Report 2016-104 Recommendation 4 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 #4 To: Public Utilities Commission
To avoid the appearance of inappropriate relationships, the CPUC should adopt a policy to prohibit commissioners from accepting gifts from regulated utilities and energy companies and free travel from organizations with significant ties to regulated utilities and other parties with financial interests in CPUC proceedings.
Annual Follow-Up Agency Response From October 2022
As stated in our previous responses, Commission management continues to believe that the Commission is in compliance with applicable statutes, regulations, and other requirements, including Public Utilities Code section 303. Section 303 states that CPUC commissioners "may not hold an official relation to, nor have a financial interest in, a person or corporation subject to regulation by the commission." As such, management respectfully declines to take further action regarding this recommendation.
California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement
Annual Follow-Up Agency Response From October 2021
As stated in our previous response, Commission management continues to believe that the Commission is in compliance with applicable statutes, regulations, and other requirements, including Public Utilities Code section 303. Section 303 states that CPUC commissioners "may not hold an official relation to, nor have a financial interest in, a person or corporation subject to regulation by the commission." As such, management respectfully declines to take further action regarding this recommendation.
California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement
Annual Follow-Up Agency Response From November 2020
Commission management believes that the Commission is in compliance with applicable statutes, regulations, and other requirements. After further consideration, management respectfully declines to take further action regarding this recommendation.
California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement
As we explained in our comments on the CPUC's one-year response to this recommendation, the CPUC adopted a change to its commissioner code of conduct that encourages commissioners to consider whether the acceptance of a gift of travel, lodging, or meals would give an appearance of an inappropriate relationship with a regulated utility, organizations with significant ties to a regulated utility, or other persons with financial interest in commission proceedings. However, the code of conduct's encouragement to consider appearances is not fully aligned with our recommendation. Specifically, our recommendation directed the CPUC to prohibit gifts of any kind from regulated utilities and energy companies and to prohibit free travel from organizations with significant ties to regulated utilities or other interested parties. The CPUC's new code of conduct falls short of this standard.
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
- Estimated Completion Date: Extension Requested
California State Auditor's Assessment of Annual Follow-Up Status: Pending
As we explained in our comments on the CPUC's one-year response to this recommendation, the CPUC adopted a change to its commissioner code of conduct that encourages commissioners to consider whether the acceptance of a gift of travel, lodging, or meals would give an appearance of an inappropriate relationship with a regulated utility, organizations with significant ties to a regulated utility, or other persons with financial interest in commission proceedings. However, the code of conduct's encouragement to consider appearances is not fully aligned with our recommendation. Specifically, our recommendation directed the CPUC to prohibit gifts of any kind from regulated utilities and energy companies and to prohibit free travel from organizations with significant ties to regulated utilities or other interested parties. The CPUC's new code of conduct falls short of this standard.
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. However, 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
The Commission approved this change to the Commissioner Code on Conduct on August 10, 2017.
- Completion Date: August 2017
California State Auditor's Assessment of Annual Follow-Up Status: Pending
As we explained in our comments on the CPUC's one-year response to this recommendation, the CPUC adopted a change to its commissioner code of conduct that encourages commissioners to consider whether the acceptance of a gift of travel, lodging, or meals would give an appearance of an inappropriate relationship with a regulated utility, organizations with significant ties to a regulated utility, or other persons with financial interest in commission proceedings. However, the code of conduct's encouragement to consider appearances is not fully aligned with our recommendation. Specifically, our recommendation directed the CPUC to prohibit gifts of any kind from regulated utilities and energy companies and to prohibit free travel from organizations with significant ties to regulated utilities or other interested parties. The CPUC's new code of conduct falls short of this standard.
- Auditee did not substantiate its claim of full implementation
- Auditee did not address all aspects of the recommendation
Annual Follow-Up Agency Response From November 2017
The Commission approved this change to the Commissioner Code on Conduct on August 10, 2017.
- Completion Date: August 2017
California State Auditor's Assessment of Annual Follow-Up Status: Pending
As we explained in our comments on the CPUC's one-year response to this recommendation, the CPUC adopted a change to its commissioner code of conduct that encourages commissioners to consider whether the acceptance of a gift of travel, lodging, or meals would give an appearance of an inappropriate relationship with a regulated utility, organizations with significant ties to a regulated utility, and other interested persons with financial interest in commission proceedings. However, the encouragement to consider appearances is not fully aligned with our recommendation. Specifically, our recommendation directed the CPUC to prohibit gifts of any kind from regulated utilities and energy companies and free travel from organizations with significant ties to regulated utilities or other interested parties. The CPUC's new code of conduct falls short of this standard.
- Auditee did not address all aspects of the recommendation
1-Year Agency Response
The Commission approved this change to the Commissioner Code on Conduct on August 10, 2017.
- Completion Date: August 2017
- Response Date: September 2017
California State Auditor's Assessment of 1-Year Status: Pending
The CPUC adopted a change to its commissioner code of conduct that encourages commissioners to consider whether the acceptance of a gift of travel, lodging, or meals would give an appearance of an inappropriate relationship with a regulated utility, organizations with significant ties to a regulated utility, and other interested persons with financial interest in commission proceedings. However, the encouragement to consider appearances is not fully aligned with our recommendation. Specifically, our recommendation directed the CPUC to prohibit gifts of any kind from regulated utilities and energy companies and free travel from organizations with significant ties to regulated utilities or other interested parties. The CPUC's new code of conduct falls short of this standard.
- Auditee did not address all aspects of the recommendation
6-Month Agency Response
This recommendation was referred to the Policy and Governance Committee on October 7th by the Executive Director, Tim Sullivan. The referral was for the Commission to adopt a policy concerning out-of-state travel for Commissioners that is paid for by non-profits or other entities with ties to regulated entities.
- Estimated Completion Date: 6/30/2017
- Response Date: April 2017
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 7th by the Executive Director, Tim Sullivan. The referral was for the Commission to adopt a policy concerning out-of-state travel for Commissioners that is paid for by non-profits or other entities with ties to regulated entities.
- Estimated Completion Date: 6/30/2017
- Response Date: November 2016
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2016-104
Agency responses received are posted verbatim.