MAJOR ISSUES BEFORE THE PUC

The California Public Utilities Commission, supported by 1,070 employees and a budget of $70 million, is charged by the state constitution with regulating investor-owned utilities and truckers, companies that generate $40 billion a year in products and services.

The governor appoints the five commissioners, who must be approved by the California Senate before serving staggered six-year terms.

“The commission gets an incredible array of issues,” says Terry L. Moore, director of the PUC division of ratepayer advocates. For example, commissioners recently deciided to allow a “wine train” to haul tourists through Napa Valley.

Some of the major issues pending:

Telephone Service Adopt an “incentive-based” regulatory system governing Pacific Bell and GTE California. Approval expected this month with system to take effect Jan. 1, 1990, but some delay in implementation may be necessary.

A final phase in the phone companies’ regulatory overhaul will be completed next year as the PUC sets new prices for each telephone service covered by the new regulatory framework. It will also consider enlarging the size of the local calling area, currently 8 miles, and eliminating the 20-year-old monthly charge of $1.20 for “Touch Tone” telephones. It also will consider rules to improve and simplify service on privately owned pay phones and to resolve complaints of uncompetitive practices by local phone companies.

Gas and Electricity Southern California Gas rates to be adjusted, probably upward, effective Jan. 1, 1990.

Major rate case, first in three years, to be decided for Pacific Gas & Electric. Most contentious issue: Allocation of construction costs for Diablo Canyon nuclear power plant near San Luis Obispo based on a formula approved earlier.

Approval of one or more new pipelines to bring more natural gas into the state.

Revision of gas-pricing formula that seeks to keep major gas customers from switching fuels.

First of what will be a biennial assessment of California’s electrical needs.

Decision due by end of 1990 on controversial proposed merger of Southern California Edison and San Diego Gas & Electric. Federal approval is also needed.

Trucking Revision of freight-hauling rules and price setting, seeking to improve competition and stability in trucking while avoiding both minimum rates and predatory pricing.

Miscellaneous The PUC sets rates for investor-owned water districts, which deliver nearly a quarter of residential supplies.

It also sets prices for ferry travel, and has before it a controversial proposal to merge two presently competing San Francisco companies, Red & White Fleet and Blue & Gold, which provide commuter service as well as tourist excursions on San Francisco Bay.