JUICE: Got Religion?

For years, I escaped seasonal viruses. I attributed that to having better than average health, a short commute to work—a staircase—and daily exercise in place of office politics. No stinkin’ flu shot, Omega 3 or organic beef broth for me. After being walloped by the flu last month and suffering a couple of relapses, I stopped taking my health for granted and no longer assumed immunity to the ever morphing viruses. My post flu commandments include getting an annual flu shot, avoiding caffeine and drinking Sonoma beef broth. I wasn’t alone in taking good health for granted. So, too, did the California Public Utilities Commission. Some in and outside the commission dismissed health advisories and assumed immunity. At least until a nasty pervasive virus was exposed. Then, the commission top brass got religion, and more devout with each viral relapse. Since the New Year, the new CPUC president Mike Picker has talked about strategies for improving the commission’s well-being. Transparency, accountability and sound governance are top of the list. Also in the works are new legislative protections, including more hearings and possible laws to strengthen the immunity of the commission and protect the public from inside deals that harm their health and pocketbooks. But while the latest round of prescriptions and proposed remedies sound promising, they are far too limited in scope. A long, hard look also must be taken of the regulated, protected utilities, and the environment in which they operate. Investor-owned utilities have built in protections, including guaranteed rates of return. This financial cushion makes them competition adverse and less flexible—traits exacerbated by deep ratepayer-fed pockets. The private utilities also have greater access to the commissioners and staff than consumer and environmental advocates and members of the public. This brew creates a ripe environment for viruses. It’s one that fuels the profit motive and puts the well-being of shareholders and financial institutions over ratepayers’. Private utilities spend lots of money lobbying politicians to get laws passed in their favor and stop ones that harm their bottom line. It’s not surprising they also will push the limits to get what they want from regulators and politicians. It is the nature of the vector. The only thing protecting ratepayers is the regulating agency—a bureaucratic commission governed by law, politics and the public, not profit. It is constitutionally independent from the Legislature, which is beholden to campaign contributors. But at the same time, lawmakers have control over the CPUC’s budget and can call on regulators to testify at repeated hearings and impose new requirements without funding commitments. There are no easy or permanent fixes when it comes to trying to implement reform. That is because the interests and relationships are multi-layered and constitute a constantly moving target. Like annual flu shots, it is a bit of a crap shoot trying to thwart a morphing virus. Sometimes Omega 3 and beef broth work and other times they don’t. Safeguarding the commission, the public, regulated utilities and ultimately ratepayers to the extent possible requires recognizing the realities of the complex situation. It is a work in progress. What is needed is a constant dose of vigilance and preventative medicine near and far to keep seasonal influenzas at bay. —Elizabeth McCarthy

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JUICE: Got Religion?

William J. Kelly

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