California Article XII: Public utilities

The Public Utilities Commission consists of 5 members appointed by the Governor and approved by the Senate, a majority of the membership concurring, for staggered 6-year terms. A vacancy is filled for the remainder of the term. The Legislature may remove a member for in competence, neglect of duty, or corruption, two thirds of the membership of each house concurring. [New section adopted November 5, 1974.]

Subject to statute and due process, the commission may establish its own procedures. Any commissioner as designated by the commission * New Article XII adopted November 5, 1974.

may hold a hearing or investigation or issue an order subject to commission approval. [New section adopted November 5, 1974.]

Private corporations and persons that own, operate, control, or manage a line, plant, or system for the transportation of people or property, the transmission of telephone and telegraph messages, or the production, generation, transmission, or furnishing of heat, light, water, power, storage, or wharfage directly or indirectly to or for the public, and common carriers, are public utilities subject to control by the Legislature. The Legislature may prescribe that additional classes of private corporations or other persons are public utilities. [New section adopted November 5, 1974.]

The Legislature has plenary power, unlimited by the other provisions of this constitution but consistent with this article, to confer additional authority and jurisdiction upon the commission, to establish the manner and scope of review of commission action in a court of record, and to enable it to fix just compensation for utility property taken by eminent domain.

[New section adopted November 5, 1974.]

The commission may fix rates, establish rules, examine records, issue subpenas, administer oaths, take testimony, punish for con- tempt, and prescribe a uniform system of accounts for all public utilities subject to its jurisdiction. [New section adopted November 5, 1974.]

A transportation company may not grant free passes or discounts to anyone holding an office in this State; and the acceptance of a pass or discount by a public officer, other than a Public Utilities Commissioner, shall work a forfeiture of that office. A Public Utilities Commissioner may not hold an official relation to nor have a financial interest in a person or corporation subject to regulation by the commission. [New section adopted November 5, 1974.]

A city, county, or other public body may not regulate matters over which the Legislature grants regulatory power to the Commission. This section does not affect power over public utilities relating to the making and enforcement of police, sanitary, and other regulations concerning municipal affairs pursuant to a city charter existing on October 10, 1911, unless that power has been revoked by the city’s electors, or the right of any city to grant franchises for public utilities or other businesses on terms, conditions, and in the manner prescribed by law. [New section adopted November 5, 1974.]