By: Andrew Kent
The California Public Utilities Commission (CPUC) was created in 1911 to regulate privately-owned utilities and ensure reasonable rates and service for the public. Today, under the Public Utilities Act of 1951, Public Utilities Code section 201 et seq., the CPUC regulates energy, some aspects of transportation (rail, moving companies, limos, shared-ride carriers), water/sewage, and limited aspects of communications. The CPUC licenses more than 1,200 privately owned and operated gas, electric, telephone, water, sewer, steam, and pipeline utilities, in addition to 3,300 trucks, buses, “shared ride,” railroad, light rail, ferriesprivately owned and operated gas, electric, telephone, water, sewer, steam, and pipeline utilities, in addition to 3,300 trucks, buses, “shared ride,” railroad, light rail, ferries, and other transportation companies in California. The CPUC grants operating authority, regulates service standards, and monitors utility operations for safety.
A Commission consisting of five full-time members appointed by the Governor and subject to Senate confirmation directs the agency. The California Constitution directly authorizes the Commission and provides it with a mandate to balance the public interest—the need for reliable, safe utility services at reasonable rates—with the constitutional right of a utility to compensation for its “prudent costs” and a fair rate of return on “used and useful” investments.
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