Affiliate Rules and Holding Company Issues

Affiliate Transaction Independent Audit Reports  

Rule VI.C of the Affiliate Transaction Rules (ATRs), Regulatory Oversight - Affiliate Audit, requires the Energy Division to hold a biennial independent audit for PG&E, SCE, SDG&E, and SoCal Gas. Utility shareholders bear the cost of the audit, which examines utility compliance with the ATRs for the last two calendar years ending on 31 December. The audit examines the controls that each utility has in place to ensure compliance, investigates instances of noncompliance to determine if effective actions are being taken to identify and correct deficiencies, and examines the findings from the previous two ATR audit reports to determine if corrective actions were taken. The most recent completed audit was for 2020-2021: Briefing on 2020-2021 Affiliate Transaction Rules Audit Findings.

NorthStar Consulting Group performed the 2010-2011 audit, and the State Agency Audits Bureau from the State Controller's Office performed the 2012-2013 and 2020-2021 audits. The Utility Audits Branch (UAB) is currently performing the 2022-2023 audit. 

For questions about the Affiliate Transaction Rules audit, please contact the Retail Choice Section

Decisions and Rulings  

  • D0612029 - Latest revisions to Affiliate Transaction Rules (Clean version) -- PDF 
  • R.05-10-030: Oct. 27, 2005, PUC Opens Proceeding Concerning Relationship Between California Energy Utilities And Their Holding Companies And Non-Regulated Affiliates.  
  • D0201037 Denies Holding Companies' (PGE, Edison and Sempra) request to dismiss PUC investigation.
  • D0201039 provides an initial interpretation of the "first priority" condition incorporated into decisions.
  • D9904069 - Grants Edison and other utilities a limited exemption from the disclaimer  requirement of Rule V.F.1 of the Affiliate Transaction Rules.  - PDF
  • D9812075 - Adopts enforcement of Affiliate Transaction Rules. 
  • D9808035  Modifies some of the Affiliate Transaction Rules of decision 97-12-088.   
    • Appendix A -- Affiliate Transaction Rules (with markup) -- PDF
    • Appendix B -- Affiliate Transaction Rules -- PDF  
  • D9712088  Adopts rules governing relationships between utilities and their affiliates.  
    • Appendix A, Affiliate Transaction Rules -- Word
  • R9704011 Rulemaking to establish standards of conduct governing relationships between California's natural gas local distribution companies and electric utilities and their affiliated, unregulated entities providing energy and energy-related services.