CPUC Opens Massive Rulemaking

The California Public Utilities Commission launched an ambitious rulemaking meant to coordinate key energy proceedings, including utility energy procurement, transmission planning, QF pricing, and renewables. While many of the cases in the mega-rulemaking have interrelated elements, its sweeping scope begs the question of whether this approach will help or hinder the commission?s push for more organization. The new rulemaking is ?something of a novel effort,? acknowledged Pete Arth, chief of staff for CPUC president Michael Peevey. ?If it turns out harmful rather than helpful, we?re certainly open to considering other options.? This approach recognizes the interrelated nature of regulatory issues, he said. The move was not linked with commissioner Susan Kennedy?s warning this January that legislators were contemplating yanking the commission?s transmission siting authority and that the CPUC needs to streamline its approach on that front, according to Arth. Although the cases pulled together under the rulemaking are all at different procedural stages, and data for each case might be different, the overall aim is to weave them into a ?coherent regulatory scheme,? rather than dealing with individual strands, Arth said. He conceded, however, that concerns about the huge case becoming problematic might be justified. ?It?s not a neat and tidy process,? said Assemblymember Keith Richman (R-Granada Hills), although he reacted favorably to the new rulemaking. He said that if one starts out with the premise that there will be direct access to nonutility providers for large customers and distributed-generation installations, that raises other energy matters, such as procurement and transmission. The CPUC is better equipped than legislators to take on such multipronged matters, Richman said. While not immune to lobbyists, commissioners are more resistant to special interest groups because, unlike politicians, they?re not up for reelection every two or four years. In addition, commissioners focus on these matters, while legislators? attention is spread across myriad issues. Richman said the tendency for the CPUC to get bogged down in proceedings has been ?troublesome? to legislators. But, he added, the commission under Peevey is making a greater effort to increase efficiency. In addition to its primary focus on procurement, including a reconsideration of how the agency treats confidential information, the mega-rulemaking opened on April 1 will coordinate eight other proceedings.

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CPUC Opens Massive Rulemaking

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