Report 2013-109 Recommendation 6 Responses

Report 2013-109: California Public Utilities Commission: Improved Monitoring of Balancing Accounts Would Better Ensure That Utility Rates Are Fair and Reasonable (Release Date: March 2014)

Recommendation #6 To: Public Utilities Commission

To ensure that it efficiently and effectively monitors energy utilities' balancing accounts to protect ratepayers from unfair rate increases, the commission should direct its Energy Division to coordinate with the Office of Ratepayer Advocates (Ratepayer Advocates) to identify which balancing accounts Ratepayer Advocates plans to review during the year to avoid duplicating efforts.

6-Month Agency Response

Energy Division has set up quarterly meetings with both the Division of Water and Audits and the Office of Ratepayer Advocates (ORA) to determine which energy balancing accounts ORA is planning to review or has reviewed to avoid duplication of work. The most recent meeting was held on July 31, 2014. At this meeting, ORA shared with Energy division staff which balancing accounts they have finished auditing, which they are in the middle of auditing and which ones they plan to audit. Quarterly check-ins are very useful because ORA is able to share any changes they have made to their plans to review balancing accounts.

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

60-Day Agency Response

Energy Division is planning to set up quarterly meetings with both the Division of Water and Audits and the Office of Ratepayer Advocates (ORA) to determine which energy balancing accounts ORA is planning to review or has reviewed to avoid duplication of work. The first meeting was held on April 1, 2014. Quarterly check-in with ORA should work better because ORA would be able to share any changes they have made to their plans to review balancing accounts.

California State Auditor's Assessment of 60-Day Status: No Action Taken

All Recommendations in 2013-109

Agency responses received are posted verbatim.