By Jeff McDonald, The San Diego Union-Tribune
Gov. Jerry Brown’s two selections to the California Public Utilities Commission were confirmed by the Senate Rules Committee on Wednesday, as lawmakers decided they are the right choices to lead a troubled agency confronting two criminal investigations.
The nominations of President Michael Picker and Commissioner Liane Randolph will now go to the full Senate for a final vote that could come as soon as Thursday.
Committee members approved the nominations unanimously after debate that touched on one of the key issues at the agency — backchannel or ex parte discussions between utility executives and regulators. Certain lawmakers, consultants and consumer groups have said such communications should be banned.
"This is a real challenging area of policy for me because I am not a lawyer," Picker said about the ex parte rules. "I’m struggling with what the balance is here. I really am."
Picker was appointed by Gov. Jerry Brown in December to replace departing President Michael Peevey, whose home was raided by criminal investigators in January.
"Both of you are people of education and of substance," De Leon told the nominees just before the votes. "You have entered a very challenging environment but you also have an incredible opportunity. &hellip You have the right stuff to make this happen."
Picker has been serving while awaiting confirmation, and some of his controversial decisions were mentioned at the hearing.
Chairman Kevin De Leon, D-Los Angeles, singled out Picker’s support for a new gas-fired power plant on the beach in Carlsbad and his opposition to the net-neutrality plan adopted by the federal government at the outset of the hearing. He did not follow up with questions.
De Leon also referenced the settlement deal for the premature shutdown of the failed San Onofre nuclear plant north of Oceanside, which assigns 70 percent of costs to ratepayers. The deal has lost support from two consumer groups who helped negotiate it.
The framework for the agreement was set in a secret meeting between the former commission president and a Southern California Edison executive in Poland, a backchannel contact that has been scrutinized by criminal investigators.
Although De Leon mentioned the settlement in his introductory remarks, lawmakers did not ask the nominees about the issue.
Senators asked Picker about the agency’s decision to spend more than $5.2 million of ratepayer funds on criminal-defense attorneys to respond to subpoenas from investigators, demands for documents from lawmakers and a spate of public-records requests.
"As awkward as I feel about this, I had to do it and I stand by it," Picker said.
Picker was confirmed by a 5-0 vote and Randolph received a 3-0 vote. Sen. Anthony Cannella, R-Ceres, and Sen. Jean Fuller, D-Bakersfield, abstained from the Randolph nomination.
"I think we are making progress," Picker told the committee about his efforts to restore public trust in the agency. "People will be able to see it and feel it and taste it &hellip I hope to be a different kind of president."
Picker referred to independent reviews he had ordered into commission practices and said the commission was developing a code of conduct for commissioners.
He said he has redoubled efforts to improve safety and performance at the utility companies he is in charge of regulating and is evaluating the organization’s structure to improve communication and governance.
Randolph said she is chairing a policy subcommittee aimed at improving oversight operations across the commission.
"It’s going to take time, but we are committed to doing it right," she said.
Richard Holober of the Consumer Federation of California addressed the committee, mentioning an investigation by the Fair Political Practices Commission into Picker’s disclosure reports regarding $65,000 raised from people attending a farewell tribute event for Peevey.
Picker disclosed that the proceeds were meant for the University of California, Berkeley, but he has not disclosed where the money went after the university rejected it.
"There is a need for very, very significant reform," Holober said. "Openness and transparency really should be the watch words."
Some 20 industry groups and lobbyists lined up to support Picker and Randolph.
Earlier Wednesday, Picker hand-delivered a set of documents to the capitol offices of Assemblyman Anthony Rendon, D-Lakewood, who chairs the Committee on Utilities and Commerce.
Rendon had been asking for commission emails and other records related to the San Onofre settlement since March. He was not completely satisfied with what he received.
"While it’s encouraging that President Picker released the public record that informed his decision about the San Onofre settlement, many questions about the settlement remain unanswered," Rendon said. "I look forward to President Picker disclosing all the documents I requested."
©2015 The San Diego Union-Tribune Distributed by Tribune Content Agency, LLC.
