNIE FILED.
THEY ACTUALLY ON PUT TOGETHER
THEIR FOR THEIR THEIR THEIR
THIRTEEN DAY PLAN WHICH IS HOW
DO WE GET TO THE NEXT THIRTEEN
DAYS.
IT MADE A LOT OF COMMITMENTS
EMPLOYEE --
TO CONTRACTORS INCLUDING
RENEWABLE ENERGY PROVIDERS TO A
NUMBER OF OTHER FOLKS WHO HAD
VERY SPECIFIC REQUESTS INCLUDING
THE THE THE INTERVENE INTER THAT
TO MEAN.
THE INTERVENOR SAID ARE
PROCEEDING SAID P. JEANNIE WHO
WANT TO KNOW THAT THEIR
COMPENSATION WOULD BE PAID P.
GINNY MADE THOSE PROMISES.
THEY ALSO HAS SAID THAT THEY'RE
GOING TO CONTINUE TO DO THAT SO
WE'LL SUPPORT THEIR PROMISE
THAT'S THEIR PLAN OF
REORGANIZATION.
IN IN IN GENERAL SUMMARY FOR TWO
MINUTES ARE OPERATING PLEA OF IT
IT'S NOT THE CORRECT TERMINOLOGY
BUT THEY WILL DO A PLAN OF
REORGANIZATION TALK ABOUT HOW
THEY GET OUT OF THE PROBLEM THE
TO RANT.
AND WE WILL --
CONTEND WITH THEM AS ADVOCATES
FOR RATEPAYERS IN IN THE
BANKRUPTCY AT THAT POINT.
CELLS.
OPERATING GOING TO IOWA REALLY
WANT TO GET YOUR QUESTIONS BUT
NOW WE WE APPRECIATE THAT YOU
HAD A GREAT LOT OF GROUND TO
COVER AND THIS IS YOUR ANNUAL
REVIEW SO WE ANTICIPATED THAT
YOU WOULD HAVE TO GO BROADER
THAN -- THE
SUBJECT THAT --
CERTAINLY IS CAPTURING
EVERYONE'S ATTENTION RIGHT AT
THE MOMENT I'M SORRY I SHOULD
JUST MAKE SURE IS THERE ANYTHING
YOU THINK THAT I MISSPOKE OR
OKAY OKAY.
OKAY.
YEAH OKAY I JUST WANT TO ASK A
QUICK QUESTION ON THE IMPACT OF
ON THE MARKET HOW THE MARKETS
ARE RESPONDING TO THE UTILITIES
AND IN SOME INSTANCES --
GOING AS FAR AS TO SAY THAT --
WE MAY BE MOVING IN A PLACE
WHERE THERE ON INVESTABLE AND
THAT OBVIOUSLY IMPACTS THE THE
COST OF FINANCING IMPACTS
ULTIMATELY ON THE RATE PAYERS --
HOW DO YOU FIT IN AND QUITE
FRANKLY A LOT OF FOCUSES ON P.
GINNY BUT THE IMPACT IS A REPORT
IMPACT ON --
ESTY JEANNIE AND ALSO LISTEN.
AND WE HAVE MANDATES WE HAVE
CERTAIN EXPECTATIONS TO SEE
CERTAIN PROGRAMS CONTINUE --
IF THE COST.
OF FINANCING BECOMES.
TO AGGRESSIVE.
THAT CAN HAVE AN IMPACT I JUST
WANT TO GET YOUR REACTIONS
THOUGHTS TO WHICH YOU SEE IN THE
MARKETPLACE WHAT YOU'RE READING.
I'M I CAN ACT LIKE I'M NOT.
I'M NOT SURE I CAN SPECULATE I
CAN TELL YOU THAT.
THAT S. C. IS WAITING TO FIND
OUT THE THE OUTCOMES OF
INVESTIGATIONS OF BOTH THE
THOMAS IN THE WALL SEE FIRES. TO
THAT COULD AFFECT THE HOME THERE
FROM -- THE
OVERALL REQUIREMENTS FOR FOR
CAPITAL --
HIGH A I I I CAN ONLY SPECULATE
AS TO WHY CAL FIRE AND OTHER
AGENCIES ARE GOING TO FIND.
IF THE YOU KNOW.
I DO THINK THAT AT THIS POINT
THERE IS A LITTLE BIT OF CONCERN
ABOUT HOW THE STATE OF
CALIFORNIA SCURRY ACT.
BUT I THINK AS YOU GET THAT AS
WE MOVE THROUGH THE EVENTS WE
WILL CONTINUE TO FOCUS ON WHAT
IS THE CALIFORNIANS NEED.
I THINK THAT WE CAN PROJECT A
PRETTY GOOD --
MESSAGE IN THE ACTION THIS I
THINK WILL BE ADDRESSED BY A BY
OUR WORK WITH THE GOVERNOR'S
OFFICE.
ANA I BUT I I I DO THINK THAT
RIGHT AT THIS POINT.
THEY'RE A LITTLE SUSPICIOUS OF
US SHOULD THEY BE I DOUBT IT.
SHOULD WE BE WORRIED ABOUT --
RENEGING ON CONTRACTS RENEWABLE
ENERGY PROJECTS I DOUBT IT P.
JEANNIE SAID THEY WOULDN'T WE
WON'T LET THEM.
BUT THIS IS THE WORLD CHANGING
VERY QUICKLY IN WAYS THAT NOBODY
EXPECTED.
AND SO PEOPLE GET NERVOUS.
SAID THAT WE'RE GOING TO TURN TO
QUESTIONS FROM MEMBERS BUT ALL
OF TURN TO OUR VICE CHAIR.
OF THE GIVEN OPPORTUNITY FOR AN
OPENING THOUGHT.
UP COUPLED.
IT'S A LITTLE OBSERVATION --
WITH RESPECT --
TO THE I GUESS THERE'S A THERE'S
A VERY DIFFERENT READ IN.
MILLIONS OF CALIFORNIANS WITH
RESPECT TO RATE AND BILLS.
WHEN YOU HAVE HIGH RATES LIKE
THIS YOU ARE ESSENTIALLY FORCING
PEOPLE? TO USE LESS ELECTRICITY.
AND THEY ARE MANAGING THEIR
UTILITY BILLS BY THEIR COMFORT
LEVELS AND BY THEIR
INCONVENIENCE.
BY THE HIGH COST I THINK IT IS --
A BIT --
INSENSITIVE TO SUGGEST THAT.
SOMEHOW.
THE POLICIES THAT HAVE COME OUT
OF THIS.
LEGISLATURE IN OUT OF THE P. YOU
SEE ARE ARE WORTHY OF
CONGRATULATORY COMMENTS.
A YOU ARE FORCING PEOPLE TO USE
LESS ELECTRICITY BY THE HIGH
PRICE TAGS.
ON THEM AND I WOULD BE REMISS IF
I DIDN'T ON BEHALF OF THE PEOPLE
I REPRESENT.
SUGGEST THAT --
HUNDRED AND FIVE DEGREE NO --
IT IS IMPOSSIBLE PRICE WISE TO
BE COMFORTABLE.
AND SO LET'S JUST REMEMBER THE
CONSEQUENCES THAT SOME OF THESE
POLICIES ARE HAVING.
ON REAL PEOPLE I WANT TO FOCUS
YOUR ATTENTION ON A YEP ARTICLE
BY JULIE.
CART AND CAL MATTERS IT WAS
PUBLISHED IN THE SACRAMENTO BEE.
ITS TITLE IS CALIFORNIA'S ENERGY
GRID IS IN CRISIS CAN THE STATE
KEEP THE LIGHTS ON AND I DRAW
YOUR ATTENTION TO YOUR STATEMENT
IN IT.
QUOTING UP WE ARE IN THE DEPTHS
OF THESE CONVERSATIONS.
WITH RESPECT TO THE MANDATES AND
THE REQUIREMENTS THAT ARE BEING
PUT FORWARD PRESENTLY.
YOU SAID --
YOU CAUTION.
THAT EVEN AS THE SYSTEM IS BEING
RE BOOTED.
THERE'S NO REAL PLAN. FOR MAKING
IT ALL WORK.
HERE WE ARE THE FIFTH OR SIXTH
LARGEST ECONOMY IN THE WORLD.
WELL INTO THE TWENTY FIRST
CENTURY.
AND THE PRESIDENT OF THE P. YOU
SEE SAYS THERE'S NO REAL PLAN.
FOR MAKING IT ALL WORK.
COULD YOU EXPLAIN THAT PLEASE
I'M I'M NOT SURE WHAT ARTICLE
YOU'RE REFERRING TO SELL MY
APOLOGIES BUT IT SOUNDS TO ME
LIKE SHE WAS ACTUALLY IT'S AN
APP DURING SOMETHING I SAID STE
ALL SITE THIS AGAIN JULIE CART
JANUARY SIXTEENTH.
TWENTY NINETEEN IT WAS AND CAL
MATTERS REPUBLISHED IN THE
SACRAMENTO BEE.
I THINK THAT SHE'S TAKING
COMMENTS I MADE WHEN WE FIRST
STARTED OUT THIS PROCESS A YEAR
AND A HALF AGO.
WHEN I SAID WE NEEDED TO START
TO UNDERSTAND WHAT WAS TAKING
PLACE IN ELECTRICITY MARKETS AND
BEGIN TO PLAN FOR IT?
AND TO BE AGAIN TO FIND OUT WHAT
THE SOLUTIONS ARE IN LOOK FOR
THE BEST PRACTICES AROUND THE
COUNTRY.
HERE IS WHAT WE THE PLAN IT'S
GET CALLS FOR INTERNAL ACTIONS
SOME OF WHICH WERE TO
UNDERTAKING SOME OF WHICH THE
ENERGY COMMISSION IS TAKING.
BUT SOME OF IT MAY REQUIRE
LEGISLATIVE ACTION SO WILL I
THINK THAT.
IT'S FAIR TO SAY THAT THE WE ARE
CONCERNED WE SPENT A YEAR AND A
HALF TRYING TO COME UP WITH SOME
ANSWERS.
AND HERE THEY ARE.
ARE YOU SAYING THAT YOU DID NOT.
MAKE THESE COMMENTS TO JULIE
CART NO I HAVE HONORING AROUND
JANUARY SIXTEENTH NO I DID NOT
TALK TO HER.
YOU ARE YOU ARE QUOTED THAT THAT
THERE'S NO REAL PLAN FOR MAKING
IT ALL WORK SOUNDS TO ME LIKE
SOMETHING I SAID AT THE FIRST
MEETING KICKING OFF THIS PREVENT
ENEMY FOLLOW IT UP.
CALIFORNIA'S ENERGY GRID IS IN
CRISIS THAT'S THE HEADLINE.
CAN THE STATE KEEP THE LIGHTS ON
I'M ASKING YOU DIRECTLY DO YOU
TODAY HAVE CONCERN OVER
RELIABILITY.
AND THE ABILITY TO KEEP.
THE LIGHTS ON AND TO QUOTE MAKE
IT ALL WORK WITH THE KINDS OF
MANDATES THAT ARE BEING --
PUT FORWARD PRESENTLY.
I DON'T THINK IT'S IT'S SOLELY
THE MANDATES I THINK IT'S THE
LACK OF THE ADDITIONAL
COMPONENTS THAT WE IDENTIFY HERE
THAT WE NEED TO PUT IN PLACE I
DON'T THINK WE'RE AT THAT POINT
NOW.
I THINK THAT WE CAN EASILY SLIP
INTO IT IF WE DON'T CONTINUE TO
TAKE ACTION THAT'S WHY SPEND
TIME TRYING TO TO SPEAK ABOUT
THIS I WANTED YOU TO UNDERSTAND
THAT THERE ARE CHALLENGES.
WE HAVE HAVE IDENTIFIED SOME OF
THEM MAY REQUIRE LEGISLATIVE
ACTION.
I'M HERE TO TALK ABOUT IT.
AND THEN WHAT WE CAN DO IS GET
MAKE SURE THAT EVERYONE GETS OUT
ALL ALL YEAH --
WE WE TALKED TO A TO I I WANT TO
MAKE I JUST WANNA MAKE SURE
YOU'RE SAYING THAT THAT.
UNDER PRESENT CIRCUMSTANCES WITH
THE KINDS OF CHALLENGES THAT
YOU'RE FACING THAT DE
CALIFORNIA'S ENERGY GRID IS NOT
IN CRISIS DO YOU DISPUTE THE
BASIC ARTICLE IN.
YOU ESSENTIALLY DISPUTE
AGGRESSION BAKI IN HER BOOK THE
GRID AT CENTS HOWEVER BETTER
BOOK I CAN'T REALLY SPEAK TO
THAT ALL RIGHT BUT I'D I DON'T
THINK WE ARE CRISIS I THINK THAT
IF WE DON'T TAKE ACTION WE CAN
SLIDE INTO IT.
GOOD ENOUGH THANK YOU EARNER
[inaudible]
DOCTOR QUIRK --
THANK YOU FIRST WITH REGARD I
WILL DEFINITELY READ THE
COMMUNITY CHOICE.
OUR CUSTOMERS CHOICE PROJECT AND
IF YOU'RE LEGISLATIVE PEOPLE
COULD COME TO ME.
AND SUGGEST WHICH OF THESE
THINGS REQUIRE LEGISLATION I'M
CERTAINLY GLAD TO LOOK INTO IT I
THINK.
YOU DID A GOOD JOB ON THAT.
I AM STILL CONCERNED ABOUT THE
DIVISION OF COSTS BETWEEN THE
AGGREGATORS.
AND IN A I DO KNOW THAT THERE
WAS A PETERMAN SUGGESTION THAT
THE OLDER COST.
FOR DAMS AND THE EARLY --
VERY EXPENSIVE SOLAR AND WIND
PROJECTS --
BE DIVIDED UP.
BUT THE THAT'S GONNA BE HAND ON
THE DETAILS OF HOW IT'S DONE AND
I KNOW THAT --
MARTHA.
MARTHA GOODMAN --
IS NOW THE PERSON LOOKING AT
THAT AND I'M JUST NOW WHO IS
LOOKING AT IT NOW UNFORTUNATELY
IT'S ME --
IT'S YEAR WELL.
PLEASE PLEASE DO A GOOD JOB ON
THAT -- I
KNOW IT YOU KNOW THE DEVIL IS IN
THE DETAILS.
AND AS YOU CONTINUING PGA
COMMISSIONER WHETHER IT'S GOOD
OR NOT ALWAYS SEEMS TO DEPEND ON
WHO YOU'RE TALKING TO WELL I
JUST IS SO THE CHAIR OF
UTILITIES.
IN THE SENATE SAID IF THE
THURMOND SOLUTION THAT IF YOU
ENDED UP WITH.
ONE P. JEANNIE CUSTOMER THEY
KNOW BILLIONS SO MAKE SURE THAT
IF WE END UP WITH ONE P. JEANNIE
CUSTOMER THEY DON'T KNOW BILLION
SO THAT'S ALL.
WELL UP AGAIN --
COMMISSIONER PETER MEN CAME UP
WITH A VERY TOUGH DECISION THAT
WAS NOT UNIVERSALLY POPULAR YEAH
AND I SUSPECT THAT I WILL ALSO
COME UP WITH THE DECISION THAT'S
NINE UNIVERSALLY POPULAR.
HOUSE AND SO FORTY JUSTICE WE
THINK THAT THERE MAY BE NEED FOR
LEGISLATIVE ACTION IN SOME AREAS
THERE WILL BE PEOPLE WHO DON'T
LIKE OUR DECISIONS WHO MAY ASK
YOU TO MAKE A DIFFERENT DECISION.
SO I JUST WANNA MAKE SURE YOU
UNDERSTAND WHY WE GOT TORY I
THINK YOU DO.
THAT'S WHY THIS REPORT BECOMES
VERY IMPORTANT YEAH.
THEN MY NEXT QUESTION REALLY
DEALS WITH THE OTHER UTILITIES
AND WHY THEY ARE GOING INTO
PROBLEMS RIGHT NOW STANDARD AND
POOR'S FITCH.
MOODY HAVE MADE THE BONDS FOR AT
THIS IN AND FOR SEMPRA.
SAN DIEGO GAS ELECTRIC.
JUST A LITTLE BIT ABOVE JUNK
BOND STATUS SO THEY ARE VERY
EXPENSIVE THEY'RE CONSIDERED
MEDIUM OR LOW QUALITY RIGHT NOW
THAT COULD WELL GET.
TO A JUNK BOND STATUS.
AND IT'S REALLY THE FACT THAT
AND I DON'T THINK EVERYONE
UNDERSTANDS THIS THE FACT THAT
P. JEANNIE WAS FOUND.
NOT TO HAVE CAUSED THE TWENTY
SEVENTEEN FIRE.
REALLY DOESN'T MATTER BECAUSE
LOST AND YOU'RE SHAKING YOUR
HEAD YES AND THAT'S GOOD --
BASICALLY THEY'VE LOST OUR
ACCESS TO CREDIT MARKETS AND
THEY WERE THEY HAVE TO BORROW
TWO BILLION EVERY YEAR.
IN ORDER TO GO ON AND JUST DO
THEIR NORMAL SERVICE AND THEY
COULD NO LONGER DO THAT.
BOB AND THAT'S AND THEN THE
WHILE THEY DO HAVE CASH
AVAILABLE.
ONCE YOU DON'T HAVE GOOD CREDIT.
THEN THE ENERGY COMPANIES THAT
ARE SELLING YOU ENERGY DEMAND
THAT YOU PUT MONEY IN THE BANK.
AND MY SON WAS IN CHARGE OF
LOOKING AT HOW YOU WOULD IN FACT
PUT ENOUGH MONEY IN THE BANK AND
THERE REALLY WASN'T ENOUGH.
SO WAS REALLY THE CREDIT MARKETS
THAT BECAUSE THAT.
AND RIGHT NOW WE'RE LOOKING AT
THE POSSIBILITY THAT.
WITHOUT.
ANY --
DETERMINATION OF WHO'S
RESPONSIBLE FOR WHAT WHAT --
FITCH SAID IS WE COULD LOWER OUR
RATINGS ON THE COMPANY SOUTHERN
CALIFORNIA EDISON BY ONE OR MORE
NOTCHES.
IF POLITICIANS AND ARE
REGULATORS DO NOT TAKE CONCRETE
STEPS TO TAKE.
EXPLICITLY ADDRESS THESE GROWING
RISKS IN THE NEXT FEW MONTHS.
NOW I'M GOING TO READ SOMETHING
[inaudible]
SO WHEN.
PGA ANY IN THEIR LAST --
DISASTER AID IN SAN BRUNO --
IT WAS ALWAYS ASSUMED THAT THEY
WOULD AT RETAIN ACCESS TO CREDIT
MARKETS AND THAT WAS STATED AS A
OBJECTIVE UP FRONT BY.
THE OUR COMMISSION AND ALTHOUGH
THAT POPPED AGAIN AND NOT
POPULAR DECISION.
OF RATE PAYERS PAID A CERTAIN
AMOUNT P. JEANNIE PAID A CERTAIN
AMOUNT THEY HAVE A CERTAIN FIND
AT CETERA.
THAT WAS ALL DONE WITHOUT SB
NINE A WIDE.
NOW WHAT P. GENIE IS SAID IN
THEIR FILING ON PAGE EIGHT UPON
PAGE [inaudible]
FIVE OF THE FORM EIGHT K. THAT
THEY DELIVERED ON THE FOURTEENTH --
DATED OF THE THIRTEENTH.
ARE THEY EXPLICITLY SAID.
THAT THE CPUC.
AND YOU CAN AGREE OR DISAGREE
WITH WHAT THEY'RE SAYING HERE
BUT THIS IS THE REASON THEY SAY
THAT THAT THEY GAVE UP HOPE.
ADOPTED IN ORDER INSTITUTING
RULE MAKING THE I ARE SO I'M
GOING TO SAY --
WHEN I REFER TO THIS PARTICULAR
RULING BY THE COMMISSION --
ESTABLISHED PROCESS DEVELOP
CRITERION A METHODOLOGY TO
INFORM DETERMINATION OF WHO
WOULD PAY FOR WHAT IN THE WILD
FIRES -- AND
IN THE I. R. C. P. YOU STATED
THAT CONSISTENT WITH SECTION
FORTY FIVE FOUR FIVE ONE POINT
TO A DID YOU TERMINATION OF WHAT
COSTS AND EXPENSES ARE JUST AND
REASONABLE.
MUST BE MADE IN THE CONTEXT OF
AN APPLICATION FOR THE RECOVERY
OF SPECIFIC COSTS.
RELATED TO THE TWENTY SEVENTEEN
WILDFIRES [inaudible]
NOW WHAT.
THEY GO ON TO SAY IN THIS WHAT
J. P. JEANNIE SAYS IS THAT.
THEY THEN LOST CONFIDENCE.
THAT ARE THE P. YOU SEE WOULD
ALLOW THEM. TO SECURITIZED THIS
IN IN PARTICULAR.
THEY FEEL THAT THEY WOULD HAVE
HAD -- TO
PAY EVERYTHING UP FRONT AND THEN
HAVE A DETERMINATION AND THEY
WEREN'T AT ALL SURE WITH THAT
DETERMINATION WOULD BE.
AND ALTHOUGH IT'S NOT P. G. ANY
EQUIPMENT THAT BECAUSE THE
TWENTY SEVENTEEN WILDFIRE IN THE
TUBS CASE.
THERE ARE STILL PEOPLE SUING
THEM BECAUSE THEY GET IN TURN
POWER OFF AND IN THE CASE OF SAN
DIEGO GAS ELECTRIC.
YOU MADE THEM FULLY RESPONSIBLE
FOR THE COST BECAUSE THEY HADN'T
TURNED THE POWER OFF.
IN WHAT WAS CONSIDERED TO BE A
DANGEROUS SITUATION.
NOW I DON'T KNOW WHAT DECISION
OR DO YOU IN THESE CASES.
BUT THE FACT IS THAT BECAUSE OF
THIS -- WHY
ARE THIS?
AGAIN C. P. U. C. P.YOU SEE
ORDER THEY'RE CLAIMING THAT
THAT'S THE REASON WHY THEY COULD
NO LONGER GET ANY KIND OF CREDIT.
AND THEY WOULD HAVE TO GO INTO
BANKRUPTCY --
DO YOU FEEL THAT YOUR WHY ARE IN
FACT DIDN'T DO THIS AND IF SO
WHAT DO YOU THINK THE I ARE DID.
FIRST OFF ASSEMBLY MEMBER I'M
ALWAYS GONNA NOT WHEN YOU TALK
THANK YOU.
SO AGAIN IT'S OUR BELIEF BASED
ON THE FACT THAT THE LEGISLATURE
DIDN'T ADOPT YOUR BILL THAT THIS
IS EXACTLY WHAT YOU EXPECTED US
TO DO THAT'S THAT'S FIRST IN OUR
MINDS WHEN WHEN WHEN YOUR YOUR
BILL WITH DID NOT SHOW UP IN IN
IN -- SB
NINE ONE OUR ASSUMPTION WAS THAT
YOU WANTED TO USE OUR EXISTING
PROCESSES WHICH REQUIRE THAT THE
COMPANY BRING FORWARD ALL THE
CLAIMS AT ONE TIME.
SO THAT WE CAN REALLY ASSESS
THEIR COSTS.
IF WE HAD DONE THAT IN ADVANCE
OF THE TUBS FIRE WE MIGHT HAVE
ALLOWED THEM TO BORROW MORE
MONEY AT BAD RATES. TO BE ABLE
TO PAY CLAIMS THAT THEY WEREN'T
REQUIRED TO DO AND THAT WOULD
BEEN PASSED ON TO RATE PAYERS SO
IN OUR IT IN IN OUR ESTIMATION
WE DO NEED TO ACTUALLY HAVE
THOSE FULL COSTS IN ONE
APPLICATION.
IT'S SIMILAR TO WHAT BANKRUPTCY
COURTS TO THE ASSEMBLED ALL THE
CREDITORS IN ONE PLACE SO THEY
CAN MAKE AN INFORMED JUDGMENT
AMONGST ALL THOSE PEOPLE WHO
HAVE CLAIMS YEAH BUT WHAT P.
GENIES SANE AND THIS IS THEIR
INTERPRETATION OF THE WHY ARE.
IS THAT THEY WOULD THEY BELIEVE
THAT THEY WOULD HAVE TO PAY ALL
THE CLAIMS AND THEN THEY WERE
NOT AT ALL SURE.
THAT YOU WOULD IN FACT ALLOW
THEM TO SECURITIZED AN AMOUNT
THAT WOULD KEEP THEM OUT OF
BANKRUPTCY.
AND THEY FEEL THAT'S THE REASON
WHY THE CREDIT MARKETS AFTER
THIS HEARING REMAIN CLOSE TO
THEM AND THEY SUBSEQUENTLY FILED
A THEY MADE THEIR DECISION BASED
ON THEIR OWN REASONS AND THEY
WENT TO HAD EVEN THOUGH THEY
WERE NOT ACCOUNTABLE FOR THOSE
COSTS FOR THE TUB FIRE WHICH
REDUCE.
THEIR POTENTIAL LIABILITY
SIGNIFICANTLY THEY COULD HAVE
GONE OUT FOR FINANCING.
THIS WAS THEIR CHOICE AYE AYE I
DON'T HAVE THE ABILITY TO TELL
THEM YEA OR NAY.
THIS WAS THEIR CHOICE WHAT THEY
SAY ABOUT IT.
IS WHAT THEY SAY ABOUT IT WELL
AGAIN THEY'RE SAYING THEY WENT
INTO BANKRUPTCY NOT BECAUSE OF
THESE LIABILITIES.
BUT BECAUSE THE CREDIT MARKETS
WERE CLOSED TO THEM BECAUSE OF
THIS DECISION THAT YOU MADE ON
JANUARY TENTH BUT THEY DIDN'T
EVEN GO OUT TO TALK.
AGAIN.
AFTER THE TUBS FIRE TO SEE
WHETHER THERE WAS SOME FORM OF
FINANCING THAT MIGHT HAVE
ACTUALLY MET THEIR NEEDS THEY
WENT AHEAD.
IMMEDIATELY AFTER THE TUBS
ANNOUNCEMENT SO I CAN'T I CAN'T
PUT MYSELF IN THEIR SHOES I KNOW
WHAT THEY SAY.
I KNOW WHAT THEY DID DOESN'T
MATCH UP ALL RIGHT SO GIVEN THE
WHY ARE THAT YOU HAVE.
SHOULD EDITION AND ARM A SEVEN
SAN DIEGO --
GAS ELECTRIC SHOULD THEY BE
CONFIDENT.
THAT IF THEY HAVE A FIRE.
AND THAT YOU WILL ALLOW THEM TO
SECURITIZED THIS IN SUCH A WAY.
THAT IT WILL NOT ALLOW THEM TO
GO INTO IT THAT'LL KEEP THEM OUT
OF BANKRUPTCY SHOULD THEY BE
CONFIDENT ABOUT THIS.
IS STANDARD AND POOR'S FITCH AND
MOODY'S ARE THEY BEING ARE THEY
THEY SAID THEY DON'T TRUST YOU.
BASICALLY THE STATE SAY THEY
DON'T TRUST ANYBODY IN
CALIFORNIA SOME WELL THAT'S TRUE.
BUT THEY'RE SAYING THEY DON'T
TRUST YOU WHAT CAN YOU DO
[inaudible] TO KEEP. TO GAIN
THAT TRUST OR WHAT CAN WE DO TO
GAIN THEIR TRUST THAT WE REALLY
WILL ALLOW THEM TO SECURITIZED
ENOUGH DEBT.
THAT THEY DON'T GO INTO
BANKRUPTCY I CAN'T MAKE FALSE
PROMISES IF WE WERE TO ADOPT A
NUMBER.
AND THEY WERE TO BORROW AGAINST
IT.
AND IT TURNED OUT THAT THERE WAS
A REASONABLE. TO PROTECT RATE
PAYERS WE WOULD STILL HAVE TO
REQUIRE RATE SHAREHOLDERS TO
TAKE UP THEIR SHARE OF IT BUT
THAT'S NOT WHAT YOU HAVE TO DO.
WHAT YOU HAVE TO DO IS SAY THAT
YOU WILL ALLOW THEM WHICH IS
DONE IN THE CASE OF SAN BRUNO
BUT IS NOT BEEN DONE FROM WHAT I
CAN TELL HERE?
THAT YOU WILL ALLOW THEM TO HAVE
ENOUGH EQUITY TO CONTINUE TO
HAVE ACCESS TO CREDIT MARKETS
THAT WAS MADE VERY CLEAR.
IN THE CASE OF SAN BRUNO AS A
RESULT OF THAT THE VICTIMS WERE
ABLE TO BE PAID.
WHEN THEY GO INTO BANKRUPTCY AND
THIS ISN'T SOMETHING THAT YOUR
FOR SCENE OR THAT A PARTICULAR
CLAIM IS FORCING THIS IS
SOMETHING WALL STREET IS?
FORTY YOU HAVE TO ASSURE WALL
STREET THAT YOU WILL ALLOW THEM
TO SECURITIZED ENOUGH DEBT THAT
THEY DON'T HAVE TO GO INTO
BANKRUPTCY IF YOU DO THAT.
THEIR CREDIT CAN GO UP AGAIN AND
THEY WON'T HAVE TO GO INTO
BANKRUPTCY AND WE CAN THEN
ASSURE THAT THE FIRE VICTIMS
WILL GET PAID I'M A LITTLE
DUBIOUS ABOUT THAT --
BUT I WILL SAY THE HI YOU YOU
MISTAKE WHAT WE DID IN THE SAN
BRUNO DECISION THAT HAD NOTHING
TO DO WITH BANKRUPTCY THAT HAD
TO DO WITH HOW MUCH WE THOUGHT
WE SHOULD FIND THEM.
BEFORE THEIR COST OF BORROWING
WENT UP THAT'S AN ENTIRELY
DIFFERENT CASE.
AT THAT POINT ALL THE COSTS WERE
KNOWN.
ALL THE COSTS HAVE BEEN SETTLED.
HERE WE DON'T KNOW WHAT THOSE
SETTLEMENTS ARE WE DON'T KNOW
THE NUMBER AT THE END I FEAR.
THAT IF WE WERE TO TAKE THAT
JUMP RIGHT NOW WE COULD END UP
IN A SITUATION WHERE RATE PAYERS
ARE NOT BEING TREATED FAIRLY
WELL WHAT I'M SAYING IS YOU
DON'T HAVE TO SAY WHAT THE
NUMBER IS YOU JUST HAVE TO
ASSURE.
WALL STREET THAT YOU WILL DO IT
IN A WAY SUCH THAT.
THE COMPANIES WILL CONTINUE TO
HAVE ACCESS TO CREDIT THAT'S
WHAT YOU HAVE TO DO THIS IS A
DIFFERENT DISCUSSION NOT ABOUT A
SPECIFIC NUMBER.
BUT ABOUT WHAT YOUR PROCESS I'M
SORRY I THINK THAT THAT IS THAT
WITH THE CONVERSATION AS THEY
WANT A SPECIFIC NUMBER NINE OH
NINE AND I THINK I THINK WE CAN
STOP YOU.
GOT [inaudible]
THANK YOU.
BUT I'M NOT A I'M NOT WE'RE
GOING -- TO
TURN TO DOCTOR WOULD HE HAD A
QUESTION AND LET ME JUST SAY
THAT -- IT
WILL CONSIDER YOU AN EX OFFICIAL
MEMBER OF THIS COMMITTEE AS
HAVING BEEN A MEMBER OF THE
CONFERENCE COMMITTEE AND AND AND
NOT ONLY THAT HAS.
BEEN SOMEONE WHO'S REPRESENTED
AN AREA THAT WAS --
IMPACTED GREATLY FROM THESE
WILDFIRES AND SO WE WELCOME YOU
TO BE A PART OF THE CONVERSATION
TODAY.
HERE THE FLOOR WELL THANK THANK
YOU MISTER CHAIRMAN THANK YOU
FOR THE OPPORTUNITY TO BE HERE
TODAY IN THE INVITATION --
TO TO ASK SOME QUESTIONS AND TO
HEAR -- YOU
KNOW SINCE WE LAST.
SO EACH OTHER ACROSS A DíAS --
WE HAVE BEEN --
ANOTHER EIGHTY SIX DEATHS --
IN CALIFORNIA --
IF YOU DISCOUNT THE THE EIGHTY
TAKE THE CAL FIRE REPORTING HEN
YOU SUBTRACT THE NUMBER OF
DEATHS FROM FROM THE WILD FIRES --
IN -- SANTA
ROSA AREA IS NOT BEING
RESPONSIBLE FOR P. JEANNIE AND
THEN YOU START ADDING NUMBERS
OUT WE DON'T KNOW WHAT'S GOING
TO HAPPEN IN THE IN THE CAMPFIRE
BUT IT'S REALLY DOESN'T LOOK
GOOD FOR UTILITY --
BASED ON WHAT WE'RE HEARING.
WERE WELL OVER A HUNDRED DEATHS
WERE WERE WELL.
IN THESE FIRES AND SO.
I GUESS I WILL TELL YOU I WAS --
PERPLEXED AND KIND OF SURPRISED
THAT.
THAT I KNOW THAT THE RULE MAKING
PROCESS AROUND SB NINE A ONE
STARTED IN JANUARY --
I I I KNOW THAT BY LAW THE THAT --
NO WE WE ACTUALLY WE ACT TOOK WE
STARTED WORKING ON COMPONENTS OF
IT IMMEDIATELY AFTER ADOPTION
SOME OF THE WE PREPARED FOR IN
ADVANCE WHAT I BELIEVE THE AND I
BELIEVE THE ANNOUNCEMENT YOUR
MEETING WAS IT WAS THAT.
THAT YOU WERE BEGINNING AND
EIGHTEEN MONTH RULE MAKING
PROCESS THAT I MET THAT I MIGHT
IS I'M MISTAKEN ON THAT WE ARE
ACTING ON SEPARATE PIECES.
SO THE I THINK THAT WHEN YOU MAY
BE REFERRING TO IS THE THE
METHODOLOGY FOR DOING THE STRESS
TEST THAT THE REAL IT THAT'S NOT
THAT'S NOT THE THE OTHER
COMPONENTS WE'VE MOVED TO HEAD
ON IMPLEMENTING THE NEW WILDFIRE
REQUIREMENTS WE'VE MOVED TO ADD
ON THE BIO MASTER IN.
A VOTE ON THAT TOMORROW --
WE CIVIC REQUIREMENTS I CAN I
CAN TURN TO STAFF FOR MORE BUT
THAT'S THAT'S ONLY THE ONE PIECE
WE BROKE IT UP SO THAT WE CAN
MOVE QUICKLY.
WELL AND THEN I GUESS A THAT
THAT COMMUNICATION THAT ISN'T
THAT ISN'T CLEAR TO US HERE SO
SO.
WAY WE INTERPRET WAS THAT THE
RULE MAKING PROCESS WAS GOING TO
BE BEGAN IT WAS GONNA BE AN
EIHTEEN MONTH PROCESS AND SO AS
I READ ME IS LIKE OKAY SO WHERE
IS THE URGENCY HERE.
SO I'M I'M ACTUALLY HAPPY I'M
HAPPY TO HEAR THAT THE THE FIRE
PLANTS ARE GOING I WILL TELL YOU
THAT THIS NEXT PROCEEDING
HOWEVER THEY'RE GOING TO BE A
NUMBER OF PARTIES WERE LOADED
FOR BEAR BECAUSE UNLESS WE DO
THIS CAREFULLY AND PROPERLY THEN.
RATEPAYERS COULD BE
DISADVANTAGED WELL I WOULD SAY
THAT YOU KNOW GREAT THAT THAT
THE I PREACH I TOTALLY
APPRECIATE THAT --
BUT AS I SAID BEFORE.
A DEAD PEOPLE PEOPLE WHO DIE IN
THESE FIRES ARE PRETTY
DISADVANTAGED TO AGREE TO AND SO
SO WHEN I LOOK AT WHEN I LOOK
FORWARD TO THIS YEAR.
ADD A WILDFIRE SEASON WILL
PROBABLY START IN APRIL.
WHAT HAVE YOU DONE AND WHAT WILL
YOU DO TO HELP PROTECT THE
SAFETY OF THE YOU TO OF OF THE
SERVICES?
AND THE PEOPLE WHO WERE WHO LIVE
IN IN IN OUR COMMUNITIES WHAT
WILL YOU DO THIS YEAR TO PROTECT
CALIFORNIANS SO.
I'LL GO BACK TO THE WORK TO BE
DONE IN TERMS OF WARNING TRYING
TO UNDERSTAND WHY WARNINGS
FAILED.
HOW DO WE ACTUALLY IMPROVE THEIR
WHEN INFORMATION NEEDS TO COME
TO TO TO THE LOCAL GOVERNMENTS
WHAT NEEDS TO COME FROM THE
WARNING CENTERS?
HOW DO WE IMPROVE THE THE --
THE TELEPHONE COMPANY SERVICES
TO TO FOLKS THIS IS NOT AN EASY
QUESTION BECAUSE AGAIN THEY WHAT
THEY TELL US IS THAT BECAUSE WE
DON'T HAVE REGULATORY AUTHORITY.
THERE.
EFFORTS ARE PER VOLUNTARY AND
THAT'S EXACTLY WHAT YOU FIND IN
THE RESPONSE TO CINEMA COUNTY.
IN TERMS OF THEIR QUESTIONS IN
THEIR THEIR EFFORTS TO TRY TO
IMPROVE THE WARNING SYSTEM THERE --
WE'RE STRUGGLING WITH THAT BUT
WE'VE BEEN STRUGGLING WITH THIS
SINCE --
SINCE EARLIER THIS YEAR SEEING
OUR PROCESS IS TO REALLY BUILD
THE CASE.
THAT IN A REGULATE IN A IN A
FORMAL WAY THAT THAT WE'RE NOT
MEETING NEEDS WE HAVE.
TAKEN THE STEPS THAT YOU
REQUIRED TO ENSURE THAT THE NEW
WILD FIRE MITIGATION PLANS MEET
THE STANDARDS THAT YOU DEFINED
IN THE IN THIS BE --
NINE OH ONE WE ACTUALLY HAVE
REQUIRED THOSE ELEMENTS TO BE IN
THE PLANTS THAT THEY FILED WITH
THIS WHICH WE PLAN TO ADOPT
SURELY.
WE HAVE TAKEN STEPS TO ACTUALLY.
BRING MORE STAFF ON TO LOOK AT
NEW CAN --
CONSTRUCTION I CAN I CAN ASK
POLICE OF THAT --
MALASHENKO OUR SAFETY
ENFORCEMENT TWO TRACTOR TALK
ABOUT THAT.
I CAN POINT TO THE TO THE WORK
WE DID IN TERMS OF TRYING TO
MEET THE REQUIREMENTS OF THE
LEGISLATURE IN IN TERMS OF
BIOMASS FACILITIES.
I CAN COMPETE WHICH WE'RE GOING
TO VOTE ON TOMORROW I CAN POINT --
TO THE FACT THAT WE ARE MOVING
AHEAD ON THE FOR THE THE THAT
THIS QUESTION OF SECURITIZATION
OF THE LIABILITY BUT THAT IS
BETWEEN THE UTILITY AND US AS
THE PEOPLE WHO ACTUALLY --
REQUIRED THE UTILITIES THAT IS
GOING TO DIRECT THIS OF THOSE
PEOPLE WHO HER WHOSE FAMILIES
HAVE DIED HIS PROPERTY JIM
DESTROYED AND FIRES.
I HAVE TO ALSO POINT OUT THAT
BECAUSE I AM A REGULATOR WHO
WILL TAKE ACTION ON STUFF THAT'S
BROUGHT TO US IN FORMAL
PROCEEDINGS.
I AM STILL WAITING.
BECAUSE I CANNOT PRE JUDGE
ANYTHING THAT I HAVE HEARD
OUTSIDE OF OUR PROCEEDINGS WHAT
TOOK PLACE IN THE CAMP FIRE I
KNOW THAT YOU ARE UP THERE I'VE
ALSO VISITED I APPRECIATE THE
SERVICE YOU DID FOR CALIFORNIA
BY GOING THERE --
I APPRECIATE VERY DEEPLY.
BUT MY ROLE AS A REGULATOR
REQUIRES ME NOT TO PRE JUDGE THE
CAR FAR WE ARE CONTINUING TO
REFINE THIS QUESTION OF THE
ENERGY IS ATION IT'S A CHALLENGE
WE SAW THAT IT TOOK SEVEN YEARS
IN SAN DIEGO WE KNOW THAT
THERE'S VALUE.
HOW DO YOU EXPEDITE THAT WHAT
CAN WE LEARN FROM WHAT PEOPLE
DIDN'T SEEN DIEGO BUT HOW DO YOU
DO THAT IN A WAY THAT DOESN'T
CREATE STRESS ON THE SERVICES
THAT FIREFIGHTERS AND OTHER
EMERGENCY RESPONDERS NEED?
BY.
OVER -- DE
ENERGIZING WAR BY G. ENERGIZING
FOR TOO LONG WHEN YOU DE
ENERGIZE A CIRCUIT.
YOU HAVE TO GO LOOK AT EVERY FOR
POLL IN EVERY FOOT OF THE WIRES
TO MAKE SURE THAT NONE OF THEM
ARE DOWN OR DAMAGED WHEN YOU
TURN IT BACK ON THAT MEANS THAT
THE FASTEST YOU'RE GONNA GET
BACK IN SERVICES THIRTY SIX
HOURS.
WHAT DOES THAT MEAN FOR A BUSY
INTERSECTION IN A COMMUNITY
WHERE --
THEY NEED TO HAVE A TRAFFIC
LIGHT IF IT'S OUT FOR THIRTY SIX
HOURS WHILE PEOPLE ARE GOING TO
VISIT AND LOOK AT SOME OF THE
SERVICES.
IT TAKES TIME TO REALLY MAKE
THIS CAR KNOW THAT IT'S REQUIRED
BUT WE WANT TO DO THIS
RESPONSIBLE I SAID ELSEWHERE
THAT WE ARE REBUILDING THE PLANE.
WALLETS AND FLY YOU GOTTA DO
THAT REAL CAREFUL BECAUSE IF YOU
CRASH IT.
DOESN'T WORK FOR THE FOR
RATEPAYERS OF THE OR THE PUBLIC
BY STE I STILL AT WHAT ASSURANCE
DO I GIVE MY CONSTITUENTS IT IS
GOING TO BEAT THAT THAT THINGS
ARE GONNA BE SAFER THIS YEAR.
YOU KNOW THE TO BE HONEST WITH
YOU IF I WAS GOING TO GIVE AN
ANSWER I'D SAY WE CAN CUT OFF
ELECTRICITY TO PEOPLE WHO LIVE
IN FIRE HAZARD AREAS BUT THAT'S
NOT GOING TO DO IT.
I DON'T THINK THAT WE ARE
PREPARED IN ANY WAY HERE IN THE
STATE OF CALIFORNIA. FOR THE
ENORMITY OF WHAT WE'RE SAYING SO
I'LL GIVE YOU THE EXAMPLE OF THE
OF THE CAR FIRE. FORTY SIX MILES
OVERNIGHT CAUSED BY A FIRE.
AT FTA IF GOT CAUGHT FROM A CAR
DRAGGING AN AXLE FORTY SIX MILES
A THREE MILE HIKE.
CLOUT.
I CAN'T MIKE I I WHEN I SAY I'M
NOT PREPARED I CAN'T WRAP MY
HEAD AROUND THAT.
I CAN'T THAT'S WHAT I MEAN BY
NOT PREPARED THERE MANY THINGS
THAT WE ARE DOING I THINK WE
WILL CONTINUE TO DISCOVER THEIR
MORE THINGS THAT WE NEED TO DO.
I THINK WE NEED TO GET BETTER AT
WHAT WE NORMALLY DO THE
INSPECTIONS AND I THINK THAT'S
WHY WE'RE BRINGING MORE PEOPLE
ON BUT I GOT TO SAY.
WE HAVE TO DO A LOT OF THINGS
WE'VE NEVER DONE BEFORE.
AND SO I'VE LISTED SOME OF THE
OUR THEIR TOOLS THAT WE CAN GIVE
YOU TO HELP MOVE SOME OF THIS
ALONG.
BECAUSE I THERE'S AN URGENCY
ABOUT.
YOU KNOW AND THIS AND YOU KNOW I
I HEAR WHAT YOU'RE SAYING I
UNDERSTAND SOME OF IT IS YOURS
BUT IS SOME OF IT I THINK IS
CONCENTRATING ON WHERE WE THINK
THE RISK IS HIGHEST RATHER THAN
TREATING ALL PIECES OF THE
SYSTEM I THINK A LOT OF PEOPLE.
WANT TO KNOW THAT THEY ARE
GETTING THAT EXTRA ATTENTION BUT
I THINK IS HOW DO WE ACTUALLY
USE THE RESOURCES WE'VE GOT.
IN PLACES WHERE THE BIGGEST RISK
IS.
ABOUT ASKING FOR A OF LISA HAS
ANYTHING SHE WANTS TO CONTRIBUTE.
I JUST THINK THAT CLIMATE I EVER
EXPECTED WE SAW WHAT WAS GOING
ON IN SAN DIEGO WE NEEDED TO DO
ITS STATEWIDE.
BUT THOUGH STRENGTHENED FEROCITY
THE FIRES WE SAW IN NORTHERN
CALIFORNIA WE'VE NEVER AND
ENCOUNTERED THOSE KINDS OF
INTENSE WINDS IN VERY SPECIFIC
LOCATIONS.
HAS ACTUALLY [inaudible]
STARTLED ME.
AND I I I I AM GIVING IT
EVERYTHING I'VE GOT BUT I WILL
JUST SAY THAT I AM LOOKING
FORWARD TO HEARING MORE FROM
THEY THINK ARE HELPFUL.
I'M LOOKING FOR FRESH EYES ON
THIS FROM THE NEW GOVERNOR.
THANK YOU IF PART OF MY ANSWERS
I HAVE TO WORK WITH THEM BECAUSE
IF HE JUST LOOKING AT ME TO STOP.
THESEOTHER FIRES TO BE ABLE TO
CONTROL THE FEROCITY OF THE
WINDS.
I DON'T KNOW THAT I CAN DO ALL
THAT.
THAT THATWASN'T THAT THAT
WASN'T WHAT I WAS ASKING OKAY
I'M ASKING YOU KNOW WHAT WHAT DO
YOU NEED FOR TOOLS TO HELP MOVE
THIS ALONG [inaudible]
HOME.
THANK YOU VERY MUCH FOR THE
OPPORTUNITY --
THE LEASE IF YOU TO MOTION COULD
THE PD EXECUTIVE DIRECTOR FOR
SIXTEEN THE FIRST ONES WITH THE
COMMISSION.
AND A HOME AT LIKE TO JUST SAY A
FEW THINGS HOME ONE THE
INTERACTION BETWEEN TREES AND
WIRES IS NOTHING NEW HELP IS ALL
ACROSS THE COUNTRY IT'S BEEN
HAPPENING.
AS LONG AS WE'VE HAD TREES
OVERHEAD WIRES THERE'S NO WHAT'S
DRIVING THE WILDFIRE CRISIS THAT
WE HOME IN CALIFORNIA HERE THAT
WHAT'S DRIVING THE CRISIS IS THE
CONDITIONS.
SURROUNDING --
THE WIRES IN THE TREES THEN LEAD
TO MASSIVE WILDFIRES.
AND A THING THAT'S VERY
IMPORTANT CONTEXT HERE BECAUSE
NOTHING IS DRAMATICALLY
DIFFERENT HELP AND THEN THE LAST
TWO YEARS ABOUT UTILITY
INFRASTRUCTURE OR TREES.
ARM AND SO IF WE EXCLUSIVELY
JUST KEEP FOCUSING ON MAIN THE
CLEARANCES AND HOME TRADITIONAL
METHODS WE ARE NOT GOING TO MAKE
LEAPS AND BOUNDS PROGRESS THAT
WE NEED.
THIS IS A VERY COMPLICATED MULTI
FOR OF COMPONENTS TO IT CLIMATE
CHANGE BEING ONE OF THEM.
AND IN TERMS OF TOOLS THAT I
NEEDED -- I
THINK WE REALLY NEED TO BE
GATHERING --
EXPERTS FROM CROSS OF THESE
DIFFERENT DOMAINS AND BEST
INNOVATIVE THINKERS IN THE SPACE.
AND HOME IT AND HELPING THE L.
AND EFFORTS TO HOW OFTEN ACTION
PLAN THAT IS NOT JUST FOCUSED.
ON ONE COMPONENT OF IT THAT IS
PART OF WHAT I'M TRYING TO DO
WITH THE WHILE FIGHTS COLLEGE
INNOVATION SUMMIT.
IS TO BRING EXPERTS FROM ACROSS
THE WORLD FROM FROM AUSTRALIA
FROM CANADA OUT FROM OTHER
STATES WHO SPECIALIZE IN FIRE
WEATHER WE SPECIALIZE IN
VEGETATION MANAGEMENT AND THE
SPENDING FUELS BEHAVIOR.
OMA L. DIFFERENCE IGNITION
PREVENTION METHODS IN HERE WHAT
ARE THE ABSOLUTE BEST MOST
INNOVATIVE IDEAS SOMETHING WE
HELP WHEN TRIED BEFORE.
AND SO IN TERMS OF HOPE A THANK
YOU KNOW ANYBODY WHO CAN HOPE --
A REALLY EL PUT SOME BEAT BEHIND
THIS EFFORTS --
TOGETHER THE BEST MINDS FROM
ACADEMIA FROM RESEARCH SCIENCES
A TECHNOLOGY COMPANIES FIRE
EXPERTS IN UTILITY EXPERTS AND
HELP THEM DEVELOP COMPREHENSIVE
PROPOSALS THAT THEN CAN BE
IMPLEMENTED ACROSS THE DIFFERENT
AGENCIES AT THE STATE FEDERAL
AND LOCAL LEVELS.
I THINK THAT'S HOW WE REALLY
MAKE ME LEAPS AND BOUNDS OF
PROGRESS BECAUSE AS LONG AS WE
JUST KEEP TRYING TO PUSH ON ONE
ELEMENTS OF THIS.
IT'S NOT GOING TO MAKE A
DRAMATIC DIFFERENCE IN THE KIND
OF TIME THAT WE ALL WOULD LIKE
TO SEE IT.
THANK YOU WENT ONE FIVE JUST A
FOLLOW UP QUESTION ABOUT IT I
WOULD LOVE TO HAVE YOU JOIN US
AT OUR FIRE WHILE TECNICA.
OR WELFARE TECH GUY --
CONFERENCE BECAUSE I THINK THIS
YOU ASKED THE QUESTION THAT
WE'RE ASKING OURSELVES WE KNOW
THERE ARE LOTS OF THINGS WE CAN
DO AND SHOULD DO FROM MY
PERSPECTIVE THAT'S WHY I THINK
IT'S IMPORTANT THAT THE GOVERNOR
IS CONVENING THE OTHER STATE
AGENCIES.
SOME OF WHOM HAVE BETTER
INFORMATION BETTER EXPERIENCE IN
TERMS OF FIRE THAN WE DO.
WELL TO TO YOU I DON'T.
I WOULD JUST HAVE TO HELP MOVE A
JUST YOU MIGHT CONSIDER --
THE COUNTRY OF CHILE.
AS A NATIONAL EMERGENCY ALERT
SYSTEM WHICH WE FOUND OUT ABOUT
WHILE WE WERE THERE --
SO I DON'T KNOW HOW THEY'VE DONE
IT -- DOCTOR
DID BUT THEY HAVE FIGURED OUT A
WAY.
TO POINT WHO THEY WANT TO NOTIFY
AT A NATIONAL SCALE.
SO THEY CAN DO IT THAT WAY WE
SHOULD BE ABLE TO DO THAT IN
CALIFORNIA.
OF THE FINAL THE FINAL THING AND
I THINK AND I DO THANK YOU
MISTER CHAIR I APOLOGIZE.
FOR IS THE AYE AYE WE MIGHT ONE
OF MY CONCERNS I'VE HEARD USE
MENTION OVER AND OVER AND
TALKING ABOUT RATE PAYERS
ANSWERED ABOUT REPAIRS AND SO ON
AS WE GO TO IMPLEMENT THESE FIRE
PLANS --
THAT WILL BE BORN ON THE BACKS
OF RATE PAYERS.
BUT AT WHAT POINT.
WHERE IS THAT YOU KNOW?
YOU WERE WAY IN SAFETY VERSES
RATE PAYERS --
YOU KNOW I WOULD HOPE WE COULD
ERR ON THE SIDE A SAFETY --
RECOGNIZING THAT THERE ARE
CHALLENGES HERE.
WELL WE TEND.
TO S. S. COMMISSIONERS FOCUS ON
SAFETY BUT WE ALSO HAVE TO
RECOGNIZE THAT.
THAT THERE ARE THOSE FOLKS WHO
WHO SPEAK TO IN IN OUR
PROCEEDINGS WHO HAVE VALID
POINTS.
SO WE TRIED TO BALANCE THAT NEXT
THAT COMES TO THIS QUESTION OF
REASONABLE IS WHAT CAN WE
REASONABLY DO THAT'S GOING TO
CREATE SAFETY WITHOUT
UNREASONABLY INCREASING COSTS.
SO I THINK THAT THAT ON BALANCE
WE HAVE DONE A LOT MORE IN TERMS
OF SAFETY THAN WE DID IN IN
PREVIOUS YEARS --
I THINK THAT I'VE BEEN FOCUSED
ON THAT PERSONALLY SINCE I GOT
TO THE CPUC.
BUT I ALSO I ALSO THERE ARE
OTHER THINGS WHERE WE ARE
PROBABLY GOING TO BE VERY STRONG
ON THIS QUESTION IN THAT HAS A
LOT TO DO WITH WHAT THE UTILITY
DOES IN IN IN IN ADVANCE OF AND
DURING BANKRUPTCY. TO BE ABLE TO
RECOVER WE THINK THERE ARE
THINGS THAT THAT WE NEED TO DO
WE NEED TO ALLOW AND SPEAK TO
THAT ALLOW THEM BECOME FINANCE
SIMPLE.
BECAUSE WITHOUT MONEY THEY'RE
NOT GOING TO BE ABLE TO DO THESE
THINGS.
BUT I ALSO THINK THAT WE DON'T
WANT TO MAKE ON WISE DECISIONS
THAT DISADVANTAGED RATE PAYERS
THEIR THANK YOU HONEST
MURATSUCHI.
THANK YOU I WANTED.
TO CONTINUE THE LINE OF
QUESTIONING OF DOCTOR WOULD --
YOU KNOW I READ THE FRONT PAGE
ARTICLE FROM THE LOS ANGELES
TIMES FROM JANUARY TWENTY EIGHTH --
JUST A FEW DAYS AGO --
QUESTIONING --
WHETHER THE PC --
IS.
CAPABLE OF EXERCISING THE
NECESSARY OVERSIGHT.
AND ENFORCEMENT OF OF FOUR
WILDFIRE PREVENTION EFFORTS.
AND TO I I I JUST WANTED.
TO QUOTED THROUGH A TO MAKE SURE
THAT -- THAT
THEY WERE COURTING YOU FAIRLY
BUT THE ACCORDING TO THE ARTICLE
MISTER PICKER.
YOU HAD TESTIFIED THAT PERHAPS
AT TO THE SELECT COMMITTEE
HEARINGS --
IT DOESN'T SPECIFY HERE THAT.
TO THAT THE PC IS PRIMARILY AN
ECONOMIC REGULATOR WITH THE
CENTER FOCUS AND MAKING SURE
COMPANIES PROVIDE ENERGY --
AT REASONABLE RATES --
THE AGENCY THAT HAS NEITHER THE
TECHNOLOGY NOR MANPOWER TO
ENSURE SAFETY COMPLIANCE ON ITS
OWN -- AND
SO I WILL FIRST OF ALL IT IS IS
THAT A FAIR --
ASSESSMENT OF THINK THAT WHEN I
WAS SPEAKING TO IS THAT OUR
PRIMARY VEHICLE FOR REVIEWING
UTILITY PERFORMANCE IS NOT. TEN
THOUSAND PEOPLE OUT IN THE FIELD
LOOKING OVER THE SHOULDER OF
EVERY --
EVERY UTILITY ALIGNMENT OF THAT
IN FACT WE DO WHAT MOST STATE
AGENCIES TO IN TERMS OF SAFETY
WHICH IS THAT WE REQUIRE THEM TO
SUBMIT PLANS.
REVIEWS REVIEW THOSE PLANS WOULD
LOOK TO SEE WHETHER THEY HAVE
THE RIGHT KINDS OF CONTROLS TO
BE ABLE TO MEET THE STANDARDS
THAT'S THE CEILING THAT I'M
TALKING ABOUT.
AND THEN WE GO OUT AND AND TO IF
AUDIT.
AND THEN WE DO SPOT CHECKS TO
MAKE SURE THAT WHAT THE AUDIT
TELLS US IS ACTUALLY TRUE.
AND SO THAT'S WHAT A RATE MAKING
AGENCY DOES AND THAT'S WHAT WE
DO AND HISTORICALLY.
I THINK WE ARE INCREASING OUR
ABILITY TO BE IN THE FIELD I
WILL I WILL JUST ECHO WHAT WHAT --
WHO -- LISA
SAID THE I DON'T THINK THAT THAT
IS HE'S A NEW APPROACH DRESSES
S. HAZARDS RATHER THAN SIMPLY
ENFORCING TO THE CEILING.
AND THAT I THINK IS WHAT I WAS
TRYING TO SPEAK TO YA I I'M SURE
I SAID THAT AS WELL.
IF YOU BUY ME THE ONLY TIME TO
MAKE SURE WE GET THE WHOLE QUOTE
IN THERE.
ALRIGHT SO --
IT'S A FAIR ENOUGH SO SO YOU'RE
SAYING ESSENTIALLY THAT ARE I
THINK YOU YOU THROUGHOUT A
NUMBER.
THAT TODAY WOULD TAKE FIFTEEN TO
TWENTY THOUSAND DO STAFF TO BE
THAT'S THAT'S A BACK OF THE AREA
THE END BUT I DON'T THINK THAT
THAT'S THE RIGHT WAY TO GO ABOUT
THIS SURE IS I THINK LISA
POINTED OUT.
THAT MAY NOT THAT'S THAT'S ONE
THING IT PROBABLY NOT ALL THAT
WE NEED TO DO AND IT MAY NOT BE
THE RIGHT THING TO DO IF WE
REALLY WANT TO GET.
MORE SAFETY FAST WE WE HAVE TO
LEARN HOW TO DO THINGS BETTER IN
DIFFERENTLY A SUPPOSED TO JUST
DOING WHAT WE DO MORE AND BETTER
I THINK THAT THAT'S WHAT I'M
TRYING TO SAY HERE AND OKAY --
FAIR ENOUGH AND AND AND THAT'S
WHAT YOU BEEN EMPHASIZING THIS
WATER FOR TECHNOLOGY CONFERENCE
IN ITS RIGHT PLACE IT WHETHER WE
CAN LEARN AND WE CAN BRING OUT
SOME OF THE THINGS THAT WE'VE
BEEN LEARNING IN OUR
CONVERSATIONS WITH OTHER
COUNTRIES THE AUSTRALIANS ARE IN
SOME RESPECTS CLOSEST TO US.
IN ALL AT LEAST THE KIND OF TALK
ABOUT HER CONVERSATIONS WITH
THEM BUT WE'VE BEEN LOOKING FOR
BEST PRACTICES ALL OVER SHOULD
THAT'S WHY --
WHEN WHEN?
I SAY THAT I THAT I I STILL
DON'T KNOW WHAT ALL THE
SOLUTIONS ARE IT'S BECAUSE THERE
ARE OTHER IDEAS AND OTHER PEOPLE
BRING FOR WE'RE NOT THE ONLY
PEOPLE ARE SAYING THIS THE
AUSTRALIANS ARE GOING THROUGH IT
RIGHT NOW.
WE SAW WHAT HAPPENED IN --
FOR MAKING.
THESE ARE LARGER TRENDS THAN ANY
OF THOSE PEOPLE OF EVERY
EXPERIENCE BEFORE TO IMPORTANT
TO SEE WHAT THEY'RE LEARNING SO
WE CAN ADOPT DEBT.
BUT IT'S HARD TO GIVE YOU AN
ANSWER HERE TODAY YES LAND AND
AND SO I APPRECIATE HOW YOU ARE --
LOOKING FOR A BEST PRACTICES --
AND AND AND FOR BETTER SOLUTIONS --
GOT IT TO OTHER STATES BUT YOU
KNOW I WHAT WANTED ASK I MEAN
AND IN THE SAME ARTICLE SAYS
THAT.
CURRENTLY A TEAM OF NINETEEN
PEOPLE AT THE P. YOU SEE.
A CONDUCTS ON THE GROUND
PREVENTION SAFETY AUDITS SPOT
CHECKS WHILE ALSO INVESTIGATING
WHAT FIRES I KNOW YOU TALKED
ABOUT ADDING MORE STAFF BUT THE
HOW MANY MORE STAFF ARE WE
TALKING ABOUT [inaudible]
WE SO THOSE NUMBERS ARE ACCURATE
TO A CURRENT STAFFING L. WITH WE
HAVE DONE TODAY ACTUALLY IS
ISSUED THE RULING AT THE
COMMISSION. TO BRING ON SOME
ADDITIONAL.
CONTRACTORS OUT TO PERFORM
ADDITIONAL WORK IN THE FIELD.
ELM.
AND WILL BE SCALED TO AND L.
ACTUAL PHYSICAL ABILITY TO
PERFORM THE KIND OF WORK IS THAT
VARIOUS LIMITATIONS OF HOW MANY
PEOPLE YOU CAN BRING ON HOW FAST
AND FOR THEM TO BE EFFECTIVE.
BUT WE WILL BE THROUGH A
CONTRACTING MECHANISM INCREASING --
THE MOUNT OF BOOTS ON THE GROUND
THE JUST PEOPLE WHO HEALTH
PATROLLING LINES OF THE DISTANCE
OF THE WORK THE UTILITIES ARE
DOING JUST TO PROVIDE SOME OF
THAT.
ADDITIONAL --
ASSURANCE AND SUPPLEMENTS ARE
STAFF BECAUSE OBVIOUSLY. NINE
TWO PEOPLE IS NOT GOING TO COVER
THE ENTIRE STATE SO HOW MANY
MORE PEOPLE ARE TALKING ABOUT.
ELM THE THE DETAILS OF THAT WILL
HAVE TO BE WORKED OUT ELAM AS WE
RAMP UP THIS PROJECT BUT IT'S AN
UP AS PRESIDENT PICK A SAID.
I THINK IN THE ORDER OF OVER A
HUNDRED HOME.
STAFF IT WOULD BE SOMETHING THAT
COULD BE FEASIBLE AGAIN THROUGH
THIS THROUGH THE L..
CONTRACTING MECHANISM BUT THE AT
AND THAT'S STILL NOT.
THEY WILL NOT BE ABLE TO BE
PATROLLING EVERY MILE OF LINES
IN THE STATE OF CALIFORNIA AT
ALL TIMES.
SO IT STILL ONLY PROVIDE SOME
ADDITIONAL OWN ABILITY TO
INSPECT BUT THAT THE A JUST ONE
MAKE SURE THAT THE EXPECTATION A
SAID THAT IT'S NOT GOING TO BE
PATROLLING EVERY EVERY MILE.
BUT WE HAVE THE WE HAVE THE
WILDFIRE MAPS AND WE HAVE THE
WILD FOR MITIGATION PLANS
UTILITIES ARE FILING WE CAN USE
THAT AS A AS A WAY TO TO TO
ACTUALLY FOCUS OUR EFFORTS IN.
TO PICK THE GREATEST HAZARDS SO
WE KNOW THAT AS WE GET THROUGH
THIS FIRST ROUND OF THE WILD
FIRE MITIGATION PLAN IMPLEMENT
ENTERED VEGETATION MANAGEMENT
PROGRAM WILL LEARN SOMETHING AND
WILL PROBABLY COME BACK AND
APPLY THAT NEXT YEAR IN A
DIFFERENT WAY THAN WE HAVE THIS
YEAR.
SO THIS IS THIS IS GONNA BE
UNFORTUNATELY --
DRIVEN BY WHAT WE CAN LEARN HOW
QUICKLY CAN OR NOT BECAUSE WE
WANT TO DO THOSE THINGS ARE
AFFECTED WE ACT AS A SAID.
WE COULD DO A LOT OF THINGS BUT
SOME OF THEM PROBABLY WOULDN'T
BE AS IMPORTANT THIS THING SO
THAT WE DO THAT WORK I I GET I
GUESS MY BASIC POINT IS THAT YOU
KNOW.
I AM CONCERNED THAT WHILE YOU
KNOW WE'RE IN THE PROCESS OF
DEVELOPING THESE WHAT FOR
MITIGATION PLANS THROUGH SB NINE
A ONE IN THE THAT.
THAT IF IF WE IF WE DON'T HAVE
THE ENFORCEMENT AND WE WE OFTEN
SEE THAT TO YOU KNOW THE LAWS
THAT WE PASS ARE MEANINGLESS
UNLESS THEY'RE ENFORCED.
AND YOU KNOW.
IT'S THE STATE I I IMAGINE
ACCORDING TO YOUR YOUR ANNUAL
REPORT THE SAFETY ENFORCEMENT
DIVISION OF COURSE IS NOT JUST
SURVEYING THE OVER TWO AND A FEW
THOUSAND MILES OF OF OF POWER
LINES IN THE STATE OF CALIFORNIA
BUT IT'S ALSO.
SUPPOSED TO BE MONITORING OUR OR
GAS FACILITIES AND AND AND AND
THE LONG LIST OF RARE ROSE --
LIGHT RAIL TRANSIT HIGHWAY --
AND YOU KNOW IT IT SEEMS TO ME
THAT AS WE'RE DEALING WITH THIS
NEW ABNORMAL OF THAT IS CLIMATE
CHANGE HERE THAT YOU KNOW WE
CAN'T.
WE LIKE THE ARTICLE TALKS ABOUT
I MEAN DO WE NEED TO DO WE NEED
TO BE LOOKING AT NEW MODELS OF
RATHER THAN JUST ADDING
CONTRACTORS TO THE PC OF ME DOES
THE PC.
I HAVE TOO MUCH ON HIS PLATE
THAT WE NEEDED A NEW SPECIAL
AGENCY TO FOCUS ON ON WHAT FAR
SAFETY AND MAIN.
A MAIN TO I I THINK WE NEED --
YOU KNOW WE WE NEED YOUR ADVICE --
YOU KNOW --
CRISIS THIS NEW ABNORMAL THAT IS
CLIMATE CHANGE.
WELL THESE ARE ALL REAL GOOD
QUESTIONS BUT SOME OF THESE
THINGS ARE A LITTLE BIT OUTSIDE
OF OUR DIRECT ROLE SO.
I THINK THAT IS A STATEWIDE
WARNING SYSTEM IS A GREAT IDEA
WE TALKED A TO THE OTHER STATE
AGENCIES DO THAT WE DON'T DO
BORING EXIT THE CPUC NOR DO I
THINK THE UTILITIES ARE THE BEST
PEOPLE TO DO WARNINGS.
WE HAVE TO GET MORE COOPERATION
FROM THE TELEPHONE COMPANIES
THEY HAVE TO PREPARE FOR THAT
BUT WE ALSO NEED TO HAVE THE
DATA ON THAT.
PARTICULAR HAZARD AND OTHER
HAZARDS I'D IN A I WANT TO SAY
THAT THIS IS THE ONLY THING WE
NEED TO TO BE ON THE LOOKOUT.
FOR AND I CAN SAY THAT WE
ACTUALLY HAVE STAFF WHO DO SOME
OF THOSE OTHER THINGS THAT YOU
RAISED AND YOU CAN TALK TO THE
TO THE OTHER STAFF THAT WE HAVE --
DO OTHER HAZARDS YEAH JUST WHAT
THE COMMENTS ON THE ON THE STAFF
AUGMENTATION THIS IS BY NO MEANS.
THE SOLUTION TO THE WELFARE
CRISIS.
EITHER WE NEED SHORT MEDIUM AND
LONG TERM --
EFFORTS TO SOLVE THIS PROBLEM OF
THIS STAFF AUGMENTATION IS A
RESPONSE. TO THE TO THE
IMMEDIATE NEED TO HAVE MORE EYES
ON THE GROUND --
AND WE CAN GAUGE THE
EFFECTIVENESS OF THAT AS ABOUT
WORK L. HAPPENS SB NINE NO ONE
ANTICIPATED THE THIRD IN THE
INDEPENDENT THIRD PARTY TO COME
IN AND EVALUATE THE PERFORMANCE
OF UTILITIES.
IT WITH IMPLEMENTATION OF THE
WILD FIRE MITIGATION SET UP IN
TWENTY TWENTY ONE RATE WE HAVE
DECIDED THAT WE CANNOT WAIT
UNTIL TWENTY TWENTY ONE SO.
THAT IS WHY WE'RE JUST BRINGING
ON ADDITIONAL PEOPLE OF SOCKS
FAST AS WE CAN JUST TO HOLD
BECAUSE WE CAN DO MORE WITH THE
HUNDRED THAT WE CAN DO WITH THE
NINETEEN RIGHT AS WE CONTINUE TO
DISCUSS THESE LONG TERM
SOLUTIONS THAT CAN INVOLVE.
A YOU KNOW A SINGLE KINDS OF
PAST WEATHER IS CREATING NEW AND
CITIES OR OF MEN SAYING --
ALREADY EXISTING PROGRAMS
[inaudible]
I THINK --
YEAH.
THAT SEGMENT AND THIS MAY SEND
AN UPBEAT AND KIND OF ON THE
SAME LINES OF OF DOCTOR WOULD --
AND AND I'VE SAID FOR YEARS I
THINK WE ASK YOU TO DO I MEAN WE
WE PILE THINGSON AND THEN GET
ANGRY WHEN IT DOESN'T WORK OUT --
DO YOU AS WE CONTINUE TO TALK
ABOUT OVERSIGHT AND LOOKING
IMPORTANT.
BUT IN YOUR PLANNING PROCESSES
AND AND FROM THE WELFARE
MITIGATION PLANS DO YOU ALSO
HAVE THE ABILITY TO BE NIMBLE.
I DO HAVE THE ABILITY TO BE I
MEAN CALIFORNIA IS A BIG STATE
WITH ALL KINDS OF DIFFERENT
TERRAIN AND DIFFERENT RISK
FACTORS AND DIFFERENT STRATEGIES
FOR EACH ONE OF THOSE.
IN YOUR IN YOUR ROLE DO YOU ALSO
HAVE THE ABILITY TO BE AS NIMBLE
AS AS YOU NEED TO BE AND IF
YOU'RE NOT WHAT WOULD THAT WOULD
THAT LOOK LIKE.
SO.
I WILL SAY THAT I DON'T AND I'VE
ALWAYS SAID THAT HE DIDN'T THINK
THAT THE CPUC WAS THE MOST
NIMBLE.
OR EVEN TIMELY.
AGENCY AND WE WERE DESIGNED
DIFFERENT --
ERA.
WHEN THINGS DIDN'T MOVE QUICKLY
AND WE WERE DESIGNED FOR ANY ERA
WHERE EVERYTHING LOOKS LIKE A
SPECIALTY COURT?
SO I USE IT WE WERE.
REALLY DOES SORT OF SET UP IS A
SPECIALTY COURT TO KEEP A LOT OF
THESE RATE MAKING ISSUES OUT OF
THE THE THE THE STATE COURT
SYSTEM.
AND SOMEBODY WHO HAD EXPERTISE
IN TERMS OF INFRASTRUCTURE.
SO I'VE WE CAME EARLY TO THE
LEGISLATURE SEEKING TO HAVE
CONVERSATIONS ABOUT HOW TO
CHANGE OUR OVERALL PROCESSES.
AND TO BE USED THREE DIFFERENT
KINDS OF PROCEEDINGS WE DO
ADJUDICATORY OR FORTUNES FOR
VIOLATIONS.
OF WE DO WHAT WE CALL OUR RATE
SETTING FOR IN THAT'S THE BULK
OF WHAT WE DO FOR THINGS THAT
INVOLVE COSTS AND THEN WE DO.
ANOTHER SET OF HEARINGS THAT --
FOCUS ON ON ON WHAT'S A
LEGISLATIVE ACTIVITIES WERE
IMPLEMENTING.
I THINK WE NEED TO DO MORE AND
CAUSE A LEGISLATIVE WE THINK
THAT THE LEGISLATURE DID NOT GO
FAR ENOUGH IN TERMS REFORMING US
IN TERMS OF THOSE PROCESSES.
SO THE LEGISLATURE.
DID ALSO MAKE THE JOB IN SOME
RESPECTS A LITTLE HARDER BECAUSE
THE EX PARTE REQUIREMENTS
SOMETIMES MAKE IT HARDER TO
ACTUALLY HAVE CONVERSATIONS WITH
PEOPLE FREELY.
AND GET INFORMATION AS A
COMMISSIONER SO YOU ELY MORE ON
BUILDING THAT RECORD VERY
PAINSTAKINGLY THAT'S THE
TRANSPARENCY THAT WE TALK ABOUT
OTHER PEOPLE HAVE A DIFFERENT
NOTION OF TRANSPARENCY --
BUT FOR US TRANSPARENCY IS DO
YOU HAVE A RECORD PUBLISHED
RECORD THAT EVERYBODY CAN HAVE
ACCESS TO WHICH IS WHAT YOU USE
TO MAKE A DECISION.
SO SOMETIMES I SEE THINGS
RAYNAUD THINGS BUT BECAUSE IT'S
NOT IN THE RECORD I CAN'T DEPEND
ON THAT TO MAKE A DECISION.
THESE THINGS ARE REALLY HARD TO
DO IN THE FACE OF PATH OF OF OF
FAST PACED KNOWLEDGE IS THE CAN
INNOVATE VERY QUICKLY SO WE CAN
TAKE US A COUPLE YEARS TO GET UP
ON TO SPEED.
ON THINGS LIKE BATTERY STORAGE
DURING WHICH TIME BATTERY
STORAGE IS REALLY MOVING MUCH
MORE QUICKLY THAN OUR PROCESSES
AND THE PARTICIPANTS IN OUR
PROCESSES ALLOW US TO BECAUSE
THEY'RE TALKING ABOUT BIG
NUMBERS.
AND THEY WANT TO MAKE SURE THAT
WE ACTUALLY SPEND THE RIGHT
MONEY ON THE RIGHT TECHNOLOGIES
OR WE DON'T OVERSPEND OR THAT WE
MAKE SURE THAT PEOPLE ARE
NUMBERS.
THESE ARE ALL HIGHLY LITIGATED
THAT I THINK IS A CORE ISSUE.
IF YOU WANT AN AGENCY THAT CAN
MOVE MORE QUICKLY.
MAYBE THIS IS NOT THE RIGHT KIND
OF AGENTS IF YOU WANT AN AGENCY
THAT DOES WHAT THE COURT DOES
WHICH IS BALANCES THE EVIDENCE
THAT COMES INTO THE RECORD.
AND BALANCES THE WORDS VERY
CAREFULLY TO MAKE SURE THAT
THEIR SPECIFIC OUTCOMES OF
FAIRNESS AND WE'RE GOOD AT THAT.
BUT IT'S IT'S NOT GONNA BE QUICK.
SECOND BE QUICK THAT IN TURN
MEANS THAT TO DO THESE THINGS ON
SAFETY WE HAVE COME UP WITH
REALLY DIFFERENT WAYS OF
APPROACHING THINGS.
SO WE'VE TRIED A LOT OF THESE
THINGS AND SOME OF THEM HAVE
WORKED PRETTY WELL BUT THAT'S
ONE OF THE REASONS WHY RETURN TO
HIS WILD FOR CONFERENCE.
IT'S A WAY TO BRING A LOT OF
INFORMATION AND THAT ALL THE
PARTIES WHO COME TO US IN A
PROCEEDING WOULD NEVER BRING TO
US.
AND SO WE'RE EXPERIMENTING WITH
THOSE THINGS JUSTICE NEWER TO US
AND IT REQUIRES US TO STRETCH TO
BE ABLE TO DO THAT STUFF THAT'S
WHY I THINK.
THAT -- LISA
HAS BEEN A TREMENDOUS ADDITION
TO THE ORGANIZATION WHICH
BECAUSE OF THE PRIVATE SECTOR
AND SHE'S VERY FAMILIAR WITH HOW
YOU KEEP PACE AND AND TECHNOLOGY
INNOVATION BECAUSE SHE DID A LOT
OF WORK AND IT.
SO.
IT'S IT'S A STRUGGLE AND THERE'S
LOTS OF WAYS WE DISPLAY THIS.
WE HAVE BEEN SLOW TO REALLY BE
ABLE TO FIGURE OUT HOW ADAPT
TECHNOLOGY WERE COURT WORK COURT
WE NEED TO HAVE COURT ROOMS AND
LOS ANGELES SACRAMENTO SEEN
DIEGO.
ALL OUR COURTROOMS IN THE BAY
AREA. ONE OF THE REASONS THAT WE
CAN'T HAVE THESE KINDS OF
PROCEEDINGS OUTSIDE OF THE BAY
AREA'S IS VERY HARD FOR US TO
GET THE TECHNOLOGY THAT ALLOWS.
ALL THE PARTICIPANTS TO TO
ACTUALLY TRACK WHAT WE'RE DOING.
ANY AND TO KEEP AN EYE ON US TO
MAKE SURE THAT IN OUR DEFINITION
OF TRANSPARENCY THEY WERE
BUILDING A RECORD AND WERE USING
THAT TO FRAME OUR DECISION.
SELL EITHER A YOU KNOW THOSE ARE
THESE ARE ALL THINGS I SAID A
COUPLE YEARS AGO WHEN WE WERE
TALKING ABOUT --
ABOUT THE THREE PHARMACY PSA --
SOME OF THE THINGS THAT --
THAT THE THE ASSEMBLY MEMBER
QUIRK BROUGHT UP FOR KIND OF
CHALLENGING ONE OF THE THINGS
THAT -- THAT
THE LEGISLATURE DID HIS REQUIRE
TO TREAT AUTOMATICALLY ANY --
BANKER INVESTOR FINANCE --
FOR ME TO GO OUT AND AND EXACT
WHAT THE IN THE COMMUNITY IS
SAYING SO THAT I CAN REALLY
INTERPRET.
TRULY WHAT THEY'RE SAYING AND
PRINT VERSUS WHAT WHAT THEY
ACTUALLY ARE LOOKING FOR SO I
HAVE TO DO THAT THROUGH.
A STAFF WHO CAN TALK TO THEM SO
THESE ARE THESE ARE ALSO
CHALLENGES BUT IT'S IT'S USEFUL
IN TERMS OF MAKING SURE.
THAT EVERYBODY HAS THE SAME
ACCESS TO ME. TO BE ABLE TO MAKE
SURE I'M PAYING ATTENTION TO
THEIR POINT OF VIEW.
I DON'T I DON'T HAVE GOOD
ANSWERS HERE EITHER AND I DO WE
ASKED TO TO NARROW THE SCOPE OF
WHAT WE DO.
USED TO HAVE A HUNDRED AND FIFTY
PEOPLE WHO WENT OUT WITH THE CHP
OFFICER EVERY DAY TO INSPECT
COMMERCIAL TRUCKING [inaudible]
WELL.
THAT THERE'S TREES BEEN
DEREGULATED FOR INTERSTATE
PURPOSES AND IT'S ALL INTERSTATE.
SO ALL WE HAD WAS --
MOVING VANS THE LEGISLATURE DID
TAKE INTERSTATE MOVING VANS AWAY
FROM US BUT WHEN HE LEFT US WITH.
VERY COMPLICATED NEW
TECHNOLOGIES THAT ARE VERY
DEMANDING AND VERY COMPLICATED
IF YOU THINK THAT.
THAT REPORTS OF RECENT
DEMONSTRATORS DISRUPTING OUR
HEARINGS OR ANYTHING WE HAD TAXI
DRIVERS IN SAN FRANCISCO
SURROUNDING OUR BUILDING AT
HAWKING BECAUSE THEY WANT US TO
KILL THE THE THE LIFT AND UBER
COMPANIES.
THAT SELL --
THIS IS NOT EASY THERE DOESN'T
SEEM TO BE DESIRE TO DO THAT.
IN PART BECAUSE WHEN THE
LEGISLATURE GIVES US A TASK.
IT SETS A STATEWIDE MARK.
VERSUS A BUNCH OF DISCRETE
MARKETS AROUND SAY SO FOR
EXAMPLE WHEN YOU TOLD US THAT WE
WERE GOING TO REGULATE THE CABLE
COMPANIES.
WE DON'T HAVE A LOT OF AUTHORITY
TO TELL THEM TO DO ANYTHING.
BUT THEY COME IN EVERY YEAR THEY
GIVE US A FORM THEY GIVE US INTO
A SMALL FEE TO FILE.
AND THEN THEY'RE NOT REGULATED
BY LOCAL GOVERNMENTS HAND FOR
MOST PART NOT BY US.
SO THERE YOU COULD PULL SOME OF
THAT AWAY --
BUT I DON'T KNOW THAT THAT THAT
YOU WANT TO GIVE UP ALL CONTROL
OF TELECOMMUNICATIONS TO THE
DEPARTMENT OF CONSUMER AFFAIRS.
CELL DEEZER DEEZER CHOICES THAT
ARE TOUGH TO MAKE WE CAN'T MAKE
YOU HAVE TO DO THAT.
IMPORT QUESTIONS THOUGH --
THAT --
WE'RE GONNA TURN TO MISS RAMOS --
BURKE.
AND THEN MISTER PATTERSON AND
THEN WE'LL WRAP UP AND MOVE --
TO MISS ECHOLS AND GIVE HER AN
OPPORTUNITY MAKER PRESENTATION.
AND THEN WE'LL WRAP IT FOR THE
DAY.
THANK YOU MISTER CHAIR OF I
THINK IS I'D LIKE TO FOLLOW UP
ON DR EGGMAN'S COMMENTS --
I THINK WHAT SHOULD BE CLEAR SO
WE DON'T WANT YOU TO FAIL.
THERE THERE'S TOO MUCH AT STAKE --
AS DOCTOR WOULD MENTIONED TOO
MANY LIVES THAT DEPEND ON THE
ACTIONS.
OF THE P. C..
UP.
AND IF WHAT WE ARE DOING.
WHETHER TO SB NINE A ONE IS MORE
THAN CAN BE HANDLED.
WE WANT THINGS TAKEN CARE OF
THERE IS SO MUCH AT STAKE.
AND I THINK THAT PERHAPS AT
THEIR HOUSE TO BE AGAIN HONEST
DIALOGUE YOUR WEEK ARE NOT ABLE
TO TAKE CARE OF THIS.
IT HAS TO BE TAKEN CARE OF IN
NINE A ONE WE TALK ABOUT SAFETY
MEASURES HARDENING THE GRANT
ENSURING ADEQUATE PROTECTION FOR
COMMUNITIES ACROSS THE STATE.
THEN WE TALK ABOUT THE
MITIGATION PLANS THAT THAT WERE
MANDATING AND TO DO YOU ARE YOU
ABLE TO TO ENSURE COMPLIANCE AND
DO YOU HAVE THE STAFF TO TAKE
CARE OF THAT WHAT MORE DO YOU
NEED.
UP AND NOW WE'RE TALKING ABOUT
BRINGING IN --
BEST PRACTICES FROM OTHER
COUNTRIES --
DOCTOR WOULD TALKS ABOUT CHILE
WE HEAR ABOUT AUSTRALIA.
IF IF WHAT WE'RE ASKING YOU TO
DO IS SOMETHING THAT IS GOING TO
TAKE TOO LONG.
THEN WE HAVE TO FIGURE OUT.
A WAY. TO DO THIS MORE
EXPEDITIOUSLY BECAUSE THERE'S
TOO MUCH AT STAKE WE HAVE LIVES
THAT HAVE BEEN LOST AND WE CAN'T
CONTINUE ON THIS PATH --
ONE DOCTOR WOULD TALKS ABOUT THE
EIGHTEEN MONTH PLAN.
I I I DO RECALL.
WHEN WE HAD THE SB NINE A ONE
HEARINGS AND THAT WAS PART OF
WHAT WAS DISCUSSED?
YOU KNOW SOMETHING IS
IMPLEMENTED SOMETHING IS IS
PASSED WE SAY THIS IS THE NEW
REGULATION.
AND WE HEARD ABOUT THE FACT THAT
TAKES EIGHTEEN MONTHS TO
IMPLEMENT THIS.
THAT'S FRUSTRATING AND THE
DOCTOR WOULD HAVE TO AND TO THE
FAMILIES OF THOSE WHO LOST LOVED
ONES.
THAT ISN'T A GOOD ENOUGH ANSWER
BUT WE ALSO AS DOCTOR EGGMAN
SAID WE CAN'T JUST.
SO WHAT ALL ON YOU AND EXPECT
YOU TO TO HAVE THE RIGHT ANSWER
FOR EVERYTHING.
IN THE END DURING THE HEARINGS
AS WELL I ALSO SAID AND I I WAS.
AS A FRESHMAN I SAID TO YOU THEN.
IF THERE IS LEGISLATION THAT YOU
WANT FROM US THE YOU NEED THAT
WE FOR US TO PASS DOCTOR QUIRK
HAS TALKED ABOUT THAT AS WELL.
TELL US WE WANT TO BE PARTNERS
WITH YOU WE WANT TO BE SURE THAT
IN THE END WE WORKED TOGETHER
FOR SOMETHING THAT IS GOOD FOR
CALIFORNIA.
AND AGAIN TO DOCTOR WOULD INTO
ALL OF MY COLLEAGUES WHO HAVE
HAD THE DEVASTATING WILDFIRES.
WE NEED TO FIND THE ANSWERS FOR
THEM.
THANK YOU AYE I THINK THAT I'VE
SAID THAT WE MOVE MUCH MORE
QUICKLY ON SOME OF THE ELEMENTS
IN SB NINE ONE PARTICULARLY THE
WILDFIRE MANAGEMENT PLANS FOR
MOVING QUICKLY TO MAKE SURE THAT
WE HAVE ADDITIONAL FOLKS TO GO
OUT AND SURE THAT THERE'S
COMPLIANCE WITH THAT.
BUT I WILL SAY THAT.
THE STANDARDS THAT WE'VE ADOPTED
IN THE STANDARDS THE YOU ARE
REQUIRING US TO IT HERE TO IN
TERMS OF IMPLEMENTING SB.
NINE ONE MAY NOT BY THEMSELVES
BE ENOUGH WE WE I THINK WE CAN
DO THOSE I THINK WE CAN GET
BETTER AT THAT I THINK WE HAVE
TO GET BETTER AT IT.
BUT THE WILD FIRE MITIGATION
PLANS ARE WHAT I DESCRIBED
EARLIER AS A CEILING.
WE NEED TO LEARN HOW TO GO
BEYOND THAT.
AND SO THAT'S PART OF OUR
COMMITMENT IS THAT WE'RE
QUESTIONING OURSELVES.
AND I'M HERE TO TELL YOU THAT
WHILE IT SB NINE ONE IS
IMPORTANT ITSELF IS NOT GOING TO
BE ENOUGH.
SO THAT'S WHY I'M I'M EAGER THAT
THE GOVERNOR IS ACTUALLY
CONVENING THE OTHER STATE
AGENCIES BECAUSE I THINK THAT WE
WILL ALL LEARN BETTER AS WE
SHARE INFORMATION WE'VE WORKED
CLOSELY WITH CALLOW WE US IN
WITH.
WITH -- WITH
CAL FIRE.
THEY UNDERSTAND FIRES.
WE UNDERSTAND RATE MAKING.
WE UNDERSTAND PROCESS LISA VADA
HAS ACTUALLY SPENT A LOT OF TIME
TRYING TO LEARN.
I THINK THAT BRINGING THE
CALIFORNIA NATURAL RESOURCES
AGENCY INTO THE DISCUSSION
BRINGING SOME OF THE OTHER STAGE
TO THE DISCUSSION WILL HELP US
ALL TO GET TO BETTER SOLUTIONS
ABOVE AND BEYOND WHAT WE'RE
CURRENTLY DOING.
AND THAT'S WHAT MY MESSAGES IS
THE WE NEED MORE WE NEED MORE
THINKING WE NEED MORE IDEAS
BECAUSE I'M JUST AFRAID THAT
WHAT WE HAVE NOW IS A CEILING.
AND WE DON'T KNOW HOW HIGH WE
NEED HOW TALL WE HAVE TO BE. TO
ACTUALLY ACCOMMODATE THESE
CHANGING CONDITIONS.
SOME ARE BURKE.
SO I HAVE TWO QUESTIONS ONE TO
BUILD A QUESTION WHICH AND I AND
AND BUT ASSEMBLYMEMBER REYES
QUESTION WHICH IS.
I'M NOT TOTALLY UNDERSERVED
UNDERSTANDING WHY WERE
REINVENTING THE WHEEL I MEAN FOR
YOUR TESTIMONY YOU SAID WE DON'T
UNDERSTAND THE WORDS MEAN OR WE
DON'T KNOW FOR MANAGEMENT AND
VEGETATION MANAGER.
I'M TRYING TO FIGURE OUT WHY
THERE ISN'T A STRONGER
PARTNERSHIP OR WHY YOU'RE THE
ONLY AND STEVE.
APPROVAL.
FIRE MITIGATION PLAN WHY ISN'T
THERE MORE WORK WITH CAL FIRE OR
ONE OF OUR OTHER AGENCIES THAT
ALREADY HAS EXPERIENCE IN AND
I'M.
AND AS MUCH AS I APPRECIATE OF
WILD CARD TECHNOLOGY CONFERENCE
WHO IS PROBABLY BETTER ADAPTED
AND BETTER ABLE TO EVEN TAKE IN
THAT INFORMATION FROM THAT
CONFERENCE. TO BE WORKING WITH
YOU TIME TO LOOK AT THOSE WILD
FIRE MITIGATION PLAN THAT'S MY
FIRST QUESTION.
AND MY SECOND.
QUESTION SLASH COMMENT IS --
WE'VE SPENT ON THE TALK VERY
BRIEFLY ABOUT AND I KNOW DOCTOR
BURKE MENTIONED BRIEFLY AND THE
CHAIR ISSUES AND I KNOW WE HAVE
A TENDENCY TO THINK THAT THAT'S
ALL ABOUT MILLIONAIRES AND
BILLIONAIRES AND MEANWHILE
CALPERS LOST SIXTY SEVEN MILLION
DOLLARS.
CAL STAR IS OFF FORTY MILLION
DOLLARS OF THEIR INVESTMENT
DIRECTLY OVER THE LAST MONTH AS
A RESULT OF THESE DOWNGRADES.
AND MIKE I AM CONCERNED AND THE
SECOND PART OF MY QUESTION IS IS
THAT THE PC DID COME TO THIS
BODY -- IN
SEARCH OF SOLUTIONS AS FAR AS A
LIABILITY OR CONCERN LAST YEAR.
AND AS YOU LOOK AT NINE A ONE I
HEAR YOU KEEP SAYING THAT LED
MORE NEEDS TO BE DONE AND MY
QUESTION IS WHAT DOES THE
LEGISLATION.
DIDN'T WHY DID NINE OH ONE NOT
GIVE YOU TO PROVIDE THE MARKET
THE STABILITY IT IT NEEDS AND IF
THAT IS PART OF YOU KNOW WHAT
WE'VE HEARD. FOR THOSE OF US WHO
TALK ABOUT THIS ALL DAY LONG
WE'VE HEARD ABOUT FOUR FIFTY ONE
POINT ONE WHETHER IT'S A MAYOR
SHALL OR WHAT DID YOU NOT GET.
THAT WILL PROVIDE NOT JUST THAT
NOT JUST THE I'LL USE BUT THOSE
WHO INVESTED IN WHICH OUR
TEACHERS AND STATE WORKERS.
ALL THE STABILITY IN THEIR
RETIREMENT OR WHETHER THAT IS
RATE PAYERS.
TAKING ON THAT BIRD AND WE ARE
AS A COMMUNITY AND AS A STATE
TAKING ON THAT BIRD AND NOW.
AND WE STARTED LAST YEAR BUT IT
HAS CONTINUED.
AND WHETHER IT IS BANKRUPTCY OR
SAFETY FIRST WE ARE TAKING ON
THAT BURDEN AND I AM GOING TO
UNDERSTAND WHAT YOU NEED FROM US.
TO MITIGATE THAT DAMAGE TO
SOCIALIZE THAT THAT COST.
THAT YOU HAVE NOT BEEN GIVEN OR
WERE NOT GIVEN AND I KNOW WHAT.
I CAN TELL YOU THAT.
AND I DON'T THINK THIS IS
POPULAR IN I'M NOT STATING A
POSITION.
OF THE STATE OF CALIFORNIA BUT I
CAN TELL YOU THAT THE INVESTMENT
COMMUNITY WANTS INVERSE
CONDEMNATION REFORM.
INVERSE CONDEMNATION ISN'T
REALLY A DETERMINATION OF
WHETHER THE UTILITY DID
SOMETHING RIGHT OR DID SOMETHING
WRONG.
IT'S A STRICT LIABILITY
PROVISION AND IT MAKES THEM THE
FIRST PAY ARE EVEN BEFORE THE
SOME OF THE INSURERS. FOR ANY
DAMAGES THAT ARE CAUSED BY THEIR
QUITMAN.
AT THE END OF THE PROCESS AFTER
THEY SETTLED ALL THOSE CLAIMS
SOMETIMES THREE OR FOUR OR FIVE
YEARS LATER.
THEY'LL COME TO US AND SAY OKAY
WE ACTED IS THE FIRST PAYER WE
KEPT US OUT OF BED OUT OUT OF
THE COURTS WE JUST DID IT THAT'S
WHAT THE COURTS LIKE ABOUT THE
THESE KINDS OF STRICT LIABILITY
PROVISIONS.
NOW WE NEED TO PASS THOSE COSTS
ALONG TO RATE PAYERS.
WE HAVE TO MAKE SURE.
THAT THE UTILITY IS BEING FAIR
AND REASONABLE.
IN THEIR IN THEIR THEIR REQUEST
THAT WE ALLOW THEM TO TO TAKE.
MONEY IN IN FROM RATE PAYERS AND
SO WE WE THEN APPLY A PRUDENT
SEE TEST AND THE QUESTION IS DID
YOU DO EVERYTHING YOU COULD
POSSIBLY DO.
AND SO THAT.
THAT INVERSE CONDEMNATION FIRST
AND FOREMOST IN MOST FREQUENTLY
IS WHAT --
THE THE INVESTMENT COMMUNITY
SAYS THEY WANT.
BEYOND THAT THEY'VE SAID THEY
WILL THEY HAVE WON A NUMBER.
THEY ONE AND OUT THIS MUCH IN NO
MORE IS GONNA GO TO SHAREHOLDERS.
AND THE I DON'T THINK WE CAN DO
THAT BECAUSE WE DON'T KNOW HOW
MUCH.
THE UTILITIES CAN HAVE TO PAY.
RIGHT AND JUST SO THOSE ARE
THOSE ARE THOSE ARE.
AND I UNDERSTAND THIS AND WE ON
WE ALL KNOW THAT THE UTILITIES
AND THE INVESTORS WOULD LOVE THE
REMOVAL OF INVERSE CONDEMNATION
AND WE ARE ONE OF THE LAST FEW
STATES IN THE COUNTRY THAT HAS
IT.
HOWEVER --
YOU KNOW YOU CAME TO US ASKING.
FOR A DEFINITION OR AN
UNDERSTANDING ON LIABILITY AND
WHAT DO YOU WHAT AND TO GIVE
YOURSELF SOME FLEXIBILITY IN
THAT SPACE MY QUESTION IS DID
YOU GET IT IN NINE OH ONE AND
WHAT PART OF NINE A ONE DIDN'T
GIVE YOU THAT.
SO OUR UNDERSTANDING OF NINE A
ONE IS THAT WE SHOULD USE OUR
STANDARD PROCESSES AND IN WITHIN
THAT DO A STRESS TEST AND THEN --
FROM THAT --
GO OUT AND TO BE A PLAYER
REASONABLENESS TEST.
UP TO A POINT AFTER THE STRESS
TEST AND ALL THOSE COSTS GO TO
RATE PAYERS.
SO WHEN WE STILL BELIEVE.
AS A AS AN ORGANIZATION THAT
YOUR INTENTION WAS THAT WE WOULD
WAIT UNTIL ALL THE COSTS WERE IN.
BEFORE WE PERFORM THAT STRESS
TEST AND ALLOWED THAT
SECURITIZATION.
THAT WOULD ACTUALLY BEGIN TO
RECOVER THE EXCESS COSTS ABOVE
AND BEYOND WITH THE UTILITY
COULD AFFORD.
THAT'S WHAT THAT'S WHAT WE
UNDERSTAND WE'RE TRYING TO DO
THAT THAT'S IT'S GOING TO BE
CONTROVERSIAL EVEN AT THAT
THAT'S THE PORTION THAT I THINK
IT'S GOING TO TAKE EIGHTEEN
MONTHS THE OTHER STUFF WE DID
FASTER.
THE OTHER STUFF STUFF THAT WE
THOUGHT WAS DIRECTLY APPLICABLES
TO SAFETY WE DID.
THIS IS ABOUT OUR TRADITIONAL
RATE MAKING WORK* WERE
CONTINUING TO RELY ON WHAT WE
UNDERSTOOD WAS YOUR INTENT
[inaudible]
OKAY.
I CAN ON TO THAT A LITTLE BIT --
EVER RAND OFF --
DEPUTY EXECUTIVE DIRECTOR FOR
ENERGY --
BECAUSE THE COMMISSIONERS
BECAUSE OF X. PART PARTY RULES
HAVE --
DIFFICULTIES MEETING WITH THE
RATING AGENCIES WE SET UP A
PROCESS WHERE WE WILL
PERIODICALLY MEET WITH THE
RATING AGENCIES --
IT'S IMPORTANT THE RATING
AGENCIES UNDERSTAND --
WHAT THE KIND OF THE REGULATORY
THINKING OF OF VERY STATES ARE --
YES THEY BEFORE THE CAMPFIRE
COMMUNICATED TO US THAT
SOMETHING WAS VERY VERY
IMPORTANT TO DAM WAS TO
UNDERSTAND.
WHEN THE STRESS TEST WAS RUN
WHAT?
NOT NECESSARILY THE NUMBER WOULD
BE BUT WHAT.
THE CRITERIA THAT WE WOULD USE
TO DETERMINE THAT NUMBER TO GO
BACK TO THE STATUTE.
THIS STATUTE IS I DON'T REMEMBER
THE EXACT WORDS BUT IS --
VERY STATUTORILY WRITTEN AND ITS
LACK OF CLARITY IS NOT CLEAR ON
ON WHERE THAT THAT THAT STRESS
TESTS WHERE IT BEGINS WHERE IT
AND EIGHT YEAH WHERE WHERE IT
GOES AND SO.
WE DID EXACTLY WHAT THE
INVESTMENT COMMUNITY WAS ASKING
FOR AT THAT TIME --
WHICH IS TO SAY OPEN A
PROCEEDING THAT WE WE THOUGHT WE
STILL THINK WE CAN DO IN A
FAIRLY QUICK PERIOD OF TIME
WHICH IS TO SAY.
HERE'S THE CRITERIA WE WOULD USE
WHEN WE APPLY A STRESS TEST --
WHAT WE SAID IN AND I THINK THE
BEST WE CAN IS A WHOLE WAS
COMFORTABLE WITH THAT AT THE
TIME IT?
WOULD BE VERY HARD FOR US TO
APPLY I NUMBER.
THEN ISN'T USED UNTIL THE
UTILITY COMES FORWARD SEVERAL
YEARS FROM NOW WITH AN
APPLICATION TO RECOVER THE FUNDS.
AND AT THAT POINT IN TIME THEIR
FINANCIAL SITUATIONS GOING TO BE
DIFFERENT --
AND MAYBE THEY COULD THEN AFFORD
TO PAY MORE MAYBE THEY CAN
AFFORD DIFFERENCE YOU DON'T
WANNA SET A NUMBER OF TWO
THOUSAND NINETEEN FOR A DECISION
YOU'RE GONNA BE MAKING IN TWO
THOUSAND TWENTY THREE BUT YOU
CAN SET THE CRITERIA SO THEY
KNOW THAT --
THE FIELD CHANGED A LOT AFTER
THE CAMPFIRE --
IN THIS UNDERSTANDING THAT NINE
OH ONE DEALT WITH TWO THOUSAND
SEVENTEEN FIRES DIFFERENTLY THAN
TWO THOUSAND EIGHTEEN FIRES.
IN.
SOMEONE EVER QUIRK TO YOUR POINT
EARLIER.
IT'S NOT SO MUCH MY
UNDERSTANDING IF YOU GO LOOK AT
P. GENIES FILINGS IN THE
BANKRUPTCY COURT YESTERDAY AND
THE DECLARATIONS OF THEIR CFO --
OF WHAT THEY WERE POINTING TO
IT'S NOT SO MUCH THAT THE P. YOU
SEE.
WOULD BE UNABLE TO DO THE STRESS
TEST IN A IN A CERTAIN TIME
PERIOD IT'S AT THE P. YOU SEE
WOULD BE UNABLE TO GIVE THEM THE
AUTHORIZATION. TO GO OUT AND
BORROW MONEY.
HEARD THE RATE PAYER BACK TERMS
OF NINE A ONE AND I'VE GONE BACK
AGAIN AND AGAIN AND READ NINE A
ONE AND I JUST DON'T SEE.
THE INTENT OF THE LEGISLATURE
THAT WE COULD STATION THAT
ACCESS TO CASH.
WELL.
I DON'T THINK ANY OF US IN THE
PAST THAT THOUGHT ABOUT THAT BUT
I WILL SAY THAT.
YOU DID TAKE CARE OF IT IN THE
CASE OF SAN BRUNO AND YOU COULD
HAVE TAKEN CARE OF IT NOW THANK
YOU.
IT'S A VERY DIFFERENT SET OF
FACTS I THINK MAYBE WE AT THAT
CHAIR HOLD MIGHT WANT TO DISCUSS
THAT LATER ON BUT IT'S A VERY
DIFFERENT SET OF FACTS.
BUT THEN.
THE QUESTION THEN OF WHAT NEEDS
TO HAPPEN GOING FORWARD IF YOU
LOOK AT WHAT THE RATING AGENCIES
HAVE SAID IN THEIR PUBLIC
COMMENTS ON WHY THEY'VE SET THE
VARIOUS UTILITIES WHERE THEY ARE --
IN WHERE THEIR UNCERTAINTIES ARE
IT'S NOT ONE FACT.
IT'S NOT THE P. YOU SEE --
MOVING SLOWLY ON THE STRESS TEST
APPLICATION --
IT'S NOT --
AT NINE A ONE HAVING WITH THE
TERM OF ART THAT'S BEEN USED OUT
THERE IS THE DONUT HOLE FOR TWO
THOUSAND EIGHTEEN IT'S THE
BALANCE OF ALL THE FACTORS BUT
THEN THE BIG ISSUE FOR ALL OF
THEM WHEN THEY GO FORWARD.
IS.
NO MATTER WHAT WE DO I ABILITY
FROM THE WILD FIRES.
THERE'S STILL THE QUESTION OF IS
THE UTILITY AS LONG AS THERE'S
NOT SOME OTHER FORM OF COST
RECOVERY OTHER THAN UTILITY OR
UTILITY RIGHT PAIR --
THEY DON'T SEE THE UTILITY IS A
GOING FORWARD MODEL I MEAN SO
YOU KNOW WE COULD FIX INVERSE
COMBINATION --
FAR WE COULD PASS ALL OF THE
COST ON THE RATE PAYERS FOR
EVERY WILD FIRE.
AND I THINK WALL STREET STILL
GONNA SAY THIS IS STILL NOT
INVESTABLE BECAUSE THEN PEOPLE
ARE GONNA --
DO IT --
YEAH THAT'S SIMILAR PATTERSON
HIS SUGGESTED --
IS THEY'RE JUST GONNA STOP USING
ELECTRICITY FROM THE GRID
BECAUSE IT WON'T BE AFFORDABLE
I'M SO IT'S THAT BALANCE OF
THINGS THAT ALL OF THESE
AGENCIES IF YOU LOOK CLOSELY AT
WHAT THE RATING AGENCIES ARE
SAYING NEEDS TO HAPPEN.
IT'S LIKE THEY NEED A
SUSTAINABLE RECOVERY METHOD YEAH.
YEAH AND THERE I SUMMER SAY
WOULD LIKE TO SEE IN VERSE
COMBINATION FIX BUT I DON'T SEE
YOU ACTUALLY SEE THAT AS THE
ONLY IF IT'S REALLY THE COMFORT
COPPER YEAH.
I THINK IT IS MUCH MORE
ARTICULATE BECAUSE HE CAN
ACTUALLY TALK TO PEOPLE.
I HEAR IT THIRD HAND.
FOR BECAUSE I DON'T WANT TO
ACTUALLY.
BUT I THINK IT'S ALSO IMPORTANT
TO KNOW TO THAT AND I DON'T WANT
IT CREATED THE BLUE RIBBON PANEL
OR COMMISSION THAT THAT'S PRETTY
MUCH THE FOCUSES TO ADDRESS THE
ISSUE OF LIABILITY AND GOING
FORWARD AND SO THE GOVERNOR'S
NOW APPOINTED THREE MEMBERS OF
THE FIVE MEMBER.
PANEL AND I BELIEVE THE SPEAKER
IN THE PRO TEM AS WELL SO.
THAT GROUP AND I THINK THERE'S
AN EXPECTATION THAT THEY WILL BE
UP AND OPERATING.
A SOONER THAN LATER MEMBER BURKE
HAS BROUGHT BROUGHT FOR IN AGAIN
I THINK THAT FROM OUR
PERSPECTIVE.
DEALING WITH THE GOVERNOR'S UP.
DO STRIKE FORCED ALL THE
DIFFERENT ELEMENTS THAT THEY ARE
THEY ARE TAKING ON WORKING WITH
THE OTHER STATE AGENCIES WILL
ACTUALLY HELP US TO GAIN
UNDERSTANDING BETTER FASTER.
SIMPLY BECAUSE WE'RE NOT
INSURANCE AGENCY.
AND SELF THAT PART OF IT IS A
RISK POOL OR SOME OTHER VEHICLE.
THAT'S NOT GONNA COME FROM US
GOT IT --
MISTER PATTERSON YOUR CLOTHES
OUT ON THE QUESTIONS --
AND THEN IF WE JUST IT IS YEAH
CIRCLES IF YOU COULD.
IF YOU'RE STILL HERE OWNER.
APOLOGIES FOR THE DELAY --
BUT IF YOU CAN START MAKING YOUR
WAY FORWARD NOT I DO NOT THANK
YOU MISTER CHAIRMAN I KNOW THIS
IS RATHER BROAD QUESTION BUT I
WANT TO KIND OF DISTILLED WE'VE
BEEN HERE TWO HOURS HEARING --
EVERYONE IS ACKNOWLEDGING --
THAT THERE'S GOING TO BE.
ADDITIONAL FIVE YEARS THAT WE
HAVE THE DOWNGRADES THAT AFFECT
THE COST OF CAPITAL --
THAT WE HAVE NOT ONLY P. G. ANY
AND BANKRUPTCY BUT WE HAVE OTHER.
UTILITIES OF SIGNIFICANT SIZE.
A TERRIBLY STRESSED WITH THE
CIRCUMSTANCES SO.
THE ASPIRATION FOR SAFE RELIABLE
AND AFFORDABLE ELECTRICITY.
HOW IS HAT ASPIRATION REACHED
WITH THESE COMPLICATING
CIRCUMSTANCES IT SEEMS THEY WORK
ENTIRELY AT ODDS WITH THE GOALS?
HERE --
WE'VE BEEN STRUGGLING WITH THE
SAME ISSUES FOR QUITE SOME TIME
SO FRANKLY IF YOU RECALL TWO
THREE YEARS AGO WE WERE TALKING
ABOUT.
HOW THE UTILITIES WERE IN A
DEATH SPIRAL TOP SOLAR UNF
ANYBODY REMEMBERS THAT?
UTILITIES ARE STILL HERE RATES
ARE STILL AFFORDABLE TO THOSE
ROOFTOP SOLAR COMPANIES ARE
BANKRUPT.
A SOLAR CITY AND IN SENATORS
[inaudible]
SO.
I I THINK THAT WE ST WE STRUGGLE
LONG WE DO WHAT WE DO TO THE
BEST THE THAT WE CAN'T INSURE
THEIR RATE PAYERS --
ARE DONE WE DON'T CONTROL
RELIABILITY ALONE WE I AM MEET
MONTHLY WITH.
WITH THE C. C. AND THE I SO JUST
TO TRACK.
TRANSPACIFIC --
THING SO WE NEED TO DO THAT WE
CAN DO WE ARE STAFFS MADE ON A
MORE REGULAR BASIS TO TRACK
THESE THINGS WE IDENTIFY SPECIAL
PROBLEMS LIKE THE CHALLENGES OF
OF NATURAL GAS IN IN IN IN THE
SOUTHERN CALIFORNIA AREA BECAUSE
OF THE LOSS OF SEVERAL MAJOR
PIPE POINTS.
WE MONITOR WE TAKE AMERICA WE
TAKE WHATEVER ACTIONS SEEM
APPROPRIATE NERVE VALUABLE TO US
I CAN SPEND A LOT OF TIME TAKING
THE CASE OF OF SOUTHERN
CALIFORNIA GAS.
OR I COULD USE THE SAME KINDS OF
FACTS BUT NATION AS TO WHAT WE
HAD TO DO WHEN SANTA NO FOR
NUCLEAR GENERATING STATION
DROPPED OUT OF THE GRID SUDDENLY.
LEAVING A BIG HOLE NOT JUST IN
TERMS OF OUR GENERATION BUT IN
TERMS OF THE REACTIVE POWER YOU
NEED TO GET ELECTRICITY FLOWING
BACK AND FORTH.
UP AND DOWN THAT SECTION OF THE
COAST THERE'S A LEVEL AT WHICH
YOU DO THE THINGS YOU DO --
THAT ARE BASED ON TEN YEARS OUT
AND THERE'S A LOT OF THINGS YOU
DO THAT ARE BASED ON THE NEXT
THREE MONTHS [inaudible]
THANK YOU.
LET ME JUST SAY WE WE ALWAYS
APPRECIATE YOU COMING BEFORE THE
COMMITTEE --
FOR THESE ANNUAL REVIEWS OF
CLEARLY THERE'S A BACKDROP OF
ISSUES THAT ARE --
THAT ARE VERY PRESSING IN
CREATING A LOT OF ANXIETY AND
STRESS NOT.
ONLY WITHIN THIS CAPITAL
COMMUNITY BUT THROUGHOUT THE
STATE.
AND I JUST WANT TO SAY THAT I I
APPRECIATE YOUR YOUR
THOUGHTFULNESS YOUR YOUR
ATTENTION TO A REGULATORY
AGENCIES DETAIL OVER THE KINDS
OF ISSUES THAT --
WE ADDRESS TODAY AND THE RANGE
OF OF CLARITY AND WHICH YOU'VE
BEEN ABLE TO PRESENT THEM AND
YOUR ENTIRE TEAM --
IT IS A WE ALSO RECOGNIZE TO
THAT --
THERE MAY BE SOME --
HANKS IN TERMS OF SOME IT IT --
BUT YOU'RE SAYING IT FROM.
WERE IN A CERTAIN HAPPENED WE
GET THAT --
WE WILL PUSH BACK WHEN WE FEEL
THAT THERE NEEDS TO AND I THINK
WE WERE RUBBING UP AGAINST HIS
AREAS WHERE.
THERE NEEDS TO BE SOME
TRANSITION TO SOME [inaudible]
OTHER.
STRUCTURE OR SOME OTHER REVIEWS
IT NEEDS TO BE CORPORATE IN THIS.
THAT -- DOES
ADDRESS THE ISSUE OF
RESPONSIVENESS AND TIMELY WAY --
BUT I AM COMPELLED TO TELL ALSO --
UNDERSTANDING HEAR WHAT YOU'RE
SAYING ABOUT THE DELIBERATE
NATURE OF A COURT PROCEEDING AND
MAKING SURE THAT.
ALL THE I'S ARE DOTTED AND TEASE
ACROSS IT IT MAY BE A BIT
FRUSTRATING AS WERE MAKING OUR
WAY THROUGH THESE OF SOMETIMES
CHALLENGING ISSUES BUT LONG TERM --
IT IS BUILDING A SOLID
FOUNDATION UNDER US FOR A
VARIETY OF OTHER REASONS SO.
THIS IS A CONVERSATION THAT WILL
CONTINUE --
WE MAY CALL YOU BACK OUTSIDE OF
THIS FLOOR AND UNDERSTAND A
LITTLE BIT MORE ABOUT THE
TECHNOLOGY AND I APPRECIATE THE
FACT.
THAT YOU'RE TRYING TO GO OUT
THERE AND LEARN.
OF FROM WHAT OTHER AGENCIES AND
COUNTRIES AND STATES ARE DOING.
WHO HAVE BEEN DEALING WITH --
THE IMPACTS OF CATASTROPHIC.
EVENTS WILDFIRES OR OTHER TYPES
OF EVENTS THAT WOULD IMPACT ON
THE STABILITY OF THE UTILITY AND
AND SO -- WE
WANT TO CONTINUE THAT
RELATIONSHIP WILL SHARE THE
INFORMATION WITH THE MEMBERS.
IN REGARDS TO THE TECH
INNOVATION THAT --
YOU'RE LOOKING. TO TO TO PURSUE
ADD WOULD PRESAGE A BANNER TODAY.
THANK YOU WILL BE --
WILL BE HAPPY TO GET YOUR KHôNG
COME BACK YOUR PLEASURE FEED
LIKE I'D STAY ANOTHER TWO HOURS
TODAY.
THAT WILL NOT BE NECESSARY.
BUT I WILL SAY THIS THE NEXT
TIME THAT WE HAVE --
YOUR REVIEW AND THE PUBLIC --
ADVOCATE'S OFFICE --
ON THE IN TIME WE MAY TAKE THEM
FIRST THE NEXT AROUND JUST A
SENSE OF FAIRNESS.
BUT ANYWAY THANK YOU AGAIN ALL
RIGHT THANK YOU --
ELIZABETH ECHOES DIRECTOR OF THE
PUBLIC ADVOCATE'S OFFICE WE
APOLOGIZE --
FOR THE LET THE CONVERSATION BUT
YOU CAN APPRECIATE.
THE ISSUES THAT ARE BEFORE.
US AND TRYINGTO GET OUR ARMS
WRAPPED AROUND IT BUT WE DO
APPRECIATE YOU BEING HERE AND WE
LOOK FORWARD TO YOUR
PRESENTATION.
CHAIRMAN HOLDEN AND THE
DISTINGUISHED MEMBERS OF THE
ASSEMBLY UTILITIES AND ENERGY
COMMITTEE THANK YOU VERY MUCH
FOR THE OPPORTUNITY TO BE HERE
TODAY APPRECIATE IT.
I WANT TO QUICKLY INTRODUCE THE
OTHERS WHO ARE HERE WITH ME AT
THE TABLE --
LINDA SERWIS OW I IS MY DEPUTY
FOR ENERGY.
DARWIN FOR OUR CHIEF COUNSEL AND
NOT SKINNER IS THE SUPERVISOR
OVER OUR SAFETY SECTION.
AND MY ATTORNEY WANT MY OTHER
ATTORNEY NOT DARLING BY THE
WANTED ME TO READ SOMETHING IF.
THEY'RE ALL LEAVING OKAY JUST IN
TERMS OF EX PARTE IF THERE WERE
IF THIS STATEMENT BUT I DON'T
HAVE TO NOW SO.
OKAY SO AS YOU KNOW --
THE PUBLIC ADVOCATE'S OFFICE IS
THE INDEPENDENT CONSUMER
ADVOCATE AT THE C..
AND OUR MISSION IS TO OBTAIN THE
LOWEST POSSIBLE RATES FOR
SERVICE CONSISTENT WITH.
SAFE AND RELIABLE SERVICE LEVELS.
OUR GOAL IS TO ACHIEVE THE BEST
VALUE FOR CONSUMERS ACROSS THE
REGULATED INDUSTRY SECTORS
ENERGY WATER AND
TELECOMMUNICATIONS.
SO EACH DOLLAR INVESTED IN
CALIFORNIA'S UTILITIES ACHIEVES
THE HIGHEST POSSIBLE RETURN FOR
CONSUMERS IN TERMS OF SAFETY
RELIABILITY AND THE STATE'S
ENVIRONMENTAL GOALS.
WE PROVIDE SUBSTANTIAL VALUE FOR
CUSTOMERS AS WELL BY WORKING TO
IMPROVE THE SAFETY OF CRITICAL
UTILITY INFRASTRUCTURE.
WE WORK HARD TO PROVIDE
SIGNIFICANT INPUT ON UTILITY
PROGRAMS ACROSS THE INDUSTRY
AREAS TO REDUCE SAFETY RISKS AND
INCREASED TRANSPARENCY IN THE
PROCESS.
I WANT TO SAY UP FRONT THAT MY
HEART TRULY GOES OUT TO THE
VICTIMS OF THE MOST RECENT WHILE
ALL OF THE STATES --
FIRES BUT PARTICULARLY THE
TRAGIC ONES IN THE LAST COUPLE
YEARS -- AND
WE WANT TO BE AN ACTIVE PARTNER
WITH YOU THE LEGISLATURE AS WELL
AS THE GOVERNOR'S OFFICE AND
OTHER STAKEHOLDERS TO ADDRESS
THE THREAT OF WILDFIRES AND TAKE
REAL STEPS. TO PREVENT ANOTHER
TRAGEDY LIKE THIS FROM OCCURRING.
SO I HOPEFULLY YOU ALL HAVE MY
SLIDES AND MY REPORT AT THIS
POINT -- SO
I'M NOW ON THE SECOND SLIDE
SECOND PAGE.
WE PROVIDE A VOICE FOR MILLIONS
OF CONSUMERS MANY OF WHOM DON'T
HAVE THE TIME OR THE RESOURCES
TO NAVIGATE THE STATE'S COMPLEX.
PROCESS SEES OUR DEDICATED STAFF.
ANALYZES UTILITY COSTS AND
OPERATIONS AND REVIEWS SAFETY
RELATED PROGRAMS AND ACTIVITIES.
LAST YEAR OUR TEAM DISSIPATED
AND HUNDREDS OF C. U. P. C. P.
C. PROCEEDINGS FILED OVER EIGHT
HUNDRED PLEADINGS.
AND WORKED SUCCESSFULLY TO
ADVOCATE FOR CUSTOMERS BEFORE
THE CPC.
THAT HARD WORK PAID OFF LAST
YEAR WE SAVE CONSUMERS OVER
THREE POINT THREE BILLION AND
REDUCED RATES AVOIDED COSTS AND
CUSTOMER REFUNDS.
THAT IS A COMPARISON IN TERMS OF
WHAT THEY UTILITIES REQUESTED IN
TERMS OF A RATE INCREASE AND
WHAT WE WERE ABLE TO ACHIEVE BY
PREFER PRESENTING ANALYSIS THAT
SHOWED THAT THOSE REQUESTS WERE
TOO HIGH.
OKAY NOW I'M ON SLIDE FOUR I
WANT TO JUST TOUCH BRIEFLY ON
OUR POLICY ADVOCACY AS WELL
BECAUSE IN ADDITION TO THE WORK
THAT WE DO ON GENERAL RATE CASES
AND OTHER PROCEEDINGS THAT
IMPACT RATES.
WE ALSO WORK TO ADVANCE THE
STATE POLICIES INCLUDING
AFFORDABILITY AND UNIVERSAL
ACCESS TO UTILITY SERVICES.
INSURING SAFE UTILITY OPERATIONS
AND RELIABLE SERVICES AND
ADVOCATING FOR THE COST
EFFECTIVE IMPLEMENTATION OF THE
STATE'S ENVIRONMENTAL GOALS.
AND I'M JUST GONNA GIVE A FEW
HIGHLIGHTS OF THOSE THINGS AND
THE NEXT FEW SLIDES.
SO FIRST OF ALL ON LIDE FIVE ON
AFFORDABLE AND EQUITABLE
SERVICES A KEY DRIVER FOR OUR
ADVOCACY EFFORTS IN ADVANCING
STATE POLICIES TOWARDS HELPING
LOW INCOME CUSTOMERS AND OTHER
VULNERABLE CUSTOMERS.
IS BY ADVOCATING FOR AFFORDABLE
UTILITY SERVICES.
WERE AN ACTIVE PARTICIPANT IN
THE CPC'S RULEMAKING THAT'S
FOCUSED ON DEVELOPING A
FRAMEWORK TO MEASURE
AFFORDABILITY ACROSS ALL THE
UTILITY INDUSTRY AREAS.
ELECTRIC WATER GAS AND EVEN
BEFORE THIS ROOM RULEMAKING.
WE WERE RAISING CONCERNS
REGARDING THE IMPACTS OF
INDIVIDUAL PIECE MEAL REQUESTS
MADE BY THE UTILITIES THAT
WEREN'T TRANSPARENT AND PLACE
PRESSURE ON RESIDENTIAL RATES
AND CUSTOMER BILLS SO FOR
EXAMPLE IF THERE ARE.
A NUMBER OF DIFFERENT
PROCEEDINGS THAT RAISE RATES
JUST A LITTLE BIT HERE AND A
LITTLE BIT THERE THAT CUMULATIVE
AFFECT ADDS UP PRETTY DARN
QUICKLY.
AND I AM INSTANTLY AS A VICE
CHAIR WAS SAYING EARLIER THERE A
LOT OF PEOPLE OUT THERE WHO
ALREADY CAN'T AFFORD TO PAY
THEIR BILLS SO WE WE WANT TO
MAKE SURE THAT. TO THE EXTENT
THAT THERE ARE ANY RATE
INCREASES THAT THOSE ARE REALLY
MADE AN A AND A THOUGHTFUL
CAREFUL WAY AND IN THE CONTEXT
OF ALL OF THESE OTHER.
RATE INCREASES.
AN IMPORTANT PART OF OUR MISSION
ALSO IS TO ADVOCATE FOR COST
EFFECTIVE SERVICE THAT'S
PROVIDED IN A SAFE AND RELIABLE
MANNER.
AND HOLDING UTILITIES
ACCOUNTABLE FOR HOW THEY OPERATE
AND MANAGE THEIR FACILITIES IS
PARAMOUNT TO ENSURING SAFETY AND
RELIABILITY.
OVER THE LACKS DECADE
PARTICULARLY SINCE THE TRAGIC
Và SAN BRUNO.
EXPLOSION.
THE PUBLIC ADVOCATE'S OFFICE HAS
BROADENED AND DEEPENED OUR
SAFETY EXPERTISE WITH THE
SUPPORT OF THE GOVERNOR AND THE
LEGISLATURE.
AND WE HAVE A PROVEN TRACK
RECORD OF ADVOCATING FOR
STRONGER SAFETY REGULATIONS AND
UTILITY COMPLIANCE TO THOSE
REGULATIONS.
JUST POINT TO A COUPLE OF QUICK
EXAMPLES ON ON SLIDE SIX SO FOR
EXAMPLE.
WE SUCCESSFULLY ADVOCATED THAT
SOUTHERN CALIFORNIA GAS COMPANY
AND AND SAN DIEGO GAS ELECTRIC
BE REQUIRED TO PRESSURE TEST AND
WHERE NECESSARY REPLACE PARTS OF
ONE OF THEIR MAJOR NATURAL.
GAS TRANSMISSION LINES THAT'S
LINE.
SIXTEEN HUNDRED WE PROVIDED
EVIDENCE NEEDED TO BE PRESSURE
TESTED PURSUANT TO FEDERAL AND
STATE REGULATORS AND THE
COMMISSION AGREED WITH THAT.
WE ALSO SUCCESSFULLY ADVOCATED
FOR ENHANCED CONSUMER PROTECTION
ACROSS ENERGY AND WATER SERVICES.
IT IN CASE OF NATURAL DISASTER
MAKING IT EASY FOR LOW INCOME
CUSTOMERS TO CONTINUE TO RECEIVE
DISCOUNTED RATES AS WELL AS
SUSPENDING VARIOUS FEES AND
DEPOSIT REQUIREMENTS WHEN PEOPLE
ARE IMPACTED BY A BY A NATURAL
DISASTER OR FIRE --
WHERE ALSO AN ACTIVE PARTICIPANT
IN THE CPC'S WILD FIRE RELATED
PROCEEDINGS INCLUDING THE
VARIOUS PROCEEDINGS THAT ARE
IMPLEMENTING SB?
NINE OH ONE WHERE ALSO
PARTICIPATING IN THE CPC IS
PROCEEDING REGARDING THE D.
ENERGY IS ATION OF POWER LINES.
IN THIS PROCEEDING THE PC IS
EXAMINING RULES THAT ALLOW THE
UTILITIES TO DE ENERGIZED POWER
LINES IN CASE OF A DANGEROUS
CONDITIONS.
WE RECOGNIZE THAT THERE IT IS
HUGE CHALLENGES NOW FACING ALL
OF US IN CALIFORNIA.
AND THAT.
THE CONSUMER IS NOT ONLY NEED TO
BE KEPT SAFE BUT THEY'RE
CONCERNED ABOUT WHAT WILL HAPPEN
BOTH WITH THEIR MONTHLY BILLS
AND THEIR UTILITY SERVICES.
SO I JUST WANT TO BE CLEAR THAT
OUR TOP PRIORITIES INCLUDE
KEEPING THE LIGHTS ON MAKING
SURE THAT THE UTILITY SYSTEMS
ARE SAFE AND ALSO INSURING THAT
CUSTOMERS DON'T.
FOOT THE BILL FOR ANY UTILITY
MISDEEDS.
WE'LL CONTINUE TO BE A STRONG
VOICE FOR CUSTOMERS ESPECIALLY
FOR THOSE WHO DON'T HAVE THE
TIME BUT THE MEANS TO
PARTICIPATE IN STATE PROCESSES.
ON SAFETY AND AFFORDABILITY
MATTERS.
FINALLY A SIDE SEVEN ON THE
ENVIRONMENTAL GOALS.
WE PLAY AN IMPORTANT ROLE IN
IMPLEMENTING THE STATE'S CLIMATE
POLICIES IN A COST EFFECTIVE
MANNER.
AND THIS IS IMPORTANT BECAUSE IF
WE REALLY WANT TO REDUCE THE GS
GHG EMISSIONS AND HOPEFULLY.
REDUCED THE CLIMATE CHANGE AND
THE IMPACTS LIKE THE FIRES THAT
WERE HAVING CALIFORNIA'S ONLY 1%
OF GHG EMISSIONS SO.
WE WANT TO MAKE SURE THAT THERE
ARE MODELS THAT OTHER STATES
OTHER COUNTRIES CAN FOLLOW THAT
ARE COST EFFECTIVE IN ACHIEVING
AGGRESSIVE CLIMATE GOALS.
SO AN EXAMPLE OF THIS IS OUR
WORK ON ELECTRIFICATION HERE WE
SUCCESSFULLY ADVOCATED TO DEPLOY
A TRANSPORTATION ELECTRIFICATION
PROGRAMS IN A WAY THAT MAXIMIZED
THE BENEFITS OF ELECTRICAL
VEHICLES WHILE MINIMIZING THE
COST IMPACTS TO RATE PAYERS.
IS SIX UTILITIES CAME FORWARD
THIS INCLUDED P. JEANNIE S. C.
S. T. JEANNIE LIBERTY BEAR
VALLEY AND PACIFIC CORPS.
AND REQUESTED OVER A BILLION
DOLLARS FOR THEIR PROGRAMS AND
WE PRESSED FOR PRIORITIZING
TRANSPORTATION ELECTRIFICATION
INVESTMENTS AND DISADVANTAGED
AND LOW INCOME COMMUNITIES.
SETTING RATES SAID ENCOURAGE
ELECTRIC VEHICLE CHARGING AT
TIMES IT IN HANDSOME GRAND ROYAL
RELIABILITY.
AND ESTABLISHING PERFORMANCE
ACCOUNTABILITY MEASURES THAT
MAXIMIZE LESSONS LEARNED AND
PUBLIC BENEFIT.
AND BASED ON THESE EFFORTS THAT
P. YOU SEE ADOPTED A BUDGET THAT
REDUCE THE UTILITY'S REQUEST BY
TWO HUNDRED SEVENTY ONE MILLION
DOLLARS BUT STILL ACHIEVE THE
TRANSPORTATION ELECTRIFICATION
GOALS.
SO FINALLY I'LL JUST SAY THAT
GOING FORWARD WE'RE WE CAN WILL
CONTINUE.
TO OUR GOAL WILL BE TO ACHIEVE
THE BEST VALUE FOR CALIFORNIA
CONSUMERS ACROSS THE REGULATED
SECTORS ENERGY WATER AND
TELECOMMUNICATIONS.
CONSISTENT WITH THE STATE SAFETY
RELIABILITY AND ENVIRONMENTAL
GOALS AND WE CERTAINLY LOOK
FORWARD TO WORKING WITH YOU AND
MEETING THE CHALLENGES AHEAD AND
REALLY APPRECIATE THE
OPPORTUNITY TO BE HERE TODAY.
BOTH THANK YOU WE APPRECIATE
YOUR BEING HERE --
I WANTED TO JUST BECAUSE YOU
TOUCH ON ALL OF THESE VERY
IMPORTANT AREAS THAT --
WE'RE ALL CONCERNED ABOUT AS IT
RELATES TO RATEPAYERS AND
MAINTAINING STABILITY WITH THE
RATES AND IN CASES OF HIGH WIND
EVENTS IN AND THE WILDFIRES DE
ENERGY IS A SIN A STRATEGIES.
ENVIRONMENTAL POLICIES AND THE
LIKE -- ARE
YOU GOING TO PLAY A ROLE WORKING
WITH THE COMMISSION AS IT
RELATES TO OUR VALUE WAITING THE
THE PLAN THAT PGA ANY AS THE
REORGANIZATION PLAN WHAT WHAT
ROLE WHERE YOU PLAY.
AS THE ADVOCATES IN THAT
CONVERSATION --
WITH P. JEANNIE WHILE THEY'RE IN
BANKRUPTCY WHAT WILL WHAT WE
CERTAINLY WILL PLAY A ROLE IN IN
TERMS OF ADVOCATING FOR THE
CONSUMERS IN THAT BANKRUPTCY
PROCEEDINGS AND I SAY
PROCEEDINGS BECAUSE THEY'LL BE
BOTH THE BANKRUPTCY COURT IN AND
WHAT THE CPC IS DOING AS WELL --
IT IS IT IS ABSOLUTELY CRITICAL
THAT THERE'S SOMEONE THERE WHO
IS PURELY REPRESENTING THAT
CONSUMERS OF THE STATE --
LAST TIME AROUND AS YOU MAY
RECALL THAT CUSTOMERS ENDED UP
FOOTING THE BILL IN ITS ENTIRETY --
WITH SEVEN POINT TWO BILLION
DOLLARS SO EVERYBODY WAS MADE
WHOLE EXCEPT FOR THE CONSUMERS
SO IT'S IMPORTANT FOR US TO BE
THERE AT THE TABLE --
TO MAKE SURE THAT THE CUSTOMER
INTERESTS ARE ARE REPRESENTED.
SO YOU HAVE A A DEFINED ROLE
THAT YOU WILL BE PLAIN WE KNOW
WE HEARD FROM THE PRESIDENT.
THAT THERE IS A ROLE THAT THE
CPC WILL HAITIAN PLAN.
SO YOU'RE SAYING THAT YOU ARE
BUILT INTO THAT IN TERMS OF
HAVING A VOICE THAT WILL HELP
GIVE SOME DIRECTION IN SHAPING
THE PLAN AS IT RELATES TO
PROTECTING REPAIRS.
RIGHT SO IS SO NOTHING IS IS
REALLY EVER BAKED IN OUR ARE
BUILT IN WITH THE BANKRUPTCY
COURT SO IF WE WANT TO BE A
PARTY AT THE BANKRUPTCY COURT WE
WOULD HAVE TO APPLY FOR THAT --
WE THINK WE WOULD CERTAINLY
QUALIFY FOR THAT IF THAT'S THE
ROUTE THAT WE DECIDE TO GO --
WE'RE EVALUATING DIFFERENT
OPTIONS FOR MAKING MAKING OUR
VOICE HEARD --
BUT CERTAINLY CERTAINLY WE WE
COULD QUALIFY --
AS AS THE VOICE FOR CONSUMERS IN
THE STATE OF CALIFORNIA.
AND JUST MY LAST QUESTION DO YOU --
DO YOU GO OUT THROUGHOUT THE
STATE AND HOLD --
INFORMATIONAL MEETINGS WITH A
RAPIER GROUPS AROUND THE STATE
OR DO THEY HAVE TO ARE YOU SORT
OF CENTERED AND SACRAMENTO OR
SAN FRANCISCO OR LOS ANGELES AND
THEN THEY HAVE TO FIND THEIR WAY
TO YOU.
RIGHT SO WE WE WORK --
WE DO WORK WITH OTHER CONSUMER
ADVOCATES ARE ON THE STATE --
WE HAVEN'T HAD OUR OWN FORMS BUT
WE CERTAINLY GET TO KNOW THOSE
FOLKS --
THROUGH THE VARIOUS --
PUBLIC FIRST PARTICIPATION ALSO
PARTICIPATE IN AND SO LOCALIZED
IRATE PAIRED GROUPS WILL BE
INVOLVED IN THOSE A LOT OF THOSE
FOLKS KNOW US AS WELL AND REACH
OUT TO US AND THEN OF COURSE
THERE'S OTHER.
STATE WHY GROUPS LIKE TURN ON
THAT WE THAT WE WORK CLOSELY
WITH [inaudible]
APPRECIATE THAT.
OKAY -- I'M
GOING TO TURN TO THE FIRST OF
ALL THANK YOU FOR BEING HERE
WITH MY PLEASURE OR YOUR REPORT.
AND I PROMISE YOU WILL BE FIRST --
THE NEXT TIME YOU EAT YOU KNOW
YOU DON'T HAVE TO APOLOGIZE
BECAUSE THIS WAS ACTUALLY VERY I
IT WAS A VERY INTERESTING
CONVERSATION SO I DIDN'T MIND AT
ALL -- I'LL
TURN TO SEE IF WE HAVE ANY
MEMBERS OF THE PUBLIC WHO ARE
REMAINING THAT --
WANTED TO ADDRESS THE COMMITTEE --
PUBLIC COMMENT PORTION OF THIS
AGENDA.
SEEING NONE --
ANY CLOSING COMMENTS ANY.
THIS MEANS ADJOURNED