The Utility's Actions to Disclose and Rectify a Violation: Utilities are expected to promptly bring a violation to the Commission's attention. What constitutes "prompt" will depend on circumstances. Steps taken by a utility to promptly and cooperatively report and correct violations may be considered in assessing any penalty.

Although the transfer of Yak America to Blackbird closed on January 16, 2007, Applicants did not disclose their violation of Section 854(a) or file for Commission approval until March 1, 2007, approximately 45 days later. Applicants could have avoided this violation by filing a request for expedited Commission approval of the transaction before closing the sale of Yak America to Blackbird. This factor suggests that a larger fine may be appropriate. However, Applicants have admitted the violation and took steps to remedy it by requesting Commission approval of the transaction on a nunc pro tunc basis.

Criterion 3: Financial Resources of the Utility

In D.98-12-075, the Commission held that the size of a fine should reflect the financial resources of the utility. When assessing the financial resources of the utility, the Commission stated that it would consider the following factors:¹⁴

¹⁴ 1998 Cal. PUC LEXIS 1016, *75 - *76.