From: Bone, Traci Sent: Wednesday, October 15, 2014 12:07 PM To: Peevey, Michael R.; Peterman, Carla J.; Sandoval, Catherine J.K.; Picker, Michael; Florio, Michel Peter Cc: Khosrowjah, Sepideh; Poirier, Marcelo; Dulin, Ryan; Bawa, Niki; Clanon, Paul; Cooke, Michelle; Turner, Brian; Chaset, Nicolas L.; O'Neill, Edward; TerKeurst, Charlotte; Hammond, Christine J.; Morey, Candace; Fitch, Julie A.; Brown, Allison; Katague, Ditas; Kalafut, Jennifer; Berdge, Patrick S.; Foss, Travis; Lippi, Kimberly; Holzschuh, Dale A.; Lee, Diana; McCrary, Monica L.; McQuillan, Elizabeth M.; Paull, Karen P.; Pratt, Carrie G.; Sher, Nicholas; Tudisco, Laura J.; Youngsmith, Emy; Katherine Regan (kregan@calattorneys.org); Clopton, Karen; Gasser, Laura E.; Morris, Harvey Y.; Yee, Helen W.; Clay, Christopher; Reiger, J. Jason; Hecht, Jessica T.; Peterson, Rachel A.; Johnston, William; Wong, Lester; Podolinsky, Elizabeth; Baker, Amy C.; Murtishaw, Scott; Zafar, Marzia; Tyrrell, Denise; Stevens, Brian; Charles, Melicia; Tisdale, Matthew; Sullivan, Timothy J.; Como, Joe; Kahlon, Raminder; Mickiewicz, Helen M.; Gasser, Laura E. Subject: Investigations by the State and United States Departments of Justice - Request For Commission Action State of California Public Utilities Commission San Francisco MEMORANDUM Date: October 15, 2014 To: Michael R. Peevey, President Michel P. Florio, Commissioner Catherine J.K. Sandoval, Commissioner Carla J. Peterman, Commissioner Michael Picker, Commissioner From: Undersigned Attorneys Within The Commission's Legal Division Subject: Investigations by the State and United States Departments of Justice Page  1  of  3 Subject: Investigations by the State and United States Departments of Justice President Peevey and Commissioners: As attorneys within the California Public Utilities Commission's Legal Division, we are concerned about the Commission's response to investigations by the California and United States Departments of Justice relating to, among other things, the San Bruno explosion on September 9, 2010 and Pacific Gas and Electric Company's (PG&E) current gas transmission and storage rate case. On October 9, 2014, we learned by chance from an on-line article in the Sacramento Bee that on September 19, 2014, Kathleen Kenealy, Chief Assistant Attorney General for the California Department of Justice issued a "hold notice" to Paul Clanon for records, including records related to the Commission's San Bruno investigations and for communications between the Commission and PG&E regarding selection of an administrative law judge for a PG&E rate case. We are concerned that, if the newspaper report is accurate, to our knowledge, the Commission has not taken appropriate steps in the past months to preserve evidence, such as notifying all relevant Commission officers and staff of their obligations to preserve evidence. Among other things, we are aware that some Divisions within the Commission have planned "clean out" days in preparation for a move back to the 505 Van Ness Avenue building, and that records may be destroyed in that process. Also, it is likely that investigators from either the California or the United States Departments of Justice will contact Commission officers or staff regarding the investigations, and, to our knowledge, they have not been provided any instruction on how to respond to such contacts. We believe that is important for the Commission, its officers, and its staff to cooperate fully with these investigations so that wrong-doing, if any, can be identified and fully prosecuted. To this end, we request that the Commissioners provide written guidance to all Commission officers and staff regarding the investigations as soon as possible to address, at a minimum, the following two issues: 1. Direction to Commission officers and staff to preserve all evidence as requested by the California and United States Departments of Justice; and 2. Direction to Commission officers and staff to cooperate fully with the investigations by the California and Federal Departments of Justice, with assurance that such cooperation will not result in retaliation by this Commission, including, without limitation, claims that Commission officers or staff have violated ethical or statutory duties of confidentiality owed to this Commission. To the extent that cooperation with an investigation requires the possible revelation of attorney/client communications, the direction should reflect that the Commission agrees to waive the privilege. Please support Commission officers and staff during this difficult time by issuing directives consistent with the foregoing as soon as possible to eliminate any immediate concerns that the investigations may raise for them, and to ensure the preservation of all evidence. Respectfully submitted, Patrick Berdge Traci Bone Travis Foss Dale Holzschuh Page  2  of  3 Diana Lee Kimberly Lippi Monica McCrary Elizabeth McQuillan Karen Paull[1] Carrie Pratt Nicholas Sher Laura Tudisco Emy Youngsmith [1] Karen Paull has been ORA's Acting Chief Counsel since September 2010. She is technically on loan from Legal Division. cc: Karen Clopton, Interim General Counsel Paul Clanon, Executive Director Commissioner Advisors Assistant General Counsels Assistant Executive Directors Division Directors Katherine Regan, CASE Labor Relations A copy of this memorandum is attached hereto. ________________________________ [1] Karen Paull has been ORA's Acting Chief Counsel since September 2010. She is technically on loan from Legal Division. Page  3  of  3