State Utilities Commission fires executive director over her hires

The state utility regulator unanimously voted Monday to fire its executive director, effective Friday.

The California Public Utilities commissioners' decision was announced after a closed session of more than three hours, two hours of public comment and a presentation by the ousted top official, Alice Stebbins, and her lawyers.

Stebbins alleged the commissioners schemed for months to fire her via text messages in violation of the Bagley-Keene Act and open meeting laws. She said they were retaliating for her whistleblowing on the CPUC's failure to collect $200 million in fees owed by private utilities. Stebbins, who was placed on administrative leave in early August, will now sue the commission for wrongful termination, according to her lawyers, Karl Olson and Therese Y. Cannata.

Olson and Cannata argued the director was targeted after alerting CPUC President Marybel Batjer and others about the outstanding fees.

"On behalf of now former executive director Stebbins, we are disappointed but not surprised by this action," Cannata said after the CPUC's vote. "President Batjer and the commissioners have not denied that they engaged in illegal serial meetings in July 2020 when they decided to terminate Ms. Stebbins."

During Monday's hearing, Batjer contended Stebbins' firing was the result of her questionable hiring of five employees, which were flagged in an investigation by the State Personnel Board. Batjer accused Stebbins of hiring unqualified individuals she previously worked with. Batjer also denied private utilities lobbied for Stebbins' removal.

"Our consideration of your employment status today is based on the findings in the report," Batjer said. "You took a series of actions over the course of several years that calls into question your integrity. Those actions along with your conduct in reaction to and in response to the report's findings, cause us to have to consider whether you can continue to serve as the leader of this agency."

Records provided by the CPUC reveal hundreds of text messages between the Commissioners and the president. The group, including Batjer and fellow commissioners Liane Randolph and Clifford Rechtschaffen throughout July and August show messages like "It's not tenable for her to stay." Another message reads: "One question she may ask is if there is any way to salvage the situation. I want to be very careful to make sure she understands that we all agree."

Olson contended Monday those messages, exchanged night and day, were considered serial private meetings in violation of open meeting laws. The laws prevent meetings between state agencies to arrive at a collective agreement in secret or using communication of any kind to deliberate or take action on any item outside of noticed meetings, Olson told the Commission.

"Your texting sessions weren't noticed of meetings. Ignorance of the law is no excuse, but in case of a Commission populated by well-educated lawyers, it seems even worse," Olson said. "You probably know the law and you consciously and brazenly defied it."

Olson told Batjer, who denied any outside influence, she shouldn't be holding meet and greets with industry officials, which include executives from the Pacific Gas & Electric Company.

"You gave PG&E a second chance, waived a $200 million fine after it committed felonies that killed people but don't want to give Alice a second chance after the state personnel board questioned some of her hires," Olson said. "There are no rules in hiring people you worked with. That's letting a corporate criminal off the hook, but not giving a second chance to your executive director who's done a great job."

Stebbins also pleaded her case before the CPUC, while calling out the tribunal for retaliating against efforts to fix a flawed system.

"The ratepayers, the Legislature and the Governor deserve a CPUC that regulates responsibly," she said. "Please don't let President Batjer and the rest of the CPUC to ignore the fiscal integrity of the most powerful organization in California. Ratepayers count on us to hold utilities accountable."