What's the significance of this transfer? Hopefully, the PUC and its Chair will get better support to build its capacity and expertise as it tackles a number of complex issues.
It has taken well over a decade to address the reorganization and modernization of the PUC through audits and legislative budget fits and starts. And, there is still more to be done such as completing the office renovation and expansion to accommodate a fully staffed PUC.
Unlike other State agencies, generating revenue to cover its budget has never been a problem for the PUC. The problem has been keeping the taxes and fees collected from public utilities and other regulated businesses for its intended purpose, PUC oversight of these entities. Not unusual, in Fiscal Year 2014 more than 50% of the tax and fees collected were automatically transferred into the General Fund. At the end of each fiscal year, on July 1, the PUC special fund is emptied out except for a $1,000,000 carryover. Most of the money collected is from the Public Service Company Tax which is set by the Legislature, therefore, there is little opportunity to make adjustments to the tax rate and amount collected, which is a cost borne by the ratepayer.


Yes, yesterday was a red-letter day for the PUC as it transferred from the Department of bean counters to a Department more familiar with the needs of business and the regulation of businesses. Recognition should be given to Senator Roz Baker who has, for more than a decade, supported, battled and presevered for the reorganization and modernization of the PUC in her role as the Senate Chair of Commerce and Consumer Protection.
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