Senators say utility regulators must restore public trust
SACRAMENTO (AP) — A Senate panel implored Gov. Jerry Brown’s two recent appointees to a powerful utilities commission on Wednesday to restore public trust in an agency that’s been badly damaged by scandals and presided over environmental disasters including the 2015 largest-known methane gas leak in U.S. history.
“The reputation of the Public Utilities Commission is not good,” Senate President Pro Tempore Kevin de Leon said.
Commissioners Clifford Rechtschaffen and Martha Guzman Aceves both acknowledged the public’s poor perception of the commission and said they are working diligently to implement legislative guidelines aimed at improving transparency and public safety. Rechtschaffen in particular pushed back against criticism that he is too cozy with the oil and gas industry. The 5-member PUC regulates privately-owned natural gas, electric, telecommunications, water and rail utilities, and it has long been criticized for its relationship with the utilities it regulates. Investigations into a 2010 Pacific Gas and Electric pipeline explosion revealed secret communications between PUC and utility executives.
Most recently, the July decision to re-open the Aliso Canyon natural gas facility two years after the massive methane leak is prompting criticism.
Both were appointed by Brown in December, but have a year to officially be confirmed to six-year terms.
The Senate Rules Committee’s Wednesday hearing was the first stop before both appointees go to the full Senate floor.
The Aliso Canyon methane leak, which caused more than 8,000 Los Angeles-area residents to be evacuated, was the topic of several senators’ questioning. In July, the PUC’s executive director and the Division of Oil, Gas and Geothermal Resources determined it was safe for limited gas injections to continue, but a full investigation into what caused the leak hasn’t been completed. Some critics argue the commissioners should have taken a stand against its re-opening.
“I was very disappointed the PUC decided to open Aliso Canyon without giving us any clear explanation whatsoever,” said Alex Kim, a Porter Ranch resident evacuated from his home during the leak who showed up to testify against Rechtschaffen.
Both Rechtschaffen and Guzman Aceves are former Brown aides, and senators also questioned whether they can be independent voices. Several consumer activist groups have criticized Rechtschaffen in particular, pointing to the Brown administration’s push several years ago to override environmental safeguards when issuing permits for oilfield injection wells while he served as a top energy adviser.
He forcefully defended himself.
“I think those allegations are extremely misplaced,” he said in response to a question from Democratic Sen. Connie Leyva. “I think it’s critical that we avoid unduly close relationships with industry, but even the appearance of unduly close relationships.”
Rechtschaffen now leads the PUC’s Natural Gas Leak Abatement program, which launched in June and promotes better training, detection and repair of methane leaks at natural gas utilities.
Guzman Aceves previously served as Brown’s deputy legislative affairs secretary, with a focus on natural resources, food, agriculture and environmental protection. Republican Sen. Tom Berryhill encouraged both to disclose all of their communications with Brown, even though they are not required to share all communications with Brown or lawmakers under the PUC’s rules around ex-parte communications.
Both Guzman Aceves and Rechtschaffen said the PUC is now following much stricter rules on disclosing communications, based on legislation signed by Brown last year. The PUC is also beginning to hold more meetings around the state, they said.
“We have a huge challenge,” Guzman Aceves said. “The public doesn’t feel like we’re going to listen.”
Representatives from more than a dozen organizations testified in favor of both nominees.