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CPUC Approves $97.5 Million Settlement Agreement in PG&E Ex Parte Proceedings

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Today the CPUC adopted a settlement agreement  totaling $97.5 million that resolves eight proceedings in which Pacific Gas and Electric Company (PG&E) admittedly failed to timely report ex parte communications from 2010 to 2014, and engaged in improper ex parte communications, in violation of CPUC rules.  

Ex parte communications with the CPUC are subject to unique reporting rules, which require a party to a CPUC proceeding to disclose the nature of the communication in certain CPUC proceedings to maintain transparency and integrity of CPUC proceedings.  PG&E's failure to  report these communications is an unacceptable violation of the CPUC's rules and justifies the remedy provided in this case.  Although these violations occurred more than four years ago, today's decision is an affirmation that all parties to the CPUC's proceedings must comply with the ex parte rules.  

Under the settlement agreement, PG&E will make the following payments from shareholder funds:

• $12 million to the state's General Fund

• $6 million to the City of San Bruno General Fund

• $6 million to the City of San Carlos General Fund

• $10 million in its next General Rate Case

In addition, PG&E will forgo collection of $63.5 million in revenue requirements for 2018 and 2019. 

The settling parties are the City of San Bruno, the City of San Carlos, the CPUC's Office of Ratepayer Advocates, the CPUC's Safety and Enforcement Division, The Utility Reform Network, and PG&E.

The proceeding remains open to consider whether PG&E's newly disclosed email communications violate the CPUC's ex parte rules and should result in the imposition of additional fines.

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