Mar 18, 2017
March 16, 2017
Senator Ted Gaines
Capitol Office State Capitol, Room 3076
Sacramento, CA 95814
Re: CPUC Commissioner Liane Randolph
Conflict of Interest
Dear Senator Gaines,
As you are aware there is a matter of great significance being adjudicated at the CPUC regarding the request of PacifiCorp to have the CPUC authorize the Amended KHSA agreement signed this past year by Governors Brown of California and Oregon respectively and to approve of the transfer of four hydroelectric facilities to a newly formed non- profit corporation, the Klamath River Renewal Corporation (KRRC). PacifiCorp has asked the CPUC to authorize in addition the transfer of approx. $250,000,000 of State funds and a finding that the KRRC is qualified to receive the ratepayer surcharge trust funds as well as the State Bond money. The sole purpose of the KRRC is to destroy these hydroelectric facilities.
The County of Siskiyou Board of Supervisors and the Siskiyou County Water Users have each filed a cross Petition with the CPUC raising some very sensitive and important points including but not limited to the issue of lack of experience and background by KRRC, as well as their lack of financial strength that would insure that the project if carried out and substantial bio remediation and a catastrophic failure result could be ameliorated. We raise these questions out of a serious concern regarding the protection and security that would be afforded to Siskiyou County and its citizens by such a novice organization. As you know we have no voice in the process as the agencies involved have deliberately and with malice kept our County officials from being able to have a voice in the destruction to take place.
The question of a conflict of interest on the part of Commissioner Randolph is of great concern and we look to you as our Senator to get to the bottom of it. Commissioner Randolph has recently been put into an oversight position by Governor Brown apparently to make certain that the ALJ involved is guided in the desired direction. Commissioner Randolph in the past 30 days was selected to replace Commissioner Clifford Rechtschaffen as oversight on this matter. Among other issues this is a blatant affront to all parties involved because Commissioner Randolph acted as Deputy Secretary and General Counsel at the California Natural Resources Agency and according to the record was the point person in the agency for its efforts to destroy the Klamath Dams as she was handling their efforts with regard to the Klamath River Restoration and Dam Removal process. Furthermore it should be pointed out that the California
Natural Resources Agency is a signatory to the Amended KHSA and therefore has a vested interest in seeing that the agreement is carried out including the authorization by the CPUC to transfer PacifiCorp’s interest in the dams to the KRRC. The Director of the Natural Resources Agency of California in order to carry out their efforts granted without reservation an amount of TWENTY-FIVE MILLION DOLLARS ($25,000,000) on October 12, 2016 as an advance on a TWO HUNDRED FIFTY MILLION DOLLAR ($250,000,000) grant to KRRC. The grant of funds was signed by Tom Gibson General Counsel to the Agency and by Bryan Cash, Deputy Assistant Secretary of the Agency. According to the amended KHSA this was a grant with no “claw back” provision. The Amended KHSA Page 11 Clause 2 states that “KRRC shall have legal control over the disbursement of funds; disbursements are not contingent on other factors or subject to claw- back ….”. We have only just learned of the existence of this grant as part of a package application submitted to the FERC indicating that the KRRC was financially capable of carrying out the destruction of the Klamath Dams. I would note that the FERC has been purposely misled because without the approval of the CPUC the KRRC cannot receive the funds.
Senator Gaines, we request that you carry out an investigation of this matter as soon as possible to prevent a miscarriage of justice by the CPUC. We would be happy to provide you with additional information as required. Time is of the essence as this matter is before the CPUC ALJ as this is written.
Siskiyou County Water Users Assoc.
cc: Michael Kobseff
Chairman Siskiyou County Board of Supervisors