CA Utilities Commission Bans Reverse Auctions
February 1, 2005
The California Public Utilities Commission banned reverse auctions on all construction projects of gas, electric, water and telecommunications regulated utilities in the state with annual revenues exceeding $500 million. The prevailing wage protections will apply to construction projects of regulated gas and electric utilities with annual revenues above the threshold amount. The PUC deferred a decision on bid shopping practices more generally, and whether to adopt project labor agreements for all covered projects. The PUC decision did, however, grant many of the favorable aspects of the PLA provisions, yet deferred judgment based on regulatory procedural considerations.