California Public Utilities Commission
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The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, telecommunications, natural gas and water companies. In addition, the CPUC regulates household goods movers, passenger transportation companies (like limousine services) and rail crossing safety. [2] The CPUC's headquarters are located in the Civic Center district of San Francisco, and the agency has field offices in Los Angeles and Sacramento.
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[edit] History
During the 19th century, public concerns over the unbridled power of the Southern Pacific Railroad grew to the point that a 3-member Railroad Commission was established, primarily to approve transportation prices. [3] However, the Southern Pacific quickly dominated this commission to its advantage, and public outrage re-ignited, culminating in the passage of a new constitutional amendment in 1911 creating the second Railroad Commission of the State of California. As experience with public regulation grew, other common utilities were brought under the oversight of the Railroad Commission, and its name was changed in 1946 to the California Public Utilities Commission. [4]
[edit] Structure
Five commissioners each serve staggered six-year terms as the governing body of the agency. Commissioners are appointed by the governor and must be confirmed by the California State Senate. The Commission meets publicly twice a month to carry out the business of the agency, which may include the adoption of utility rate changes, rules on safety and service standards, implementation of conservation programs, investigation into unlawful or anticompetitive practices by regulated utilities and intervention into federal proceedings which effect California ratepayers.
As of March 7, 2007, the current commissioners are:
- President Michael R. Peevey (term expires in December 2008)
- Dian M. Grueneich (term expires in January 2011)
- John Bohn (terms expires in December 2011)
- Rachelle Chong (terms expires January 2009)
- Timothy Alan Simon (term expires January 2013)
Some regulatory laws are implemented by the California State Legislature through the passage of laws. These laws often reside in the California Public Utilities Code. [5]
[edit] Energy
The Commission regulates investor-owned electric and gas utilities within the state of California, including Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric. Among its stated goals for energy regulation are to establish service standards and safety rules, authorize utility rate changes, oversee markets to inhibit anti-competitive activity, prosecute unlawful utility marketing and billing activities, govern business relationships between utilities and their affiliates, resolve complaints by customers against utilities, implement energy efficiency and conservation programs and programs for the low-income and disabled, oversee the merger and restructure of utility corporations, and enforce the California Environmental Quality Act for utility construction.[6]
[edit] California Solar Initiative
The California Solar Initiative is a $2.9 billion incentive program created by the CPUC and the California Energy Commission in 2006. The goal of the initiative is to create 3,000 megawatts of new solar power generation in the state by 2017. The increased solar generation will erase the need for up to six new major power plants in California, according to the CPUC.[7]
[edit] Greenhouse Gas Emissions Standards
In January 2007, the CPUC adopted a greenhouse gas emissions standard which requires new long-term commitments for baseload generation to serve California consumers be with power plants that have emissions no greater than a combined cycle gas turbine plant.[8] The CPUC has stated that the emissions standard is a vital step in addressing ongoing concerns with global warming.
[edit] California Institute for Climate Solutions
On April 10, 2008, the CPUC created the California Institute for Climate Solutions (CICS) [9], taking a bold and innovative approach to expanding California's leadership in battling climate change. The CICS facilitates research, deployment, and commercialization of technological solutions and policies to reduce greenhouse gas emissions in the electric and natural gas sectors.
[edit] Transmission safety
The Commission's General Order 95 defines safe practices for utility poles and wiring. It defines safe separation between high voltage conductors, guy wires, cable television, and telephone cable. For example, GO-95 defines how high a telephone cable must pass over a roadway. It restricts attachments to poles to allow adequate, safe climbing space for personnel who work aloft. By ensuring an orderly and reliable system is used, risks to the public and utility employees are reduced. A similar system is specified for underground utilities in the Commission's General Order 128.
[edit] Telecommunications
[edit] Communications
The California Public Utilities Commission regulates intrastate telecommunications service and terms and conditions (but not entry or rates which are reserved to the Federal Communications Commission) of wireless phone providers. Given the break up of the old AT&T, the passage of the Telecommunications Act of 1996, and the subsequent growth of competition in the communications industry, the California PUC has reduced rate regulation of most telecommunications providers where there is vigorous competition, while leaving regulation as to basic residential rates and as to small rural telephone companies. The California PUC has stepped up consumer education efforts via statewide consumer bill fairs, developed a consumer-oriented communications website (www.calphoneinfo.com), increased its Consumer Affairs Bureau staff to respond to complaints more quickly, and hired a new Telecom Fraud Unit in its Enforcement Division.
The California PUC is also encouraging the deployment of broadband infrastructure within California, and is actively seeking to remove regulatory and other barriers to such deployment. In 2005, $60 million was donated by SBC and Verizon relating to their respective mergers with AT&T and MCI to establish a non profit organization known as the California Emerging Technology Fund (CETF). The CETF's mission is to "provide leadership statewide to minimize the "digital divide" by accelerating the deployment of broadband and other advanced communication services to underserved communities and populations." CETF's priority communities include: Rural and Remote Areas; Urban Disadvantaged Neighborhoods; and Disabled Populations. In December 2006, Sunne Wright McPeak became CETF's President and CEO.
In 2006, the California Legislature passed the Digital Infrastructure and Video Competition Act of 1996. Pursuant to this Act, the California PUC was granted limited authority to regulate video service providers via a statewide franchise scheme. The California PUC is responsible for licensing video service providers, and enforcing certain anti discrimination and build out requirements imposed by the Act. Local franchise authorities will continue to regulate rights of way used by video providers, handle consumer complaints, and requirements as to public, educational and governmental (PEG) channels. It is expected that both telephone companies and cable companies will become video service providers under the law.
[edit] Call recording
- Further information: Recorder warning tone
The concept behind General Order 107-B is that telephone calls cannot be recorded in California unless all parties to the call know it is being recorded. This article is an overview of that order. A person planning to record calls should review the specific details of the Order before making any recording.
The Order states the specifics of what must be done in order to lawfully record telephone calls. Based on the 1983 version, one way to meet the requirements may be to give a verbal warning. This often occurs by the playing of a recording in an automatic call distribution queue: "Your call may be recorded or monitored for quality assurance purposes."
Another method allowed to warn all callers a call is being recorded is the presence of a recorder warning tone: a 1,440 Hz tone repeating every fifteen seconds. In the 1960s, radio stations with call-in programs used to employ a recorder warning tone.
The Order requires that telephone utilities disconnect telephone service for violations of this Order.
It's unclear if case law, the California Public Utilities Code, or changes to the Order allow other the recording of telephone calls under other circumstances. It appears that many 9-1-1 call centers violate the 1983 version of the order every day.