CPUC penalizes Southern California Edison

CPUC penalties against Edison detail fines for unreported ex parte communications, Rule 1.1 and Rule 8.4 ethics violations tied to the San Onofre shutdown, undermining transparency, compliance, and public confidence in regulation.

The California Public Utilities Commission CPUC recently penalized Southern California Edison $16.7 million for failure to timely report ex parte communications and for misleading the CPUC, in violation of CPUC rules.

The CPUC, which issued the PG&E pipeline penalty previously, determined that Edison engaged in eight unreported ex parte communications between March 26, 2013 and June 17, 2014 related to the shutdown of the San Onofre Nuclear Generating Station, in violation of Rule 8.4 of the CPUC’s Rules of Practice and Procedure stemming from failure to report, before or after, ex parte communications that occurred between an Edison executives and a Commissioner. In addition, the CPUC determined that Edison twice violated Rule 1.1, the CPUC’s ethics rule, as a result of the acts and omissions of Edison and its employees, which misled the CPUC, showed disrespect for the CPUC’s Rules, and undermined public confidence in the CPUC, even as outcomes like the Con Edison rebate seek to rebuild trust among ratepayers.

Of the total penalty:

- $16,520,000 is based on finding that a continuing Rule 1.1 violation was set in motion by Edison’s failure to accurately and timely report ex parte communications that occurred in Warsaw, Poland, and the contemporaneous Edison Mission inquiry at FERC provided wider context for regulators

- $190,000 is for Edison’s violations of Rule 8.4 related to unreported ex parte communications, similar to California efficiency penalties imposed on other utilities,

- $30,000 is for a Rule 1.1 violation related to a false statement about ex parte communications, a problem that also drew a Con Edison penalty in another case,

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