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CPUC’s Kennedy to be Schwarzenegger chief of staff: Impact on bill of rights uncertain

WASHINGTON-The California regulator behind the campaign to overhaul the state’s bill of rights for telecom consumers has been tapped as chief of staff to GOP Gov. Arnold Schwarzenegger. The appointment adds an unexpected twist to the politically charged proceeding at the California Public Utilities Commission.

Susan Kennedy, a former top aide to ousted Democratic ex-governor Gray Davis and a CPUC member since 2003, had planned to release a proposed bill-of-rights decision in November in advance of a vote this month. A CPUC spokeswoman said the bill-of-rights rewrite would be assigned to another commissioner.

It remains unclear whether the Kennedy appointment will impact the timeframe for the CPUC’s consideration of her proposal.

Kennedy, Schwarzenegger and the mobile-phone industry opposed the bill of rights authored by Commissioner Geoffrey Brown and narrowly approved by the CPUC in 2004 because they felt it was unnecessary and counterproductive.

In January, Kennedy picked up enough votes to suspend the bill of rights until the rule could be reassessed. Since then, hearings have been held and briefs filed on the Kennedy plan. Though her proposal is far less regulatory than the current bill of rights, the mobile-phone industry has refused to embrace it. Wireless carriers argue no additional regulations are needed given stiff cellular competition, existing consumer protection laws and industry’s voluntary code of conduct regarding business practices.

“Susan is a hands-on, action-oriented person who gets things done,” said Schwarzenegger. “She is a leader with incredible institutional knowledge about state government and a deep understanding of the public policy process. We have had incredible accomplishments throughout my administration and I look forward to working with Susan to build upon that foundation and make California once again the golden dream by the sea.”

The governor’s appointment of Kennedy is being interpreted as a move to shore up a wayward staff at a time when Schwarzenegger’s popularity has been declining.

Kennedy, likely to be influential in selecting a CPUC replacement and in the bill-of-rights proceeding itself, said she is eager to advance Schwarzenegger’s agenda.

“We have a tremendous opportunity to get past party lines and move California forward,” said Kennedy. “I have come to know this man. I believe in him and where he wants to take this state. I look forward to using my experience and knowledge to work alongside the governor to get the job done.”

Michael Shames, executive director of San Diego-based Utility Consumers’ Action Network, said first things first.

“Right now we are waiting for Kennedy’s version of the bill of rights. We expect she’ll ignore the record and do what she’d already said she was going to do. But I expect that the appointment to the governor’s office will have little impact on the bill of rights because I don’t think she’ll leave the CPUC until the end of the year. So she’ll try to get the vote out before she leaves.

“However, it will change things at the legislature,” said Shames. “I am expecting to gain more success next year in our efforts to get a statutory change, and having Kennedy in the governor’s office will increase the likelihood that he will veto whatever the legislature passes. So the telecom bill of rights will become a high-profile showdown in Sacramento next year.”

The state’s Senate passed legislation to essentially write into law the current bill of rights, but the measure died in the Assembly.

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