Utility Consumers' Action Network v. Public Utilities Commission

In this petition for writ of review, Utility Consumers’ Action Network (UCAN) challenges the Public Utilities Commission’s (PUC) acceptance of an offer by San Diego Gas & Electric Company (SDG&E) to settle a pending federal lawsuit against the PUC involving hundreds of millions of dollars.

UCAN contends the PUC misconstrued Public Utilities Code section 332.1 (all subsequent statutory references are to the Public Utilities Code), which (1) imposed a 6.5 cents per kilowatt-hour rate ceiling for electricity customers of SDG&E as part of an effort to stabilize electricity rates during California’s energy crisis, and (2) directed the PUC to set up an accounting mechanism for SDG&E to recover its reasonable costs stemming from the rate ceiling by applying SDG&E profits from its generation assets. UCAN argues that in approving SDG&E’s settlement proposal, the PUC exceeded its authority by contravening section 332.1, subdivision (c) and violating two provisions of the California Constitution. Additionally, UCAN maintains the PUC failed to make the necessary factual findings.

The PUC asserts it acted within its powers, correctly interpreted section 332.1, subdivision (c), and…