a) Commission Statutory Responsibilities
According to TURN and DRA, without state-specific reporting data, we will not be able to meet our obligations and mandates under the following statutes: sections 451; 453(c); 709; 797; 798; 871.5; 882; 314.5; and 2896.31 They assert that we failed to proceed in a manner required by law because the Decision does not make specific findings that the new ARMIS data will provide the information necessary to make the analyses these statutes require. (TURN/DRA Rhg. App., pp.29-32.)
We believe that the steps taken in the Decision are both reasonable and lawful. TURN and DRA cite to statutes which merely set forth general Commission regulatory obligations. The statutes do not set forth any corresponding utility reporting requirements, nor do TURN and DRA identify any NRF-specific reports that are linked to the referenced statutes. For example, TURN and DRA argue that without NRF-specific reports we will not be able to comply with sections 314.5 and 797.32 We agree these statutes impose audit requirements on this Commission, however, that is different from a requirement that utilities submit any particular reports. Our Decision does not negate the fact that the utilities are obligated to maintain adequate books and records necessary for the Commission to conduct the contemplated audits.
TURN and DRA also ignore that D.06-08-030 is only the first step in determining the ultimate range of monitoring reports which we may require under the new Uniform Regulatory Framework. We specifically directed that Phase II of this proceeding will determine what information and reports will best meet the Commission's needs and statutory obligations in the new competitive environment. (D.06-08-030, pp. 218, 279 [Conclusion of Law 58].) The Decision states that in Phase II, parties will have the opportunity to propose additional monitoring reports that may be required to address any particular issue or concern (such as TURN and DRA's concern regarding the collection of adequate intrastate data). (D.06-08-030, p. 218.) Our further consideration of reporting issues ensures that we have properly proceeded in a manner required by law.
Nevertheless, we do agree with TURN and DRA that the Decision would benefit from clarification of our intent regarding service quality related monitoring reports. Accordingly, we will modify the Decision as set forth below in the ordering paragraphs.
31 See section 451 (concerning duty to ensure rates charged by public utilities are "just and reasonable"); section 453(c) (concerning duty to ensure public utilities do not maintain "unreasonable differences" in rates and services as between localities or classes of service); section 709 (concerning duty to ensure public utilities meet state policies regarding economic growth, job creation and social benefits associated with advanced information and communication technologies and long-term investment in infrastructure); section 797 (concerning duty to audit affiliate transactions); section 798 (concerning duty to ensure no imprudent payments involving subsidiaries and affiliates); section 871.5 (concerning duty to ensure lifeline service); section 882 (concerning duty to ensure availability of advanced telecommunications services to California citizens, businesses and institutions); section 314.5 (concerning duty to audit utility book and records for regulatory and tax purposes); and section 2896 regarding duty to ensure utilities meet reasonable service quality standards).
32 See section 314.5 requiring the Commission to inspect and audit utility books and records for regulatory and tax purposes every three or five year depending upon the number of customers served. Section 314.5 provides that this requirement can be fulfilled in connection with a rate proceeding. Also see section 797 requiring the Commission to periodically audit all significant transactions between a utility and its affiliates and/or subsidiaries.
