X. CPUC Regulatory Authority

Edison requests a finding from this Commission that it has sufficient regulatory authority, resources, and access to books and records of both Edison and MVL to warrant approval of the PPA. Specifically, Edison states that the CPUC already has complete access to Edison's books and records pursuant to Pub. Util. Code § 314(a). Since this section provides the Commission with the right to inspect the accounts, books, papers, and documents of any affiliate or subsidiary of an electric corporation on any transaction between the electric corporation and the affiliate/subsidiary on any matter that may adversely impact customers, the Commission will be able to conduct audits of the books and records of MVL just as freely and completely as it does for Edison. Edison opines that the Commission has one of the largest and most knowledgeable staffs in the nation and it is fully capable of reviewing the PPA. In addition, Section 9.04(c) of the PPA establishes in the Commission the right to inspect the books of both Edison and MVL with regard to the PPA.

Edison also states that requiring the Commission to audit MVL is not really an additional burden on staff since what ever Edison did to secure additional power would require the same amount of staff resource time.

A summary of the intervenors' position is that review does not equate to regulation, and Commission access to MVL's books is an empty power.

We find that the Commission does have sufficient regulatory authority, resources, and access to books and records of both Edison and MVL under Pub. Util. Code § 314(a) and the express language in Section 9.04(c) of the PPA to meet this requirement of PUHCA.