CCC PPPPP U U CCC N N EEEEE W W W SSS C C P p U U C C NN N E W W W S S C P P U U C N N N E W W W S C PPPPP U U C N N N EEE W W W W SSS C P U U C N N N E WW WW S C C P U U C C N NN E W W S S CCC P UUUU CCC N N EEEEE W W SSS California Public Utilities Commission 505 Van Ness Avenue, Room 5301 San Francisco, CA 94102 CONTACT: Dianne Dienstein July 12, 1995 CPUC - 65 415-703-2423 CPUC UNDERGOING CHANGE TO BETTER MEET REGULATORY AND PUBLIC NEEDS The California Public Utilities Commission (CPUC), through a process termed Vision 2000, is taking an unprecedented look at its structure and processes to assess how it must change to better serve the public. The CPUC regulates the rates, standards of service, and safety of investor-owned telecommunications, electric, natural gas, water, sewer, and transportation companies operating in California. Its decisions affect $50 billion in rates paid annually to these utilities. Recent Commission policy initiatives for the electric and telecommunications industries respond to dramatic changes in those industries and federal legislation. At the same time, the Commission has begun to rethink how it should change organizationally to most effectively serve the public. According to the Commission Draft Report On Our Process For Change: Vision 2000 shared with members of the Legislature on July 12, "This is not an effort by a government agency trying to find a reason to exist. It is the reinventing of an agency with a vital role to play in governing the fundamental industries upon which the economic and social structure of the State rests." As part of its self-examination and creation of a vision for how it should be organized and operate by the year 2000, the Commission sought candid feedback through "visioning" workshops in both northern and southern California to hear from CPUC staff, legislators and state and local officials, representatives from consumer and industry organizations, utilities, labor unions, and residential and commercial utility customers. More than three hundred participated in the discussions. - more - Given the task by President Daniel Fessler and supported by Commissioner Henry Duque, Commissioners Gregory Conlon and Jessie Knight have spearheaded the effort. According to Conlon and Knight: "This is a tremendous opportunity to transform and streamline this vital agency for the benefit of all Californians. We fully expect the result to be an innovative and exemplary regulatory body." In the draft Vision 2000 report, the Commission summarized the comments received on its strengths as being in its staff, a diverse culture that reflects California, its regulatory framework and wide statutory authority, and its public interest mission. Comments pinpointed weaknesses in leadership structure and actions, internal communications, external relations, internal structure and use of staff and other resources. As the Commission proceeds to change, it will annually convene sessions to give staff, those affected by its proceedings and decisions, and the public the opportunity to comment on whether the changes made work and its general effectiveness as a regulatory body. The Commission stated, "Our Vision of the California Public Utilities Commission in the year 2000 is to be an innovative leader in maintaining our mission [assuring consumers access to universal, reasonably-priced, safe, reliable and environmentally- sound public utility services while contributing to the economic prosperity of California] while we provide consumers with competitive choices." Four critical issues to address as it reinvents itself are identified in the draft report along with suggested action steps for each: 1. Strengthening Our Commitment to Customers - The Commission can serve its customers by providing consumer protection, including safety considerations, in a responsive and fair manner. Actions: expand public accessibility to the CPUC via computer/modem, videoconferencing, and voicemail; improve the quality and timeliness of response to public inquiries and complaints about utility services; expand consumer education/information so consumers can make informed decisions - more - about utility services; and increase safety oversight of motor carriers, railroads, and natural gas utilities. 2. Improving Accountability to the Public - In order to increase public trust, commissioners and staff should be held accountable for our performance in conducting our responsibilities in a timely and fair manner. Actions: commissioners will directly manage policy-making proceedings, assist in managing evidentiary hearings; devote more resources to, and provide parties with more support in, ongoing efforts to resolve issues by settlement or stipulation rather than litigation; to make commissioners more available to the public, Commission meetings will be held more often in other parts of the state. 3. Improving Accountability Within the CPUC - All who work at the Commission are accountable and share mutual responsibility for showing and encouraging leadership toward shared goals, and for cooperation and teamwork. Actions: implement an effective performance appraisal system, use cross-functional staff teams to handle complex projects and issues, and commissioners and management will give staff clear goals, objectives and direction for assignments. 4. Creating an Effective Organization Structure and Efficient Internal Operations - Developing the organization, resources and administrative processes that support efficient and effective Commission operations to reach our vision. Actions: complete the nation-wide search for and appoint a new executive director; increase communication between commissioners and management about ongoing issues and proceedings through twice-monthly meetings; improve management of budget and use of staff; take specific actions to keep up with trends and technological developments in regulated industries. Four internal CPUC task force teams will be formed to develop specific implementation steps for each of the critical areas above, and that work is expected to be completed by year-end. Meanwhile, implementation of many of the proposed actions outlined above will begin. ###