Constitutional limitations on excessive fines: The Commission will adjust the size of fines to achieve the objective of deterrence, without becoming excessive, based on each utility's financial resources.

The audited financial statements for Yak and its subsidiaries show that as of June 30, 2006, the company had assets in the amount of $49,526,000 and liabilities in the amount of $14,929,000.¹⁵ Further, as of June 30, 2006, the company had net revenues of $92,397,000 and a net loss of $365,000. The interim audited financial statements for Yaktastic for the period from September 22, 2006 to October 31, 2006 show that the company had assets of $40,100 and liabilities in the amount of $43,741. Applicants have filed a certificate of deposit, which shows that Blackbird has $100,000 available for the operations of the company. Although Yak and its subsidiaries incurred a financial loss in 2006, its financial statements indicate healthy amounts of equity. The financial position of Yaktastic, which was formed for the specific purpose of acquiring Yak America, is not strong. We will weigh these factors accordingly when setting the amount of the fine.

Criterion 4: Totality of the Circumstances

In D.98-12-075, the Commission held that a fine should be tailored to the unique facts of each case. When assessing the unique facts of each case, the Commission stated that it would consider the following factors:¹⁶

¹⁵ Applicants filed financial statements for Yak and its subsidiaries, because they do not have separate audited financial statements for Yak America for the past year.

¹⁶ 1998 Cal. PUC LEXIS 1016, *76.