4. Criteria for the Adoption of New Regulations
The main purpose of this proceeding is to consider and adopt regulations to reduce the fire hazards associated with overhead power-lines and aerial communication facilities in close proximity to power lines. Therefore, in deciding whether to adopt the proposals in the Phase 2 Workshop Report, the primary standard we will use is whether the proposals are likely to reduce fire hazards. We must also consider the costs of the proposed regulations. If the cost of a proposed regulation appears to exceed the benefits to be gained from the reduction in fire hazards, the regulation should be rejected.
Because this is a quasi-legislative rulemaking proceeding,13 today's decision may rely on legislative facts14 obtained from written submissions in this proceeding, such as the Phase 2 Workshop Report and briefs. We may also draw on evidence from past proceedings, our experience and expertise in regulating utilities, our current policies, and common sense.15
We do not need to rely on formal evidence or hold an evidentiary hearing in a quasi-legislative rulemaking proceeding. As set forth in Pub. Util. Code § 1708.5(f), "the commission may conduct any proceeding to adopt, amend, or repeal a regulation using notice and comment rulemaking procedures, without an evidentiary hearing, except with respect to a regulation being amended or repealed that was adopted after an evidentiary hearing, in which case the parties to the original proceeding shall retain any right to an evidentiary hearing accorded by Section 1708." Notice of OIR 08-11-005 was served on all potential parties, including regulated electric corporations, municipal electric utilities, and CIPs operating in California.16 Parties were given an opportunity to request an evidentiary hearing using the procedures in the Phase 1 and Phase 2 Scoping Memos. No party requested an evidentiary hearing17 and none was held.
13 Phase 1 Scoping Memo at 16. A quasi-legislative proceeding establishes policies or rules affecting a class of regulated utilities. (Rule 1.3(d) of the Commission's Rules of Practice and Procedure.)
14 Legislative facts are general facts that help the Commission to decide questions of law and policy and discretion. (Rule 13.3(c) of the Commission's Rules of Practice and Procedure.)
15 D.06-06-071 at 26; D.06-12-029 at 13 - 14; D.04-03-041 at 11; and D.99-07-047, 1 CPUC3d 627, 634 - 636.
16 OIR 08-11-005, at Ordering Paragraph 6.
17 Certain parties initially requested an evidentiary hearing in Phase 1, but later opted for workshops in lieu of evidentiary hearings. (D.09-08-029 at 6.)
