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Aguirre Severson Lawsuit Against CPUC
Aguirre Severson Lawsuit Against CPUC
Aguirre Severson Lawsuit Against CPUC
DIVISION _____
__________________________________________________
MICHAEL J. AGUIRRE,
Plaintiff and Petitioner,
v.
__________________________________________________
5. BILLIONS OF DOLLARS
ARE AT STAKE ............................................. 24
VERIFICATION ......................................................................... 27
3
MEMORANDUM OF POINTS AND AUTHORIES IN
SUPPORT OF PETITION/APPLICATION .................................. 28
PROOF OF SERVICE.................................................................... 33
4
TABLE OF AUTHORITIES
Cases
Statutes
5
§ 11130 ................................................................. 9, 25, 29, 30
§ 11130(a)............................................................................. 30
§ 11130.3 .............................................................................. 29
§ 11130.5 .................................................................. 26, 29, 30
§ 11130.7 ........................................................................ 29, 30
6
PETITION FOR WRIT OF MANDATE
To the Honorable Justices of the Court of Appeal of the State of
California, First Appellate District:
I. PRELIMINARY STATEMENT
A public report has been made that the California Public Utilities
Commission (CPUC) has conducted a staggering number of Open
Meeting Law violations occurred at the CPUC. Text messages between
and amongst CPUC Commissioners reveal that the five
Commissioners discussed, at length in serial meetings, the dismissal of
the Commission’s Executive Director and reached a collective
consensus on that subject, all in violation of the Bagley-Keene Open
Meeting Act.
Petitioner seeks to stop the CPUC from violating the Bagley-
Keene Open Meeting Act (“the Act” or “the Bagley-Keene Act”), set
forth in Government Code sections 11120-11132, which requires
publicly noticed meetings with prepared agendas accurately describing
action to be taken, and requires the CPUC to conduct its meetings in
public absent specific authorized exceptions.
Here, Petitioner seeks to stop the CPUC from (1) holding closed
sessions without the notice required under Government Code Section
11126.3(a), and further, (2) to require the CPUC after holding closed
sessions to make the reports required under Government Code Section
11126.3(f), which provides as follows: “After any closed session, the
state body shall reconvene into open session prior to adjournment and
shall make any reports, provide any documentation, and make any other
disclosures required by Section 11125.2 of action taken in the closed
session.”
7
Under pressure from recent public requests, the CPUC’s legal
counsel disseminated 78 pages of text messages from the CPUC
Commissioners that show Commission members carrying out serial
meetings seeking and achieving agreement on official CPUC business
via text and outside of public noticed meetings. (See Exhibit 18, pages
296, 299, 307,319, 323, 330, 334, 335, 342)
Accordingly, Petitioner also seeks to stop the CPUC from its use
of direct communication, personal intermediaries, or technological
devices employed by a majority of its members to develop a collective
concurrence as to action to be taken outside of an open meeting, and to
render void any action taken by means of such unlawful serial meetings
and collective concurrence. (Section 11122.5(b)1; Sutter Bay
Associates v. County of Sutter (1997) 58 Cal.App.4th 860, 876-877;
Stockton Newspapers v. Redevelopment Agency (1985) 171 Cal.App.3d
95, 103
II. JURISDICTION
This writ of mandate is filed under the legal authority Public
Utilities Com. v. Superior Court (2016) 2 Cal.App.5th 1260, 1272, to
obtain an order stopping the unlawful closed session meetings.
Petitioner is entitled to this Court’s judicial review to set aside the
Commission’s unlawful setting of closed session meetings.
Review by a petition for writ of review is the “sole means
provided by law for judicial review of a [CPUC] decision.” Consumers
Lobby Against Monopolies v. Public Util. Comm’n (1979) 25 Cal.3d
1
Unless otherwise stated, all references to statutes are to the
California Government Code.
8
891, 901. The Court should grant the petition because it is (1)
meritorious; and (2) raises an important issue and satisfies the elements
of Govt Code § 11130(a). Pacific Bell v. Public Util. Comm’n (2000)
79 Cal.App.4th 269, 281-282.
III. PARTIES
Respondent is the California Public Utilities Commission (CPUC).
Petitioner Michael J. Aguirre is an interested party acting as legal
counsel in a number of public record and constitutional law cases aimed
at exposing wrongdoing at the CPUC and encouraging needed reforms.
IV. EXHIBITS
Petitioner’s Appendix contains, amongst other documents, a true
and correct copy of the August 5, 2020, news article reporting a high
ranking CPUC official admitting CPUC Commissioners have been
engaging in systemic violations of California’s open meeting laws
(Exhibit 1). Petitioner’s Appendix also includes CPUC agenda
documents (Exhibits 2-17), and text messages of CPUC
Commissioners (Exhibit 18).
V. STATEMENT OF THE CASE
9
the CPUC accused the Commission of holding a "staggering number"
of closed-door meetings in apparent violation of state law.”2
Between September 12, 2019, when Marybel Batjer assumed the
Office of CPUC President, and August 6, 2020, (the date of the San
Francisco Chronicle story), Ms. Batjer presided over 21 meetings in
which numerous closed sessions were held. (See Exhibits 2-17):
2
https://www.sfchronicle.com/business/article/Senior-CPUC-official-
claims-she-s-being-ousted-15459461.php
3
http://www.adminmonitor.com/ca/cpuc/voting_meeting/20200806/
10
B. BACKGROUND OF THE CPUC AND THOSE IT IS
CHARGED WITH REGULATING 4
4
The citations as to the background are matters within the public
record and CPUC proceedings and are provided to give context as to
the public’s interest in ensuring the Open Meeting Laws are followed.
11
corporations: SDG&E has over 1.3 million customers; 5 PG&E has over
5.4 million customers; 6 and SCE has over 5 million customers.7
1. CPUC CATASTROPHE NUMBER 1:
Beginning as early as April 1996, the three large electricity
corporations (SDG&E, PG&E and SCE) jointly filed with the Federal
Energy Regulator Commission (FERC) “for authority to sell electric
energy at market-based rates,” as shown here: 8
5
https://investor.sempra.com/node/37276/html
6
Pacific Gas & Electric 10-K p. 24.
7
SCE 10-K, p. 127.
8
April 29, 1996, Joint Application of Pacific Gas & Electric
Company, San Diego Gas & Electric Company and Southern
California Edison Company for authority to sell electric Energy at
Market -Based Rates using a power exchange.
9
Decision 02-02-051 February 21, 2002 page 3
12
times higher than the average clearing price of $29.71 per MWh in
December 1999.10 The high prices led to an energy shortage and rolling
blackouts. 11 The energy shortage and high prices resulted in the
Governor of California proclaiming States of Emergency in January
and February 2001: 12
10
https://www.eia.gov/electricity/policies/legislation/california/subseque
ntevents.html
11
https://www.eia.gov/electricity/policies/legislation/california/subseque
ntevents.html
12
https://www.google.com/search?q=copy+January+17,+2001+cal+go
vernor+proclaims+energy+emergency&client=firefox-b-1-
d&hl=en&sxsrf=ALeKk01uS6kAr1k5lAzmWk8cLcwv8YBiVA:1597
670264435&source=lnms&sa=X&ved=0ahUKEwiSqtHEqaLrAhVG
PawKHdLgBpoQ_AUIDSgA&biw=713&bih=349&dpr=2.31
13
In response, the State of California created the California Energy
Resources Scheduling (CERS) program on January 17, 2001, to
purchase power on behalf of the three large utilities -- SDG&E, SCE
and PG&E. 13 CERS entered into 58 long-term power contracts at an
estimated cost of over $40 billion. Customers of the utility monopolies
over the past 20 years pay for the costs of the long-term contracts.14
State officials used the Department of Water Resources (DWR) to issue
“bonds for the purpose of shifting much of the cost of the electricity
crisis to future ratepayers.” 15 Although the final power contract ended
in 2015, utility customers are required to pay on the bonds until 2022.16
These billions of dollars were taken from future utility customers to
“avert a collapse of the electric system.”17
2. CPUC CATASTROPHE NUMBER 2:
As utility customers were finishing paying off the costs of the
energy crisis, the utilities were causing another expensive
catastrophe—deadly and costly wildfires. SDG&E imprudent caused a
deadly wildfire in San Diego in 2007. 18 PG&E safety violations caused
at least 13 fires in 2017 including the Adobe Fire, Alta Fire, Cascade
Fire, the Norrbom Fire, Nuns Fire, Oakmont/Pythian Fire, Partrick
Fire, the Pocket Fire, Point Fire, Potter/Redwood Fire, Sulphur Fire,
13
https://water.ca.gov/Programs/All-Programs/California-Energy-
Resource-Scheduling
14
https://water.ca.gov/Programs/All-Programs/California-Energy-
Resource-Scheduling
15
Decision 02-02-051, February 21, 2002, p 53.
16
https://water.ca.gov/Programs/All-Programs/California-Energy-
Resource-Scheduling
17
CPUC Decision 02-02-051, February 21, 2002, p 3
18
CPUC Decision 17-11-033, November 30, 201,7 p. 2
14
Youngs Fire, McCourtney Fire, and the Lobo Fire. In 2018, it caused
the deadly Camp Fire. 19
Here are the faces of the 85 Californians that PG&E decision-
makers killed in the Camp Fire in Butte County:
19
CPUC Decision 0-05-019, May 7, 2020, pp 9-12.
15
Again, the CPUC bailed out the three major utilities. The CPUC,
under Marybel Batjer, decided to make utility customers pay over $13.5
16
billion to pay for fires PG&E and the other utilities caused. 20 To make
utility customers pay, the CPUC decided to continue the rate charges
previously imposed on utility customers to pay for power purchases
during the energy crisis in response to the energy shortage.21 The
CPUC calculated the revenue requirement for funding payments of the
utilities’ fire costs based on the “the actual collections made by
Department of Water Resources to make the payments of the power
purchase bonds.22
Here is the CPUC flow chart for the $13.5 billion, provided by
the CPUC in response to a Public Records Act request:
Hi Mr. Aguirre,
We have reviewed the documents withheld and will now
provide you with the attached documents. A final
document is being withheld under the deliberative process
privilege and attorney client privilege. It consists of a
communication between a Commissioner's Advisor and
Commissioner staff and attorneys at the Commission
regarding next steps in a proceeding.
20
Decision 19-10-056 October 24, 2019, pp. 11, 20.
21
Decision 19-10-056 October 24, 2019, p. 11.
22
Decision 19-10-056 October 24, 2019, p. 11.
17
Ms. Batjer was a member of the Governor’s Strike Force that met
in secret with PG&E representatives to develop the $13.5 billion
funding plan for PG&E and its brethren major utilities. 23 The
Governor’s office refused to produce records of communications
between state officials and PG&E representatives regarding the plan to
make utility customers pay the $13.5 billion.24 These secret meetings
were held while PG&E was under criminal investigation for criminal
23
23 August 2019 Officer of the Governor letter RE: Public Records
Act Request
24
July 26, 2019, Gov Legal Unit Denial of Public Records Request;
August 2, 2019, Gov Legal Unit Denial of Public Records Request
(Writ Ex. 10)
18
homicides related to the Camp Fire that PG&E operators caused.
PG&E was convicted of 84 counts of criminal homicides. 25
The plan to have the CPUC make utility customers pay the $13.5
billion for PG&E and other utility-caused fires was supposed to have
occurred in October 2019. However, an internal CPUC document
shown below shows the decision was already made by September 9,
2019:
25
http://www.buttecounty.net/districtattorney/Search-
Results?q=camp%20fire%20report
19
a. Action – The CPUC issued the first electric IOU
safety certifications in July 2019.
II. Initiate a proceeding 14 days after the effective date of
AB 1054 to consider requiring the large electric IOUs to
collect a non-bypassable charge from ratepayers to
support a Wildfire Fund.
a. Action – The CPUC initiated this proceeding (R.
19-07-017) on July 26, 2019.
III. Modify the CPUC’s reasonableness review/prudent
manager standard to allow an electric IOU to recover
“covered wildfire” costs from ratepayers when those
costs are determined to be just and reasonable, based on
the “reasonable conduct” of the electric IOU. Provide
that these costs may be recovered in part or in full, that
the electric IOU bares the burden to demonstrate
“reasonable conduct”, unless it has a valid safety
certification for the time period of the “covered wildfire”,
in which case the electric IOU’s conduct must be deemed
reasonable unless “serious doubt” is raised by a party to
a CPUC proceeding. If “serious doubt” is raised, the
electric IOU is required to dispel and prove that its
conduct was reasonable.
a. Action – Dependent upon an electric IOU filing an
Application for “covered wildfire” costs and
expenses for cost recovery from ratepayers.
IV. Assess a penalty in the amount up to three times the
penalty authorized by law for certain related violations
iuf the CPUC finds that an electric IOU has already
requested cost recovery for “covered wildfire” costs.
a. Action – Dependent upon the CPUC identifying
that an electric IOU has tried to “over” recover
“covered wildfire” costs from ratepayers.
V. Accept an electric IOUs Application for a CPUC
financing order to recover costs from ratepayers related
to “catastrophic wildfires”, under specific conditions,
20
including costs associated with an electric IOU’s
proportionate share of five billion dollars for wildfire
risk mitigation expenditures.
a. Action - Dependent upon an electric IOU filing an
Application requesting a CPUC financing order to
recover “covered wildfire” costs from ratepayers.
21
X. Establish the California Wildfire Safety Advisory Board
(CWSAB) to, among other actions, advise and make
recommendations related to the wildfire safety to the
WSD as well as review, comment and advise on the
electric IOU’s and publicly owned utilities WMPs.
a. Action – The CPUC is currently developing a plan
to create the CWSAD.
From: Notify@jud.ca.gov
Sent: Tuesday, June 19, 2018 4:11 PM
**
Aguirre v. California Public Utilities Commission
Case: A151282, 1st District, Division 2
Disposition date (YYYY-MM-DD): 2018-06-19
Disposition description:
Petition granted by opinion
22
with the redacted portions restored. As to all of
these documents and redactions, the CPUC did not
meet its burden of " 'demonstrat[ing] a clear
overbalance on the side of confidentiality' " between
the public iterest in nondisclosure and the public
interest in disclosure. (American Civil Liberties
Union of Northern California v. Superior Court
(2011) 202 Cal.App.4th 55, 68-69; County of Santa
Clara v. Superior Court (2009) 170 Cal.App.4th
1301, 1321 [" 'Where the public interest in
disclosure of the records is not outweighed by the
public interest in nondisclosure, courts will direct
the government to disclose the requested
information.' "].) Second, of the documents
withheld on the basis of the exemption for
correspondence to and from the Governor's Office
(Gov. Code, § 6254, subd. (l)), the CPUC shall
produce all of the following: the documents and any
attachments appearing at tabs 4-5, 7-9, 14-15, 18,
22, 25, 28-29, 33, 59, 65-68, and 74. Third, the
CPUC shall provide petitioner with a copy of the
privilege log it prepared in response to our October
27, 2017 order. In addition, we uphold the limited
redactions made within the documents appearing at
tabs 14 and 18 to protect personal privacy, as
follows: Michael Picker's personal contact
information at the top of page 435 and in the middle
of page 442 may be redacted; Ryan McCarthy's
personal cell phone number at the bottom of page
444 may be redacted. The other redactions are
denied. Finally, we conclude, as we did in our
October 27, 2017 order, that respondent may
continue to withhold the 16 records over which it
asserted the attorney-client privilege, as petitioner
has not timely or convincingly disputed
respondent's claim that he waived his request for
these 16 documents. (Resolution No. L-522, p. 12.)
23
4. THE SECRET MEETINGS AT CFEE EVENTS
The utilities and its supposed regulator, the CPUC,
systematically engage in secret government decision making through
public interest-sounding entities such as the California Foundation for
the Environment and the Economy (CFEE). 26 Since 1979, CFEE has
connected labor, business, local government and environmental leaders
with elected officials and policymakers outside of the public view.
CFEE arranges for meeting amongst and between government
regulators and utility executives in exclusive hotels in lands far away
from Californians’ public scrutiny such as in Switzerland, France,
Chile, Mexico, the Netherlands, the United Kingdom, Finland, Ireland,
Germany, the Czech Republic, Australia, Singapore, Canada, Sweden,
Norway, Poland, Brazil, Italy, Spain, China, Hong Kong, New Zealand,
South Africa, Japan, Argentina, South Africa, Denmark, South Korea,
Portugal, Hungry, Berlin, The Hague, and Inner Mongolia. CFEE also
holds weekend conferences at wineries and resorts in Napa, California
and other exclusive locations where these officials and representatives
can conduct the public’s busines in private. 27
5. BILLIONS OF DOLLARS ARE AT STAKE
There is a profound public interest in the CPUC keeping their
meetings open to the public as required by Art I, Sec. 3 of the California
State Constitution, and the California Open Meeting Law – the Bagley
Keene Act. Under the CPUC, the combined approved revenue
authorized to be taken from utility customers is almost $30 billion, as
26
https://www.cfee.net/
27
https://www.cfee.net/
24
shown here in this excerpt from the CPUC 2020 AB-67 Report28 to the
Governor and California Legislature:
28
The California Public Utilities Commission (CPUC) issued its 2020
Assembly Bill (AB) 67 Annual Report pursuant to California Public
Utilities Code Section 913, which requires the CPUC to publish the
costs to ratepayers of all utility programs and activities currently
recovered in retail rates. see
https://www.cpuc.ca.gov/General.aspx?id=6442463728
25
Under Government Code Section 11122.5(b), Plaintiff/Petitioner
seeks a Court order prohibiting the CPUC from engaging un unlawful
serial meetings to reach a collective concurrence.
Plaintiff/Petitioner seeks costs and attorney fees under Govt
Code § 11130.5.
Respectfully submitted,
26
MEMORANDUM OF POINTS AND AUTHORIES
IN SUPPORT OF PETITION/APPLICATION
28
App. 3d 95, 102 [214 Cal. Rptr. 561]; Frazer v. Dixon Unified School
Dist., supra, 18 Cal. App. 4th at p. 795; see also Roberts v. City of
Palmdale (1993) 5 Cal. 4th 363, 376 [20 Cal. Rptr. 2d 330, 853 P.2d
496].) (1997) 58 Cal.App.4th 860, 876-877.
29
and start the process over. To the extent that information has been
received, statements made, or discussions have taken place, the CPUC
should include all of this on the record to ensure that everyone is aware
of these events and has had an opportunity to respond.
A remedy in dealing with a violation of the Act involves filing a
lawsuit or writ of mandate to stop or prevent future violations of the
Act. (§ 11130.) The Legislature has authorized any interested person to
use these remedies to seek judicial redress for past violations of the Act.
A prevailing plaintiff may recover the costs of suit and attorney’s
fees from the body. (§ 11130.5.) The Act provides for misdemeanor
penalties against individual members of the body if the member attends
a meeting in violation of the Act with the intent to deprive the public of
information to which he or she knows, or has reason to know, the public
is entitled to receive. (§ 11130.7.)
30
F. THE CPUC’S OPPOSITION DOES NOT ALTER THE
DUTY OF THIS COURT TO ISSUE THE INJUNCTION
31
CERTIFICATE OF COMPLIANCE
I certify that the foregoing PETITION FOR WRIT OF
REVIEW FOR OPEN MEETING LAW VIOLATIONS;
MEMORANDUM OF POINTS AND AUTHORITIES is in
compliance with the requirements of California Rules of Court, Rule
8.204(c)(1). The brief contains 4,639 words, including footnotes. In
making this certification, I have relied on the word count of the
computer program used to prepare the brief.
32
PROOF OF SERVICE
/s/Maria C. Severson
Maria C. Severson
33