Dive Brief:
- A new administrative law judge will oversee Pacific Gas & Electric's (PG&E) rate case, the latest twist in a scandal over back-channel communications between the utility and the California Public Utilities Commission (CPUC).
- Acting Chief Administrative Law Judge Timothy Sullivan issued an order on September 24 assigning the case to himself.
- In the order, Sullivan stressed that Administrate Law Judge John Wong had showed "no evidence of any bias" but said it was better to select a new judge following the controversy.
Dive Insight:
The fallout continues over revelations that PG&E was negotiating for a favorable judge in its rate case. Three executives at the utility have been fired and CPUC President Michael Peevey has recused himself from two cases and asked his chief of staff to resign. The utility has been called to appear before the commission for possibly violating state rules.
"I find that reassignment of this proceeding is in the best interest of the regulatory process," Sullivan wrote in his order, while adding that John Wong is "an asset to the Commission."
At least three California elected officials have said they want the state's attorney general to examine the PG&E-CPUC email exchange and see if it violated state law. The emails from earlier this year show officials at the utility negotiating over which judge would be assigned to its rate case, and appear to corroborate concerns that the utility and regulators had a cozy relationship behind the scenes.
