How Established
The origins of the California Public Utilities Commission date back to the mid-1800s when the State Legislature established the State Board of Transportation to limit the rates charged by railroads. In 1911, the Railroad Commission was established by a California constitutional amendment, and in 1912, the Public Utilities Act broadened the Commission's duties and powers to include other fixed utilities, including water. In 1946, the name of the Commission was officially changed to the California Public Utilities Commission (Commission or CPUC) to more accurately reflect its expanded regulatory responsibilities. As required by law, the Commission is headquartered in San Francisco with outreach offices in Los Angeles and San Diego.

Purpose of the Commission
For certain utilities, such as water, competition is not considered to be in the public's best interest. Because of the significant costs of building and maintaining water system infrastructure, a single entity (natural monopoly) can provide water service at lower costs and lower rates. In non-competitive utility markets, the Commission has the responsibility of weighing the interests of both customers and shareholders of investor-owned utilities. (Government-owned water systems like cities and districts and mutual water companies are self-regulated). Currently, the Commission regulates about 3,300 transportation companies and 1,300 telecommunications, energy, and water utilities.

The Commission is responsible for regulating the rates, service, water quality, and operational safety of investor-owned water utilities. As a regulatory body, the Commission balances the public need for safe, reliable, and reasonably priced water services with the expectation of the utility stockholders for a fair and reasonable rate of return on their investment.

Organization
Five Commissioners, appointed by the Governor and confirmed by the State Senate for terms of six years, oversee the Commission and its staff. The six-year terms are staggered to assure the Commission's functional continuity. Currently serving as Commissioners are:

Approximately 800 Commission staff members, which include engineers, accountants, economists, and attorneys, represent the public and participate in Commission proceedings. In representing the public, the Commission staff review utility operations and financial records, investigate customer complaints, prepare reports with recommendations, and oversee the implementation and enforcement of Commission decisions. Specifically, the Commission's Water Division staff, consisting of 52 technical and administrative employees, analyze and make recommendations concerning water utility rate requests and ensure that service and water quality standards are met.

For additional information on the Commission, the Commissioners and current issues affecting utility customers in the State of California, please visit the Commission's web site @ http://www.cpuc.ca.gov .