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Brown Names Two New Commissioners to California's Troubled Utility Regulator

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The California Public Utilities Commission is the main tenant of the Edmund G. Brown State Office Building. (Coolcaesar/Wikipedia)

Gov. Jerry Brown appointed two of his top aides Wednesday to a state panel that has been roiled by allegations of lax oversight and cozy dealings with utilities.

Brown named adviser Clifford Rechtschaffen and deputy legislative affairs secretary Martha Guzman Aceves to the California Public Utilities Commission (CPUC).

In a statement, Brown said the two would protect ratepayers and ensure "safe, reliable and climate-friendly energy in California."

The commission has been under greater scrutiny since eight people died in a pipeline explosion in San Bruno in September 2010. A federal investigation into the disaster cited insufficient oversight by the utilities commission. Tens of thousands of emails between PG&E executives and high-ranking regulatory officials released during a civil suit show a cozy relationship between commissioners and the utility executives they regulate. Further email releases indicate the governor’s office has been closely involved in discussions with the agency over how to handle controversial situations, including San Bruno and the shutdown of a Southern California nuclear power plant.

Federal and state prosecutors earlier announced investigations into those allegations in 2015, but they have yet to announce any conclusions. One of the outgoing commission members, former consumer advocate Michael Florio, who is being replaced when his six-year term expires on Sunday, was involved in some of the questioned email exchanges with utility executives. He has defended his private communications with the utility officials.

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Newly appointed commissioner Guzman Aceves, 39, previously worked on farmworker issues, among other matters. Rechtschaffen, 59, briefly served as head of the state Department of Conservation, which oversees oilfield drilling in California, the nation's No. 3 oil-producing state.

PG&E Cited $5.45M Over Natural Gas Inspections

Last week, the commission issued a $5.45 million citation against PG&E for using contractors who lacked required qualifications to conduct corrosion inspections on the company's natural gas system.

The CPUC says PG&E reported in September that more than 100 non-qualified contractors conducted hundreds of thousands of inspections between February and May 2014 and in November 2014.

PG&E spokesman Donald Cutler said in a statement that the company had changed its operator qualifications process even before it reported to the CPUC and expected to complete re-inspections by the end of the year.

The commission says PG&E has 30 days to pay or contest the citation.

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