President Michael R. Peevey, of the California Public Utilities
Commission talks with National Association of Minority Companies,
Inc. (NAMC) President Aldrica Lattimore about the CPUC
Michael R. Peevey has carried out key priorities since taking on the
presidency of the California Public Utilities Commission (CPUC) in
2002. Chief among them have been increasing the participation of
small and minority-owned businesses and emphasizing the importance of green technology.
When president Peevey was appointed as the new CPUC President by
then California State Governor, Gray Davis on December 31, 2002,
small businesses comprised little more than $1 billion worth of the
commission’s business. President Peevey’s ongoing efforts to reach
out to under-represented businesses has paid off, and as of 2013, that
figure has grown to $9 billion.
Lattimore asked, Under your leadership, president Peevey, supplier diversity has done extremely
well, over $20 billion in MBE procurement. But, how do you move the utility companies to increase
contract opportunities for disabled veterans, African-Americans and American-Indians?
“Our main focus has been on smaller businesses,” he told Lattimore, the small businesses include
those owned by African-Americans, women, and disabled businesses. “I’m committed to trying to
make the businesses we regulate as reflective of the communities as possible.”
He cited Ronald Litzinger, president of Southern California Edison (SCE), as one of those who has
made inclusion a priority. “The same goes for Pacific Gas and Electric (PGE). When you contrast the
work of these with other entities, the numbers are striking,” he said.
Lattimore asked, Since the commission can’t order companies to be mindful when reflecting on the
diversity of their communities, how do you hector companies effectively so that they become open
to more minority participation rather than dig their heels in on this issue?
President Peevey stated, “We cannot order people to do anything. We can hector them, but the big
picture is, over the years, it’s become a part of the DNA of big companies,” he said. “You want to
make it so that its part of the M.O. (modus operandi) of the entities involved, so that it becomes
second nature. Commissioners are in a unique position to be able to influence regulated utilities
practices, because the commission sets the revenue requirement for these utilities. It is the collective
decision of the majority of the 5 Commissioners that decide how much a specific utility gets to operate its business. Utilities are mindful of what each Commissioners regulatory philosophy is; and
they will focus on making sure that their respective companies are following our leadership.”
“This push to encourage the inclusion of minority-owned businesses should remain a high priority.
I’m proud of what we’ve accomplished, and in 2014, I want to increase the purchases to a value of
$10 billion,” he said.
14 • DyNAMC