CPUC (De)Evolution: A Brief History

From early in California state history, the railroads had firm control over the state government. Perhaps the best-known example came in the 1860s when Leland Stanford, one of four principal investors in the Central Pacific Railroad, was elected governor. A lesser-known example of the railroads’ powerful influence over the state came in the 1870s when Creed Haymond, Solicitor General for the Southern Pacific Railroad, was appointed to the State Code Commission. In that capacity, Haymond was charged with dividing all existing state laws into four "codes" according to subject matter.

 
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Naturally, the railroad industry found a work-around. It funded its own candidates to fill those commission seats and even bought control of its own regulators. The Railroad Commission was, by nearly all standards, a terrible failure that undermined oversight over important industries and instead strengthened the groups that it was meant to weaken.

 

It wasn't until the Progressive Era (1910-1917) that Californians were able to organize themselves sufficiently to reign in the railroad industry’s power. In 1911, the progressive-dominated legislature passed the Public Utilities Act, which changed the Railroad Commission to a five-member body appointed by the governor. In addition to a change in its composition, the commission also received a broader portfolio of industries to regulate.

 

In 1946, the body was renamed the California Public Utilities Commission. Today, the CPUC remains a five-member board appointed by the governor and confirmed by the legislature.