Assignment of Petition

Michael R. Peevey is the Assigned Commissioner and Karen Jones is the assigned Administrative Law Judge in P.02-12-039.

Findings of Fact

1. Information on employee compensation is currently available from a variety of sources: GO 77-K, SEC 10-K filings and proxy statements, as well as from discovery in a Commission proceeding.

2. GO 77-K requires reporting by virtually all utilities.

3. GO 77-K may require modification in light of changing levels of executive employee compensation.

4. CLECs and NDIECs are currently covered by the requirements of GO 77-K.

5. The GO 77-K data provided by CLECs or NDIECs is not used to determine whether there is some sort of cross-subsidization which results in ratepayers paying costs unrelated to the services they purchase, or for other regulatory purposes.

Conclusions of Law

1. Since the information on employee compensation is available from a variety of sources, there is no need to amend GO 77-K to make the information available through that reporting mechanism.

2. GO 77-K's established purpose is to provide the Commission with information relevant to rate setting.

3. GO 77-K already requires utilities to provide information on dues and charitable donations.

4. The Commission should review GO 77-K to determine if changes are warranted, as set forth herein.

5. The application of GO 77-K to NDIECs and CLECs shall be stayed until the close of this rulemaking.

ORDER

IT IS ORDERED that:

1. The portion of the Petition of the Greenlining Institute and Latino Issues Forum to initiate a rulemaking to amend General Order (GO) 77-K to increase the compensation levels that trigger reporting under GO 77-K is hereby granted.

2. The portions of the Petition of the Greenlining Institute/Latino Issues Forum to institute a rulemaking to amend GO 77-K to adopt a regulation requiring regulated utilities and their holding companies to annually disclose their diversity, executive compensation and philanthropic contributions are hereby denied.

3. A rulemaking is instituted on the Commission's own motion to determine whether or not GO 77-K should be modified, as described herein. The Executive Director shall serve a notice of availability of this order on all certificated Competitive Local Exchange Carriers (CLECs) and Nondominant Interexchange Carriers (NDIECs), as well as serving the order itself on the service list for Petition 02-12-039.

4. A temporary exemption for CLECs and NDIECs from the requirements of GO 77-K is granted.

5. The Telecommunications Division shall develop and maintain a list of e-mail addresses for all certificated telecommunications carriers.

6. The schedule for the rulemaking proceeding shall be in accordance with the schedule in the Scoping Memo herein.

7. Petition 02-12-039 is closed.

I will file a concurrence.

/s/ LORETTA M. LYNCH

Commissioner

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