Jerry Hill's Bill Would Curtail Donations from Utilities to CPUC

Assemblyman Jerry Hill, D-San Mateo, has again lambasted the California Public Utilities Commission, this time introducing a bill that would bar the agency from soliciting contributions from utilities it regulates.

Hill authored the bill after learning last month that a was receiving donations from some companies the agency is charged with regulating, including Pacific Gas & Electric Co.

“If the money comes from utilities the CPUC is regulating, how can you be sure there is an arms-length relationship?” Hill said.

The CPUC  has oversight authority over PG&E, which has been the focus of federal and state probes ever since Line 132 exploded near Earl Avenue and Glenview Drive on Sept. 9, killing eight people, injuring dozens more and destroying 38 homes.

The legislation by Hill, AB 1055, would prohibit a CPUC commissioner or employee from soliciting contributions from any person or entity knowingly subject to CPUC regulation.

PG&E was among several utilities that bought $20,000 tables for a dinner in San Francisco in January that celebrated the CPUC’s 100th anniversary.

Officials of the CPUC foundation — which is a separate entity from the commission but has former regulators on its board — said the foundation was established to educate the public about the CPUC’s work.

But Hill blasted the utility’s involvement in the fundraiser, saying the dinner had been "hijacked into a fundraising event for this foundation." With financial support coming from companies such as PG&E, the money could potentially be used to influence the CPUC’s decisions, he said.

The CPUC has regulatory authority over privately owned electric, natural gas, telecommunications, water, railroad and passenger transportation companies.

Hill has become since numerous problems have been revealed about PG&E’s pipeline safety practices following the Crestmoor disaster.

-- Staff Reports