PUC Struggles as Openings for 2 Commissioners Remain Unfilled

Gov. Gray Davis’ failure to permanently fill two key vacancies on the state’s Public Utilities Commission has nearly paralyzed one of California’s most powerful agencies as it considers issues vital to consumers statewide.

Since Jan. 1, three sitting commissioners have been making all policy decisions affecting everything from telecommunications, natural gas and electricity, to water, sewer, steam and transportation in California.

And with a historic telecommunications and energy deregulation movement in high gear, the PUC is responsible for ruling on such pivotal matters as how to treat calls to Internet service providers, Pacific Bell’s hoped-for entry into long-distance and a Pacific Gas & Electric case that could mean substantially increased rates.

“The issues that are unresolved are difficult issues,” said Don Vial, a former PUC president who is now chairman of the nonprofit California Foundation on the Environment and the Economy. “You really need a functioning commission. And the PUC now, from my perspective, is dysfunctional.”

Late last month, the absence of one commissioner resulted in the delay of 69 items and withdrawal of several issues from the agenda. Four other matters were decided on a 2-0 vote.

After that, Davis hastily appointed two members of his staff to temporarily fill the vacant spots--possibly for just one or two meetings.

PUC lawyers have previously ruled that the commission can legitimately pass items with the approval of just two of the three existing commissioners, all of whom were appointed by former Gov. Pete Wilson. But the agency has only done so a handful of times in six months. Instead, items that are not likely to pass on a 3-0 vote have been postponed or removed from the commission agenda.

Davis staff members are hinting that the governor may soon fill the PUC slots with permanent appointees--perhaps before Thursday’s meeting. The Senate must confirm within one year any appointments, but the new commissioners would be able to begin serving immediately. The posts are for a six-year term and pay an annual salary of about $106,000.

Because permanent appointments have not been made, however, decisions at the commission are repeatedly postponed. Several of the items on Thursday’s agenda, for example, had originally been scheduled for January and February.

“Three commissioners doing the work of five is very hard, and the list of items that have been held is really long,” PUC spokeswoman Kyle DeVine said. “We are getting through the items that we believe must go at each meeting, but we’re not getting beyond that.”

PUC President Richard Bilas recently pressed for action in a meeting with one of Davis’ top aides. “I explained to her that we need help, and we need help now,” Bilas said.

Until last week, when the temporary members were named, the PUC was hampered by rules preventing a voting majority from discussing out of the public eye most business issues. Until last week, then, no two commissioners could have such talks, because it could have violated state open-meeting laws.

“With three commissioners, when two get together, it’s a quorum, so we have been very cautious to just say, ‘Hello, how is your wife? How was your weekend?’ ” Bilas said. “It’s been difficult for everybody, and it’s a difficult job to begin with.”

Bilas and the governor’s office say the public has not been harmed by the vacancies on the PUC, which has never worked so long with so few commissioners. But others say the PUC is struggling to deal with certain issues.

“Especially with telecommunications, a number of significant proceedings are just stalled because with just three commissioners, you can’t really make policy decisions,” said Kelly Boyd, senior telecommunications analyst at the state Office of Ratepayer Advocates, the PUC’s independent consumer advocacy unit.

In addition to the two open PUC spots, the governor also must name someone to the top post at the Office of Ratepayer Advocates, now an appointed position.

A long-awaited decision on a proposal that would tighten service quality standards for phone companies--an action the PUC promised legislators it would enact by the end of 1998--was held from an agenda and has never reemerged--even though a proposed decision has been ready for months, Boyd said.

“Service quality standards mean a lot of money to those phone carriers, depending on what standards they have to meet, and right now they have virtually no accountability,” Boyd said. “And for consumers, the status quo is not a good thing.”

Some critics have suggested that Davis--the first Democratic California governor in 16 years--is forfeiting a key opportunity to have a say in matters that will have a lasting impact on consumers statewide.

But some observers note that Davis has more than 3,000 appointments to make and does not want to rush through the process.

“These are not jobs where you show up and collect a paycheck; you’ve got to really work there,” said a source in the Legislature who did not want to be named. “You work long hours under a lot of pressure and have to make really important decisions that involve big economic interests.”

Many potential candidates with deep knowledge of the issues may have ties to companies or groups that frequently appear before the commission, creating the potential for a conflict of interest.

“I can sympathize with the governor, because it’s got to be very hard to find people who are qualified and who want to be appointed to what amounts to a thankless job,” said Michael Shames, executive director at the Utility Consumers Action Network, a San Diego-based consumer group. “But at this point, the question is: Can we afford to not appoint anyone at all?”