Embed Size (px)
Citation preview
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
document adopted on July 14, 2016 at
http://www.cpuc.ca.gov/uploadedfiles/cpuc_public_website/content/about_us/organization/commissioner
s/cpuc%20strategic%20directives%20and%20governance%20policies_adopted%2014%20july%202016.pd
f
3
Table of Contents
1. Process Management .............................................................................................................. 4
2. Methodology ............................................................................................................................ 5
3. Process Categories, Models, and Syntax ............................................................................... 6
4. Administrative Processes ....................................................................................................... 7
4.1 People Partners Division (Human Resources) ................................................................. 7
4.2 Equal Employment Office ............................................................................................... 13
4.3 Contract Office ................................................................................................................. 15
4.4 News and Outreach Office .............................................................................................. 17
4.5 Information Technology .................................................................................................. 20
5. Management & Oversight Processes ................................................................................... 22
5.1 Utility Audit, Finance, and Compliance ........................................................................ 22
5.2 Internal Audit Unit ......................................................................................................... 25
5.3 Office of Governmental Affairs ....................................................................................... 25
5.4 Policy and Planning Division .......................................................................................... 28
6. Regulatory Processes ............................................................................................................ 32
6.1 Administrative Law Judge Division (Formal Decision Making Processes) ................. 32
6.2 Communications Division ............................................................................................... 37
6.3 Energy Division ............................................................................................................... 41
6.4 Legal Division .................................................................................................................. 47
6.5 Water Division ................................................................................................................. 52
6.6 Commissioners ................................................................................................................. 53
7. Enforcement Processes ......................................................................................................... 55
7.1 Consumer Protection & Enforcement Division.............................................................. 55
7.2 Safety and Enforcement Division ................................................................................... 63
8. Process Governance and Change Management Recommendations .................................. 70
4
1. PROCESS MANAGEMENT
The underlying purpose of a process inventory is to build the foundation for improving
process management at the CPUC to fulfill agency goals. While process change or process re-
design is beyond the scope of this report, it is important to highlight how this inventory effort
fits into the broader context of reforming and modernizing the CPUC, which operates within
an external environment that is under a constant state of flux. Changing statutory
requirements through the annual state legislative process, evolving business models in
regulated sectors due to technological advances, new challenges facing utility customers, and
changeover in the agency’s workforce are just few of the key pressure drivers forcing the
CPUC to adapt to new circumstances.
An inventory of business processes would allow internal leadership responsible for serving
Californians (such as Commissioners, managers, and employees) to assess whether each
process is effectively designed to lead to outcomes that are consistent with one of more of the
agency’s strategic directives.3
A process inventory can enable a structured assessment on whether current processes and
resources are adequate to support key areas of agency responsibilities to accommodate both
existing and new requirements. This, in turn, will allow for more systematic process
improvements without undercutting the purpose and goals associated with older processes
that may be in need of updates. An inventory can also help improve process consistency,
internal process communications between separate work units, and highlight areas of
operational inefficiency.
In recognizing the need for process improvement, the Legislature has provided through
Public Utilities Code Section 2834 the following direction:
By March 31, 2017, the Public Utilities Commission shall report to the
relevant policy and fiscal committees of the Legislature on its business process
inventory efforts. The report shall include documentation and measurement of
commission processes, including administrative and monitoring processes
shaped by law and judicial review, program performance and
communications pursuant to the commission’s rules and procedures, and
internal processes related to administration and managing human resources. 4
Following this broad statutory guidance, the processes covered in this report include not only
regulatory rules and procedures that are relied on to produce orders that exercise legislative
authority to advance the CPUCs mission, but also administrative and operational processes
that are essential in enabling decision makers, management and staff alike to align their
individual work toward the agency’s purpose, mission, and statutory responsibilities.
3 For background and status of CPUC’s strategic planning process, see
http://www.cpuc.ca.gov/strategicplanninginitiative/
4 See Section 13 of Senate Bill 840 (Committee on Budget and Fiscal Review, Chapter 341, 2016) at
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB840
5
As the CPUC continues its current strategic planning efforts and finalizes its set of strategic
goals, process measurement and re-alignment based on this inventory can help ensure that
each work unit are adequately supported by processes that are conducive to meeting the
agency’s strategic goals.
2. METHODOLOGY
This process inventory project was managed through the Policy and Planning Division (PPD)
of the CPUC. The initial project concept was introduced to the executive management team
in early May 2016 for initial feedback at the executive management level, and was initiated
in mid-June, 2016. Each CPUC division director was asked to identify a set of distinct end-to-
end processes used by his or her division staff to carry out the bulk of the division’s work,
and assign a division liaison to facilitate PPD in process modeling. PPD then worked with
each division liaison to finalize the list of division work processes, and to seek out the
additional information as necessary for process modeling and documentation.
To ensure circumspective information gathering, PPD conducted a series of informational
interviews with managers and employees within each division to better understand the
nature of each division’s processes. This provided an insightful snapshot on the current
construct of internal processes as-is. Where possible, this report also relied on previously
compiled division-specific process management efforts carried out with support from outside
consultants. Where existing process documentation are lacking, PPD staff worked directly
with division managers to create process models and documentation based on a series of
informational interviews.
Due to the wide-ranging type of work at the CPUC, different processes are driven by
constraints that can vary significantly from one another. Some processes have constraints
that are fixed by statute; some are subject to CPUC rules; some are informal approaches to
solve operational problems; and some are imposed by other state agencies. Some processes
are demarcated by milestones,
while others are cadenced by
tasks. To the best extent
possible, this report describes
such varying constraints
throughout the report.
One caveat associated with a
consolidated process inventory
is that it may give the audience
a false impression that every
process requires the same
amount of work and resources,
when reality is just the opposite. Some processes can be carried out by one or a few
individual staff within a work unit, while certain processes require the coordination of large
staff teams across different units. Different types of tasks require different amounts of work.
A staff resource needs analysis is not within the scope of this report, but content from this
“A process inventory can enable a
structured assessment on
whether current processes are
adequate to accommodate both
existing and new requirements.
6
report may be helpful for future assessment of staff resource needs of various CPUC
programs.
3. PROCESS CATEGORIES, MODELS, AND SYNTAX
A process-centric examination of CPUC processes highlights that how an organization may
categorize its processes is not necessarily a one-to-one mapping to traditional organizational
charts. For example the Public Advisor’s Office within News and Outreach share similar
processes in providing direct services to concerned utility customers. Enforcement-related
processes are shared between Safety and Enforcement Division as well as the Consumer
Protection and Enforcement Division, while industry-specific divisions like Energy, Water,
and Communications also have related process to ensure compliance.
Processes are grouped into four distinct process groups: (1) administrative processes; (2)
management processes; (3) regulatory processes for decision making; and (4) enforcement
and compliance processes. Throughout this report, process models are assigned to sections
corresponding to CPUC work unit that are designated as the “process owner” for specific
processes. Almost every process documented in this report involves milestones or tasks
shared between multiple work units. Work products and service provided by the CPUC,
whether they are regulatory decision documents, voting meeting outcomes, advice letter
resolutions, enforcement cases, or customer complaint resolutions, are rarely the result of
one work unit alone. Therefore the process models presented throughout this report utilizes
the multiple “swim lane” style to showcase these important divisions of labor.
For simplicity, the process models contained in this inventory use a minimal number of
symbols to demarcate tasks or milestones within a process, as illustrated below.
Process beginning or end
Document preparation
Task or milestoneData archive or
database
Binary decision point
Data collection
7
4. ADMINISTRATIVE PROCESSES
The processes which are intended to support activities across all work divisions within the
CPUC are categorized under the Administrative Process Category. These Processes share a
common goal of enabling other CPUC work divisions to carry out their respective
responsibilities. These processes are vital to the basic needs of agency operation.
4.1 People Partners Division (Human Resources)
CPUC Human Resource Division has recently been reorganized as People Partners with two
sub-units: (1) Human Resources, and (2) Talent Management. Human Resources serves as
the operational unit responsible for administering payroll, classification and compensation,
disability benefits, performance management, labor relations, and position control. Talent
Management serves as the unit responsible for recruiting, onboarding, developing, engaging,
and retaining agency workforce. All processes must comply with state personnel
requirements overseen by California Department of Human Resources.5
Civil Service Exam
This process generates a list of eligible candidates for civil service employment. As most of
the positions authorized by the Legislature are civil service positions, this process is an
integral step for filling civil service positions as depicted in Figure 4.11. In order for an
interested applicant to apply for any vacant civil service position, he or she must become
eligible by passing a civil service exam. Once passed, the interested applicant is notified of
specific vacancies available throughout the organization, and move toward the hiring
process. This process is within the domain of the Human Resources unit within People
Partners.
5 See California Department of Human Resources website at http://www.calhr.ca.gov/.
8
Figure 4.11 Civil Service Exam Process
Civil Service Exam ProcessH
irin
g D
ivis
ion
Job
can
did
ate
Tale
nt
Man
age
me
nt
Hu
man
Re
sou
rce
s
Submit civil service example application
HR analyst screens application for civil
service eligibility
Does candidate meet minimum qualification?
Candidate is accepted for civil
service examinationYes
Informed of ineligibility
No
Schedule civil service exam
Candidate makes him/herself available for examination
Administers civil service exam
Grades the exam and assign candidate
ranking
Adds candidate to civil service
eligibility list based on ranking
Candidate receives notification on exam
result and ranking
Candidate prepares job application to
specific job posting (Form 678, SOQ, etc)
Hiring Process
Receives job application for
specific job opening(s)
Training and onboarding processes
Job Posting and Hiring
The job posting and hiring process dovetails the civil service exam process. This process is
logically dependent on potential candidates having gone through the civil service exam
process to become eligible for hiring (see Figure 4.11). Because of the complexity and level of
staff resource required of People Partners and hiring divisions in job posting and hiring, PPD
modeled the job posting and hiring process as its own distinct process, as depicted in Figure
4.12.
Although the job posting and hiring process is inherently one concerned with human
resources and agency administration, many responsibilities contained within this process are
carried out by the hiring division in addition to the Human Resources Office. This division of
labor requires that a hiring package be transmitted multiple times between multiple CPUC
work groups prior to candidate selection. This process is within the domain of the Human
Resources unit within People Partners.
9
Figure 4.12 Job Posting and Hiring Process
Job Posting and Hiring ProcessJo
b c
and
idat
eH
irin
g C
PU
C D
ivis
ion
Tale
nt
Man
age
me
nt
Hu
man
Re
sou
rce
sLe
gal D
ivis
ion
Division manager(s) identifies vacancy
HR analyst reviews and approves draft ATH, HBDC, Duty Statement, and Selection Plan
Hiring supervisor finalizes duty
statement and selection plan
HR analyst reviews and approves;
Position Control assigns ATH number
Prepares draft ATH, HBDC, Duty
Statement, and Selection Plan
Division Liaison completes draft Job Opportunity Bulletin
(JOB)
HR analyst reviews and approves JOB
CERT distributes posting to eligible candidates; checks
SROA list
Candidates prepares application package
(such as resume, SOQ, Form 678)
Receives job application package from applicant(s);
CERT screens applicant eligibility
Hiring supervisor made available to answer questions
from job applicants, if any
Hiring supervisor reviews and scores SOQ and/or other
application material
Hiring division managers conduct
interviews
Division Liaison prepares Form 1
Packet for HR
HR analyst receives Form 1 packet,
reviews and determines salary
payscale
Selected candidate Receives contingent offer and completes necessary forms for HR / Division Liaison
Receives completed forms from selected
candidate
Declined candidates receive decline letters, maybe
Position Control completes
appointment
Selected candidate becomes CPUC
employee
Onboarding and training processes
New employee orientation process
START
END
END
Division Liaison enters info in JOB into job posting in
ECOS
HR analyst reviews and approves job
posting in ECOS and the position is
published
CERT generates list of eligible applicants
END
Division Liaison query for list of
eligible applicants
START
Is there a need to conduct
interviews?
Hiring division schedules interviews
and prepares interview questions
Yes
Candidates make time available for
interview
Hiring supervisor executes selection
plan and selects candidate to hire
No
HR analyst prepares contingent offer
package for selected candidate
HR analyst prepares confirming letter to selected candidate
Conflict of interest review process
Prepares decline letter to other candidates, if
possible
HR analyst and HR manager review and
approve Form 1 packet
Hiring supervisor confirms start date
with selected candidate
Are the interview questions from
CalHR’s preapproved list?
Yes
HR analysts reviews and approves
interview questions
No
New Employees Onboarding
As the CPUC fills legislative authorized positions, it faces the need to bring new employees
up to speed on fundamental knowledge and skill sets that are necessary for smooth
integration into the agency workforce. This is the domain of the Talent Management Office,
which has a specific program that is delivered throughout the first year of employment as
depicted in Figure 4.13 below.
10
Figure 4.13 New Employee Onboarding
New Employee Onboarding ProcessN
ew
em
plo
yee
Hu
man
Re
sou
rce
sEx
ecu
tive
Div
isin
oTa
len
t M
anag
em
en
t
Hires new employee(s)
Identify pool of new employees based on hired
dates
Develop or update onboarding
training material
Schedule training dates and other
logistics
Receive training course 1
Receive training course 2
Receive training course 3
Receive training course 4
Was participation rate satisfactory?
Record employee participation
Complete Survey Monkey
evaluation form and feedback
Identify needed improvements
based on employee feedback
Yes
No
Yes
Receive report on status of new
employees onboarding training
Every new employee is solicited to participate in a four-part onboarding curriculum delivered
each quarter designed to familiarize the employee to a set of utilities regulation
fundamentals. If a new employee starts on the job in the 3rd or 4th quarter, she or he would
participate in the 3rd and 4th quarter onboarding training in the 1st or 2nd quarter of the next
calendar year.
Compliance Training
Compliance training for employees includes both trainings that are required by CalHR, as
well as those required by the CPUC. These trainings also concern the Equal Employment
Office (See Section 4.2). The compliance training process apply to various mandatory training
programs such as the sexual harassment training, management training for supervisors, or
information security and privacy training, as depicted in Figure 4.14. Employee non-
participation in these mandatory training could subject the CPUC to legal liabilities, and the
compliance training process seeks to minimize such legal risks.
11
Figure 4.14 Compliance Training Process
Compliance Training ProcessIT
He
lp D
esk
Cal
HR
CP
UC
Em
plo
yee
Exe
cuti
ve D
ivis
ion
Tale
nt
Man
age
me
nt
Determines training requirement for all
state employees
Receives requirements on
compliance training
Identify who must undergo required
training
Develop or compile training
material
Determines required training for all CPUC
employees
Will all or part of the training be
delivered online?
Makes training available for
employee on the intranet
Receives required training
Schedule in-person training
time and prepare other needed
logistics
Records employee training
participation rate
Is training participation rate
satisfactory?
Yes
Receives report on completion of
training required of all CPUC employees
No
Report on completion of
training required of all state employees
Yes
Tuition Reimbursement Process
To support employees in expanding work required or work related skill set, the CPUC has a
tuition reimbursement program to fund training services provided by outside institutions.
The specific training program must be consistent with the employee’s Annual Development
Plan, and is selected by the employee with management approval. Tuition and training
material expenses are reimbursed by the CPUC upon the employee’s successful completion of
the training course with a passing grade. The structure of this process is illustrated in Figure
4.15. The level of allowable tuition reimbursement is subject to internal policy, the collective
bargaining process at CalHR and specific employment contracts. The current per-staff
allocation for tuition reimbursement is set at $1,500 per fiscal year.
12
Figure 4.15: Tuition Reimbursement Process
Tuition Reimbursement ProcessTa
len
t M
anag
em
en
tIn
tere
ste
d
Emp
loye
e
Ou
tsid
e
ed
uca
tio
nal
in
stit
ute
Fisc
al O
ffic
e
Man
age
r o
r D
ivis
ion
Bu
dge
t C
on
tro
l Off
ice
r (B
CO
)
Exe
cuti
ve D
ivis
ion
Completes tuition reimbursement form
and compile supporting
documentation
Review and approve tuition
reimbursement request
Division manager and BCO review
process
Register and pay for class and obtains course material if
any
Complete class work with passing grade
Compile proof of completion
documentation and payment receipt for Talent Management
Receive and review proof of completion and payment receipt
Is there sufficient balance to cover
entire course cost?
Adjust reimbursement
amount based on available balance
Receive approval from Talent
Management and fill out CalATERS forms
CalATERS payment remittance process
Updates tuition reimbursement
budget availability for remaining fiscal
year
Receives report on participation in
tuition reimbursement
program
Division manager and BCO review
CalALTES forms and approve
Annual Appraisal and Development Plans
All CPUC employees are required to conduct an annual appraisal and development planning
process with their direct supervisor to identify area of skills development. The appraisal and
development plans (ADPs) are transmitted from all supervisors to Human Resources to help
identify CPUC-wide or division-specific training opportunities. Supervisors and managers
are given ADP templates to complete in consultation with a direct report. The direct report
would complete certain sections of the ADP, and the direct supervisor would complete certain
sections. Both the employee and supervisor would sign off on the completed ADP prior to
transmitting the form back to Human Resources to add to the employee’s file.
The archive of employees’ ADPs provides CPUC managers with valuable insights into ways
to provide career development services and enhance workplace learning. Statistics associated
with these ADPs can also help human resource managers identify whether existing training
programs are sufficient in meeting employees’ collective career development needs.
13
Figure 4.16 Appraisal and Development Planning Process
Appraisal and Development Planning ProcessEm
plo
yee
Hu
man
Re
sou
rce
sTa
len
t M
anag
em
en
tC
PU
C M
anag
ers
Distributes ADP form and timeline to managers and
supervisors
Receives ADP form and
distributes to direct report
Fills out appropriate
sections of ADP
Schedules meeting with employee to discuss ADP
Meets with direct supervisor
to discuss ADP content
Fills out remaining
section of ADP
Makes copies for self, employee,
and HR
Receives hardcopy of
completed ADP
Receives hardcopy of
completed ADP
Makes copies for self, employee,
and HR
Updates employee file
with completed
ADP
Implements ADP
Identify and develop training based on
ADPs
4.2 Equal Employment Office
The Equal Employment Office (EEO) is tasked with working with management to make sure
all CPUC employees and applicants receive equal employment opportunities consistent with
state and federal law and with CPUC policy. The CPUC’s strong commitment to prohibiting
and preventing discrimination, harassment, and retaliation based on protected status is
articulated in the CPUC’s policy and procedure, attached hereto.
In addition, the EEO works with employees and their management to ensure that qualified
applicants and employees with disabilities receive the reasonable accommodation that they
require in order to perform the essential functions of their position. The CPUC’s policy and
procedure for providing reasonable accommodation is attached.
As a part of the CPUC’s commitment to prevention, the EEO coordinates and oversees
training for supervisory staff as well as non-supervisory staff on equal employment issues.
The EEO also participates in the Disability Advisory Committee which provides advice and
guidance to the Executive Director on important issues related to inclusion of those with
disabilities.
14
Figure 4.21 Investigations of Employee Complaints or Concerns
Investigating Employee Complaints or ConcernsEq
ual
Em
plo
yme
nt
Op
po
rtu
nit
y (E
EO)
Off
ice
Man
age
me
nt
An
y C
PU
C e
mp
loye
eLe
gal D
ivis
ion
Files a complaint or concern
START
Receives notification of complaint or
concern; initiates investigation case
Reviews complaint or concerns and
provides advice as needed
Does the case require legal consultation?
Yes
Investigation process
No
Drafts fact finding report
Review investigation report and determine
appropriate course of action
Archives report and all relevant
and related documents
Is corrective action necessary?
YesImplement
corrective action
Close case
No
END
Receives closure letter from EEO
The EEO provides reasonable accommodation for the known physical or mental disability of
an otherwise qualified applicant or employee where the reasonable accommodation would
enable the individual to perform the essential functions of the position. The EEO’s
Reasonable Accommodation Coordinator will engage in an “Interactive Process” with the
applicant/employee for the purpose of determining if a reasonable accommodation will enable
the applicant or employee to perform the essential functions of the position.
An employee who needs a reasonable accommodation to perform the essential functions of
his or her position can access the “Request for Reasonable Accommodation” form (RA1) and
the “Physician/Health Care Provider’s Certification of Employee’s Disability and Need for
Reasonable Accommodation” form (RA3) on the CPUC intranet page
For employee with special equipment or scheduling needs, EEO works with the employee
and the employee’s management to ensure that the necessary equipment or scheduling
arrangement can support workplace performance.
15
Figure 4.22 Reasonable Accommodation Requests
Processing Reasonable Accommodation RequestsEq
ual
Em
plo
yme
nt
Op
po
rtu
nit
y (E
EO)
Off
ice
IT /
Bu
sin
ess
Se
rvic
es
CP
UC
em
plo
yee
or
man
age
rM
anag
em
en
t
Identifies a reasonable
accommodation (RA) need and contacts
EEO
BEGIN
Receives reasonable accommodation
request
Iterative process with employee and
management
Engage in iterative process to determine
appropriate accomodation
Identify reasonable accommodation
strategy
Does RA require equipment
procurement?
No
IT or non-IT equipment?
Yes
IT
Non-IT
Procures or provides necessary IT
equipment to employee
Procure or provide necessary IT equipment
Works with management to
identify necessary agreement (e.g. work schedule)
END
END END
Archives RA documents
Engage in iterative process to determine
appropriate accomodation
4.3 Contract Office
The CPUC contract office is responsible for maintaining quality assurance for all agency
contracts for outside non-IT service providers. It regularly works with internal project
managers and external agencies to ensure effective service procurement and contract
management. Its main process to facilitate contract preparation and execution is illustrated
in Figure 4.31. A project manager must prepare all required documentation (statement of
work, cost estimates, etc.) before a contract proposal can be reviewed by Executive Division.
For proposed contracts over $50,000 within a fiscal year, the proposed contract must be also
reviewed and approved by the Department of General Services prior to contract execution.
Once executed, a contract is subject to on-going contract management processes to ensure
that the contracted service is provided in compliance with approved contract terms.
16
Figure 4.31 Contracting Process
Contracting Process
Fisc
alC
on
trac
t O
ffic
eC
on
trac
tor
CP
UC
Wo
rk U
nit
Hu
man
Re
sou
rce
sEx
ecu
tive
Off
ice
De
par
tme
nt
of
Ge
ne
ral S
erv
ice
s
Identify need for contract or contract
amendment
START
Project Manager (PM) identify
funding source
Prepare package (SOW, estimate
cost & terms and cost, and CRF)
Receive package and assign to
contract officer
Contract officer works with PM to select appropriate
procurement method
Contact HR regarding union
notification
HR notifies unions of pending
contract
Is contract for legal, expert witness,
under $5K, or an interagency agreement?
Verify market survey and
confirm cost is “fair and
reasoanble”
Finalize package, prepare STD 213
and STD 215 forms
No
Reviews package, complete required
forms, signs STD 213
Received signed contract, verifies
required documents
Reviews package and approves STD
213
Reviews package and approves STD
215
Does the contract exceed $50K or
require other DGS approval?
Prepares cover letter for DGS/OLS and all necessary documentations
Yes
Receives signed contract package,
review and approves contract
Receives DGS approval and
prepares contract letter
Receives a copy of final contract
Receives a copy of final contract
Contract management
process
Yes
Develop bid package with PM
Conducts pre-bid conference,
processes and answer questions
Reviews proposals for compliance
Contract evaluation and
selection process
END
Project implementation
Contract payment remittance process
END
17
4.4 News and Outreach Office
The News and Outreach Office is comprised of three sub-units: (1) Public Advisor’s Office, (2)
Business as and Community Outreach, and (3) News. The News and Outreach Office
provides key public outreach and support for Commissioners, ALJ Division, and other CPUC
work units as requested.
Public Advisor’s Office
One of the responsibilities of the Public Advisor’s Office (PAO) is to organize the logistics
necessary, in coordination with ALJ Division’s Process Office, to support individual ALJs in
conducting Public Participation Hearings (PPHs). These hearings are held in all parts of the
State, often within the context of major rate-setting issues such as a General Rate Case,
where utility customers may be facing a utility rate increase. The PPHs allows
Commissioners, ALJs and the CPUC staff to hear directly from affected customers on a
utility’s proposal. The process to carry out a PPH is illustrated below in Figure 4.41.
The PAO is also responsible for facilitating public comments at CPUC voting meetings,
where any member of the public can speak directly to Commissioners to convey her or his
concerns regarding any CPUC-regulated entity.
Figure 4.41 Public Participation Hearings
Public Participation Hearing Process
Pro
cess
Off
ice
Ass
ign
ed
ALJ
Re
gula
ted
Uti
lity
Serv
ice
Lis
tN
ew
s O
utr
eac
h O
ffic
e
ALJ determines need for public
participation hearing (PPH)
Conducts kick-off meeting to
determine PPH time(s), location(s) and other logistics
Calendar Clerk secure facility
rental agreement, equipment
ALJ drafts calendar notice and
description of PPH
Schedule hearing reporters for the
PPH date(s)
Schedules interpreters and
security, If needed
Calendar Clerk publishes PPH on
Daily Calendar
Ruling issuance process to
schedule PPH into proceeding
timeline
Utility distributes bill inserts to
inform customers of upcoming
PPH(s)
Receives utility bill insert and verifies
compliance
Updates content server with bill insert
document
Facility and equipment setup
at PPH venue
Conducts PPH(s)
Records PPH attendance
Generates transcript of PPH
hearing, if requested by ALJ
Parties to the proceeding receives
PPH transcript
BEGIN
END
18
News and Public Information
One of the responsibilities of the News unit is to work with Commissioners, managers, and
staff in preparing press releases for distribution. This process is generally associated with
major decisions or action of the CPUC, as illustrated by Figure 4.42 below. If any member of
the press has questions regarding CPUC actions, the News unit is also responsible for
managing these inquiries. This process often relies on subject matter staff from other CPUC
work units to help craft the appropriate information.
Figure 4.42 Press Release Preparations
Press Release Preparation Process
Ind
ust
ry D
ivis
ion
Co
mm
issi
on
ers
O
ffic
es
Me
mb
er
of
the
P
ress
Ne
ws
Ou
tre
ach
Off
ice
Identifies issues or receives request for
press release
Staff expert and management
review
Disseminates press release to distribution list
Commissioners Offices individually
review; inserts specific quote, if
needed
Archive press release document
Drafts press release based on
decision or report, etc
Receives press release
Updates CPUC website and social
media feeds
Made available to answer questions from the media, if
any
Business and Community Outreach
One of the responsibilities of the Business and Community Outreach unit is to manage the
CPUC’s diversity procurement program under GO-156, as illustrated by Figure 4.43, and
carries major logistical tasks associated with CPUC en banc hearings, as illustrated in
Figure 4.44. It also is responsible for providing information services to local government
officials throughout the state in consultation with the Office of Governmental Affairs (See
Section 5.3).
19
Figure 4.43 General Order 156 on Diversity Procurement
GO-156 Diversity Procurement Reporting ProcessU
tilit
ies
Off
ice
of
Go
vern
me
nta
l A
ffai
rs
Co
mm
issi
on
ers
or
Exe
cuti
ve D
ire
cto
rN
ew
s O
utr
eac
h O
ffic
eO
ffic
e o
f G
ove
rnm
en
tal
Aff
airs
Receive GO-156 annual reports from
utiltiies
Post reports on Supplier Diversity
website
Schedule meetings with each utility to discuss report
findings
Prepares and submits
spreadsheet data response
Issue data request for data in formatted
spreadsheets
Review report and data response and verify compliance
Drafts GO-156 report, cover
letter to Legislature
Reviews report and cover letter
Executive Director provides signature
for cover letter
Incorporate edits, if any; proof read report and cover
letter
Produce hardcopies with Reprographics
Distributes GO-156 report to Legislature
20
Figure 4.44 General Event Planning and En Banc Hearing Preparation
General Event Planning Process (En Banc)C
om
mis
sio
ne
rsU
tilit
ies
&
Inte
rest
ed
St
ake
ho
lde
rsP
roce
ss O
ffic
eN
ew
s O
utr
eac
h O
ffic
eO
ffic
e o
f G
ove
rnm
en
tal
Aff
airs
Identifies event date for en banc or public
forum (non-PPH)
Confirm availability for
event date/time
Receives notification of
event date/time
Determine venue and secure
agreement with facility owner
Determine total event budget and
secure funding
Confirmation with Public Advisor’s
Office, equipment managers
Secure off-site insurance letter
Confirm court reporter
attenance
Confirm sign language
interpreter attendance
Confirm speakers for panels and fainlize agenda
Publishes event on Daily Calendar
Notifies interested legislative offices
of event
Produce flyer and/or posters for
event for promotion
Conducts en banc hearing
Post-event debrief
Transmits “thank you” letter to event
participants
4.5 Information Technology
The Information Technology (IT) group is responsible for ensuring effective and functioning
IT equipment and services to support all other CPUC work units. From ensuring cyber-
secure and effective functioning of e-mail servers to document management systems, the IT
unit also custom-build computer application and database systems to support regulatory
programs across all industry areas.
To meet the IT needs of the agency, the IT group has a process to allow all other work units
to propose IT projects, review these projects for staffing needs and prioritization, and
assigning appropriate staff assignment for implementation. Any new IT projects over
$50,000 must be reviewed and approved by the California Department of Technology before
21
project implementation.6 The process to determine project resource needs is illustrated in
Figure 4.41. Certain project ideas are proposed in order to fulfill statutory requirements, for
example, a database system to track staff-issued safety citations. Other project ideas are
proposed to enhance existing processes, such as transitioning staff training request and
approval process from a paper-based one to an electronic one.
Figure 4.51 Processing New IT Service Requests
Processing New Information Technology (IT) Service Requests
CP
UC
Wo
rk U
nit
Ente
rpri
se A
rch
ite
ct C
om
mit
tee
(I
T m
anag
ers
)IT
Pro
ject
M
anag
em
en
t O
ffic
e
Cal
ifo
rnia
D
ep
artm
en
t o
f Te
chn
olo
gy
Off
ice
of
Go
vern
me
nta
l Aff
airs
Identifies a need for new IT service and
submits a request or proposal
BEGIN
Receives IT service request and adds to
upcoming committee agenda
IT managers discuss and determines
whether the proposal constitute
a new project
Is the proposal a new project?
Assigns proposal to application
enhancement teamNo
Implements IT measure to resolve
request
Close IT service request
Does the project require CA
Technology Dept approval?
Yes
Assigns project lead and staff team to
implement IT project
No
Prepares project business case for
CA Tech Dept
Yes
Does the project require any BCPs?
Annual budget process to obtain additional agency budget resources
Reviews and approve IT business
case
END
6 All qualifying IT procurement are subject to the requirements and oversight of the
California Department of Technology at http://www.cio.ca.gov/ppmo/.
22
5. MANAGEMENT & OVERSIGHT PROCESSES Management and Oversight Processes include those that allow executive managers and
Commissioners to ensure that all CPUC work units can function cohesively with one another
by placing control mechanisms on both regulatory program staff and regulated entities.
5.1 Utility Audit, Finance, and Compliance
The CPUC audit process group includes processes used by the Utility Audit, Finance, and
Compliance Branch (UAFCB) to conduct external audits on regulated entities. Certain audits
are regularly conducted pursuant to Public Utility Code mandates, while others are
conducted in response to specific CPUC orders as needed.
The purpose of UAFCB is to provide auditing, accounting, financial, and advisory services to
CPUC executive management on regulated utilities and public purpose programs. Through
its audits, UAFCB monitors compliance with laws and regulation, as well as performs
additional research, analysis, and assessments based on results of utility audits or requests
from the CPUC. UAFCB have five main processes it relies on to carry out its work. These
are the processes associated with these five major work areas: (1) mobile telephony services
surcharge audits, (2) electric procurement audits, (3) telecommunications public purpose
programs audits, (4) Public Utilities Code Section 314.5 audits, and (5) audits initiated in
response to specific CPUC orders.
Mobile Telephony Service Audit
The Mobile Telephony Service (MTS) Audit is a direct response to Assembly Bill (AB) 1717
(Perea, Ch. 885, 2014) which created a new point-of-sale mechanism for the collection and
remittance of tax and fees on prepaid wireless telephone services.7 Pursuant to PU Code
Section 274 and 314.5, all reporting and remittance are subject to audit verification by the
CPUC. Carriers are expected to maintain records pertaining to intra-state billings and
collection for at least 5 calendar years to support the audit process.
7 For background see http://www.cpuc.ca.gov/general.aspx?id=9958
23
Figure 5.11 Mobile Telephony Service Audit
Mobile Telephony Service AuditU
AFC
B(P
roce
ss O
wn
er)
Co
mm
un
icat
ion
s D
ivis
ion
Select MTS carrier to auditAudit planning and
scoping
Does the audit contain negative findings?
Data request processConduct audit and field
workStakeholder input
process
Issues final audit report and hand off to
Communications Division
Receives final audit report from UAFCB
Carry out corrective action with utility to
address audit findings
Publish report on CPUC website
No
Yes
Quarterly Electric Utility Procurement Audit
The Quarterly Compliance Report (QCR) report is a quarterly Advice Letter filing submitted
by the large electric utilities as part of their “bundled” procurement process under AB 57
(Wright, Ch. 835, 2002). A large electric utility’s approved bundled procurement plan
contains standards on how a utility should carry out energy market transactions on behalf of
its bundled customers. These quarterly audits are intended to provide measurement and
monitoring on whether actual procurement transactions adhere to CPUC-approved rules.
Figure 5.12 Electric Utility Procurement Audit
Quarterly Electric Utility Procurement Audit
UA
FCB
(Pro
cess
Ow
ner
)En
ergy
Div
isio
n
Receives quarterly Advice Letter filing from electric
utility
Issues master data request and necessary
information from utility
Does the audit contain negative findings?
Conducts compliance audits based on
procurement rules
Stakeholder input process
Finalize audit report based on stakeholder
feedback
Issues final audit report and hands over to Energy
Division
Receives final audit report from UAFCB
Carry out corrective action with utility to
address audit findings
Publish report on CPUC website
No
Yes
Telecommunications Public Purpose Program Audits
The telecommunications public purpose program (PPP) audits are intended to ensure these
programs are carried out in accordance to governing state law and CPUC orders. UAFCB
contracts out for these audits. Recent examples include audits of six utilities’ California
Lifeline Program costs and activities and five utilities’ California Teleconnect Fund Program
costs and activities. Currently underway are contracted audits of 45 utilities’ public purpose
24
program surcharge collection and remittance practices. These audits are conducted in
compliance with Public Utilities Code Section 274.
Figure 5.13 Telecommunications Public Purpose Program Audit
Telecommunications Public Purpose Program Audit
UA
FCB
(Pro
cess
Ow
ner
)En
ergy
Div
isio
n
Selects carrier for PPP audit
Conducts solicitation process to obtain an
outside auditor
Does the audit contain negative findings?
Finalize statement of work and auditor
contract
Conduct audit and contract management
Stakeholder input process
Issues final audit report and hands over to
Communications Division
Receives final audit report from UAFCB
Carry out corrective action with utility to
address audit findings
Publish report on CPUC website
No
Yes
Public Utilities Code Section 314.5 Audits
Public Utilities Code Section 314.5 requires the CPUC to regularly conduct audits on the
utilities it regulates. UAFCB is currently conducting water utility financial audits and audits
of the energy utilities’ balancing accounts.
Other Audits as Required by CPUC Regulatory Order
If appropriate, the CPUC may require additional audits be conducted on a regulatory
program through a formal decision process. For example, the CPUC has ordered UAFCB to
conduct audits of the energy efficiency programs. The CPUC uses the results of these audits
when evaluating the utilities’ request to receive energy efficiency program incentives. Other
audits recently ordered by the CPUC include audits of a large water utility’s procurement
processes and the utilities’ supplier diversity program reporting. These audits as required
become concrete projects for UAFCB and follow a standard process.
Figure 5.14 Other Audits as Required
Other Audits as Required by CPUC
UA
FCB
(Pro
cess
Ow
ner
)Ex
ecu
tive
, In
du
stry
D
ivis
ion
CPUC issues decision or resolution containing
audit requirement
Conducts audit project planning, scoping, and
initiation
Does the audit contain negative findings?
Issues master data request to obtain
necessary information from utility
Conducts audits, including field work
Stakeholder input process
Issues final audit report CPUC order; hands over
to assigned Industry Division
Receives final audit report from UAFCB
Carry out corrective action with utility to
address audit findings
No
Yes Does the audit contain confidential
information?
No
Yes
CPUC issues decision or resolution containing
audit requirement
Accepts audit report under seal
25
5.2 Internal Audit Unit
The Internal Audit Unit conducts internal audits approved by the Commissioners’ Finance &
Administrative Subcommittee to ensure that any CPUC work unit is effectively carrying out
its responsibilities in compliance with statutory requirements. To plan out its work on an
annual basis, the Internal Audit Unit group goes through a work planning process. Once an
audit project has been approved by Commissioners, a project moves to the audit conduct and
post-audit monitoring phase.
Figure 5.21 Internal Audit Unit’s Work Planning Process
Internal Audit Unit – Work Plan
Post-audit Monitoring PhaseAnnual Audit Plan Approval Phase Audit Conduct Phase
Develop audit project plan
Determine staff and resource availability
Approved by Finance & Administration Subcommittee?
Identify areas for audit based on risk assessment and management
consultation
Move audit project back to project queue
Develop audit scope
Conduct preliminary assessment and research
Collect data from auditee
Develop findings and communicate results to auditee
Does findings indicate need for corrective action?
Solicit correction action plan from auditee
No
Yes
Incorporate auditee feedback and publish audit report
No
Yes
Select previous audit findings for post-audit monitoring
Contact auditee to confirm corrective actions taken since
conclusion of audit
Identify remediation actions to be tested and determine test
schedule
Collect data from auditee
Analyze data to determine corrective action plan was
implemented
Report post-audit monitoring results to auditee and Finance &
Administrative Committee
Complete draft audit report
Solicit auditee feedback
Does findings indicate corrective action plan was
implemented?
Solicit corrective action plan and/or date of implementation
No No
Yes
5.3 Office of Governmental Affairs
The Office of Governmental Affairs (OGA) is tasked to represent the CPUC before the State
Legislature and other oversight bodies such as Department of Finance. It supports CPUC
Commissioners and managers in navigating through the legislative and budget processes.
OGA processes, hence, is mainly structured in a way to allow CPUC to participation in these
two time-sensitive external processes. Frequently, OGA works directly with division
managers to provide technical assistance to members of the legislature on matters related to
CPUC-administered statutory programs. In the case where Commissioners have voted to
26
take a position on a piece of proposed legislation, OGA conveys this position by testifying on
behalf of the CPUC in legislative committee hearings.
Bill Tracking Process
The core and day-to-day work of OGA involves tracking the voluminous set of bills introduce
by the Legislature in each legislative cycle. OGA staff identifies bills that could impact the
CPUC or any CPUC-administered programs; keeps tracks of any bill amendments; facilitates
the internal bill review process with Commissioners and managers; provides background
research support for Commissioners and managers as needed; and, if the Commissioners
adopts a formal positions, participates in the bill hearing process at the State Capitol to
communicate the position to members of the legislature as well as other stakeholders. This
general bill tracking process is laid out in Figure 5.31 blow.
In the case a bill has been enacted into law, the bill tracking process ends with the statutory
implementation process that is handled by an industry division or the ALJ division. The
start and end of this process is synchronized to the State Assembly and Senate’s legislative
calendar.
Figure 5.31 Bill Tracking Process
Bill Tracking Process
OG
AC
om
mis
sio
ne
rsO
the
r C
PU
C
Div
isio
ns
Legi
slat
ure
Go
vern
or’
s O
ffic
eB
ill T
rack
ing
Syst
em
Fun
ctio
n
Introduce bill or legislative concept
Identify bills affecting CPUC
Bill Tracking System
Gather background
information on identified bill
Obtain factsheet,
stakeholder info, and other relevant facts
Initial bill analysis to identify scope
of issues or concerns
Develop analysis and fiscal impact
estimates
Continue engaging the
Legislature and communicate bill
position, if any
Voting process to determine bill
position, if needed
Did the bill pass the Legislature?
Draft enrolled bill report to submit
to GO
Did the Governor sign the bill into law?
Statutory implementation
process
Yes
Yes
No
No
Prepare legislative memorandum, if
needed
START
END
Provide guidance to the extent
allowable under Bagley-Keene
Annual Budget Process
In addition to participating in the legislative process, OGA also supports executive managers
in the annual budget process. In this capacity, OGA staff supports executive managers in
devising budget change proposals to Department of Finance and the State Legislature. It
also represents the CPUC in the budget hearing process to explain and substantiate the need
27
for the requested budget change. This process comes to an end each June, the State’s budget
deadline, as illustrated in Figure
Figure 5.32 Budget Process
Annual Budget Process
OG
AEx
ecu
tive
M
anag
em
en
tD
ep
artm
en
t o
f Fi
nan
ceLe
gisl
atu
reG
ove
rno
r’s
Off
ice
Develop budget proposals in response
to legislation or agency needs
Review budget proposal
START
Dept of Finance review and publication
Legislative Budget Committee review and
approval process
If approved, budget proposal is incorporated
into budget bill(s)
Develop analysis of budget bill(s)
for executive management
Management feedback
Budget bill amendment and approval process
Approves budget bill(s)
Budget implementation
process
Continue engagement with
budget committees
END
Spring finance letter & May
revise process
Annual Budget Process
The last major work process managed by OGA is the legislative reporting process. The CPUC
is required by the State Legislature to submit a variety of reports related to its obligation
and statutory programs. OGA also handles ad hoc data requests by any member of the
Legislature on issues within the CPUC’s purview. OGA is tasked to ensure compliance and
timeliness to meet these legislative mandates and requests, and works with other CPUC
divisions to produce a legislative report or data response, as illustrated in Figure 5.33.
28
Figure 5.33 Legislative Reporting Process
Legislative Reporting ProcessO
GA
Ind
ust
ry D
ivis
ion
Co
mm
issi
on
ers
/
Exe
cuti
ve D
ivis
ion
Legi
slat
ure
Identify reporting requirements and PU
code sections
START
Final copies and web link received by
Legislature; statutory obligation fulfilled.
Obtain necessary data from utilities or other agencies
Develop draft report and
transmittal letter
Commissioner and management
review process
Exec Dir reviews and signs
transmittal letter to final report and
prepares copies
Does the PU Code require recurring
reports?
Deliver public versions to the
Legislature and/or oversight bodies
Yes
END
Publish public version of the
report on CPUC website
Did utilities mark any data as confidential?
Determine appropriate level of redaction for
Yes
No
No
5.4 Policy and Planning Division
The Policy and Planning Division (PDD) is tasked with providing research support to CPUC
Commissioners, Executive Division, and other CPUC work units, as requested. This is
usually accomplished through drafting policy white papers and memos, producing public
forums on emerging policy issues, and other policy research tasks as needed. About 60-70
percent of PPD’s work is planned out one year in advance through the development of its
annual work plan at the end of each calendar year. The annual work plan is a document that
outlines the targeted performance objectives for the next calendar year. In creating and
implementing this annual work plan, PPD regularly consults with Commissioners and other
CPUC division management to ensure that its work products will add incremental value to
the CPUC as a whole. This process is laid out in Figure 5.41 as follows.
29
Figure 5.41 Policy and Planning Division’s Annual Work Planning Process
Annual Work Plan PreparationO
the
r C
PU
C
Div
isio
ns
Co
mm
issi
on
ers
Po
licy
and
Pla
nn
ing
Div
isio
n
December of each calendar year
Solicits input from PPD staff, internal
and external stakeholders
Develops draft work plan with list
of proposed projects
Commissioners review and provide
input to draft annual work plan
Directors review and provide input
to draft annual work plan
Finalize work planWork plan
implementationWork plan
implementation
End of year performance
evaluation
The PPD Annual Work Plan includes a target number of public forums that PPD plans to
host on various emerging policy topics. After the work plan has been approved by the CPUC
Commissioners, PPD organizes and plans these “thought leaders” event by following the
process as laid out in Figure 5.41. The topics of the thought leaders’ event can vary
depending on Commissioner or staff interests. The assigned staff is tasked to identify and
secure speakers for these events, then to work with the New and Outreach Office to produce
event promotional material and publicize the event to interested internal and external
stakeholders.
Figure 5.42 Thought Leaders Event Planning
Thought Leaders Event Planning
Po
licy
and
Pla
nn
ing
Div
isio
nN
ews
& O
utr
each
O
ffic
e
Identifies topic or theme for forum
Identifies potential speakers and
moderator
Assigned analyst drafts event agenda
Schedules and conducts
coordination meeting with all
panelists
Finalize agenda
Design poster or other promotional
material
Executes event
Coordinate schedule and
reserve facility and equipment
Approve final poster or promo material design
Promotes event through internal
and external e-mail lists and social
media
The PPD annual work plan also includes a target number of policy white papers that PPD
staff will draft and publish throughout the next calendar year. The topic can come from
Commissioners, other division managers, PPD staff, or external stakeholders. The policy
paper assignments are allocated to PPD staff based on both expertise and policy interest, and
follows the process as laid out in Figure 5.42. The assigned PPD staff consults various
30
internal or external stakeholders to create the scope of the paper, seek management approval
of the paper’s scope, and drafts the paper in consultation with other division management or
staff.
Figure 5.43 Preparing and Publishing Policy White Papers
Policy Whitepaper Preparation Process
Co
mm
issi
on
ers
Oth
er
CP
UC
D
ivis
ion
sP
olic
y an
d P
lan
nin
g D
ivis
ion
Ne
ws
& O
utr
eac
h
Off
ice
Identifies white paper topic based on
external or internal stakeholder input
Assigned analyst creates paper
scope or outline
Relevant industry division staff
provides feedback on scope or outline
Assigned analyst drafts policy white
paperPPD management
review
Industry division review
Commissioners’ offices review
Incorporates feedback and does
final formating
Distributes white paper and produces
hardcopies
Final policy white paper is posted on
CPUC website
Lastly, PPD is tasked to draft the CPUC annual report for submission to the Legislature. An
assigned lead staff from PPD collects information necessary for the report, and coordinates
the content development with other CPUC work units. This report is reviewed by all
Commissioners and executive managers at the CPUC, and is submitted to the Legislature
and other control agencies through the Office of Governmental Affairs. This CPUC annual
report process culminates in the annual presentation by the CPUC president at key
legislative committee hearings.
31
Figure 5.44 CPUC Annual Report Preparation
CPUC Annual Report PreparationC
om
mis
sio
ne
rsO
the
r C
PU
C
Div
isio
ns
Po
licy
and
Pla
nn
ing
Div
isio
nN
ew
s &
Ou
tre
ach
O
ffic
e
Off
ice
of
Go
vern
me
nta
l A
ffai
rs
PPD Director assigns analyst to prepare
CPUC annual report
Assigned analyst creates paper
scope or outline
Provides year in review and
division-specific work performance
metrics
Compiles info from all work divisions and drafts annual
report
PPD management review
All other divisions review
Commissioners’ offices review
Incorporates feedback and does
final formating
Posts final report on CPUC website
and produce hardcopies
CPUC President presents annual report
to Legislature
Prepares cover letter
Distributes annual report and
coordinate dates on annual
presentation
32
6. REGULATORY PROCESSES Regulatory processes are the avenues by which decisions on regulated entities are made. The
CPUC has a plethora of regulatory processes designed to resolve issues within regulated
sectors, as guided by statutory requirements provided by the Legislature in each industry
area. The general work flow of these decision making processes follow a basic structure from
case initiation (oftentimes in response to new legislation or in response to an action taken by
a regulated entity), to scope determination, information gathering, and case resolution in the
form of regulatory orders or Advice Letter resolutions. In the case where a case has not been
resolved sufficiently for the need of a party to a proceeding, there are processes designed for
a party to the proceeding to exercise its rights to seek either modification or appeal of a
regulatory decision or resolution. This basic work flow structure is illustrated in Figure 6.0.
Figure 6.0 Basic structure of regulatory process
CASE INITIATION
Applicant files application filing;CPUC votes to initiate rulemaking or investigation;
or a stakeholder files a formal complaint
PRELIMINARY SCOPE
Applicant, CPUC, or stakeholder proposes a set of issues to be resolved
Potential issue 1Potential issue 2 Potential issue 3
.
.
.and
Potential issue N
SCOPING MEMO RULING
Assigned Commissioner finalizes proceeding scope based input from parties to the proceeding on
issues to be resolved
Issue 1Issue 2Issue 3
.
.
.and
Issue N
INFORMATION GATHERING
Parties to the proceeding provides testimony or pleadings to the Assigned ALJ to support
argument(s) on how to resolve issues
Evidence or argument on issue 1Evidence or argument on issue 2Evidence or argument on Issue 3
.
.
.and
Evidence or argument on Issue N
RESOLUTION
Proposed and final decision contains a list of how issues in the proceeding are resolved through
Findings of Fact, Conclusions of Law, and Ordering Paragraphs
Findings or Conclusions on Issue 1Findings or Conclusions on Issue 2Findings or Conclusions on Issue 3
.
.
.and
Findings or Conclusions Issue N
APPEALS PROCESS
If any party to the proceeding believes the CPUC erred in resolving any of the issues, the party can
file an application for rehearing
Appeal to Finding or Conclusion of Issue 1Appeal to Finding or Conclusion of Issue 2Appeal to Finding or Conclusion of Issue 3
.
.
.and/or
Appeal to Finding or Conclusion of Issue N
Responsibilities of regulatory processes are shared between the Administrative Law Judge
(ALJ) Division, industry divisions (communications, energy, and water), the policy units of
the two enforcement divisions (SED and CPED), Legal Division, and the individual
Commissioners who cast the votes on formal regulatory matters. The interactions between
these work units are heavily governed by both statute and established CPUC procedures.
6.1 Administrative Law Judge Division (Formal Decision Making
Processes)
The ALJ division oversees most of the formal process, including applications, complaints,
rulemakings, investigations, and petitions. It is made up of 45 judges who preside over
formal cases, and 36 administrative staff positions to carry out clerical and administrative
33
tasks to support the decision making processes, including most of the tasks necessary to
support monthly CPUC’s voting meetings.
For the purpose of this process inventory, application, rulemaking, and investigation
proceeding are generalized into one process model. This is because the overall work flow of
these three proceeding types are similar in sequential structure, and differ mostly in ex parte
meeting rules depending on proceeding categorization. Once a determination has been made
on proceeding categorization, the work flow structures for application, rulemaking and
investigation proceedings are highly similar, as illustrated in Figure 6.11. In other words, ex
parte requirements do not inherently change the work flow requirements associated with
rulemaking, application, and investigation proceedings. In the case where ex parte meetings
are allowed with Commissioners, Commissioners’ representatives, and directors, these
meetings represent additional time on the part of these individual employees, but these
meetings do not alter the baseline proceeding process as governed by statutory mandates to
ensure due process. Because ex parte meetings can be conducted at any point in time of a
proceeding, except during a period declared as “quiet time,” they are not modeled as a
component of the baseline process.
This baseline process can be initiated by the CPUC itself or in response to a petition, as in
the case for rulemaking proceedings and investigations. This is also the work flow process
governing application proceedings initiated by a regulated entity, such as general rate cases.
Figure 6.11: Baseline Process for Formal Proceedings Excluding Formal Complaints
Baseline Process for Formal Proceedings (Excluding Formal Complaint Cases)
Par
ty t
o t
he
P
roce
ed
ing
Ap
plic
ant
or
Re
spo
nd
en
t(r
egu
late
d e
nti
ty)
Co
mm
issi
no
ers
Ind
ust
ry a
nd
/or
Lega
l Div
isio
nA
LJ D
ivis
ion
Lega
l Div
isio
n
Files application to request CPUC
approval
Docket Office reviews and initiates new
docket
Process Office initiates new
service list for on-going document
distribution
Chief ALJ assigns ALJ
Assigned commissioner
finalizes categorization,
scope and timeline
Is there contested material fact?
Assigned ALJ conducts
evidentiary process
Assigned ALJ accepts legal
pleadings
Drafts responsive pleading (protest,
response, or comments)
Prepares testimony and
rebuttal testimony
Prepares opening brief and reply
brief
Prepares comments and
reply on proposed decision
Prepares testimony and
rebuttal testimony
Prepares opening brief and reply
brief
Prepares comments and
reply on proposed decision
Does any commissioner
propose alternate PD?
Alternate proposed decision
placed on CPUC meeting agenda
Yes
CPUC voting meeting process
NoCPUC issues final
decision
Regulatory compliance and
enforcement process
Interveners’ Compensation and/
or Petition for Modification process
Yes
No
CPUC issues rulemaking on its own motion or in
response to a petition
In the case of applications
In the case of rulemaking
Assigned ALJ conducts
preliminary case review
Assigned ALJ holds prehearing conference
Assigned ALJ prepared
proposed decision
Proposed decision is placed on CPUC meeting agenda
Prepares comments and
reply on alternate proposed decision
Prepares comments and
reply on alternate proposed decision
Rehearing application process,
if pursued by any party to the proceeding
Prepares staff analysis as
requested by Assigned ALJ
When a customer’s complaint cannot be resolved through the informal complaints resolution
process overseen by the Consumer Affairs Branch in CPED, a customer can file a formal
complaint case against a regulated entity. This formal complaint resolution process is
overseen by the ALJ division, and differs from the baseline process used for application,
rulemaking and investigation proceedings, as illustrated in Figure 6.12. Among the many
differences is that the assigned ALJ can proposed to resolve the formal complaint case either
through a proposed decision or a presiding officer’s decision (POD), and the process
requirement for Commissioners to carry out voting in closed session if a POD is challenged
by a party to the complaint case.
34
Figure 6.12: Formal Complaints Resolution Process
Formal Complaints Resolution ProcessU
tilit
yU
tilit
y C
ust
om
er
or
oth
er
par
tie
s to
th
e
pro
cee
din
gC
om
mis
sin
oe
rsO
the
r C
PU
C
Div
isio
ns
ALJ
Div
isio
n
Customer files formal complaint against regulated
entity*
Docket Office reviews and initiates new
docket
Process Office initiates new
service list for on-going document
distribution
Chief ALJ sets preliminary
categorization and assigns ALJ
Assigned ALJ conducts
preliminary case review
Appeal categorization and/or ALJ
assignment?
Category appeals and/or assignment
challenge resolution process
Yes
No
Is there contested material fact?
Evidentiary process, may
include evidentiary
hearing
Accepts filing of opening and
closing briefs, if needed
Prepares testimony for
submission
Assigned ALJ issues PD or POD
Is there an appeal or commissioner’s
request for review?
In the case of a POD
CPUC closed session
deliberation and voting meeting
process
Yes
CPUC open session deliberation and voting meeting
process
NoCPUC issues final
decision
Regulatory compliance and/or
fine and penalty remittance process
Prepares legal pleading for submission
Prepares legal pleading for submission
Yes
No
Prepares testimony for
submission
Assigned ALJ drafts PD or
Presiding Offier’s Decision (POD)**
CPUC meeting agenda
preparation (STAR unit, Process
Office)
Assigned ALJ holds Prehearing
Conference (PHC)
Application for Rehearing process overseen by Legal
Division
Does utility customer wish to appeal final
decision?
Does utility wish to challenge final
decision?
No
No
Yes
Yes
In the case of a PD
Prepares comments on PD/POD or appeal for
submission
Prepares comments on PD/POD or appeal for
submission
Aside from the processes for managing formal proceeding, the ALJ division also manages
processes for issuing rulings, and voting meeting processes for the Commission to issue
decisions. These processes involve significant staff resources in the ALJ Division’s STAR
unit, Docket Office, and Process Office.
From a process management perspective, rulings are used to set timeline, manage content,
provide guidance, and respond to motions in the formal proceedings. Throughout the course
of a proceeding, many rulings can be issued, and they involve significant staff resources on
the part not just on the part of the assigned Commissioner and ALJ, but also of typists and
clerks in the Docket and Process Offices, as illustrated in Figure 6.13.
35
Figure 6.13 Docket Process to Accept Filing in Formal Proceedings
Docket Process to Accept Filings in Formal ProceedingsSe
rvic
e L
ist,
an
y m
em
be
r o
f th
e
pu
blic
Do
cke
t O
ffic
eA
dm
inis
trat
ive
Law
Ju
dge
Par
ty t
o a
pro
cee
din
g
Register with CPUC Docket Office to eFile documents
Prepare document for submission
Receives notification of pending eFile
document
Verifies party status, PDFa compliance, timeliness,
signature, etc
Uploads document to eFile system
eFile system updated with
pending document
Is document compliant?
No
Party notified of need to revise
filing for compliance
Approves document for eFile in Oracle database
eFile system is updated and
generates web link
Yes
Updates proceeding docket
page with document
Assigned ALJ receives eFile
document
Webpage for the proceeding is
updated for public access to document
Uploads document and certificate of service to eFile
system
Service List receives document
Figure 6.14: Ruling Preparation Process
Ruling Preparation Process
Pro
cess
Off
ice
STA
R U
nit
Par
tie
s to
th
e
pro
cee
din
g /
Serv
ice
Lis
tD
ock
et
Off
ieA
dm
inis
trat
ive
Law
Ju
dge
ALJ completes draft ruling document
Typist formats document and
proof reads draft ruling
Typist enters document to work queue
ALJ make final review and edits,
if needed
Incorporate final edit from ALJ, if
any
Update Service List to ensure
correct contact information
Typist e-files Ruling with
Docket Office
Docket staff reviews Ruling
according to eFile check list
Does Ruling document meet all
checklist requirements?
Approves for eFiling
Yes
Typist makes necessary edits to
meet Docket requirements
No
Updates eFile Oracle
Database System
Obtains eFile link of Ruling
Composes official email and letter with Ruling links
ALJ completes draft ruling document
Serves official email/letter and Ruling to Service
List
36
Of all processes that ALJ division oversees, perhaps none are as staff resource intensive and
time-constrained as the processing of proposed decisions through the voting meeting process
leading up to the issuance of a final decision.
When an assigned ALJ has completed his or her draft, a proposed decision document is
transmitted to a typist in the STAR unit for formatting and proof reading. Then, a series of
management review is conducted across ALJ division, industry divisions, and the assigned
Commissioner’s office before a proposed decision is approved by the Docket Office for
publishing so it can be mailed to the service list and placed on the agenda of a future voting
business meeting. Revisions to these proposed decisions (to either correct typographical
errors or in response to party comments) are tracked meticulously within tight deadlines in
days leading up to the voting meeting. Hardcopies of revisions must be produced in
compliance to statute prior to the vote. Once Commissioners deliberate and vote on a
proposed decision as final, a series of clerical tasks must be carried out prior to publishing
the final decision for distribution to the proceeding service list. The sequential steps are
illustrated in Figure 6.14 below.
Because each business meeting processes multiple proposed decisions, the voting meeting
process is inherently an aggregation point of multiple formal proceeding processes. From a
process management perspective, voting meetings (including preparing individual PD
documents, creating the meeting agenda, and agenda reviews) usually results in significant
process bottle neck for the clerical staff in the ALJ division, especially in the 2-3 working
days leading up to the voting meeting, and 2-3 days after the voting meeting.
Figure 6.15: Proposed Decision Preparation and Voting Meeting Process
Proposed Decision Preparation and Voting Meeting Process
Pro
cess
Off
ice
STA
R U
nit
Ind
ust
ry D
ivis
ion
Do
cke
t O
ffie
Ad
min
istr
ativ
e L
aw
Jud
geC
om
mis
sio
ne
rs
Assigned ALJ prepares draft
Proposed Decision
Typist formats document and
proof reads draft PD
Typist enters document to work queue
Assigned ALJ make final review
and edits, if needed
Incorporate edits and attach blue
and pink transmittal form
ALJ management review and sign-
off
Industry Division management
review and sign-off
Assigned Commissioner’s review and sign-
off
Once signatures are collected,
requests agenda ID number from
Docket
Assigns Voting Meeting Agenda
ID number
Update Service List to ensure
correct contact information
Prepares cover letter for Chief ALJ
approval
Chief ALJ reviews and approves
PD published in eFile
system / Oracle
Database
Composes email/letter for service list with eFile link
to PD
Produce hardcopies for commissioners and directors
Advisors agenda review process
Directors’ agenda review process
Assigned ALJ receives
comments on PD
Is revision needed based on parties’
comments?
Web-publishes revision to PD on
content server
Yes
Agenda clerk adds web link to PD
revision to meeting agenda
Produce hard copies for Escutia
table
Commissioners votes on PD to
make it final decision
No
Formats decision and incorporates
any edits from the dais
Decision published on
content server
Distributes link of decision to service
list
37
6.2 Communications Division
Communications Division assists decision makers at the CPUC in developing and
implementing programs to promote consumer access in all telecommunications markets and
to address regulatory changes required by state and federal legislation.
Among the regulatory policy priorities of the Communications Division is to ensure the
provision of telecommunications networks, to ensure fair, affordable, universal access to
essential services, and to ensure compliance among regulated carriers.
Advice Letter Process
Communications Division has its own internal process to review telecommunications
utilities’ advice letter filings in accordance with General Order 96, as outlined in Figure 6.21.
Figure 6.21 Advice Letter Process
Communication Division’s Advice Letter Process
Co
mm
un
icat
ion
Div
isio
nC
om
mis
sio
ne
rsC
arri
er
ALJ
Div
sio
n
Submits Advice Letter (AL) filing in response to CPUC
order
BEGIN
AL received by CD mail room and date stamped by CD PAL
coordinator
PAL coordinate reviews AL and
distributes to CD section supervisor
Supervisor assigns analyst and
determines due date; hands to support staff
Support staff logs AL into PAL system
hands AL to assigned staff for
review
Analyst reviews AL and returns AL to
supervisor
Does AL requires a resolution?
Resolution preparation process
Supervisor completes PAL
sheet for sign-off
Support staff logs AL out in PAL system
Carrier receives approval document
and certificate of completition
END
Voting meeting preparation process to place resolution
on the agenda
Commissioners vote to adopt resolution
Adds CPUC seal and executive director’s
signature
38
Telecommunications Public Purpose Programs
Communications Division is also primarily responsible to ensure that CPUC-administered
statutory programs to provide universal access are implemented effectively for the benefit of
consumers. The processes associated with the six major universal access program areas
follow a similar, annual, budget and program planning process, as illustrated in Figure 6.22.
Figure 6.22 Annual Budget and Program Implementation Process for Universal Access Programs
Budget and Implementation Process for Telecommunications Public Purpose Programs
Co
mm
un
icat
ion
s D
ivis
ion
Exe
cuti
ve D
ivis
ion
Legi
slat
ure
an
d
Go
vern
or
Car
rie
rs
Appropriates funding for public purpose program
BEGIN
Is it necessary to modify surcharge
level?
Staff-initiated resolution process to adjust customer surcharge to collect
appropriated funding
Yes
Makes adjustment to program
surcharge on customers’ bills
Public Purpose Program-specific
implementation and payment remittance
process
No
Tracks program data, progress, performance
metrics as required
Prepares program report and compile supporting data*
Program budget planning for future program activities
Reviews proposed budget and adds to
annual budget request
News & Outreach Office publishes
program report and posts on CPUC
website
END*Not all telecom public purpose programs have annual report required by legislation
Each public purpose program has similarities in how it engages budgeting and fiscal
remittances. Although different programs have significantly different application and review
criteria, the overarching process structure is similar.
Process differences, however, do exist between different universal access programs. For
example, some programs require a Commissioner order or resolution for authorization before
any funding can be awarded to an applicant, such as the case with California Advanced
Service Fund. Other programs allow ministerial authority to Communications Division staff
following strict review criteria to award funding to program participants, as in the case of
Lifeline, California Teleconnect Fund and the Public Housing Account within the California
39
Advanced Services Fund. Certain program support is provided directly from CPUC
contractors to program participants directly, such as the Deaf and Disabled
Telecommunications Program. These programs each have a program application process to
screen the eligibility of interested applicants, as well a funding reimbursement. Examples of
a program application and funding reimbursement process are illustrated in Figure 6.23 and
Figure 6.24, respectively.
Figure 6.23 Program Application Process for California Teleconnect Fund
California Teleconnect Fund - Application Review Process
Co
mm
un
icat
ion
s D
ivis
ion
Elig
ible
ap
plic
ant
CD
dat
abas
eC
arri
er
Submits completed CTF application form
BEGIN
Closes out application
CD receives and timestamps
application material
Organize application material
(if multiple) by entity type and date
CTF Oracle database
Check for duplicate application(s) in
database
Check for duplicate application(s)
Look up
Enter detailed data into Oracle
Enter data
Receives acknowledgement
of receipt
Assigned analyst reviews application
CD management reviews as needed
Updates application statusOracle database posts to portal
Receives disposition letter
Receives list of approved applicants
40
Figure 6.24 Claim Reimbursement Process for California Teleconnect Fund
California Teleconnect Fund – Claims Review ProcessC
om
mu
nic
atio
ns
Div
isio
nC
arri
er
CD
dat
abas
eFi
scal
Off
ice
Submits monthly claim package with
supporting data
BEGIN
Receives claim and enter data into claims database
Database
Assigned CD analyst reviews carrier’s
CTF claim
Logs claim
Adds claim voucher number to claims
database
Is claim consistent with approved
program participants?
Yes
Provides supplemental information or adjusts claim
No
Updates
Management reviews claim form,
payment letter, transmittal letter,
and voucher
Payment remittance process to reimburse
carrier
END
Is claim package approved?
Yes
No
Updates
Supporting CPUC review in formal proceedings
Lastly, Communications Division provides advisory staff service to ALJs and Commissioners
in formal telecommunications proceedings, including proceedings to review utilities’ requests
for CPCN. Figure 6.25 illustrates the general process flow for reviewing CPCN requests.
41
Figure 6.25 Reviewing Telecommunications Utilities’ CPCN Requests
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/
59
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
goals.
![Online Process Steps to Set Goals[1]](https://img.pdfslide.us/doc/110x75/577cc3e81a28aba7119785c8/online-process-steps-to-set-goals1.jpg)
