@alifnrnia ?tate ?enate CAPITOL OFFICE COMMITTEES STATE CAPITOL BUSINESS. PROFESSIONS SACRAMENTO, CA 95814 ECONOMIC DEVELOPMENT TEL (916) 651-4013 SENATOR CHAIR FAX (916) 6514913 JERRY HILL APPROPRIATIONS ENERGY. UTILITIES DISTRICT OFFICE THIRTEENTH SENATE DISTRICT COMMUNICATIONS 1528 5. EL CAMINO REAL SUITE 303 SAN MATEO, CA 94402 TEL (650) 212-8313 FAX (650) 212-3320 ENVIRONMENTAL QUALITY GOVERN ENTAL ORGANIZATION SENATECA SENATOR. .CA.GOV December 1, 2017 The Honorable Xavier Becerra Attorney General, State of California 1300 I Street Sacramento, CA 95814 Dear Attorney General Becerra: We write you again to offer our support and urge you to bring charges in the criminal investigation of the California Public Utilities Commission. It has been over three years since the Attorney General?s office opened an investigation into alleged corruption at the CPUC. We urged your of?ce last December to bring charges in the investigation expeditiously, hoping your appointment would bring new energy to the probe. As a result of sealed court records released last week, we now know that the CPUC has been blocking your efforts at every turn. Since the first warrant was issued, the lawyers have impeded your progress, refused to turn over documents, and filed motions to quash your search warrants. Appallingly, the CPUC also misrepresented its need for outside legal services. In 2016, the CPUC told the Legislature that millions of ratepayer dollars were needed to hire outside law ?rms in order to ?comply with all applicable legal obligations.?1 Yet, the records released say otherwise. The CPUC has clearly made little effort to comply with your subpoenas and search warrants; instead using the monies we approved to obstruct your efforts. When the Legislature approved the budget, the court filings were sealed so the legal maneuvering was not known. This allowed the CPUC to make the case that it has entered a new era of transparency and accountability with new Commissioners, staff and priorities. Now in light of the newly released records, the CPUC is again facing a loss of trust and a question of credibility. The fact that the CPUC refuses to comply with active?investigations into illegal behavior makes one wonder what else it has to hide. 1 Budget Change Proposal, Public Utilities Commission, April 1 2016, http://web Recently, the California-Fair Political Practices Commission announced an investigation into former Commissioners and the CPUC, gathering communications related to, among other things, ?Paci?c Gas and Electric or the San Bruno explosion of 2010? or any related legal, legislative or regulatory actions that resulted from said explosion.?2 While the CPUC levied a $1.6 billion fine on as a result of the pipeline explosion that killed eight people, injured. 66 and destroyed 38 homes, it?s important that the FPPC and your office continue to follow through with their investigations to hold individuals accountable for their actions. With the recent disclosure of the interference into your investigation, we?re becoming increasingly frustrated with the absence of charges being brought in the corruption investigation. On September 19, 2014, we wrote to then-Attorney General Kamala Harris asking her to investigate apparent violations of the law by CPUC commissioners and staff as illustrated through emails released by In a letter we sent you on December 2, 2016, we asked that charges be brought since the search warrant for the January 27, 2015, raid on the former CPUC president?s home said that investigators were looking for evidence of improper ?ex parte communications, judge?shopping, bribery, obstruction of justice or due administration of laws, favors or preferential treatmen related to matters coming before the utilities commission. In last week?s unsealing of court records, we learned that one of the affidavits for a search warrant stated, ?The facts indicate that Peevey censpired to obstruct justice by illegally engaging in ex parte communications, concealed ex parte communications and inappropriately interfered with the settlement process on behalf of California Center for Sustainable Communities at We also learned that in an August 12, 2016, filing by Superior Court Judge William Ryan, he believed that, ?There were sufficient facts alleged in the affidavit that would lead to a strong suspicion of guilt? that Peevey and Edison ?conspired to obstruct justice, or the due administration of the laws.? We?re also concerned that further inaction or delaycould Cause the investigation to go beyond the statute of limitations. The CPUC oversees industries with revenues in excess of $50 billion annually, money that comes directly from Californians. Often, the CPUC is the only check Californians have against these industries. But laws are only as good as the regulators tasked with enforcing them. The fallout from San Bruno is not over. Each violation is a separate incident, deserving of scrutiny, prosecution, and penalties. We urge you, alongside the FPPC, to not tire in this effort. We stand ready to help you in this endeavor. As we stated in our previous letter, ?Please honor the memory of victims by bringing swift justice in this long overdue case.? ?2 Public Record Request #17?347; 17?347 Sincerely, nator, 13th istrict Kevin Mullin . 22nd District - Agaigror, Cit of San Bruno g; 1; Cc: Jerry Brown, Governor of California I Brian Stretch, United States Attorney, Northern District of California Jodi Remke, PPC Chair CDFFICZE SACRAMENTO. CA 95834 TEL {916'} FAX 55in4913 i528 Ella. REELALM FEUZTE 303 SEAN MATES. (IA 94402 TEL. {62591 212*3313 FAX (16:35:30) (liaiifnrnia ?rm ?anaie ammon- sensv Hint. THIRTEENTH C-QM METTEES SUSINESS. 84 CHAIR ENERGY, GOMMUNECATIQNQ December 2, 2016 .I The Honorable Xavier Becerra -350 South Bixel Street Suite 120 Los Angeles, CA 90017 Dear Cengressman Becerra, Congratulations On your pending appointment-as our next Attorney General. With the many challenges posed in these tumultuous days, now more than ever?we need the Office to defend Californians? principles and values. We urge you to bring charges as soon as possible in Attorney General Harris?s criminal investigation into corruption at one of our state?s most powerful agencies, the Public Utilities CommisSion (PUC). The Attorney General began to investigate the agency in'late 2014 following the release of emails that revealed its president appeared to have made quid pro quo deals with Pacific Gas Electric Company executives over ?two bottles of good Pinot,? resulting in approvals of utility rate increases in exchange for contributions to pet nonprofits and ballot measures. Attorney General investigators subsequently raided PUC offices and the former president?s home, where they found evidence in the form of notes on Hotel Bristol stationery of a deal made with Southern California Edison Company executives during a junket in Poland to saddle utility customers with 70 percent of the shutdown costs of San Onofre Nuclear Generating Station. The Attorney General?s office has subpoenaed millions of documents from the PUC associated with these and other apparent offenses. It?s been over two years since the Attorney General opened an investigation into public corruption at the PUC and nearly two years since the former PUC president?s home was raided for potential felony offenses. We?ve attached a copy of the September 19, 2014, letter we submitted to the Attorney General that prompted the investigation. While California taxpayers are spending millions of dollars for the criminal defense fees, we expect that the Office of the Attorney General is putting sufficient resources into pursuingjustice. Given the large number of documents to review, it may be appropriate to request that the court appoint a special master. Regardless, actions must, be taken now, as the complexities ofpublic utility regulation means that this is not a case that can be pulled together at the last minute due to statute of limitations concerns. We are deeply concerned that, if the Office skips a beat during the transition period, the people of California may lose?not just the money from their pockets, but the chance to prevent these abuses from occurring again. If we are true to our principles, we shOuld concede that as a government we have not done enough to safeguard the people of this state against the reckless self?interest that plagued the PUC during the former President?s tenure. We call on the Interim AttOrney General and you to bring charges as soon as possible in the PUC corruption investigation so we can start to rebuild the public?s trust in an institutim whose mission is to serve the public interest by protecting consumers. We stand ready to help you in this endeavor. We?ve been working toward PUC reform on behalf of our constituents and Californians since the horri?c September 9, 2010, gas explosion that killed eight residents, injured 66 and destroyed 38 homes in SanBruno?s Crestmoor neighborhood. Please honor the memory of victims by bringing swift justice in this long overdue case. Sincerely, nator, 13th 5 istrict Ievn 1111" 22nd District 1m ?Ruane . Mfg/or, Cit of San sumo C19: ry Brown, Governor of California Kamala Harris, California Attorney General Interim California Attorney General Jackie Speier, United States Representative . Brian Stretch, United States Attorney, Northern District of California @lellm?nm ?l?lza ?hm?h imam; GFFECE cwwr?rms ESTATE CAPITOL. Roam ?50m QUALITY (3A Emma - . mm H5116) ?401:3 ?g N7 ATQ Fl? wax (916) 32443283 - 53% RY 1 BANVUNG FINANCIAL. eussmezm. 6: cwmcaz THIRTEE NTM SENATE ?5218 EL. CAMJNC) REALM, - ENERGY. SHAEW 7 23AM MATEO. CA swarm . . I ON Irma-3 mm?, - - - . . ELECTRIC INFRASTRUCTURE I - . . . SAFETY max ?52:30:: :2 mm ATE: A .43 av: SENATOR am September l9a 201,4 law.? The Elmer-able Kamala Ir-lmnfiS (Tl-mma,l, Stale 455 Golcleh Gate, Suite 11000 San. Fl'?ll?lSCO, CA 9471 02~7004 IlDeau? Attorney General. lg-larris: We: ask you to lmmacliatcly investigate the apparent rammed violatiom O't?la'w by the: Callil?hmla PUblic: Utilities in the Charge of the $3113, l?lz?mm penalty case and Q'thm? cases that affect mieS, as wall as; cmnmunicatlms; involvhig the: President and top Iimmagemlml. Emails mlaasecl by on LMLanlaly that the chief of s?aff to the CPUC his lmcw?leclgew-?I?egul 2-1151}? aided. l?Ci&l?L?s 63f Califmzhia Public Utilities; Code Section 1701.35, mneeming ex parle munnmnicaticms in. mtwsetti?g cams. PGME ?led these: emails will} the CPUC in, Irecognltim that they victslatecl ex; parl'e laws and. ?md. three tap axeaut?veg as; a result. - Lat not the signi?cance of this move: he: ?red (executives for Viola?ioms that tap CPUC staff and. its President tolerated, ifrnot enchIragI-acl. Another set of emails, obtained at the and of July by the City of San 13me through legal action agaimt tha what the City allegczs to he? violatiMI-i; 01? Public Militias Code See-rim} 170 concerning ex part0 communications; in adjudicamry cases. "fl?hege- emails Show that IPGME employees directly conl?acmd Clom?miimlemma; and. top mamagemem regardi 11g the ?llhazflciall feelings about pole-131i all ?ms in the San Emma penalty case. The ?nals alga :I?egveal that the CPUC PI?esiclcn?fs Chief ol?staff gave,- employee: advice: 01:11:10th Outagameuver the City 01" Sam Bruno in pleadings in the ease. are not the only where: CPUC 'ITlaIilagexnenl appears to haw aided PG??d?l in violating state law. Evidence in the San Bruno penalty case goes back; to at least the and of 2012, Wham ?thq General 34:3 lead gas; attamey haircare 200-8, had participated in. some of decisiong that were under .lhvas-tiga?on in {he caslsm-woydemd attormys :repmSmuing tht?: prosecuting Salfatty and Blaiforceizlelut Divisionto move: "to suspeml hearings in 'li?a'voxr of conducting Settlemem negotimi 0115;, preemptihg employees taking the witness smml. l?ago Two Lettat to Attorney Genairal Kamala Harris; Septombor 9, 20 L14 Shoal}! thoraa?or, tho CPUC hired IDLA Pipe}; a law flan that included former ll.8.?Senator George: Mitoholl, to mediate the aattlemont aagotiations that wore- :l?o:rcecl or: the Safety and Enforcement Division. and?partlos to the case by the CPUC Goaoral Counsel. ?l?ha City of Saa Emma} tho Division olr?Ratapayor Advocatos, Tho Utility Roform-Notwotk, and the City and County of San Francisco wart-.3 'blinclaldad by this and equally blinds-load by the in'lloanatlon that mediators .laacl abOLa; tho oaao. This, loo-11love, was altlaatr a Violation by tha Sat?aty and llaforoamont .Dlvlaioa or PClcalES ofi'ta aoaw-diaoloaum agraamant to keep settlement negotiations; ooa?dontiall or it, was a violation. ol?l?ublio Utilities Coda Section 1701.25 Whore tat: Safety and Enforcement Division or made illogal ax parto ?ooammni?ation-s with. CPUC officials, Who than cliso'ua sad Smile-mom (latalla with DLA Piper attomoya Ad?i?oaallyl tho CPUC ro?sponclacfl to a Public Records Act request. made by Senator of?ce that no contract with DLA Piper existed, but that it might exist at of apparently oxalawl?ul between and CPUC lananagomom. Subsequently, la June; of 2013,tl1o Cll'UC'a Executive: Director was all-ages:th to have the adminiatmtivo law judges pro-aiding over the San Bruno case to rule in favor regartllag aha lool'os?oo of previous axponaas in. its ptoposacl fine. This avant was part of a plan Wham had. quietly ask-ad- that the: Director of the Sa'l?oty and. Enforcement Btwiaion l?aquoat a list. of alhraacly?iaoazzu?oal and proposocl oxponaoa so that it oould be put into the moorlch a plan that mood in tho roasaiggamont by the General Co'aasol of all. of the six; attorneys agaignad to the. San. Bruno {sass-a, baoa?uso they would not go along with ?liag a that FGMEL incur no incremental poaalty for tho 'oaplosion in Saar: B?ilelJOWa propoSal that one attorney called ?illegal and. mothioal.? A'ad finally, this; past Juno, ol?thoao attornoys was ?red altar ha mot-io?aacl ?to roquim PCl?tzlii to produce rocorcls demonstrating that it kaowa the appropriate pregame under whio?h to ma its pipaa a request oloarly authorized in Public Utilities; Code Section 314. The: industries with revenues to amass 0176950 annually, motley that comes directly from California rasidoms. Much of those funds are paid ?to CPUC'Jwaagulata-d monopolies for?ossential aorvioos such as heat and electricity, and tha only chock that California collaumora have against exploitation. by tho-so moaopoly Utilities la tho CPUC, Aa tho {lilo agency i1": ohargo ofanl?oroing tho Public; Utilities Code, yaw: .ilrwolvamont la tho only 'racou?rao available to when their aappoaod utilities watchdog appears to violate State law. Tho above catalog of apparent violations on tho part of CPUC atnployooa and spans two yaara, and continued despito ongoing public outraga It Stands to mason that and Commisai?onata could be aagaging in similar potentially illegal bollavior with other utilities and industrioa it tog?ulataa. For those reasons lt?a of critical importance: that you thoroughly investigate this matter as goon. as possi'bla. ?if?age Three I..x::tter Attm?ney Genera}, Kamam Harris; September 9; 2014 Wis: mm: at your dispasal 1:9 dimugg the inatmweg 2:21:3ch that 'lih?: mead far your act-i911. Siixncemlv, Kevin Mullin 22?d {Digtrict Melinda Haag, Gill?zad states Attormm Northern of (dalzforma.