Memorandum

To: All CPUC Staff
From: President Peevey
Subject: My Vision
Date: January 3, 2003
CC: Commissioners Brown, Kennedy, Lynch, and Wood

The purpose of this memo is to reintroduce myself to you as President and to give you some insight into my regulatory and management philosophy. I hope this summary will begin a dialogue about a new vision and mission for the CPUC that moves beyond the crisis management of the past three years and into an era of reinvigoration of our work on behalf of the citizens of California.

We live and work in the largest, most diverse state in the nation. I am dedicated to restoring this Commission to a position of leadership among state regulatory commissions. We will reach this goal by working together and taking full advantage of the outstanding talent and energy among us.

Regulatory Perspective

I will serve as President of the CPUC on behalf of the public. I define public interest broadly, to include ratepayer and consumer needs, healthy utilities providing quality services, a viable economy in which businesses thrive, and a commitment to environmental enhancement. It is our job to take a balanced approach to serving these component parts of the public interest in an integrated way.

I do not represent the utilities, though I worked for one. I do not represent business interests, though I have founded several. I do not serve any particular industry, though at times my policies and decisions may support one group’s particular interests (for example, the renewable industry was pleased that I included renewable procurement requirements for the electric utilities earlier than was required by legislation). I do not represent organized labor, though I served as a union official. I do not serve only ratepayer financial interests, though I am a ratepayer. I recognize that sometimes it is in my interest to pay a little more for better products and services and a better environment. In summary, I serve the public interest as a whole.


Management Philosophy

When it comes to the functioning of the CPUC, I have a few important operating principles. They are:

This is a Commission, not a department. What this means is that I have four colleagues whose votes count equally with mine. I am committed to open and constructive information flow in order to make sure that each vote is taken from an informed viewpoint, and that advantages and disadvantages of decisions are weighed seriously and frankly. As President, by statute, I have certain duties beyond those of my colleagues, which I will undertake on behalf of this body as a whole. This will be done, whenever possible, in a collaborative fashion with my colleagues, as well as with the Executive Director, General Counsel, and senior staff.

My door is always open. I will discuss issues of concern with anyone. This policy applies to all staff, and extends to staff and officials from other agencies, as well as parties in proceedings before us (in compliance with ex parte rules, of course, and schedule permitting).

We have much to do and should work cooperatively with sister agencies. This is particularly true in the energy area, where we have numerous entities with whom we need closer cooperation on a daily basis, including an alphabet soup of DWR, ISO, CEC, CPA, AG, CARB, and, yes, FERC. I believe we can get more done by discussing issues, rather than protecting turf. With many of these entities, we have overlapping or complementary responsibilities, and closer coordination can maximize our limited resources, especially in this time of budget shortfall. There are also numerous state and local agencies, as well as non-governmental organizations, with whom we can cooperate in order to communicate with consumers and offer services and outreach. It is my intent to signal our cooperative effort strongly to our partners, and I expect that staff will get to know their counterparts in other agencies and work cooperatively toward the common goals articulated by the leadership.


What you see is what you get. In various press articles covering my appointment to the CPUC, I have been referred to as “impatient,” “strong-willed,” etc. I plead guilty to these characterizations. I may not be the most pleasurable Commissioner you will have to work with, but then popularity should not be an end in itself. I prefer to “cut to the chase” and deal in the substance of matters. I will always give you my frank opinion and tell you why I feel that way, without any hidden agendas. I expect the same in return. I want and expect staff members to give me their best advice, based on sound analysis and reasoning, not shaded by any preconceptions. Do not assume that you know how I will react until you have given me all the evidence. I am open-minded on most issues before us. I also place a high value on honesty, courtesy, and humor.

I do not find micromanaging and/or crisis-management to be helpful. Both have a tendency to waste precious staff time, which is our richest resource here. I want to return the style of management of daily work to one where we plan ahead for work on the horizon, set reasonable expectations and deadlines, give individuals clear responsibility for distinct pieces of work, and give staff the tools needed to do the work (including training, equipment, development paths, and promotional opportunities). My tendency is to have aggressive but realistic expectations and assume that they will be met, through reasonable management by our managers and diligent staff work.

Finally, I want to thank all of you for your hard work, especially during the past three years, and to thank you in advance for your efforts yet to come in our shared commitment to serving our State. Best wishes for a Happy New Year.