Southern California Edison Co. v. Public Utilities Commission

12 Cal. Rptr. 3d 441, 117 Cal. App. 4th 1039, 2004 Daily Journal DAR 4827, 2004 Cal. Daily Op. Serv. 3450, 2004 Cal. App. LEXIS 568, 2004 WL 838015
CourtCalifornia Court of Appeal
DecidedApril 19, 2004
DocketB166993
StatusPublished
Cited by5 cases

This text of 12 Cal. Rptr. 3d 441 (Southern California Edison Co. v. Public Utilities Commission) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern California Edison Co. v. Public Utilities Commission, 12 Cal. Rptr. 3d 441, 117 Cal. App. 4th 1039, 2004 Daily Journal DAR 4827, 2004 Cal. Daily Op. Serv. 3450, 2004 Cal. App. LEXIS 568, 2004 WL 838015 (Cal. Ct. App. 2004).

Opinion

*1043 Opinion

COOPER, P. J.

In 1984, the Legislature added various provisions to the Public Utilities Code, authorizing the Cahfomia Public Utilities Commission (PUC) to award compensation “for reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs” (Pub. Util. Code, § 1801) to utility customers who participate in PUC proceedings. 1 In doing so, the Legislature directed that the provisions be “administered in a manner that encourages the effective and efficient participation [in PUC proceedings] of all groups that have a stake in the public utility regulation process.” (§ 1801.3, subd. (b).) To promote such participation, the Legislature authorized the PUC to compensate customers, not only for their work before the PUC, but also for “the fees and costs ... of obtaining judicial review” following a decision of the PUC. (§ 1802, subd. (a).)

We issued a writ of review to consider a challenge by Southern California Edison Company (SCE) to an award of compensation under the Intervenor Compensation Provisions. The PUC awarded the compensation to The Utility Reform Network (TURN), a nonprofit consumer advocacy organization that actively participated in extensive PUC proceedings involving complex rate-making issues. Approximately $256,000 of the total award was compensation for work TURN performed in federal lawsuits initiated by SCE and another utility in an effort to overturn the PUC decisions in which TURN had participated. SCE claims compensation for TURN’S federal court work is not authorized by the Intervenor Compensation Provisions.

The PUC concluded TURN’S federal court work was compensable as work associated with “obtaining judicial review” as provided for in section 1802, subdivision (a). The PUC explained that interpreting the judicial review language to provide for compensation when a customer intervenes in a judicial proceeding to defend a PUC decision is consistent with the Legislature’s stated goal of encouraging effective and efficient participation by customers in the utility regulation process. The PUC observed that “[i]f an *1044 intervener cannot gain compensation to defend a Commission decision in which the intervenor prevailed, the intervenor’s effectiveness is severely limited.”

Bearing in mind that the “PUC’s interpretation of the Public Utility Code ‘should not be disturbed unless it fails to bear a reasonable relation to statutory purposes and language’ ” (Southern California Edison Co. v. Peevey (2003) 31 Cal.4th 781, 796 [3 Cal.Rptr.3d 703, 74 P.3d 795] (SCE v. Peevey), quoting Greyhound Lines, Inc. v. Public Utilities Com. (1968) 68 Cal.2d 406, 410-411 [67 Cal.Rptr. 97, 438 P.2d 801]), we affirm.

FACTUAL AND PROCEDURAL HISTORY

The PUC proceedings giving rise to the compensation award at issue here arose out of California’s attempt to deregulate the market for electrical power. 2 These efforts produced Assembly Bill No. 1890 (1995-1996 Reg. Sess.), which became law in 1996 (Stats. 1996, ch. 854) and provided for a transition to a competitive electricity market at the end of a transition period ending no later than March 31, 2002. The law also provided for the state’s main electric utility companies, including SCE, to divest themselves of substantial parts of their generating assets. To give the utilities an opportunity to recover their investments in these assets (known as “stranded” or “transition” costs), the Legislature froze retail electricity rates (with some exceptions) during the transition period. (See §§ 330, 367, 368).)

In 1999, SCE, Pacific Gas and Electric Company (PG&E), and San Diego Gas and Electric Company filed applications in the PUC, proposing certain methods for determining the end of the transition period and subsequent ratemaking mechanisms. (The PUC’s proceedings on these applications are known as the “Post-Transition Ratemaking” (PTR) proceedings.) The PUC issued a decision in October 1999 which, among other things, prohibited the utilities from carrying over and recovering after the rate freeze period any uneconomic costs that they had not recovered during the rate freeze. PG&E petitioned the PUC for rehearing, which issued a decision in March 2000, denying rehearing but making some modifications to the original decision. TURN actively participated in these proceedings. 3

*1045 In the summer of 2000, wholesale electricity rates increased dramatically. In October of that year, SCE and PG&E petitioned the PUC to modify its prior decisions in the PTR docket and allow for post-rate-freeze recovery of certain costs they had not recovered during the rate freeze period. That same month, TURN filed an application in which it proposed a change in the accounting method for determining the utilities’ costs. The PUC consolidated these matters. It ultimately issued a decision in March 2001, granting the utilities some rate relief and also adopting TURN’S accounting proposal.

Meanwhile, in November 2000, SCE and PG&E filed separate federal court actions (in Los Angeles and San Francisco, respectively) against the commissioners of the PUC, challenging the PUC’s jurisdiction to enter their ratemaking decisions. In early 2001, TURN successfully moved to intervene in both federal actions and actively participated in those proceedings on the side of the PUC. After TURN’S intervention, the district court presiding over SCE’s action denied SCE’s request for a prehminary injunction, and the district court presiding over PG&E’s action denied motions by all parties for summary judgment. 4

In February 2001, TURN filed with the PUC a notice of intent to claim compensation for its participation in some of the PUC proceedings discussed above. In July 2001, TURN filed its request for compensation, seeking approximately $642,000 for its work, including its work in the federal court actions initiated by SCE and PG&E.

In March 2002, an administrative law judge (ALJ) issued a draft decision awarding TURN approximately $574,000 for its contributions, which included compensation for TURN’S involvement in the federal court actions. The ALJ’s draft decision rejected the utilities’ contention that TURN was not entitled to compensation for its involvement in the federal court proceedings. The ALJ concluded TURN had made a substantial contribution to PUC proceedings by participating in the federal court proceedings, noting that if the utilities had succeeded in their federal court actions, the “outcome would have prevented the Commission from ever reaching the issues raised by TURN in its petition for modification [filed in one of the PUC’s proceedings].”

*1046

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12 Cal. Rptr. 3d 441, 117 Cal. App. 4th 1039, 2004 Daily Journal DAR 4827, 2004 Cal. Daily Op. Serv. 3450, 2004 Cal. App. LEXIS 568, 2004 WL 838015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-california-edison-co-v-public-utilities-commission-calctapp-2004.