California lawmakers propose constitutional amendment to reform PUC

Dive Brief:

California lawmakers are considering a constitutional amendment to reform the state's Public Utilities Commission, potentially reassigning the PUC's duties to other state agencies.
Assembly Constitutional Amendment 11 would "remove the constitutional protections currently enjoyed by the Public Utilities Commission," according to Assemblymen Scott Wilk (R) and Mike Gatto (D).
The amendment follows criticisms of how state utility regulators responded to Southern California Gas's Aliso Canyon gas leak alongside allegations that the PUC struggles to balance responsibilities to consumers and its relationship with utilities.

Dive Insight:

Efforts to reform the CPUC have struggled, evidenced by Gov. Jerry Brown's veto of six bills aimed at curbing corruption at the agency. But lawmakers are persisting anyway.

According to lawmakers proposing a sigificant overhaul of the agency, the CPUC's structure is outdated and no longer serves utility customers.

“The PUC comes from the era when Hiram Johnson was California’s Governor and running on the Bull-Moose party ticket with Theodore Roosevelt,” Wilk said in a statement. “I believe ACA 11 is a rare opportunity to substantially reform a state agency that is in dire need of modernization to reflect our 21st Century economy."

ACA 11, also known as the Public Utility Reform Act of 2016, focuses on the PUC's "inability to juggle regulating such diverse interests," the lawmakers said. The Senate will need to approve the amendment by a two-thirds vote in order for it to be placed on the ballot this November. The measure would then need approval from a majority of California voters. Efforts to reform the CPUC have struggled, evidenced by Gov. Jerry Brown's veto of six bills aimed at curbing corruption at the agency.

The text of the bill gives the state legislature "the power and authority to reallocate or reassign all or a portion of the functions of the Public Utilities Commission to other state agencies, departments, boards, or other entities it may create."

Any changes would need to be made in order to further consumer protections and public health, it adds.

The bill would direct the legislature to adopt "appropriate structures to provide greater accountability for the public utilities of this state and shall provide the necessary guidance to focus regulatory efforts on safety, reliability, and ratesetting and to implement statutorily authorized programs for reducing emissions of greenhouse gases."

Southern California Gas needed four months to seal a leak at its Aliso Canyon storage facility after it was discovered in October 2015. The leak was the worst natural gas leak in the United States' history, and it forced forced thousands of residents in the nearby Porter Ranch community to evacuate their homes after complaints of illness.

Many residents have called for the facility to be permanently closed.

Correction: An earlier version of this post referred to "Southern California Edison's Aliso Canyon gas leak." That was incorrect. The Aliso Canyon storage facility is operated by Southern California Gas.