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The Cal. PUC opened an investigation into the facility constructi...

The Cal. PUC opened an investigation into the facility construction contracting processes of the state’s telecom, energy and other utilities to see whether it needs to impose new rules for governing those processes. The PUC said it wanted to…

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develop an understanding of the contracting process and to ensure that those processes were consistent with state and federal rules for public works contracting practices. The agency said it was looking into utility contracting processes in light of state laws intended to deter prime contractors on public works projects from influencing subcontractors to lower their prices for their work after the prime contract was awarded. In those situations, the PUC said, the taxpayers or utility ratepayers who ultimately pay for the projects aren’t getting what they paid for. In another matter, the PUC voted conditionally to endorse a pending Assembly bill that would allow the state to lease state lands to wireless carriers for cellphone tower sites, with 15% of the lease revenue going to grants for digital divide pilot projects through the Cal. Teleconnect Fund. However, the agency said, its endorsement was conditioned amendments to the bill (AB-855). It wanted the grant program to build up a fund of $500,000 before any grants were awarded. The bill now would start grants when the kitty reached $200,000.