Report 2016-104 Recommendation 13 Responses

Report 2016-104: California Public Utilities Commission: It Should Reform Its Rules to Increase Transparency and Accountability, and Its Contracting Practices Do Not Align With Requirements or Best Practices (Release Date: September 2016)

Recommendation #13 To: Public Utilities Commission

The CPUC should update its regulations to require parties joining a proceeding by filing a protest or response to an application or petition, or by filing comments in response to a rulemaking proceeding to fully disclose their interests in the proceeding.

Annual Follow-Up Agency Response From October 2022

As stated in our prior responses, this recommendation by CSA has been thoroughly vetted by CPUC's management. Since this recommendation is not supported by any legal criteria nor have there been any issues attributable to the need for more specific disclosures of financial interest, the CPUC has determined that the recommendation will not be implemented.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

As we noted previously, our recommendation would address an inconsistency in the CPUC's rules for disclosure of interests in a proceeding. Although we found that parties generally self-disclosed their interest in proceedings, entities that become a party by filing a protest or response to an application or petition or by filing comments in response to a rulemaking are not subject to any requirement to disclose their interest in the proceeding. Therefore, we continue to believe that this recommendation is warranted.

Annual Follow-Up Agency Response From October 2021

As stated in our prior responses, this recommendation by CSA has been thoroughly vetted by CPUC's management. Since this recommendation is not supported by any legal criteria nor have there been any issues attributable to the need for more specific disclosures of financial interest, the CPUC has determined that the recommendation will not be implemented. To require more specific disclosure of financial interests would represent a significant policy and administrative change that the CPUC has no evidence is needed.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

As we noted previously, our recommendation would address an inconsistency in the CPUC's rules for disclosure of interests in a proceeding. Although we found parties generally self disclosed their interest in proceedings, entities that become a party by filing a protest or response to an application or petition or by filing comments in response to a rulemaking are not subject to any requirement to disclose their interest in the proceeding. Therefore, we continue to believe that this recommendation is warranted.

Annual Follow-Up Agency Response From November 2020

We have evaluated the recommendation and CPUC compliance, and continue to believe that nothing must be changed in the Rules of Practice and Procedure to be in compliance.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

As we noted previously, our recommendation would address an inconsistency in the CPUC's rules for disclosure of interests in a proceeding. Although we found parties generally self disclosed their interest in proceedings, entities that become a party by filing a protest or response to an application or petition or by filing comments in response to a rulemaking are not subject to any requirement to disclose their interest in the proceeding. Therefore, we continue to believe that this recommendation is warranted.

Annual Follow-Up Agency Response From October 2019

Per CPUC's earlier management response, we believe we are already in compliance. However, based on CSA's response, the CPUC is working on an evaluation of recommendations to substantiate CPUC's compliance, and therefore, requests an extension for the additional evaluation

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

The CPUC's response indicates that it will not implement this recommendation. However, the CPUC also notes in its response that it is requesting additional time to substantiate its compliance. As part of our follow-up of recommendations that have not been fully implemented, we report annually on the progress of auditees in implementing those recommendations. Nevertheless, an auditee may continue to update us in the interim on a recommendation's implementation status whenever it believes that it has made significant progress on addressing the recommendation.

Annual Follow-Up Agency Response From October 2018

Will not implement.The CPUC will not implement this recommendation. The CPUC's Rules of Practice and Procedure require each person or entity proposing to participate in a proceeding to disclose their interest in the proceeding, which includes the factual and legal contentions they propose to make as well as their more general interest in the proceeding. "Interest" in the CPUC's Rules is broader than financial interests and serves the Commission's administrative law functions by ensuring that a person or entity has reason to participate in a proceeding. To require more specific disclosure of financial interests would represent a significant policy and administrative change that the CPUC does not presently feel is needed.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

Our recommendation would address an inconsistency in the CPUC's rules for disclosure of interests in a proceeding. Although we found parties generally self disclosed their interest in proceedings, entities that become a party by filing a protest or response to an application or petition or by filing comments in response to a rulemaking are not subject to any requirement to disclose their interest in the proceeding. Therefore, we continue to believe this recommendation is warranted.

Annual Follow-Up Agency Response From November 2017

The P&G committee has been engaged in reforming the Rules of Practice & Procedure to conform them to statutory changes brought about by SB 215 (Hill 2016). That effort has lasted from January to the present, and we have not yet completed the CPUC and OAL rulemaking processes. P&G may be able to take this issue up in a next phase of rules reform beginning in 2018. As noted in the original response, it represents a significant policy change.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

1-Year Agency Response

The P&G committee has been engaged in reforming the Rules of Practice & Procedure to conform them to statutory changes brought about by SB 215 (Hill 2016). That effort has lasted from January to the present, and we have not yet completed the CPUC and OAL rulemaking processes. P&G may be able to take this issue up in a next phase of rules reform beginning in 2018. As noted in the original response, it represents a significant policy change.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

The recommendation has been referred to the Policy and Governance Committee for April. This change constitutes a large change in Commission policy and could potentially require a change in the rules of practice and procedure.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

This recommendation was referred to the Policy and Governance Committee on October 11th by the Executive Director, Tim Sullivan. Compliance with this recommendation requires rules affecting what parties participating in our proceedings must file. This would constitute a major change in Commission policy and could potentially requires a change in the rules of practice and procedure.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2016-104

Agency responses received are posted verbatim.