This is in compliance with the federal stipulated orders which require CUC to separately account for the revenues and expenses of the power, and water and wastewater divisions.
CPUC Chairwoman Viola Alepuyo and Commissioner Kyle Calabrese, in a Sept. 3 order, said the quarterly reports should include balance sheets and profit and loss statement for each of CUC’s operating division.
The report should be filed on or before the first day of the second month after the end of each quarter.
CPUC is expecting the report on Feb. 1, 2010.
CPUC at the same time noted that CUC failed to deposit funds reserve from the levelized energy cost clause program to the “locked box” bank account.
“CUC’s misconduct, which is both inexcusable and in substantial violation of commission orders, exposes CUC to an administrative fine of up to $25,000 per violation and ot other sanctions,” CPUC said.
CPUC said it will decide whether to pursue the sanction based on CUC’s future compliance with the commission’s orders.
The commission said such misconduct “strikes at the heart of the regulatory process.”
CPUC, it added, has been trying to establish a collaborative regulatory environment.
CPUC said if CUC cannot comply with the order it should file a petition with the commission for relief from the order.
CPUC said CUC expressed “remorse” for its chronic disregard and violation of the commission’s orders.
In the same order, CPUC approved the proposed $45 million preferred stock agreement between CUC and the Commonwealth Development Authority.
“The commission finds that the agreement is reasonable, prudent and in the best interests of the ratepayers,” CPUC stated.
Under the agreement, over $177 million of CUC’s debt will be transformed into $45 million of preferred stock, with provision made for CUC to repurchase up to $16.2 millon of this stock through internal capital investment.
