Probe of State Advisor Is Sought

The state Fair Political Practices Commission has been asked to decide whether Vikram Budhraja, a top energy advisor to the governor, had a conflict of interest when he participated in negotiating a contract with an out-of-state energy company he had worked for as a consultant months earlier.

State law generally prohibits officials and consultants from participating in government decisions involving companies from which they have received income within the past year.

The fact that Budhraja had worked as a consultant to the Williams Cos., a major Tulsa, Okla.-based energy firm, became known after he filed another revision to a disclosure statement detailing his financial holdings.

Bill Kissinger, the governor’s deputy legal affairs secretary, said the commission has been asked to determine whether there is a conflict in Budhraja’s case.

“There are lots of questions whether he participated in a government decision,” Kissinger said. The administration’s own review “doesn’t yield a clear answer” so the issue was referred to the commission to make a judgment, he said.

Budhraja’s attorney, Stephen Kaufman, said his client was involved at some level in discussions regarding the state’s power contract with Williams. He also performed some consulting work for the Williams Cos. last year and his company was paid $10,000 or more, Kaufman said.

Kissinger said the Davis administration has not taken any action against Budhraja, the head of the Electric Power Group, a Pasadena-based consulting firm. The firm has a $6.2-million contract with the state Department of Water Resources.

Last month, the governor’s office fired five energy consultants who owned stock in Calpine Co. of San Jose and bought power on the state’s behalf from that company. One of those, Richard Ferriera, a former Sacramento utility executive, was terminated after participating in negotiations on a state contract with Calpine.

Budhraja is already a subject of a preliminary inquiry by the Securities and Exchange Commission, after Secretary of State Bill Jones filed a complaint accusing state energy consultants of engaging in possible insider trading.

A former executive at Edison International, Budhraja bought multiple blocks of Edison International stock in January, just before going to work for the state. Jones estimated that Budhraja made a 40% profit in January buying and selling stock in Edison International, the parent company of Southern California Edison.

On the latest revision to his financial disclosure statement, Budhraja listed ownership of $2,000 to $10,000 worth of stock in Scottish Power. The stock was sold July 30. State officials said Budhraja played no role in the negotiating the state’s long-term power purchase contract with that generator.