Bauer Kahan Introduces Bill To Prevent Utility Influence On Ratemaking

ORINDA, CA — Assemblymember Rebecca Bauer Kahan, D-Orinda, recently introduced legislation to address what she calls a concerning trend of commissioners at the California Public Utilities Commission — CPUC—and the California Energy Commission — CEC— moving to high-paying positions within state-regulated utilities after their terms and in turn, jeopardizing the integrity of the regulatory process.

"With California's electricity rates consistently the highest in the nation, it is crucial to safeguard against potential conflicts of interest and undue industry influence on regulatory bodies," Kahan said.

Assembly Bill 2054 places a 10-year cooling-off period on commissioners at the CPUC and the CEC that would curb the revolving door between regulators and industry. The measure aims to insulate regulators from conflicts of interest and reduce the undue influence of regulated industries, her office said.

Under existing law, members of the Energy Commission are prohibited from being employed by an electric utility or an applicant within 2 years of no longer serving as a commissioner, while executives of a public utility cannot serve as a commissioner within 2 years of leaving the employment of the utility.

"AB 2054 is a crucial step towards restoring faith in our regulatory process and ensuring that commissioners act solely in the public interest," Kahan said. "California ratepayers deserve a regulatory system free from undue industry influence."

According to Kahan, not only would the proposed cooling-off period protect the independence of rate regulators and alleviate the pressure to approve unnecessary rate increases, but it would also send a powerful message that the era of unchecked utility spending and cozy relationships between regulators and industry must end.