Report 2022-115 Recommendation 3 Responses

Report 2022-115: Electricity and Natural Gas Rates: The California Public Utilities Commission and Cal Advocates Can Better Ensure That Rate Increases Are Necessary (Release Date: August 2023)

Recommendation #3 To: Public Utilities Commission

To ensure the appropriateness of the activities that utilities include in their cost recovery applications and to reduce the risk of utilities' attempting recovery of costs for work they did not complete, the CPUC should by the beginning of February 2024 develop a process to ensure that it reviews available reports and work completed by other divisions within the CPUC and by other state agencies to determine whether further verification of a utility's work is necessary.

6-Month Agency Response

The CPUC has established a process for CPUC Advisory Staff to inform its Administrative Law Judge (ALJ) Division of any potentially relevant reports, to the extent it is aware of such reports. The ALJ Division is ready to guide ALJs to review potentially relevant reports that are brought to their attention by CPUC Advisory Staff and consider whether references to the reports should be included in a proceeding's scope. This process is reflected in the new protocols implemented in February 2024. (See CPUC Review Available Reports Procedures, and List of Utility Work Verification Reports)

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

60-Day Agency Response

The CPUC is establishing a process for CPUC Advisory Staff to inform ALJ Division of any potentially relevant reports, to the extent it is aware of such reports. ALJ Division is ready to guide ALJs to review potentially relevant reports that are brought to their attention by CPUC Advisory Staff and consider whether references to the reports should be included in a proceeding's scope.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2022-115

Agency responses received are posted verbatim.