Rebecca Lee, Policy and Planning Division March 31, 2017 P ROCESS TO G OALS A process inventory to as a first step toward aligning operation to performance Prepared for California State Legislature in compliance with Section 13 of Senate Bill 840 (Committee on Budget and Fiscal Review, Chapter 341, 2016), this report provides an inventory of processes used by the California Public Utilities Commission (CPUC) to carry out its obligations, as shaped by law and judicial review, the CPUC’s rules and procedures, and internal processes for administration and human resources management.
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Rebecca Lee, Policy and Planning Division
March 31, 2017
PROCESS TO GOALS
A process inventory to as a first step toward aligning
operation to performance
Prepared for California State Legislature in compliance with Section 13 of
Senate Bill 840 (Committee on Budget and Fiscal Review, Chapter 341,
2016), this report provides an inventory of processes used by the California
Public Utilities Commission (CPUC) to carry out its obligations, as shaped
by law and judicial review, the CPUC’s rules and procedures, and internal
processes for administration and human resources management.
1
PROCESS TO GOALS
A report on business process inventory
As a state agency, the CPUC is responsible for ensuring safe and reliable utility service at a
reasonable rate across energy, telecommunications, water, and transportation sectors. The
CPUC regulates services and utilities, protects consumers, safeguards the environment, and
assures Californian’s access to safe and reliable utility infrastructure and services.
Since the inception of this agency in 1911, there has been more than a century of
organizational changes required of the CPUC through legislation and judicial review. These
overlapping layers of mandates have evolved the agency throughout the past century, as the
public expectations of the agency’s goals have continued to evolve to include 21st century
policy priorities such as climate change and broadband internet access.
This report is the first effort in recent CPUC history to conduct an agency-wide inventory of
business processes that internal organizational stakeholders – decision makers,
management, and staff alike – rely on to deliver organizational outcomes. By decomposing
layers of processes into discrete end-to-end steps, this report provides a structured view of
how the CPUC currently fulfills its current responsibilities and sheds lights on how to adapt
to future challenges through future process improvement efforts. This serves as a first step
toward establishing agency-wide process
metrics and identifying opportunities for
process improvements or alignment.
The scope of this report is to identify the
processes by which the CPUC carries out
its work, and to identify current process
measures where they exist. An inventory
of business processes will enable the
agency to place additional process
performance measures where they may
be needed; identify process weaknesses;
identify processes in need of either
additional structure or flexibility; and enable targeted allocation of resources for process
improvements in the future. Process improvements ensure that operational steps lead to
outcomes that are aligned with CPUC’s strategic goals to deliver public value. A business
process inventory will enable more informed process management culture and continual
process improvement in the longer term.
By first identifying the key processes by which CPUC carries out its day-to-day work, this
inventory promotes the agency core values of accountability, excellence, and open
communications because it allows oversight bodies such as the Legislature and Department
of Finance to better analyze and evaluate how budget authorization for human resources,
“Process improvements ensure
that operational steps lead to
outcomes that are aligned with
CPUC’s strategic goals to deliver
public value.”
2
equipment, facilities, and information technology assets are used to fulfill the CPUC’s
statutory obligations.
This inventory is not an exhaustive list of all current processes, but a current “best effort”
snapshot of representative processes to form the basis for future process documentation and
improvements. As the CPUC continues to evolve to adapt to new legislative mandates and
new expectations, many process documentation contained in this report will soon be
outdated. For example, the Commission is currently taking active steps toward
implementing process changes to meet recently enacted reform legislation.1 CPUC managers,
employees, the legislature, or members of the public may use this report as a general guide
for identifying process improvement opportunities to further the agency’s strategic directives,
especially those with regards agency administration.2
1 As the date of this publication, procedural changes to comply with Senate Bill 215 (Leno, 2016) are
underway but are yet to be finalized.
2 See CPUC Strategic Directives, Governance Process Policies, and Commission-Staff Linkage Policies
Review of Carriers’ Certificate of Public Convenience and Necessity ApplicationsA
LJ D
ivis
ion
Car
rie
rC
om
mu
nic
atio
ns
Div
isio
nC
om
mis
sio
ne
rs
Files application for CPCN
BEGIN
Closes proceeding
END
Docket Office receives CPCN
application filing
Does application pass preliminary
review?
Submits supplemental information
Implements formal process to review CPCN application
Identify CD staff time requirement
and assigns CD staff based on expertise
and availability
CD staff conducts CPCN review and assesses carrier compliance with
USF/TUFTs
Assigned ALJ writes proposed decision
to resolve CPCN application
Agenda preparation process
Voting meeting process
CD management review
Issues final decision
Carrier submits and prepares letter to
accept CPCN
Carrier’s acceptance letter is filed in proceeding
docket
6.3 Energy Division
Within the CPUC, the Energy Division is comprised of subject matter experts in several
program areas, including (1) supporting formal regulatory processes on energy; (2) reviewing
and resolving informal advice letter filings; (3) ensuring compliance of regulated entities to
CPUC order or resolution.
California Environmental Quality Act Review Process
One important work area carried out by Energy Division is the environmental impact review
of proposed utility-owned projects under the California Environmental Quality Act (CEQA).
CEQA review is conducted within the context of an application proceeding where a utility
seeks either a Certificate of Public Convenience and Necessity or a Permit to Construct from
the CPUC. Energy Division conducts this review for all regulated sectors, including
regulated utilities in the communications and water sectors. The CEQA process in the
context of CPUC regulatory proceedings is a two-step process involving two sets of
overarching statutory guidelines – one is CEQA, the other is the body of law governing
administrative law procedures at the CPUC.
In the first step, the CEQA process is carried out by the CEQA team according to statutory
guidelines under CEQA. Energy Division staff, in consultation with an assigned attorney in
the Legal Division, conducts an environmental assessment of a utility’s proposed project. The
CEQA team seeks public stakeholder input throughout the process leading up to the release
of a final CEQA document. The CEQA document is an Environmental Impact Report, a
Mitigated Negative Declaration, or a Negative Declaration. Stakeholders in the CEQA
42
review process can, and often do, include the owner/proponent of the proposed project, local
government entities, non-governmental organizations, Native American tribes, and
concerned individuals. A stakeholder is not necessarily a party to the regulatory proceeding
where the project is considered. Once the CEQA team has considered and incorporated any
stakeholder feedback as necessary, a final CEQA document for the project is published.
In the second step, the CEQA document is submitted into the CPUC’s formal proceeding
record as evidence to the potential environmental impacts that would result from
construction and operation of the proposed project. The assigned ALJ then carries out an
evidentiary process to evaluate the CEQA document within the framework of extant laws,
ordinances, and other applicable statutes. In this evidentiary process, a party to the
proceeding may elect to challenge the findings or recommended mitigation contained in the
CEQA document. Finally, the ALJ weighs all evidence pertaining on project need, cost, safety
and environmental impact to develop a proposed decision for the Commissioners
consideration at the CPUC voting meeting process, illustrated below in Figure 6.31.
43
Figure 6.31 California Environmental Quality Act Review Process for Application Proceedings to
Consider Energy, Communications or Water Utilities’ Requests for Certificate of Public Convenience
and Necessity or Permit to Construct
California Environmental Quality Act (CEQA) Review Process
Lega
l Div
isio
nEn
erg
y D
ivis
ion
ALJ
Div
isio
n
Loca
l Go
vern
me
nt,
N
on
-pro
fits
, tri
be
s,
or
any
oth
er
stak
eh
old
er
Ene
rgy
uti
lity
Co
mm
issi
on
ers
Files CPCN or PTC application
Reviews to assess whether filing is
complete
START
Is CPCN or PTC filing complete?
Provides supplemental
documents within 60 days
No
Reviews proponent’s
environmental assessment
Issues Notice of Preparation
Conducts public meetings on the scope of CEQA
review
Yes
Prepares administrative
draft
Responsible agencies review
administrative draft and provide input
Incorporates input from responsible
agencies
Issues draft CEQA document (EIR, MND, or ND) for public comment
Assistant General Counsel assigns
CEQA attorney as part of CEQA team
Provides public input on draft CEQA
document
Incorporates stakeholder input and publish final CEQA document
Voting meeting process to resolve
CPCN or PTC application
CEQA doc is adopted as part of final
decision to resolve CPCN or PTC application
END
Incorporates CEQA document into the record; evidentiary process on
project need, safety, cost, and environmental impact
Conducts environmental
studies
Assigned ALJ issues proposed decision
Provides public input on scope of
CEQA review
Assigned ALJ holds prehearing conference
Yes
Assigned Commissioner
determines scope of proceeding via
scoping ruling
Energy Advice Letters
Compliance of regulated entities to regulatory order is often achieved through informal
advice letter filings. The advice letter process is always initiated by a regulated entity in
response to a regulatory order. Energy Division reviews, and processes these filings to ensure
compliance with CPUC decisions, as illustrated in Figure 6.32.
44
Figure 6.32 Energy Advice Letter Process
Energy Division’s Advice Letter ProcessLe
gal D
ivis
ion
Ene
rgy
Div
isio
nC
om
mis
sio
ne
rsA
LJ D
ivis
ion
’s
Pro
cess
Off
ice
Re
gula
ted
En
erg
y U
tilit
y
Submits Advice Letter (AL) filing
Disposition letter or resolution document
received by utility
Tariff Unit receives AL and creates AL
folder
Regsters AL in PAL database
Tariff Unit distributes AL folder to supervisor for ED
staff assignment
Assistant General Counsel assigns staff attorney to support assigned
analyst
Tier 1 & 2
Updates PAL database with staff attorney assignment
Does the AL require a resolution?
NoED management approval process
Transmits letter or resolution to utility,
service list, protestants
Close out filing in PAL database
Analyst prepares draft resolution to AL in consultation
with attorney
Yes
Tariff Unit prepares draft resolution for
processing
Process Office assigns Agenda ID
number
Advisors’ Agenda Review process
Alternate resolution?
Prepares draft alternate resolution
Yes
Commissioner’ deliberate and vote
to adopt a final resolution
No
Adds CPUC seal and obtain Exec Dir
signature on Final Resolution
START END
Updates PAL database with
draft resolution
Analyst prepares disposition letter
and ED checklist for AL folder
Workshop Production Process
To support information gathering and learning in formal proceedings (oftentimes in
rulemaking proceedings) Energy Division staff regularly hold workshops to allow parties to
the proceeding to present and discuss policy issues in need of resolution. The workshops are
also useful to assist all parties (as well as decision makers and staff) to better understand the
merits of a project as well as other technical issues. Although a workshop’s content does not
necessarily constitute part of proceeding records, it allows parties to the proceeding to better
understand each other’s interests and goals, and is intended to result in more informed
filings by parties.
Producing a public workshop to support a formal proceeding require a significant staff
resource for planning, conducting, and facilitating. The assigned ED staff coordinates with
the assigned Commissioner’s office and assigned ALJ in this process, are outlined in Figure
6.33.
45
Figure 6.33 Workshop Productions to Support Formal Proceedings
Workshop Production to Support Formal ProceedingsEn
erg
y D
ivsi
on
Serv
ice
Lis
tA
ssig
ne
d C
om
mis
sio
ne
r an
d/o
r A
ssig
ne
d A
LJD
ock
et
Off
ice
Identifies need to hold a workshop as part of a proceeding
START
Defines purpose, goals, and desired
outcome of the workshop in
consultation w/ ALJ
Creates a draft workshop agenda
Determine speaker(s) and
facilitator(s)
Confirm availability of workshop venue
and equipment availability
Determine speaker(s) and
facilitator(s)
Drafts invitation with draft agenda
for Service List
Parties receive invite and draft
agenda, and provides feedback,
if any
Incorporates feedback, if needed, and
distributes final agenda
Process Office places notice of workshop Daily
Calendar 10 days prior to workshop
Final agenda received by Service
List
Issues Ruling or Order to formally
announce workshop
Conducts workshop
END
Processing of Compliance Reports
Regulated entities are oftentimes required by the CPUC to submit compliance reports to the
Energy Division. In 2016, the Energy Division restructured its internal processes to
centralize the processing of compliance reports submitted by regulated entities (investor-
owned utilities and other load-serving entities such as community choice aggregation and
direct access providers.) Prior to this process restructuring, compliance reports were
submitted to individual energy program staff. The new centralized process allows an
organized and searchable archive to store compliance reports and ensure regulatory
compliance to CPUC decisions as illustrated in Figure 6.54.
46
Figure 6.34 Processing of Compliance Reports
Processing of Incoming ReportsR
egu
late
d e
nti
ty
(en
erg
y u
tilit
y o
r an
oth
er
load
se
rvin
g e
nti
ty)
Ene
rgy
Div
isio
nC
om
mis
sio
ne
rs
Adopts decision or resolution requiring
report(s) to be submitted to ED
START
Prepares cover letter and report to
comply with decision/resolution
Receives report from regulated
entity through ED Central Files
ED Central Files acknowledges
receipt of report
Receives confirmation that
the report has been received by ED
Central Files routes report to
appropriate section based on work area
Adds report(s) to
content server
database
Report(s) made searchable and
accessible to ED staff
Is the regulated entity in compliance?
Submit or resubmit report for
compliance
Staff logs compliance in COPs database
Section supervisor assigns to subject
matter expert staff based on work sub-
area
Assigned staff reviews report
No
Is report covered under COPs?
Yes
Assigned staff confirms
compliance with section supervisor
No
Yes
Is the report due from multiple
entities?Yes
Is any other report missing?
Assigned staff or Central Files
contacts regulated entity to obtain the
missing report
No
No
END
47
6.4 Legal Division
Legal Division is directed by statute to represent and appear for the people of the State of
California, the CPUC, and CPUC staff in all actions and proceedings involving any questions
under the Public Utilities Code or under any order or act of the Commission. It is made up of
attorneys, legal analysts, and legal secretaries.
The major internal processes of Legal Division include (1) assigning attorneys to provide
legal services to support other CPUC work units and to support Office of Ratepayer
Advocates’ needs; (2) participating in Federal Energy Regulatory Commission proceedings
(FERC); (3) participating in Federal Communications Commission (FCC) proceedings; (4)
providing responses to Public Records Act (PRA) requests; and (5) providing independent
legal review for applications for rehearing.
Legal Staff Assignment
A core process in Legal Division is to allocate its staff resources to support the legal needs of
other CPUC work units and Office of Ratepayer Advocates. This is a simple process by which
staff counsels are assigned by Assistant General Counsels to provide legal services to ALJs,
Commissioners, other CPUC work units, or ORA as requested. To sufficiently support ORA’s
legal needs, ORA-related assignments are allocated to 17 attorney positions who are
specifically dedicated toward representing ORA in regulatory proceedings.
Figure 6.41 Staff Assignment Process
Legal Counsel Assignment Process
Lega
l Div
isio
nO
ffic
e o
f R
ate
pay
er
Ad
voca
tes
Co
mm
issi
on
ers
, or
oth
er
CP
UC
div
isio
ns
Identifies need for legal counsel
Identifies need for legal counsel
Receives request for legal staff
resource
Is legal service needed for advisory
or ORA needs?
Assistant general counsels on
advisory matters assigns staff
counsel
Advisory
Assistant general counsel on ORA
cases assigns staff counsel to
represent ORA
ORA
Staff counsel works with ORA team and represents ORA in
proceedings
Staff counsel works with advisory team
48
Participation at Federal Energy Regulatory Commission
Legal Division is required by statute to represents the State of California and the CPUC on
federal regulatory matters at FERC. There are two types of processes that Legal Division
relies on to participate in FERC proceedings – one involves participation in rulemaking
proceedings, as illustrated in Figure 6.41, the other one involves rates or tariff proceedings
related to inter-state electric transmission or natural gas pipelines.
These two processes are designed to obtain guidance from CPUC Commissioners prior to
submitting testimony or pleadings at FERC on behalf of California ratepayers, but allow
sufficient time flexibility to adhere to tight deadlines within FERC proceedings.
Figure 6.42 Participation in FERC Rulemaking Proceedings
Authorization for taking positions in Federal Energy Regulatory Agency (FERC) rulemaking proceedings
Ene
rgy
Div
isio
nFe
de
ral E
ne
rgy
Re
gula
tory
Age
ncy
(F
ERC
)Le
gal D
ivis
ion
Inte
rdiv
isio
nal
te
am
(En
erg
y D
ivis
ion
an
d
Lega
l Sta
ff)
CP
UC
Co
mm
issi
on
ers
Docket initiation (Notice of proposed rulemaking or notice
of inquiry)
Identifies item of interest to CPUC
No
Yes
Recommend to commissioners to
participate in FERC rulemaking?
“Monitor-only” process
Places item on CPUC agenda for public meeting
Draft memo on recommendation
or options
Commissioners each receives
memo for review
Commissioners deliberate and
vote on recommendation in open meeting
Remain available to answer
questions from commissioners, if
any
Identifies item of interest to CPUC
Is recommendation approved?
Draft comment to FERC
Energy Division Management
review process
Legal Division management
review process
Receives finalized comments;
opportunity for review, if possible
CPUC comments submitted to the
FERC in rulemaking proceeding
No
Yes
The difference between the processes of participating in a FERC rulemaking versus a FERC
rate or tariff proceeding reflect different needs associated with FERC rulemaking and rate-
setting processes. Often times in a FERC rate or tariff proceeding, the CPUC may be
litigating against a transmission owner, which requires the deliberation of potential
litigation positions to be carried out within closed session of the CPUC’s business meetings.
49
Figure 6.43 Participation in FERC rate or tariff proceedings
Authorization for litigation in Federal Energy Regulatory Agency (FERC) rate or tariff proceedingsEn
erg
y D
ivis
ion
Fed
era
l En
erg
y R
egu
lato
ry A
gen
cy
(FER
C)
Lega
l Div
isio
nIn
terd
ivis
ion
al t
eam
(En
erg
y D
ivis
ion
an
d
Lega
l Div
isio
n)
CP
UC
Co
mm
issi
on
ers
Interstate pipeline, transmission, or
energy complaint case filed at FERC*
Identifies item of interest to CPUC
Recommend to commissioners to take a position?
“Monitor-only” process
Places item on CPUC closed
session meeting agenda
Each commissioner
receives confidential memo
for review
Commissioners deliberate and vote in closed
session
Remain available to answer
questions from commissioners, if
any
Is the recommendation
approved?
Prepare documents for
FERC filing
Energy Division management
review process
Legal Division management
review process
CPUC document is filed in FERC docket
No
YesIs there time to
obtain CPUC approval under FERC schedule?
Drafts notice of intervention and
protest
Energy Division Management
review process
Legal Division management
review process
Approval from CPUC President’s Office pursuant to
PU Code Sec 307(b)
Drafts confidential memo with
recommended position
Energy Division Management
review process
Legal Division management
review process
No
No
Yes
Yes
*These include electric transmission owner rate cases, interstate natural gas pipeline rate cases, and complaints against wholesale prices, which are matters under FERC jurisdiction pursuant to the Natural Gas Act or Federal Power Act.
Receives copy of final version
Participation in Federal Communications Commission proceedings
Legal Division relies on a similar, but related, process to represent the State of California
and the CPUC before FCC. Unlike the processes associated with participation at FERC,
Legal Division convenes an inter-divisional team comprised of representatives of CPUC
Commissioners, ORA, Communications Division, and others, to identify issues that may
warrant the CPUC’s attention.
The purpose of the interdivisional team is to help identify potential issues to bring to
Commissioner-level or Director-level attention. Similar to the processes associated with
participation at FERC, a memorandum document detailing the scope of FCC participation
are endorsed by the Commissioners as a governing body prior to document submittal in FCC
proceedings.
50
Figure 6.44 Participation in Federal Communications Commission
Authorization for participation at Federal Communications Commission v.20161005C
PU
C L
ega
l D
ivis
ion
Fed
era
l C
om
mu
nic
atio
ns
Co
mm
issi
on
Inte
rdiv
isio
nal
Fe
de
ral
Team
CP
UC
C
om
mu
nic
atio
ns
Div
isio
n (
CD
)C
PU
C C
om
mis
sio
ne
rs
Issues Notices of Rulemaking,
Inquiries, or Petition
Identifies item of interest to CPUC
Reviews items with CD staff and decides whether to pursue next
steps
Discuss matter of interest to the
extent allowable under Bagley-
Keene*
Should the CPUC file comments at
FCC?
Move to “monitor-only” process
Assistant General Counsel assigns an
attorney, places item on CPUC
meeting agenda
Assigned attorney prepares
recommendation memo w/ CD staff
Commissioners individually
reviews memo
All commissioners deliberate on
memo and vote in open meeting
Assigned attorney made available to answer questions,
if any
Is recommendation memo approved?
Prepares comment to FCC with CD
staff
Commissioners’ offices review to
ensure consistency with approved
recommendations
CPUC comments submitted to the FCC
Docket
Management review process
No
No
Yes
Yes
Independent Legal Review of Applications for Rehearing
When a formal regulatory proceeding overseen by an Assigned ALJ comes to a resolution by
the issuance of a final decision by the CPUC, a party to the proceeding may exercise its due
process rights to appeal the decision by filing an application for rehearing. The process to
review applications for rehearing is overseen by Legal Division. The Assistant General
Counsel verifies the application to determine timeliness and completeness of the rehearing
request, and assigns an appellate attorney to conduct independent legal review of the
proceeding based on legal issues raised in the rehearing request. The appellate attorney then
prepares a legal memorandum and proposed order for Legal Division’s management review,
and Commissioners’ consideration.
If an application for rehearing is granted or granted in part, the process as laid out in Figure
6.44 ends in the re-opening of the case to be overseen by the ALJ Division. If the application
for rehearing is denied, then the party to the proceeding may seek judicial review of the
decision.
51
Figure 6.45 Legal Review of Application for Rehearing
Processing of Applications for Rehearing* D
ock
et
Off
ice
Co
mm
issi
on
ers
Lega
l Div
isio
nC
ou
rts
Par
ty t
o P
roce
ed
ing
ALJ
Div
isio
n
CPUC issues decision or resolution
Files rehearing app. within 30
days of decision or resolution issuance**
Reviews rehearing app. for technical
compliance
Assistant General Counsel verifies
timeliness of rehearing app.
Assigned attorney reviews for legal errors based on
issues raised in the rehearing app.
Legal Division management
review process
Judicial review process
Commissioners individually review rehearing memo
and proposed order
Assistant General Counsel assigns
appellate attorney to do independent
review***
Assigned attorney prepares rehearing
memo and proposed order
Consideration of the disposition is placed on CPUC meeting agenda
Commissioners deliberate and vote in closed
session
Conforms decision based on
commission vote
CPUC issues rehearing order to dispose rehearing
app.
Files court challenge within
30 days of issuance of rehearing order
* Filed pursuant to Public Utilities Code Section 1731** Certain exceptions to the 30-day rule may apply*** Similar to review in an appellate court
Is the rehearing app. granted?
No
Yes
Formal proceeding process to rehear
issues
Public Records Act Requests
Legal Division is responsible for responding to the many Public Records Act (PRA) request,
oftentimes from members of the media, as outlined below in Figure 6.45.
Figure 6.46 Processing Public Records Act Requests
Public Records Act (PRA) Request Processing
Info
rmat
ion
Te
chn
olo
gy H
elp
D
esk
An
y m
em
be
r o
f th
e
pu
blic
Co
mm
issi
on
ers
or
Dir
ect
ors
Lega
l Div
isio
nN
ew
s &
Ou
tre
ach
O
ffic
e
Files PRA request
Identifies item of interest to CPUC
Is the request clear?
Receives and reviews PRA
request
No
Yes
Contacts requester to seek
clarification
Provides clarification on
the request
Does the request include e-mail
records?
Query Outlook archive for e-mail record based on
PRA request
Contact appropriate CPUC work unit to query
relevant document(s)
No
Draft determination
letter pursuant to Gov Code 6253(c)
Does staff require additional time to
locate records?
Draft time extension letter to inform requester
Receives letter on request processing status and reason
for extension
Receives initial response on status
and expected delivery date of
requested record
Are the records disclosable?
Draft letter to explain why the
record cannot be disclosed
Letter received; Appeals process, if
pursued (appeals are resolved by CPUC
vote)
Yes No
Records review process
Yes
Compile responsive documents
Does records include e-mail of
commissioner(s) or directors?
Commissioner(s) or Director informed of
pending release of his or her e-mail
Yes
Was the request made by a member
of the press?
News & Outreach Office informed of pending records
release to the press
Yes
Prepare transmittal letter and documents
for release
Records received; case closed;
Requester may appeal if disclosure was not satisfactory
No
NoNo
News & Outreach Office receives a
copy of letter
If request was made by a member of the press
52
Legal Division is responsible for responding to the many Public Records Act (PRA) requests,
oftentimes from members of the media, as outlined below in Figure 6.45. The response time
required to provide a PRA response requires identifying disclosable record that is directly
pertinent to the PRA request. A small team of one legal counsel and two legal analysts are
currently responsible for processing the voluminous PRA requests to ensure CPUC’s
compliance to transparency and public accountability.
6.5 Water Division
Water Division’s main responsibility is to ensure regulated water companies’ compliance
with CPUC regulation. The Water Division carries out this work through its Advice Letter
process, as outlined in Figure 6.4 below, governed by GO-96. Water Division staff also
provides ad hoc analysis in formal proceedings on water matters as requested by the ALJ
division.
Figure 6.51 Water Advice Letter Process
Water Division’s Advice Letter Process
Lega
l Div
isio
nW
ate
r D
ivis
ion
Co
mm
issi
on
ers
ALJ
Div
isio
n’s
P
roce
ss O
ffic
eW
ate
r U
tilit
y
Submits Advice Letter (AL) filing
Approval document received by utility
Tariff Unit receives AL filing and logs AL
into PAL system
New AL entry created in PAL
database
Tariff Unit distributes AL work
folder to section supervisor for staff
assignment
Assistant General Counsel assigns staff attorney to support assigned
analyst
What is the AL tier?
Tier 2 or 3
Tier 1
Updates PAL database with staff attorney assignment
Does the AL require a resolution?
Assigned analyst reviews AL and
gives recommendation
No
WD management review AL work
folder and provides approval signature
Transmits approval document to utility
and Service List
Close out filing in PAL database
Assigned analyst prepares draft
resolution to AL
Yes
Tariff Unit prepares draft resolution for
processing
Process Office assigns Agenda ID
number
Advisors’ Agenda Review process
Alternate resolution?
Prepares draft alternate resolution
Yes
Commissioner’ deliberate and vote
to adopt a final resolution
No
Adds CPUC seal and obtain Exec Dir
signature on Final Resolution
START END
Updates PAL database with
draft resolution
Tariff Unit prepares AL work folder for
section assignment
53
6.6 Commissioners
Individual Commissioners generally rely on processes managed by other work groups to
carry out their responsibilities. For example, Commissioners play an integral role in formal
proceeding to vote and adopt proposed decisions as final decisions. Each Commissioner
operates a small work unit with his or her advisors to vote on proposed decisions in the
formal process managed by the ALJ division, or on draft resolution in the advice letter
processes managed by industry divisions. Commissioners also vote on memoranda prepared
by other work units, such as in the case of a memorandum seeking guidance on participation
at a federal agency.
The one major process that is the exclusive domain of Commissioners’ offices is the ex parte
meeting process, whereby a party to a proceeding seeks audience with a Commissioner, or
his or her advisor, to discuss a certain set of issues within the scope of an on-going
proceeding. The ex parte meeting can be carried out at any point in the proceeding timeline,
except during the period declared as “quiet time.” All five Commissioners follow the same
meeting process, as outlined in Figure 6.71 below.
As illustrated, the ex parte meeting process is initiated by a party to a proceeding. A
Commissioner, or his or her advisor, is not obligated to accept the meeting even when ex
parte contact is permissible based on the proceeding category; the process can end by simply
denying the ex parte meeting request. If a Commissioner or an advisor indeed accepts an ex
parte meeting request, he or she is required to separately log the ex parte meeting. In the
case a party is meeting with a Commissioner directly, the party must file an advanced 3-day
notice for rate-setting cases.
54
Figure 6.61 Ex Parte Meeting Process
Ex Parte Meeting ProcessP
arty
to
a
pro
cee
din
gA
LJ D
ivis
ion
An
y m
em
be
r o
f th
e
pu
blic
Co
mm
issi
on
er
or
Co
mm
issi
on
er’
s A
dvi
sor
All
par
tie
s to
th
e
pro
cee
din
g
Identify meeting need and submit meeting request
form
Receives ex parte meeting request
form
Is ex parte allowed for the proceeding in
discussion?
Meeting request denied
No
Accepts ex parte meeting request?
Yes
No
Schedules meeting
Yes
Is it a commissioner-level meeting with equal time req’t?
Prepares 3-day advanced notice
to explain meeting purposeYes
Conduct ex parte meeting
No
Logs ex parte meeting in
Oracle database for
web publishing
Docket receives ex parte notice and
verifies document completeness
Logs ex parte meeting in
eFile database system
Prepares ex parte meeting notice to describe meeting
Ex parte notice is published in
proceeding web page for public
access
All parties receive ex parte notice via
proceeding Service List
BEGIN END
END
END
Due to recent legislation, the ex parte meeting process is currently under revision. Therefore
Figure 6.61 is likely in need of update after the publication of this report.
55
7. ENFORCEMENT PROCESSES
Regulatory enforcement processes primarily resides in two major divisions: Safety and
Enforcement Division and Consumer Protection (SED) and Enforcement Division (CPED).
Together, these two large divisions enforce laws, rules and statutes that require regulated
entities to provide safe and reliable services while treating consumers fairly.
7.1 Consumer Protection & Enforcement Division
CPED collects and resolves consumer complaints, establishes and enforces rules and
regulations for transportation carriers, and investigates allegations of utility waste, fraud,
and abuse.
CPED is comprised of three branches: the Consumer Affairs Branch (CAB), Utility
Enforcement Branch (UEB) and the Transportation Enforcement Branch (TEB).
Consumer Affairs Branch
The CAB assists consumers of gas, electric, water, and telecommunications services with
billing and service matters. CAB answers questions, processes complaints, and helps resolve
application denials with programs such LifeLine for telephone service and CARE for electric
utility service. By providing direct services to consumers, CAB supports the enforcement of
CPUC rules and ensures that informal complaints are resolved.
The operational unit of CAB is comprised of 27 consumer affairs representatives who provide
direct consumer services in response to informal complaints received by the CPUC through
the telephone, mail, and internet based on the process as depicted in Figure 5.51. The
consumer affairs representatives also have subject matter expertise to assist utility
customers on a variety of subject matters areas associated with CPUC’s regulatory
responsibilities in Spanish, Chinese, and Taglog. For inquiries or complaints received in
other languages, the consumer representatives can access a contracted service which
provides real-time translation in over 200 languages. All informal complaints are recorded
in the CAB’s Consumer Information Management System. This aggregated information
provides the basis for on-going analysis to identify trends and problems.
If an informal complaint is not resolved in a manner that is sufficient to a customer’s
satisfaction, the customer can file a formal complaint against a regulated entity, which is
handled by the Administrative Law Judge Division through the adjudicatory process.
56
Figure 7.11 Processing Informal Phone Complaints
Informal Complaints Resolution Process for Phone ContactsC
on
sum
er
Aff
airs
Bra
nch
(C
AB
)U
tilit
yC
on
sum
er
BEGIN
Identifies a concern or problem and calls
CAB complaint hotline
CAB representative receives consumer
phone call
Is the inquiry or complaint
resolvable by CAB?
CAB representative identifies and refers consumer to proper
destination
No
Is the issue a complaint or an
inquiry?
CAB representative answers consumer
inquiryInquiry
Transfer consumer call to utility office;
advises consumer to file written
complaint if utility resolution is
unsatisfactory
Yes
Complaint
Utility receives transfer phone call
from CAB
Consumer discusses concern or problem
with utility
Has the issue been resolved to the
consumer’s satisfaction?
CIMS database is updated
Updates Consumer Information
Management System (CIMS)
database
Informal resolution process for written
complaints (Optional)
No
Close case
END
Update
END
Utility closes complaint case
END
57
Figure 7.12 Processing Written Informal Complaints
Informal Complaints Resolution Process for Written ComplaintsC
on
sum
er
Aff
airs
Bra
nch
(C
AB
)U
tilit
yC
on
sum
er
Ad
min
istr
ativ
e L
aw
Jud
ge D
ivis
ion
BEGIN
Identifies a concern and writes to CAB
through CPUC website or letter
CAB representative receives written
contact from consumer
Is the inquiry or complaint
resolvable by CAB?
CAB representative identifies and refers consumer to proper
destination
No
Is theIs the issue an actionable
complaint?
Answers consumer inquiry
No
Requests more information from
consumer for processing, if
needed
Yes
Yes
CIMS database is updated
Updates Consumer Information
Management System (CIMS)
database
Closes informal contact
END
Transmits informal complaint to utility
for response
Utility receives CAB transmittal on
consumer complaint
Is a response from utility received?
Move to appropriate utility enforcement
process
END
No
Is utility response valid under CPUC
rules?
Yes
CAB rep. asks for supplemental info,
and escalate to supervisor if not
received
No
Is the complaint resolved to the
consumer satisfaction?
Yes
END
Formal complaint process
No
Yes
Files formal complaint against utility, if pursued
Records consumer input; closes inquiry
or non-actionable complaint
Does consumer provides additional information within
30 days?
Yes
Case automatically closes in 30 days without response
No
Because of the wealth of information that CAB regularly collects as part of its informal
complaints resolution process, CAB is regularly requested by CPUC stakeholders to provide
data trends on a variety of consumer complaints and inquiries to support better decision
making, as illustrated in Figure 7.13.
58
Figure 7.13 Responding to Stakeholder Data Request
Responding to Stakeholder Data RequestsC
on
sum
er
Aff
airs
Bra
nch
(C
AB
)N
ew
s &
Ou
tre
ach
Off
ice
Identify consumer issue or policy
questions
Determines report scope and
frequency; identifies data points
Conducts query on consumer contact
data relevant to the consumer issue or
policy question
CIMS database
Query
Review query results for completeness and consistency
Designs report format and drafts
report
CAB management reviews draft report
Stakeholder review process
Query results
Incorporates stakeholder
feedback if needed; finalizes report
Archives report on content
server
Publishes report on CPUC website
BEGIN
Is the report intended for CPUC
website?
Yes
Provides report to stakeholder(s)
END
END
No
Lastly, the analytical unit of CAB analyses of consumer complaints data in CIMS to improve
complaints processing and identify trends in consumer complaints. These CAB analysts
generate monthly reports to CPUC executive management and help identify problems with
implementation of utility programs.8
8 CAB consumer statistics portal at http://consumers.cpuc.ca.gov/ccd/
Figure 7.14 Production of Consumer Complaints Data Report
Consumer Complaints Data ReportsC
on
sum
er
Aff
airs
Bra
nch
(C
AB
)In
tern
al o
r Ex
tern
al S
take
ho
lde
r
Identify consumer issue or policy
questions
CIMS database
Content server
Publishes report on CPUC website
BEGIN
Determines report scope and
frequency; identifies data points
Query result
Designs report format and drafts
data report
CAB management reviews draft report
Incorporates stakeholder
feedback if needed; finalizes report
END
Conducts query on relevant consumer
contact data
Reviews query results for
completeness and consistency
Stakeholder review process
Is the report public?
Yes
Publishes report on CPUC website
No
END
Utility Enforcement Branch
The UEB investigates alleged violations of the Public Utilities Code, CPUC regulations, and
other California statutes involving gas, electric, water, and telecommunications companies.
UEB investigations generally involve consumer fraud, marketing abuse, and other utility
misconduct. UEB utilizes an enforcement progression model that takes into consideration
early detection and intervention, investigation, initiation of formal CPUC action, and
compliance monitoring. Examples of UEB’s activities include issuing citations for slamming,
investigating prepaid phone card providers, and enforcing Certificate of Public Convenience
and Necessity (CPCN) license requirement.
60
Scanning ProcessEarly Intervention
ProcessInvestigation
ProcessCPUC Formal Action
ProcessCompliance Process
Activities designed to identity a subject for examination such as data gathering, monitoring, and research
Activities designed to obtain immediate compliance and deter future wrongdoing such as citation, license screening, and warning letters
Activities to establish a body of evidence to support the finding of a violation, and leads to specific recommendations such as penalties and restitution
CPUC initiates a formal proceeding to establish a record, weigh the evidence, and issue a decision to direct specific courses of action
Activities to monitor compliance with decisions, payment of fines and restitution, to determine need for further action
Utility Enforcement Branch’s Enforcement Progression Model
Figure 7.15 Citation Process for Telephone Slamming
Slamming Citation Process
Co
nsu
me
r A
ffai
rs B
ran
chU
tilit
y En
forc
em
en
t B
ran
chC
arri
er
Reviews CAB case file
Does carrier have valid
CPCN?
Enforcement process for
operators without CPCN
Does case meet criteria for citation?
Yes
No
No citation issued. Close case
Does the supervisor approve?
No
Citation issuance process
Anticipated carrier
response
Did carrier provide
response?
Preliminary Investigation
Process
Will carrier pay the citation?
Payment collection process
Citation appeals process
Yes
No
Yes
No
No
Yes Yes
BEGIN
END
END END
END
END
Receives case from CAB
61
Figure 7.16 Investigation Process for Prepaid Phone Card Providers
Prepaid Phone Card Investigation ProcessC
on
sum
er
Aff
airs
Bra
nch
o
r o
the
r e
nti
tyU
tilit
y En
forc
em
en
t B
ran
chA
LJ D
ivis
ion
Initiate investigation
Does carrier have valid
CPCN?
Identifies possible violation
Complaint resolution
process
Is the complaint resolved?
Is further action required?
Yes
Yes Close caseNo
Case analysis including
background check
No
Prepare case assessment report Is further action
required?Pursue formal CPUC action?
Yes
No
Prepare investigation
report
Order Instituting Investigation
Process
Yes
No Yes
No
Figure 7.17 Enforcement Process for Utilities Operating Without CPCN
CPCN Application Review Process
Do
cke
t O
ffic
eU
tilit
y En
forc
em
en
t B
ran
chLe
gal D
ivis
ion
ALJ
Div
isio
n
Receives operator’s application
Background check and application
review
Is company operating without
CPCN?
“No CPCN” process flow
Prepares application
review report
Yes
NoProject manager and supervisor reviews report
Submit protest and become a party?
End process
Assigns attorney to represent UEB
in application proceeding
Pre-hearing conference
Evidentiary process
Application resolution process
Data discovery process
Complete investigation
report
No
Yes
62
Transportation Enforcement Branch
The Transportation Enforcement Branch (TEB) is responsible for permitting and
enforcement of companies involved in the transportation of people or used goods. TEB
oversees the regulation of Transportation Network Companies like Uber and Lyft, limousine
services, bus services, vessel common carriers, and moving companies. The core processes
involves reviewing and approving licensing requests for compliant providers, as showed
below.
Receives licensing application package
and fees
Is the application type appropriate and contain all required
information?
Contact applicant to modify or
submit additional information
Verify application completeness and sufficiency
DMV documentation
Airport license, if needed
Vehicle inspection
documentation
Application and supporting
documentation review
Is the application package satisfactory?
License application rejected
License application approved
YesNo
No
Yes
General Transportation Charter Party Carrier Licensing Process
On-going compliance and
license renewable process
Transportation Network Company Licensing Process
Receives licensing application and fee
Is the application type appropriate and contain all required
information?
Contact applicant to modify or
submit additional information
Verify application completeness
and data sufficiency
DMV documentation
Airport licenseVehicle
inspection documentation
Review application and documentation from external
regulatory bodies
Is the application package satisfactory?
License application rejected
License application approved
Yes No
No
Yes
Is there proof of personal and commercial insurance?
On-going TNC compliance and license renewal
process
Yes
No
Yes
Is the carrier appropriately
licensed?
Assign case to investigator
DMV document-
ation
Yes
Transportation Carrier Investigation and Citation Process
TEB Case Tracker System
Issue cease and desist letter
Enforcement process
Investigator’s assessment report Further action?
Background check and case
analysis
Evidence collection process
Airport licenseVehicle
inspection proof
Move to formal Order Instituting Investigation
Process
Investigation for auditing purpose or in
response to an actionable incident
Close case
63
Receives licensing application package
and fees
Is the application type appropriate and contain all required
information?
Contact applicant to modify or
submit additional information
Verify application completeness and sufficiency
DMV documentation
Insurance Coverage
Documentation
Vehicle inspection
documentation
Application and supporting
documentation review
Is the application package satisfactory?
License application rejected
License application approved
YesNo
No
Yes
Goods Carrier Licensing Process
On-going compliance and
license renewable process
7.2 Safety and Enforcement Division
Safety and Enforcement Division oversees safety compliance in the area of electricity,
natural gas, and rail. Additionally, it provides staff analytical and advisory service to ALJ
divisions and CPUC Commissioners in formal regulatory proceedings on safety, as well as
conducting legislative analysis for OGA from a safety perspective. The major work areas
within SED pertain to electric infrastructure safety, natural gas infrastructure safety, and
rail transit safety. SED relies on a several of its internal processes to carry out these
responsibilities.
Mobile Home Park and Propane Inspection
An area of special focus for SED has been to ensure safety of gas operation at mobile home
parks throughout California. These mobile home parks often rely on delivered propane
service, which imposes a different safe of implication from natural gas services provided over
the pipeline. SED managers regularly update and identify mobile home park sites in need of
inspecting to ensure safe propane operation, as illustrated in Figure 7.21.
64
Figure 7.21 Propane Inspection at Mobile Home Parks
Mobile Home Park and Propane InspectionSE
D U
tilit
y En
gin
ee
rSE
D d
atab
ase
SED
man
age
me
nt
Mo
bile
Ho
me
Par
k O
pe
rato
r /
Pro
pan
e
Op
era
tor
Identify necessary inspect based on
mobile home park (MHP) list
START
Plan MHP propane inspection
Draft notice of inspection 1 month before inspection
visit
Receives 1-month inspection notice
Review prior year inspection results and plan weekly
inspection schedule
Updates North or South MHP/
Propane Database
Review records in main office
(propane only)
Perform field inspection
Prepare inspection report
Updates SED database with
weekly schedule
Operator signs inspection report
Enters inspection report into SED
database
Is there a safety violation?
Issues violation notice to operator
Submits plan to address violation to
SED
Close out inspection in SED database
END
Issue citation
Citation appeals process
END
Regular Audit and Utility Inspection
In order to ensure utility compliance of all CPUC safety regulation, SED regularly schedules
and conducts audit and inspection of utility facilities for electricity, natural gas pipelines,
and rail, through the process outlined in Figure 7.22.
65
Figure 7.22 Audit and Utility Inspection
Audit and Utility Inspection ProcessSE
D U
tilit
y En
gin
ee
r (U
E)SE
D d
atab
ase
SED
man
age
me
nt
Uti
lity
Co
mm
issi
on
ers
Finalize audit schedule and assignments
BEGIN
Assigned UE team lead confirms audit schedule and issues
data request to utility
Receives data request and audit
schedule and provides requested
data
UE team reviews past audit reports and coordinates
logistics
UE team lead assigns team roles
Conducts kick-off team meeting
Meet with audited utility; prepare
notes and PHMSA audit forms
UE team conducts audit; If needed, conducts records
review, field inspection
Regular check in with auditors, provided data
Conducts audit close out meeting with
utility
Team prepares audit report with findings, any safety concerns, recommendations
SED management reviews audit report
North or South database
Archives audit data for future record
Archive audit data
Does audit findings require escalation to
commissioners?
Notified of potential safety violation
Yes
Receives audit report from SED
management
No
Prepare response to audit report
Is utility’s response adequate?
Recommend enforcement action
No
Follow-up on any outstanding issues
YesConfirm disposition
of outstanding issues
Close audit
END
Confirm need for enforcement action?
Safety citation process
Formal investigation or citation?
Yes
END
Confirm need for an order instituting
investigation (OII)
Voting meeting process to initiate
OII
Update database
END
Safety Complaints Investigation
SED frequently relies on safety complaints filed by customers to identify potential safety
violations that may not be captured in its regularly scheduled audits and inspections. When
a complaint is received, SED management assigns a utility engineer to investigate whether
the incident reported by the customer warrants enforcement action, based on the processed
laid out in Data on safety complaints are also closely tracked to allow SED to identify any
trends in consumer safety concerns.
66
Figure 7.23 Safety Complaints Investigation
Safety Complaints InvestigationSa
fety
& E
nfo
rce
me
nt
Div
isio
nU
tilit
yU
tilit
y C
ust
om
er
Co
mp
lain
ts
Dat
abas
e S
yste
mC
om
mis
sio
ne
rs
Files complaint through website,
phone call, or other method
START
Receives safety complaint
SED management assigns complaint to Utility Engineer (UE)
Assigned UE enters complaint into SED
Complaints Database
Updates North or South Incidents Database
Gather additional information from
customer if needed
Perform field visit and/or issue data request to utility
Provides additional information, as requested by Assigned UE
Provides response as requested by
Assigned UE
Work with utility to address complaint
Work with Assigned UE to address
complaint
Assigned UE Prepares complaint
close out memo
Receives memo
Receives memo
Updates North or South Incidents Database
Enters investigation results into safety incidents database
Close out complaint
END
Receives memo
Certain safety complaints received by SED originate from an employee of regulated entities.
In the case of such whistleblower complaints, SED incorporates its investigation into its
regularly scheduled audit, if possible, to prevent jeopardizing the whistleblower identity, as
illustrated in Figure
67
Figure 7.24 Whistleblower Investigation
Whistleblower Investigation ProcessSa
fety
& E
nfo
rce
me
nt
Div
isio
nW
his
tle
blo
we
rU
tilit
y
Identifies safety case and reports to SED
BEGIN
Receives whistleblower
report
SED management assigns utility
engineer (UE) based on availability and
experience
Assigned UE contacts
whistleblower and obtain additional
information
Provides additional information to assigned UE as
requested
Can the whistleblower case be investigated
as part of a near term audit?
Close whistleblower case
Move case investigation discovery into
outstanding audit process
Yes
Assigned UE drafts data request to
transmit to utility
No
Prepares data response to
Assigned UE’s data request
Reviews data response or results
from audit
Drafts memo to respond to
whistleblower complaint
SED management review process
Issue warning letter or citation if
whistleblower investigation shows
violation
Receives warning letter or citation if
whistleblower investigation shows
violation
Receives notice of case resolution
SED supervisr communicates
result of investigation to whistleblower
END
Safety Enforcement Action
When an audit, inspection, or investigation has resulted in the discovery of a safety violation,
SED is responsible for either issuing a safety citation, or recommending to the
Commissioners on whether to initiate a formal investigation, depending on the nature of the
identified violation. This process is illustrated in Figure 7.25.
68
Figure 7.25 Enforcement Action Against Safety Violation
Safety Enforcement ActionSa
fety
& E
nfo
rce
me
nt
Div
isio
nA
LJ D
ivis
ion
Uti
lity
Co
mm
issi
on
ers
Utility Engineer (UE) Identifies violation
START
UE reviews case information
SED management reviews and
confirms need to take enforcement
action
Reviews and confirms need to take enforcement
action
Is formal CPUC action needed?
Yes
Voting meeting process to initiate
formal investigation
Formal proceeding process for
investigation
Prepares informal action letter to
utility
Receives citation from SED
Issue citation?
Prepare citation form
Yes
Receives informal action letter
END
Agrees to pay fine?
Citation appeals process
END
Close out enforcement case
END
Hands off to fiscal for payment
remittance process
Role in Formal Regulatory Proceedings
In addition to providing advisory work in safety investigations carried out in the context of
formal investigations, SED is also regularly involved in formal rulemakings and rate case
proceedings to assist ALJs in reviewing utility proposals from the consumer safety
perspective. SED managers and staff regularly support ALJs in these proceedings, review
and prepare work papers, as well as provide staff recommendations based on staff analysis of
available data through utility data requests and audit findings. These processes are laid out
in Figure 7.26 and Figure 7.27.
69
Figure 7.26 Role in Rulemaking Proceedings
SED Role in Rulemaking ProceedingSa
fety
an
d E
nfo
rce
me
nt
Div
isio
nA
LJ D
ivis
ion
Co
mm
issi
on
ers
Initiates new rulemaking
proceeding related to safety
BEGIN
ALJ Division management
assigns ALJ to lead the proceeding
SED management determines staff
time requirement for proceeding
Assigns rulemaking to SED staff based on expertise and
availability
Assigned SED staff works with assigned
ALJ
Formal rulemaking proceeding process
If there a need to conduct a workshop
CPUC President assigns lead
commissioner on rulemaking to work with assigned ALJ
SED plans and conducts workshop under direction of
assigned ALJ
Yes
SED drafts recommended rules
revisions and SED mgmt reviews
Issues recommended rules
revision for party comments
No
Reviews parties comments and
assists assigned ALJ to revise proposal
Prepares proposed decision to resolve
issues in the rulemaking
Voting meeting process to deliberate
on PD and adopt new rules
END
Figure 7.27 Role in Rate Case Proceedings
Safety and Enforcement Division’s Role in Rate Case Proceedings
Uti
litie
s En
gin
ee
rSE
D M
anag
em
en
tC
om
mis
sio
ne
rs /
ALJ
D
ivis
ion
Ris
k A
sse
ssm
en
t U
nit
Par
tie
s to
th
e
pro
cee
din
g
Initiates new proceeding for utility
GRC application
BEGIN
SED management determines staff
time requirement and assigns staff
PD processing and voting meeting
process
END
Reviews rate case
Reviews rate case
Develop work papers and send to
parties
Receives work papers and provides
feedback
Develop testimony
Develops work papers and staff
analysis
Management review and approval of
advisory staff workpaper
Assigned Commissioner sets
scope; ALJ implements
proceeding schedule
Evidentiary process
Develop testimony
Assigned ALJ drafts proposed decision
70
Providing Legislative Analysis
As safety becomes a higher profile area of legislative focus, SED allocates its staff resource to
provide expert analysis on proposed safety legislation affecting CPUC regulated entities.
Working in coordination with legislative liaisons in OGA and Legal Division, SED provides
technical and safety policy analysis to the Legislature on bills, as illustrated in Figure 7.28.
Figure 7.28 SED Process for Legislative Analysis
Legislative Analysis Process
Lega
l Div
isio
nSa
fety
& E
nfo
rce
me
nt
Div
isio
nO
ffic
e o
f G
ove
rnm
en
tal
Aff
airs
Co
mm
issi
on
ers
Identifies needs for legislative analysis
and submits request to SED to review
BEGIN
SED management assigns staff to
analyze bill based on expertise and
availability
Staff conducts analysis on issues
raised in the proposed legislation
Legal Division management
assigns staff counsel to review legislation
Assigned counsel performs legal
review
Assigned staff drafts division analysis of bill in consultation
w/ assigned counsel
SED management review process
Finalize bill analysis for Commissioner’s
review
Should the CPUC adopt a bill position?
Voting meeting process to adopt a
bill position
Bill analysis and/or position received by
Legislature
END
Prepare document (bill analysis, any adopted position)
for Legislature
Yes
No
8. PROCESS GOVERNANCE AND CHANGE MANAGEMENT
RECOMMENDATIONS
For this process inventory to provide value to improving CPUC functions, future steps needs
to be taken to develop process measurement and control where necessary. Given the large
number of distinct processes identified through this process inventory effort, it was neither
feasible nor constructive to perform in-depth process analysis or process change management
on all processes all at once. It may be the case that many processes need to be updated. But
in order to support stability in workflow, it is far more practical to prioritize resource and
attention to select processes that are more in greater need of re-alignment in a moderated
and even-paced manner.
The CPUC can better deliver effective performance from its collective workforce talent by
creating a process management structure where a dedicated process improvement unit can
71
perform deep process assessment, analyze process performance metrics such as timeliness
and staff resources constraints, and weigh process alternatives to recommend viable process
changes. This process management unit can reside within Executive Division, receives
guidance from Commissioners on process management projects within a given time frame
such as 6 months to a year, and work in collaboration with individual CPUC work units to
troubleshoot process bottlenecks. A process management structure can ensure that all
processes can be periodically re-assessed and realigned to fulfill strategic goals. By creating
internal capability for incremental process change management, the CPUC will better
ensure that the work steps taken by all CPUC personnel are coordinated and aligned with
overall agency goals. Areas of improvements may include the following:
Create a process repository system where process documentation and performance
data can be stored and analyzed;
Create business process management responsibilities and assign them to an
executive-level management;
Develop a business process management plan that systematically lay out short-, mid-
and long-term goals to more effectively use current resources;
Provide updates on process improvement efforts undertaken across all CPUC work
units as part of the annual report;
Work with all CPUC staff to develop qualitative and quantitative data collection and
feedback mechanisms to identify process “pain points” where either added structure
or added flexibility is needed to minimize process bottlenecks;
Identify process steps that can be automated through information technology to free
up human resources;
Develop process change plans to align processes with new statutory mandates and