ENDNOTES
1. Daniel William Fessler, "Social, Economic and Political Perspectives on California's Role in the Changing Dynamics of the Electric Services Industry," presented to the Federal Energy Bar Association, Washington D.C., May 9, 1996.
2. Constitution of California, Article XXII, Section 1.
3. Munn vs. Illinois, 94 US 113, 1877.
4. Public Utilities Commission, Annual Report, 1994-95.
5. Barbara R. Barkovich, Regulatory Intervention in the Utility Industry: Fairness, Efficiency and the Pursuit of Energy Conservation, New York: Quorum Books, 1989.
6. Ibid, 21.
7. Public Utilities Commission, Division of Strategic Planning, California's Electric Services Industry: Perspectives on the Past, Strategies for the Future, San Francisco, February 1993.
8. Warren-Alquist State Energy Resources Conservation and Development Act, California Public Resources Code 25000 et seq.
9. W. Ahern and R. Doctor, et. al., Energy Alternatives for California: Paths to the Future, Santa Monica: RAND Corporation, 1975.
10. Public Utilities Commission, memorandum to the Governor's Office, May 20, 1974.
11. Virginia Coe, former director of strategic planning for the Public Utilities Commission, in testimony to the Little Hoover Commission on March 27, 1996.
12. Governor's Office Press Release, "Wilson Proposes Sweeping Overhaul of Energy Regulation: Cuts Energy Commission, Recognizes End of Utility Monopolies," December 2, 1993.
13. Governor Pete Wilson, press release, December 1, 1993.
14. Daniel Wm. Fessler, in a meeting of the Public Utilities Commission, June 19, 1996.
15. U.S. Department of Commerce, Statistical Abstract of the United States, 1994, Table 926; Public Utilities Commission, Annual Report, 1994-1995.
16. Severin Borenstein, director, U.C. Energy Institute, in testimony to the California Legislature Joint Oversight Committee on Lowering the Cost of Electric Services, October 28, 1994.
17. California Energy Commission, Energy and the Economy: The California Energy Policy, 1994.
18. Jeffrey Dasovich, former regulatory analyst, California Public Utilities Commission, in a presentation at the JurEcon conference on electrical restructuring, "Choices for California Electricity Customers in the New Electricity Market," May 10, 1996, Marina del Rey.
19. Borenstein, op. cit.
20. California Public Utilities Commission, "Telecommunications Primer," undated.
21. Robert Foster, vice president, regulatory affairs, Southern California Edison, in testimony to the Little Hoover Commission, April 24, 1996 in San Francisco.
22. Henry M. Duque and Jessie J. Knight, Jr., "Comments of the California Public Utilities Commission in response to Questions from the Little Hoover Commission," March 20, 1996; P. Gregory Conlon, commissioner, Public Utilities Commission, testimony to the Little Hoover Commission, March 27, 1996 in Sacramento; Daniel Wm. Fessler, commissioner, Public Utilities Commission, testimony to the Little Hoover Commission, April 24, 1996 in San Francisco; Robert Testa, vice president of government relations, Pacific Gas and Electric Co., testimony to the Little Hoover Commission, April 24, 1996 in San Francisco.
23. Duque and Knight, op. cit. While the response indicated that the PUC would do some "cost allocations" for transmission, tariffs would be set by FERC and necessity reviews would be conducted by the ISO.
24. Ibid. In the comments, the PUC recognizes that to provide this function to non-utility facilities would require expanding its jurisdiction.
25. Coe, op. cit.
26. Public Utilities Commission, Division of Strategic Planning, "California's Electric Services Industry: Perspectives on the Past, Strategies for the Future," (the "Yellow Book"), February 1993, page 145.
27. Keystone Center, "Overview of the Keystone Dialogue on the Development of a Model State Siting Act," Keystone, Colorado, June 1992.
28. Charles Imbrecht, Chairman of the California Energy Commission, in testimony to the Little Hoover Commission on March 27, 1996 in Sacramento.
29. Daniel Wm. Fessler, commissioner, Public Utilities Commission, in testimony to the Little Hoover Commission, April 24, 1996; Conlon, op. cit.
30. Severin Borenstein, director, University of California Energy Institute, in testimony to the Little Hoover Commission, March 27, 1996 in Sacramento.
31. California Public Resources Code, Section 25006.
32. William Taylor, National Economic Research Associates, Cambridge, Mass. 1995.
33. Catherine D. Wolfram, "Measuring Duopoly Power in the British Electricity Spot Market," November 1995, paper presented at the Program on Workable Energy Regulation Conference, University of California, Berkeley, March 15, 1996.
34. Matthew Brown, senior policy specialist, National Conference of State Legislators, in testimony to the Little Hoover Commission, March 27, 1996, in Sacramento.
35. California Energy Commission, comments in the matter of the PUC/Energy Advisory Committee to the Little Hoover Commission, February 20, 1996.
36. Coe, op. cit.
37. California Energy Commission, Electricity Report, 1995; Ralph Cavanagh, co-director of energy programs, Natural Resources Defense Council, testimony to the Little Hoover Commission, April 25, 1996 in San Francisco.
38. Robert T. "Hap" Boyd, director of Governmental and Regulatory Affairs for Zond Corporation, in testimony to the Little Hoover Commission, April 24, 1996, in San Francisco.
39. "Energy Administration and Regulation in California." Staff Report to the Joint Committee on Energy Policy and Implementation, Bob Foster, project director, March 1979.
40. Charles Imbrecht, chairman, California Energy Commission, in testimony to the Little Hoover Commission, March 27, 1996 in Sacramento.
41. Department of Conservation, Office of the Director, Memorandum to Jeannine L. English, Executive Director, Little Hoover Commission, June 5, 1996.
42. National Association of State Energy Offices, "1995 Survey of State Energy Offices," Washington, D.C.
43. Borenstein, testimony to the Little Hoover Commission, op. cit.
44. Mike Florio, senior attorney, Toward Utility Rate Normalization, in testimony to the Little Hoover Commission, April 25, 1996 in San Francisco.
45. In testimony to the Committee on Energy and Natural Resources, U.S. Senate. "Competitive Change in the Electric Power Industry," March 6, 1996, PUC Commissioner Daniel Fessler explained that the purpose of a 100 percent stranded cost recovery was to assure the continued financial integrity of California's investor-owned utilities and to provide them with an opportunity to be vital participants in the restructured market following the transition.
46. Testa, op. cit.
47. California Public Utilities Code Section 851 provides for the PUC to review transfers of property belonging to investor-owned utilities. Under the restructuring plan, transmission facilities will be transferred to the Independent System Operator and the utilities are expected to sell major portions of their generating facilities.
48. Michael Shames, executive director, Utility Consumers' Action Network, in testimony to the Little Hoover Commission, April 24, 1996 in San Francisco, and in correspondence and interviews with the Little Hoover Commission.
49. Florio, op. cit.
50. Borenstein, op. cit.
51. Jananne Sharpless, commissioner, California Energy Commission, memorandum to the Little Hoover Commission, May 14, 1996.
52. Florio, op. cit.
53. Steven D. Davis, division manager of governmental services, San Diego Gas and Electric Co., in testimony to the Little Hoover Commission, April 24, 1996 in San Francisco.
54. Florio, op. cit.
55. Fred John, senior vice president, Pacific Enterprises, in testimony to the Little Hoover Commission, April 24, 1996 in San Francisco.
56. G. Mitchell Wilk, in testimony to the Little Hoover Commission, August 28, 1996, in Sacramento.
57. Douglas Wheeler, Secretary of the Resources Agency Wheeler, in testimony before the Senate Energy Committee, January 25, 1994.
58. Commission on California State Government Organization and Economy, "A Study of the California State Public Utilities Commission;" and Commission on California State Government Organization and Economy, "A Study of the Organization and Coordination of Electric Planning and Electric Utility Regulation in California, 1984.
59. Assembly Natural Resources Committee, staff analysis of AB 2468, May 9, 1994.
60. Coe, op. cit.
61. Fessler, testimony to the Little Hoover Commission, op. cit.
62. Assemblyman Byron Sher, chairman of the Assembly Joint Oversight Committee on Lowering the Cost of Electric Services, in a heaing, October 28, 1994.
63. "Energy Administration and Regulation in California," op. cit.
64. Public Utilities Commission, "A Report on Our Process for Change: Vision 2000," July 1995, Appendix A-3.
65. Randolph Deutsch, vice president, law and government affairs, AT&T, in testimony to the Little Hoover Commission, August 28, 1996 in Sacramento.
66. The PUC has declined to allow for new area codes to be "overlaid" on existing area codes until technology is implemented allowing customers to maintain the same telephone number when they change carriers. Commissioners, in applying this policy to the 310 and 818 area codes, acknowledged in August and October meetings that this requires changing the telephone numbers of existing customers rather than new customers.
67. Tony Armstrong, director, governmental affairs, GTE California, in testimony to the Little Hoover Commission, August 28, 1996 in Sacramento.
68. John Gueldner, vice president, regulatory affairs, Pacific Telesis Group, August 28, 1996 in Sacramento.
69. " ' "
70. Robert C. Fellmeth, director, Center for Public Interest Law, University of San Diego, in written testimony to the Little Hoover Commission, August 29, 1996.
71. Donald Vial, et al., "Report of the Advisory Working Group on CPUC Reforms," to the Senate Subcommittee on Public Utilities Commission Reforms of Senate Committee on Energy and Public Utilities, June 1, 1994.
72. G. Mitchell Wilk, "Concurring Opinion, Advisory Group Final Report to the California State Senate Subcommittee on PUC Reform," May 16, 1994.
73. Josiah Neeper, commissioner, Public Utilities Commission, in a meeting of the Public Utilities Commission, June 19, 1996, in San Francisco.
74. Taylor and Zona, op. cit.; Leland L. Johnson, Price Caps in Telecommunications Regulatory Reform, A Rand Note, Rand Library Collection, January 1989.
75. Charles F. Phillips Jr., "The Changing Structure of the Public Utility Sector," Public Utilities Fortnightly, January 9, 1986.
76. Robert W. Crandall and Leonard Waverman, Talk is Cheap: The Promise of Regulatory Reform in North American Telecommunications, The Brookings Institution, 1995.
77. Jerry Hausman, MacDonald professor of economics, Massachusetts Institute of Technology, in testimony to Congress, October 22, 1995.
78. Gueldner, op. cit.
79. Richard Nelson, director of state regulatory affairs, AirTouch Communications, Inc., in comments to the Little Hoover Commission Water, Telecommunications and Transportation Advisory Committee, June 12, 1996.
80. Wilk, op. cit.
81. Armstrong, op. cit.
82. California Public Utilities Code, Sections 1031 - 1042; Rules 1 through 8, 15, 15.1, 16 and 21, Rules of Practice and Procedure, California Public Utilities.
83. Taylor and Zona, op. cit.; 1995; Johnson, op. cit.; Crandall and Waverman, op. cit.
85. Douglas Hill, president, California Moving and Storage Association, in an interview with the Little Hoover Commission staff, June 13,1996.
86. Fellmeth, op. cit.
87. Taylor and Zona, op. cit.; Johnson, op. cit.; Crandall and Waverman, op. cit.
88. Crandall and Waverman, op cit.
89. Grace Hughes, president and chief executive officer, Marin Airporter Company, in testimony to the Little Hoover Commission, August 28, 1996 in Sacramento.
90. Fessler, testimony to the Little Hoover Commission, op. cit.
91. Alan Shanedling, owner, Fleetwood Limousine Company, in remarks to the Little Hoover Commission Advisory Committee on Water, Telecommunications and Transportation, June 25, 1996.
92. D.O. Helmick, Commissioner, California Highway Patrol, in testimony to the Little Hoover Commission, August 28, 1996 in Sacramento.
93. Rebecca Brady, National Conference of State Legislatures, in an interview with Little Hoover Commission staff, June 5, 1996.
94. Deregulation Task Force [and] Dean R. Dunphy, Secretary, Business, Transportation and Housing Agency. Report to Governor Pete Wilson. [no date].
95. Ed Snyder, interim deputy director, Industry Operations Division, California Department of Motor Vehicles, in an interview with the Little Hoover Commission staff, June 1996.
96. Joel Anderson, executive vice president, California Trucking Association, in testimony to the Little Hoover Commission, August 28, 1996 in Sacramento.
97. Hill, op cit.
98. Douglas Hill, president, California Moving & Storage Association, letter to the Little Hoover Commission, July 1, 1996.
99. Texas, New Mexico, New Jersey, Missouri, Arkansas, Minnesota, and Kentucky have assigned regulation of transportation carriers to transportation agencies other than the public utilities commission. Roger Dunstan, California Research Bureau, California State Library, memorandum to the Little Hoover Commission, February 14, 1995.
100. J.D. Stokes, safety/traffic engineer, Technological Applications Section, California Division, Federal Highway Administration, in an interview with Little Hoover Commission staff, September 30, 1996.
101. Darin Kosmak, railroad liaison branch manager, Traffic Operations Division, Railroad Section, Texas Department of Transportation, interview with Little Hoover Commission staff, September 9, 1996.
102. Bill Chappell, Traffic Engineering Branch, North Carolina Department of Transportation, interview with Little Hoover Commission staff, September 24, 1996.
103. Bruce DeBerry, deputy director, Safety and Enforcement Division, Public Utilities Commission, interview with Little Hoover Commission staff, September 27, 1996.
104. "Accidents That Shouldn't Happen: A Report of the Grade Crossing Safety Task Force to Secretary Federico Pena," U.S. Department of Transportation, March 1, 1996.
105. "California Trade and Goods Movement Study," prepared for the California Department of Transportation and the San Diego Association of Governments by Barton-Aschman Associates, Inc., June 1996.
106. "Intermodal Freight Transportation: Projects and Planning Issues," U.S. Government Accounting Office Reports and Testimony, July 1996.
107. Robert A. Wolf, Undersecretary for Transportation, Business, Transportation and Housing Agency, Memorandum to George Dunn, Cabinet Secretary, Governor's Office, June 26, 1996.
108. Ibid.
109. Fred L. Curry, program manager, Water Division, Public Utilities Commission, in an interview with Little Hoover Commission staff, September 24, 1996.
110. Public Utilities Commission, Annual Report, 1994-1995.
111. "Analysis of Ex Parte Contact Notices Filed at the California Public Utilities Commission, January 1 - July 31, 1995," prepared by William B. Marcus, Gregory A. Ruszovan and Gayatri M. Schilberg, JBS Energy, Inc., September 1995.
112. David N. Kennedy, director, California Department of Water Resources, letter to the Little Hoover Commission, June 27, 1996.
113. Deborah Braver, program manager, Water Management Planning, California Department of Water Resources, interview with the Little Hoover Commission staff, September 17, 1996.
114. Kennedy, op. cit.; "Bulletin 160-93, The California Water Plan Update, October 1994," California Department of Water Resources.
115. "Bulletin 160-93, The California Water Plan Update, October 1994," op. cit.
116. Kennedy, op cit.; Braver, op cit.; California Urban Water Conservation Council, "Memorandum of Understanding Regarding Urban Water Conservation in California, Best Management Practices Summary Report, 1993-1994."
117. "Bulletin 160-93," op. cit.; Kennedy, op. cit.
118. Kennedy, op. cit.
119. Curry, op. cit.
120. Tom Smagel, Water Division, Public Utilities Commission, in an interview with the Little Hoover Commission staff, September 24, 1996.
121. "California Urban Water Conservation Council: An Independent Evaluation of the Council's Structure, Activities and Budget and Future Directions in Urban Water Conservation, Final Report," Energy Resources International, Inc., January 26, 1996.
122. Curry, op. cit.
123. David N. Kennedy, Director, California Department of Water Resources, in a letter to Daniel William Fessler, President, California Public Utilities Commission, May 9, 1994.
124. Ibid.
125. Joseph F. Young, vice president, Southern California Water Company, in an interview with the Little Hoover Commission staff, November 5, 1996.
126. Ibid.
127. John Garon, vice president, Santa Clarita Water Company, in an interview with Little Hoover Commission staff, October 25, 1996.
128. Young, op. cit.
129. Dean Evans, deputy director, Water, Commission Advisory and Compliance Division, Public Utilities Commission, in an interview with Little Hoover Commission staff, June 14, 1996.
130. Clifford A. Sharpe, chief, Drinking Water Field Operations Branch, California Department of Health Services, interview with Little Hoover Commission staff, September 20, 1996.
131. Curry, op. cit.
132. Clifford A. Sharpe, chief, Drinking Water Field Operations Branch, California Department of Health Services, interview with Little Hoover Commission staff, June 14, 1996.
133. Ibid.
134. Joseph F. Young, vice president, Southern California Water Company, in remarks to the Little Hoover Commission Water, Transportation and Telecommunications Advisory Committee, June 25, 1996.
135. Sharpe, September 20, 1996, op. cit.
136. Larry D'Addio, general manager, Citizens Utilities Company of California and president, California Water Association, in testimony to the Little Hoover Commission, August 28, 1996.
137. Sharpe, September 20, 1996, op. cit.
138. D'Addio, op. cit.
139. Interview with staff of the Texas Natural Resources Conservation Commission, May 1996.
140. Douglas P. Wheeler, Secretary for Resources, in a letter to the Little Hoover Commission, August 22, 1996.
141. Memorandum from Public Utilities Commission Division of Ratepayer staff to PUC Commissioners P. Gregory Conlon, Daniel Wm. Fessler, Jessie J Knight, Jr., Henry M. Duque and Josiah L. Neeper and Executive Director Wes Franklin, July 15, 1996.
142. Michael Shames, executive director of the Utility Consumers' Action Network, in a letter to the Little Hoover Commission, January 23, 1996.
143. Ibid.
144. Edmund J. Texeira, former director, Public Utilities Commission, Division of Ratepayer Advocates, in testimony to the Little Hoover Commission, August 29, 1996 in Sacramento.
145. Coe, op. cit.
146. Fellmeth, op. cit.
147. California Business and Professions code section 17200 et al.
148. Herschel T. Elkins, senior assistant attorney general for consumer law, California Attorney General's Office, in testimony to the Little Hoover Commission, August 29, 1996 in Sacramento.
149. Thomas Greene, senior assistant attorney general, antitrust section, California Attorney General's Office, in testimony to the Little Hoover Commission, August 29, 1996.
150. V. John White, executive director, Center for Energy Efficiency and Renewable Technologies, Little Hoover Commission PUC / Energy Advisory Committee, May 15, 1996.
151. Florio, op. cit.
152. Boyd, op. cit.
153. Alan Gardner, California Cable Television Association, in remarks to the Little Hoover Commission PUC / Energy Advisory Committee, July 9, 1996.
154. Richard Severy, government affairs director, MCI Communications, in remarks to the Little Hoover Commission PUC / Energy Advisory Committee, July 9, 1996.
155. Florio, op. cit.
156. Fred Schmidt, Advocate for Customers of Public Utilities, and Sonny Popowswki, Consumer Utility Advocate, Commonwealth of Pennsylvania, in interviews with Little Hoover Commission staff.
157. Munn vs. Illinois, op. cit.
158. Gary McBee, chairman, Alliance for Competitive Communications, in a speech to the
Washington Telecommunications Conference, National Association of State Utility
Consumer Advocates, May 4, 1995.