Peevey Halligan Ruling Granting The Utility Reform Network Motion for Investigation into PG&E's Billing and Collection Practices

Statutory and Decisional Standards

As an "electrical corporation," PG&E is subject to the requirements of the Public Utilities Code.⁹ In particular, Section 451 of the Public Utilities Code obligates every public utility to "furnish and maintain such adequate, efficient, just and reasonable service...as [is] necessary to promote the safety, health, comfort and convenience of its patrons, employees, and the public." Section 701 of the Public Utilities Code authorizes the Commission to regulate all public utilities in this state and "to do all things, whether specifically designated in this part or in addition thereto, which are necessary and convenient in the exercise of such power and jurisdiction."¹⁰ Section 702 of the Public Utilities Code obligates every regulated utility to "obey and comply with every order, decision, direction or rule made or prescribed" by the Commission.

One of the primary mechanisms through which the Commission regulates an electrical corporation such as PG&E is the utility's general rate case. On May 27, 2004, the Commission approved D.04-05-055 in PG&E's Test Year 2003 GRC. D.04-05-055 approved a settlement agreement that adopted annual revenue requirements for electric and gas distribution service for the period from January 1, 2003, through the year 2006. D.04-05-055 granted, for the most part, PG&E's requested $176 million in capital expenditures for its Cordaptix customer information system (CIS) project and $49 million in associated Operation and Maintenance expenses.

⁹ Public Utilities Code Sections 216, 218 and 451.

¹⁰ The cited sections of the Public Utilities Code are broadly construed by the courts. San Diego Gas & Electric Co. v. Superior Court (1996) 55 Cal. Rptr. 2d 724, 13 Cal 4^th 893, Lobby Against Monopolies v. Public Utilities Commission (1979) 160 Cal. Rptr. 124, 25 Cal 3d 891. The Commission is a constitutional body with broad legislative and judicial powers and may exercise equitable jurisdiction as an incident to its express duties and authorities. Wise v. Pacific Gas &Electric Co. 91 Cal. Rptr. 2d, 479, 77 Cal. App. 4^th 287, rehearing denied, review denied.