SAN FRANCISCO — PG&E today (Oct. 6) reported additional communications that it believes violated California Public Utilities Commission (CPUC) rules governing ex parte communications with the state regulator. Ex parte communications are those that take place with decision-makers without the knowledge of all parties to a proceeding.
The communications were identified in conjunction with PG&E’s voluntary internal review of more than 65,000 emails exchanged with the CPUC over a nearly five-year period, which has been concluded. In addition, PG&E has been notified by the U.S. Attorney’s Office in San Francisco that it has begun an investigation in connection with these ex parte communications, with which the company will cooperate.
“We’ve made it clear that we are committed to complying with both the letter and the spirit of the law and PG&E’s own Code of Conduct at all times. No excuses. Our customers and the communities we serve expect no less. We took immediate and definitive action, self-reported these violations, held individuals accountable and are making significant changes designed to prevent this from happening again,” said PG&E Chairman and Chief Executive Officer Tony Earley.
The communications being reported today are in addition to email communications that the company self-reported on September 15 involving the pending Gas Transmission & Storage rate case. Of the ex parte communications being reported today, one involved a series of emails between a PG&E officer and a CPUC commissioner. The other communication involved an email from a PG&E officer to his supervisor summarizing an oral communication with a CPUC commissioner. The two PG&E personnel involved in these communications are no longer working at the company as a result of the emails that were self-reported earlier.
In conjunction with self-reporting the first set of emails, PG&E announced:
- That three officers will no longer be employed by the company.
- The appointment of a new senior vice president of regulatory affairs.
- The creation of the new role of chief regulatory compliance officer, whose mandate is to help oversee compliance with all requirements governing PG&E’s interactions with the CPUC. The position reports to the CEO and to the Audit Committee of the PG&E Board of Directors.
- The engagement of former Secretary of the U.S. Department of Interior Ken Salazar, a partner in the WilmerHale law firm, as special counsel on regulatory compliance matters to assist in developing a best-in-class regulatory compliance model. Salazar has deep experience in regulatory and energy matters.
- A commitment to creating updated and enhanced training for all employees who routinely interact with PG&E’s regulators.
In a filing with the Commission last week, PG&E admitted the violations in the pending Order to Show Cause and said it expects a penalty. PG&E is scheduled to appear before the Commission regarding the penalty tomorrow.
Today’s PG&E notifications to the CPUC can be read here.
