Dive Brief:
- An administrative law judge with the California Public Utilities Commission believes Pacific Gas and Electric (PG&E) may have violated state rules in communication with staff where it appears the utility is negotiating for a favorable judge in its rate case.
- The judge issued an order last week directing utility officials to appear before the court on October 7 to consider contempt of commission rules charges.
- Administrative law judge Hallie Yacknin also said in the order that PG&E faces unspecified financial penalties if it is found in contempt.
Dive Insight:
PG&E's woes continue, with the Associated Press reporting the utility could be found in contempt of state rules barring certain types of communication between the utility and commission.
A week ago, the utility fired three executives when emails came to light showing the utility communicating with commission officials, apparently negotiating for a favorable judge. Those revelations in turn caused CPUC President Michael Peevey to recuse himself from two cases and to ask his chief of staff to resign.
The utility is already being tried in the court of public opinion, with many believing it had a too-cozy relationship with the CPUC. Now, it could face a commission judge anxious to put some distance between the company and state regulators. Yacknin's order hints at unspecified financial penalties, according to the Associated Press, which also reported that PG&E officials have no comment and are reviewing the order.
