Opinion
As in the recent case of
Costa
v.
Superior Court
(2006)
At the time the Court of Appeal issued its expedited preelection decision, the period for public inspection of the material to be included in the ballot pamphlet was about to commence. Therefore, the proponents of Proposition 80—real parties in interest in this proceeding—immediately filed an emergency petition for writ of mandate with this court (which we treated as a
*1024
petition for review of the Court of Appeal’s decision), challenging the conclusion reached by that court and seeking to have the measure restored to the November 2005 ballot. After considering the emergency petition at conference, we unanimously voted to grant review, issuing an order that stated in part: “As the Court of Appeal recognized, California authorities establish that ‘it is usually more appropriate to review constitutional and other challenges to ballot propositions or initiative measures after an election rather than to disrupt the electoral process by preventing the exercise of the people’s franchise, in the absence of some clear showing of invalidity.’
(Brosnahan v. Eu
(1982)
Pursuant to our order, Proposition 80 was included in the ballot pamphlet and on the election ballot for the November 8, 2005, election. At that election, the voters rejected Proposition 80.
In light of the defeat of Proposition 80 at the November 2005 election, the underlying challenge to that measure itself is moot. Nonetheless, as in Costa, we have concluded that it is appropriate for this court to retain the matter and issue an opinion in order to provide guidance for the future on two general issues presented by the case: (1) the circumstances under which preelection review is warranted for the type of challenge to an initiative measure that is presented in this case—a type of challenge that, as we shall explain, is distinguishable in a significant respect from the type of challenge at issue in Costa—and (2) the important legal issue whether article XII, section 5, of the California Constitution (hereafter, article XII, section 5) precludes the use of the initiative process to enact statutes conferring additional authority upon the PUC.
For the reasons set forth below, we have reached the following conclusions with respect to these two issues. On the first issue, we explain initially that the general rule set forth in
Brosnahan
v.
Eu, supra,
On the second issue, we conclude that the Court of Appeal erred in interpreting article XII, section 5 as precluding the people, through the initiative process, from adopting a statutory provision that grants additional authority to the PUC. Past California decisions establish that language in the California Constitution recognizing the authority of the Legislature to take specified action generally is interpreted to encompass the exercise of such legislative power either by the Legislature or by the people through the initiative process. Although the Court of Appeal was of the view that the specific wording of article XII, section 5 required an exception to this general proposition, as we shall explain the language of that constitutional provision is at most ambiguous. Particularly when this language is read in light of the origin and purpose of the provision, it is clear that the constitutional provision cannot reasonably be interpreted to bar the people, through the initiative process, from enacting a statute or statutes conferring additional authority upon the PUC.
Accordingly, we conclude that the judgment of the Court of Appeal must be reversed.
I
For the past decade and a half, the subject of energy regulation and deregulation has been a significant issue for California government. As explained in the analysis of Proposition 80 prepared by the Legislative Analyst (Voter Information Guide, Special Elec. (Nov. 8, 2005) analysis of Prop. 80 by Legis. Analyst, pp. 50-53 Voter Information Guide)), in the early 1990’s California began a process of restructuring electricity service by *1026 introducing competition in the generation of electricity, with the ultimate objective of achieving lower rates for consumers. In 1996, the Legislature adopted a deregulation plan that among other things (1) required the large investor-owned utilities (IOU’s) that generated and supplied the bulk of electricity within California—including Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric—to sell their fossil fuel power plants to independent generators, and (2) instituted a transition plan under which the PUC would continue to regulate the rates charged by IOU’s to electricity customers for an interim period, but that was intended ultimately to result in rates determined in a competitive market in which customers alternatively could choose to have an IOU purchase and deliver electricity on their behalf or instead to purchase electric power directly from so-called independent electric service providers (ESP’s). (In addition to IOU’s and ESP’s, electricity also is provided to customers in some areas of California by publicly owned electric utilities, such as the Los Angeles Department of Water & Power and the Sacramento Municipal Utility District.) By the late 1990’s, a number of ESP’s had begun operation in California, generally serving large industrial and commercial businesses and some state and local governmental entities. The ESP’s were required to register with the PUC for licensing purposes, but their rates and terms of service explicitly were not subject to PUC regulation.
In 2000 and early 2001, an energy crisis arose in California in part as a result of sharply increasing electricity demand, lagging investment in new power plants, and other factors that led to electricity shortages and steeply rising electricity prices. In response to the energy crisis, the state began to purchase electricity on behalf of the IOU’s by entering into long-term electricity contracts, and suspended several aspects of the energy deregulation plan pending the expiration of such contracts.
The initiative measure that ultimately was designated Proposition 80 was drafted to address a number of perceived problems created by the state’s existing energy deregulation plan. The initiative measure included numerous provisions dealing with a range of subjects. For purposes of the issues that we address in this proceeding, the most significant feature is the measure’s proposal to confer upon the PUC additional “jurisdiction, control, and regulation” over the ESP’s, specifying that the scope of such PUC regulation would include the enforcement of requirements relating to energy procurement, contracting standards, and energy efficiency. 1 The proponents submitted *1027 a copy of the measure to the Attorney General for preparation of a title and summary, and thereafter circulated for signature a petition setting forth the initiative. 2
On June 20, 2005, the Secretary of State certified that the measure had obtained the requisite number of signatures to qualify for the ballot, and designated the matter as Proposition 80 to be submitted to the voters at the November 8, 2005, special election. Shortly thereafter, on June 29, 2005, petitioners Independent Energy Producers Association, California Retailers Association, and Steven Kelly (hereafter petitioners) filed an original petition for writ of mandate in the Court of Appeal, seeking preelection review of the measure and contending that in light of the provisions of article XII, section 5, “[a] constitutional amendment would be required to confer on the people the right to use the statutory initiative to implement [the] changes” proposed by Proposition 80. The petition requested that the Court of Appeal issue a writ directing the Secretary of State to refrain from submitting the initiative measure to the voters.
On July 5, 2005, the Court of Appeal, after an initial review of the petition, issued an alternative writ of mandate. Because the deadline for submitting the ballot pamphlet to the state printer for the November 8, 2005, election was August 15, 2005, the court ordered expedited briefing and oral argument, directing real parties in interest to file a return by July 11 and petitioners to file a replication by July 15, and setting oral argument for July 20. The Court of Appeal heard oral argument as scheduled, issuing its opinion two days later on July 22, 2005.
*1028 Initially, with regard to the procedural question of preelection review, the Court of Appeal noted that although as a general rule court review of an initiative measure is more appropriate after an election, “this general rule applies only to a claim that a substantive provision of the initiative is unconstitutional; it does not apply where the electorate lacks the power to adopt the proposal in the first instance.” Because, in the court’s view, “Proposition 80 is unquestionably invalid on its face because ... it runs afoul of a plain and unambiguous provision of our state Constitution . . . that effectively precludes use of the initiative process to accomplish what Proposition 80 proposes to do,” the Court of Appeal concluded that “preelection review is proper, indeed essential.”
In reaching its determination on the merits of the constitutional claim, the appellate court concluded that the language of article XII, section 5 “plainly and unambiguously” grants only the Legislature, and not the people through the initiative process, the power to grant additional authority upon the PUC. Because that court viewed the language of article XII, section 5 as unambiguous, it dismissed the contention of real parties in interest that the background and origin of this constitutional language must properly be considered in interpreting the provision and that such history demonstrates that the language in question cannot reasonably be interpreted as a limitation on the scope of the initiative power. Finally, having determined that the provisions of Proposition 80 purporting to confer additional authority upon the PUC could not be adopted by initiative, the Court of Appeal went on to conclude that those provisions were not severable from the remainder of the initiative measure. Accordingly, the court ruled that a writ of mandate should issue directing the Secretary of State to refrain from taking any steps to place Proposition 80 in the ballot pamphlet or on the November 8, 2005, election ballot.
As noted above, after the Court of Appeal issued its opinion, real parties in interest filed an emergency petition for writ of mandate in this court, challenging the Court of Appeal’s removal of Proposition 80 from the ballot. Treating the document as a petition for review, we granted review. Observing that “unlike the Court of Appeal, at this point we cannot say that it is clear that article XII, section 5, of the California Constitution precludes the enactment of Proposition 80 as an initiative measure,” we concluded that the validity of Proposition 80 “need not and should not be determined prior to the November 8, 2005, election.” We directed the Secretary of State and other public officials to proceed with all the steps required to place Proposition 80 in the ballot pamphlet and on the special election ballot, and stated that after the election we would determine whether to retain jurisdiction in this matter and resolve the issues raised in the petition.
*1029 Pursuant to our order, the materials related to Proposition 80 were included in the ballot pamphlet and the voters were given the opportunity to vote on the measure at the November 8, 2005, special election. At that election, Proposition 80 was defeated.
Because Proposition 80 was not adopted by the voters, the legal challenge to the measure is now moot. Nonetheless, as in our recent decision in
Costa, supra,
II
As noted above, our order granting review cited and relied upon the general statement in
Brosnahan I, supra,
Nonetheless, although the strong presumption against preelection review does not apply to such a claim, we believe it is appropriate for a court presented with this type of preelection challenge to keep in mind that unlike the type of procedural challenge relating to the petition-circulation process at issue in our recent decision in
Costa, supra,
As explained above, in the present case the Court of Appeal intervened prior to the election and directed that the initiative measure be removed from the ballot only after concluding that the measure was “unquestionably invalid on its face.” In light of that court’s view on the merits, its decision to *1031 intervene prior to the election is understandable. Because, unlike the Court of Appeal, from our initial review prior to the election we were not convinced that article XII, section 5 properly should be interpreted to preclude the enactment of Proposition 80 through the initiative process, we granted review and directed that the proposition be placed on the November 8, 2005, election ballot, deferring a definitive judicial resolution of the issue until after the election.
III
In light of the defeat of Proposition 80 at the November 8, 2005, election, the legal challenge to that initiative measure is moot. Nonetheless, because the Court of Appeal decision—although no longer published or citable in light of our grant of review (Cal. Rules of Court, rule 976(d))—potentially may cast doubt on the constitutional viability of any future initiative measure that purports to confer additional authority upon the PUC (an issue likely to recur), and because it appears preferable to have the question of the proper interpretation of article XII, section 5 resolved in a setting that affords the opportunity for full briefing, oral argument, and unrushed deliberation, we have concluded it is appropriate to retain the case to resolve the issue by opinion in this proceeding. For the reasons discussed below, we conclude that article XII, section 5 does not preclude the use of the initiative power to confer additional authority upon the PUC.
A
Although the question before us ultimately involves the proper interpretation of article XII, section 5, the resolution of this issue implicates the meaning and scope of additional provisions of the California Constitution—article IV, section 1, and article II, section 8, relating to the people’s initiative power.
California Constitution article IV, section 1 (hereafter, article IV, section 1) provides in full: “The legislative power of this State is vested in the California Legislature which consists of the Senate and Assembly, but the people reserve to themselves the powers of initiative and referendum.” (Italics added.)
California Constitution article II, section 8, subdivision (a) (hereafter, article II, section 8) provides in full: “The initiative is the power of the electors to propose statutes and amendments to the Constitution and to adopt or reject them.”
*1032
In describing the initiative power in
Associated Home Builders etc. Inc.
v.
City of Livermore
(1976)
Article XII, section 5—a provision of the article of the state Constitution relating to public utilities—provides in full: “The Legislature has plenary power, unlimited by the other provisions of this constitution but consistent with this article, to confer additional authority and jurisdiction upon the commission [that is, the PUC], to establish the manner and scope of review of commission action in a court of record, and to enable it to fix just compensation for utility property taken by eminent domain.”
B
Although the Court of Appeal was of the view that the language of article XII, section 5 quoted above is clear and unambiguous on its face, and can reasonably be interpreted only to mean that the Legislature alone, and not the people through the initiative process, can confer additional authority and jurisdiction upon the PUC, in our view the language of article XII, section 5 is reasonably susceptible to two alternative interpretations: (1) that, as the *1033 Court of Appeal suggested, the Legislature and only the Legislature— notwithstanding the provisions of article IV, section 1 and article II, section 8, recognizing the people’s reserved right to enact legislation through the initiative power—has plenary power to confer additional authority and jurisdiction upon the PUC, or (2) that the Legislature or the electorate exercising its legislative power through the initiative process “has plenary power, unlimited by the other provisions of this constitution but consistent with this article, to confer additional authority and jurisdiction upon the [PUC] . . . .” As we shall explain, the Court of Appeal’s limited view of the potential meaning of this provision fails adequately to take into account the numerous California decisions that have held, in a variety of contexts, that language in the California Constitution establishing the authority of “the Legislature” to legislate in a particular area must reasonably be interpreted to include, rather than to preclude, the right of the people through the initiative process to exercise similar legislative authority.
This court’s decision in
Kennedy Wholesale, Inc. v. State Bd. of Equalization
(1991)
Although the court in
Kennedy Wholesale
recognized that the literal language of article XIII A, section 3 was susceptible to the plaintiff’s proposed interpretation, it rejected the plaintiff’s assertion that it was appropriate to enforce this provision “according to its ‘plain meaning’ without considering the section’s history or other indications of the voters’ intent”
(Kennedy Wholesale, supra,
Having concluded that article XIII A, section 3 was ambiguous when read in the context of the entire Constitution, the court in
Kennedy Wholesale, supra,
Other California cases have reached a similar conclusion when faced with analogous claims. In
State Comp. Ins. Fund v. State Bd. of Equalization
(1993)
In
State Comp. Ins. Fund, supra,
The Court of Appeal below found Kennedy Wholesale and the other cases we have cited distinguishable from the present case, because the constitutional provisions at issue in those cases did not contain the language—“The Legislature has plenary power, unlimited by the other provisions of this constitution . . .”—that appears in article XII, section 5. The Court of Appeal concluded that the quoted language plainly and unambiguously precludes the use of the initiative power to confer additional authority upon the PUC.
In reaching this conclusion, the Court of Appeal initially relied upon a number of dictionaries that define “plenary” to mean “complete,” “absolute,” or “unqualified,” declaring that “the usual and ordinary meaning of the phrase ‘plenary power’ connotes total power,
to the exclusion of all others.”
(Italics added.) Real parties in interest take issue with the Court of Appeal’s understanding of the term “plenary,” pointing out that the word “exclusive” does not appear in the dictionary definitions cited by the Court of Appeal, and that in other contexts courts explicitly have rejected the contention that the term “plenary power” means exclusive power. (See, e.g.,
Natural Resources v. Upper Val. Landfill
(1997)
*1036
In further support of its reading of the constitutional provision in question, the Court of Appeal maintained that the additional language in article XII, section 5 stating that the Legislature’s plenary power is “unlimited by the other provisions of this constitution” can be interpreted
only
to include and preempt the provisions of the California Constitution relating to the initiative power. Real parties in interest argue, however, that it is by no means clear that this language properly must or should be interpreted to refer to or trump the constitutional provision reserving the people’s right to enact legislation through the initiative power, pointing out that the Court of Appeal’s expansive reading of this language logically would signify that a statute passed by the Legislature pursuant to article XII, section 5 would not be subject to
any
provision of the California Constitution, including, for example, the provision authorizing the Governor to veto a bill approved by the Legislature. (Cal. Const., art. IV, § 10.) Real parties in interest maintain that the language in article XII, section 5 has not been, and reasonably cannot be, interpreted so expansively to exclude the application of provisions like those relating to the initiative power or the gubernatorial veto. (Cf.
S. H. Chase Lumber Co. v. Railroad Com.
(1931)
Particularly in light of the numerous past California authorities holding that constitutional references to the Legislature’s authority to take specified action generally are not interpreted to limit the initiative power, we agree with real parties in interest that the language relied upon by the Court of Appeal is not unambiguous and cannot reasonably be interpreted only as having the effect of precluding the people’s exercise of their reserved initiative power. Rather, we conclude that the wording of the provision at most creates an ambiguity, and that it is appropriate and necessary to consider the origin and background of this constitutional language to determine whether, in light of the purpose and objective of the constitutional provision, it is reasonable to interpret it in *1037 the manner proposed by the Court of Appeal. As we shall explain, our examination of the background and purpose of this constitutional provision leads us to conclude that the view adopted by the Court of Appeal is not the most reasonable interpretation of this provision.
The crucial language of article XII, section 5—“[t]he Legislature has plenary power, unlimited by the other provisions of this constitution but consistent with this article, to confer additional authority and jurisdiction upon the commission”—derives from a constitutional provision relating to the administrative predecessor of the PUC, the Railroad Commission, that was enacted through a constitutional amendment approved by the voters at a special statewide election held on October 10, 1911. The measure in question—Assembly Constitutional Amendment No. 6 (ACA No. 6)— substantially amended former section 22 of article XII, a provision included in the 1879 Constitution that created and granted specified authority to a state railroad commission.
ACA No. 6 proposed a significant revision of the composition, selection, and power of the then existing Railroad Commission. The measure expanded the number of railroad commissioners from three to five, provided for the appointment of all commissioners by the Governor rather than by election from districts, and spelled out the broad power of the commission to establish rates and to examine the books, records, and papers of all railroad and other transportation companies. 5 The measure also included the following paragraph: “No provision of this constitution shall be construed as a limitation upon the authority of the legislature to confer upon the railroad commission additional powers of the same kind or different from those conferred herein which are not inconsistent with the powers conferred upon the railroad *1038 commission in this constitution, and the authority of the legislature to confer such additional powers is expressly declared to be plenary and unlimited by any provision of this constitution.” (Ibid.)
As noted, the voters approved ACA No. 6 at the October 1911 election, and the amended version of article XII, section 22 became part of the Constitution. The constitutional language in question was carried over when article XII, section 22 was amended in 1946 to change the name of the Railroad Commission to the Public Utilities Commission. In 1974, as part of a comprehensive revision of article XII that reorganized and greatly reduced the length and complexity of the prior constitutional provisions related to public utilities, the language initially adopted in 1911 was revised and moved to article XII, section 5, with no change in meaning intended. (See Cal. Const., art. XII, § 9 [“The provisions of this article restate all related provisions of the Constitution in effect immediately prior to the effective date of this amendment and make no substantive change”].) Accordingly, it is appropriate to consider the purpose and intent of this language, as initially incorporated into the California Constitution in 1911, in arriving at the most reasonable interpretation of the present constitutional provision.
In 1911, the election statutes provided for the preparation and mailing to the voters, prior to an election, of a document similar to the current ballot pamphlet, containing the text of each proposed constitutional amendment that would appear on the ballot along with legislatively prepared statements setting forth reasons for and against the adoption of each proposed amendment. (See former Pol. Code, §§ 1195, 1195a, enacted by Stats. 1909, ch. 154, § 1, p. 254, Stats. 1909, ch. 142, § 1, p. 245.) With regard to the constitutional amendment proposed by ACA No. 6, the argument in favor of the measure—after detailing all of the specific changes in the Railroad Commission’s composition and powers proposed by the measure—explained the reasons underlying the pertinent language of ACA No. 6 as follows: “Finally, it is proposed to amend the section so as to remove all doubt of the right of the legislature to confer additional powers upon the commission. Under the amendment as presented for adoption, the legislature may give to the railroad commission such powers as it sees fit without any restriction whatever, provided only that the powers thus given are not inconsistent with the powers specifically conferred in the constitution.” (Sect. of State, Proposed Amends. to Const. with Legislative Reasons, Special Elec. (Oct. 10, 1911), Reasons Why ACA No. 6 Should Be Adopted.)
The constitutional amendment embodied in ACA No. 6 was part of the reform program of the progressive movement that had gained control of the *1039 California Legislature and the governorship in the preceding election (see Key & Crouch, The Initiative and Referendum in Cal. (1938) pp. 433-436), and additional insight into the background and purpose of the constitutional language in question is provided by a passage contained in the first inaugural address of Governor Hiram Johnson, the leader of the progressive movement, that was delivered on January 3, 1911. In a portion of the address discussing the so-called railroad question, Governor Johnson stated in part: “For many years in the past shippers, and those generally dealing with the Southern Pacific Company, have been demanding protection against the rates fixed by that corporation. The demand has been answered by the corporation by the simple expedient of taking over the government of the State; and instead of regulation of the railroads, as the framers of the new Constitution [that is, the Constitution of 1879] fondly hoped, the railroad has regulated the State. [][] To Californians it is quite unnecessary to recall the motive that actuated the framers of the new Constitution when Article XII was adopted. It was thought that the Railroad Commission thereby created would be the bulwark between the people and the exactions and extortions and discriminations of the transportation companies. That the scheme then adopted has not proved effective has become only too plain. That this arose because of the individuals constituting the Railroad Commission is in the main true, but it is also apparent there has been a settled purpose on the part of the Southern Pacific Company not only to elect its own Railroad Commission, but also whenever those Commissioners made any attempt, however feeble, to act, to arrest the powers of the Commission, and to have those powers circumscribed within the narrowest limits. All of us who recall the adoption of the new Constitution will remember that we then supposed the most plenary powers were conferred upon the Commission. It has been gravely asserted of late, however, by those representing the Railroad Company, and they insist that in the decisions of our courts there is foundation for the assertion, that the Constitution does not give the Commission power to fix absolute rates. ... [][].. . [][] It is asserted that some ambiguity exists in the portion of the language of Section 22 of Article XII of the Constitution, which fixes the penalty when any railroad company shall fail or refuse to conform to rates established by the Commission or shall charge rates in excess thereof, and it is claimed that the use of the last phrase ‘or shall charge rates in excess thereof’ excludes the power to punish discrimination [in rates] by the railroad companies. The rational construction of the language used can lead to no such conclusion; but if you believe there is any ambiguity in the constitutional provision as it now exists, or any doubt of the power conferred by it upon the Railroad Commission, I would suggest that this matter be remedied by a constitutional amendment.” (Gov. Hiram Johnson, Inaugural Address (Jan. 3, 1911) Assem. J. (1911 Sess.) pp. 48-49, italics added.) The amendment of former section 22 of article XII, embodied in ACA No. 6, apparently was a direct response to Governor Johnson’s suggestion.
*1040 In light of the ballot argument in favor of ACA No. 6, and the portion of Governor Johnson’s inaugural address quoted above, it seems evident that the intent of the constitutional language in question was simply to make clear the existence of broad legislative power to grant the Railroad Commission any additional authority that was deemed necessary for the commission’s proper regulation of the conduct of railroad companies, and to eliminate any potential legal argument that other provisions of the Constitution—such as the provision barring railroads from imposing rates in “excess of’ the approved rates—should be interpreted to limit the type of authority that could be conferred upon the Railroad Commission. Nothing in this material suggests that this provision was intended to grant such authority to the Legislature alone, to the exclusion of any other entity that might then or thereafter possess legislative power to confer authority upon the Railroad Commission. 6
Indeed, under the broader view provided by the historical background of the entire October 1911 election, it is even clearer that it would be unreasonable for us to interpret the constitutional language in question in the manner suggested by the Court of Appeal. The constitutional amendment containing the language at issue was only one part of a much broader reform program championed by the progressive movement. The October 1911 special election contained a quite extraordinary array of more than 20 proposed constitutional amendments, and perhaps the most prominent of all the measures placed before the voters at that special election were the proposed constitutional *1041 amendments creating and incorporating into the California Constitution the electorate’s rights of initiative, referendum, and recall. 7
Governor Hiram Johnson, in a separate part of his first inaugural address that preceded the passage quoted above relating to the Railroad Commission, emphasized the central importance of the initiative, the referendum, and the recall to the fundamental objectives of the progressive movement, declaring: “How best can we arm the people to protect themselves . . . ? If we can give to the people the means by which they may accomplish such other reforms as they desire, the means as well by which they may prevent the misuse of the power temporarily centralized in the Legislature, and an admonitory and precautionary measure which will ever be present before weak officials, and the existence of which will prevent the necessity for its use, then all that lies in our power will have been done in the direction of safeguarding the future and for the perpetuation of the theory upon which we ourselves shall conduct this government. This means for accomplishing other reforms has been designated the ‘Initiative and the Referendum,’ and the precautionary measure by which a recalcitrant official can be removed is designated the ‘Recall.’ And while I do not by any means believe the initiative, the referendum, and the recall are the panacea for our political ills, yet they do give to the electorate the power of action when desired, and they do place in the hands of the people the means by which they may protect themselves. I recommend to you, therefore, and I most strongly urge, that the first step in our design to preserve and perpetuate popular government shall be the adoption of the initiative, the referendum, and the recall. I recognize that this must be accomplished, so far as the State is concerned, by constitutional amendment. But I hope that at the earliest possible date the amendments may be submitted to the people, and that you take the steps necessary for that purpose.” (Gov. Hiram Johnson, Inaugural Address (Jan. 3, 1911) Assem. J. (1911 Sess.) pp. 47-48.)
The Legislature responded by submitting (among many other measures) two proposed constitutional amendments to the voters at the October 10, 1911, special election, one relating to the initiative and referendum (Sen. Const. Amend. No. 22, amending Cal. Const., art. IV, § 1 (SCA No. 22)) and the other relating to the recall (Sen. Const. Amend. No. 23, adding Cal. Const., art. XXIII). The argument in favor of the adoption of the measure relating to the initiative and referendum stated in part: “Objection has been made that these powers would deprive the legislature of its functions. ... [f] It is not *1042 intended and will not be a substitute for legislation, but will constitute that safeguard which the people should retain for themselves, to supplement the work of the legislature by initiating those measures which the legislature either viciously or negligently fails or refuses to enact; and to hold the legislature in check, and veto or negative such measures as it may viciously or negligently enact. All objections finally and ultimately center in a distrust of democracy; in a challenge of the people to govern themselves. The voters are to decide by the adoption, or rejection, of this amendment to the constitution, as to whether self-government is a success or failure; as to whether the people believe in themselves. . . . [][] Are the people capable of self-government? If they are, this amendment should be adopted. If they are not, this amendment should be defeated.” (Sect. of State, Proposed Amends. to Const. with Legislative Reasons, Special Elec. (Oct. 10, 1911), Reasons Why SCA No. 22 Should Be Adopted.)
Both the measure relating to the initiative and referendum and the measure relating to the recall passed overwhelmingly, each by more than a three-to-one favorable vote. (See Sect, of State, Statement of the Vote of California, Special Elec. (Oct. 10, 1911), p. 5.)
When the October 10, 1911, election is viewed as a whole, it appears most improbable that—at the same election in which the voters overwhelmingly approved a far-reaching measure incorporating a broad initiative power as part of the California Constitution—they intended, without any direct or explicit statement to this effect, to limit the use of the initiative power by virtue of the language set forth in ACA No. 6. Indeed, the Court of Appeal’s interpretation of the language of article XII, section 5 is all the more problematic when considered in light of the progressive movement’s historic distrust of the Southern Pacific Railroad and of that entity’s perceived ability to elect and control the members of the California Legislature. Because, as indicated by the quoted passage from Governor Johnson’s inaugural address (see, ante, pp. 1038-1039), the proponents of these constitutional amendments strongly believed that the Southern Pacific’s earlier control over the Legislature and the Railroad Commission had stymied effective regulation of the Southern Pacific in the past, it defies reason to suggest that those who drafted and those who voted to adopt the constitutional language in question intended to single out the jurisdiction and authority of the Railroad Commission as the one subject area in which the people’s reserved right to initiate legislation could not be exercised, even if the need should arise. Viewing the constitutional language in context, we conclude it is much more reasonable to harmonize with each other the initiative and Railroad Commission constitutional amendments adopted at the October 1911 special election, and to interpret them as authorizing the people, through the initiative process, to *1043 adopt statutory provisions granting additional authority or jurisdiction to the Railroad Commission. 8
Accordingly, in view of the long-standing California decisions establishing that references in the California Constitution to the authority of the Legislature to enact specified legislation generally are interpreted to include the people’s reserved right to legislate through the initiative power, and in light of the background and purpose of the relevant language of article XII, section 5, we conclude that this constitutional provision does not preclude the *1044 people, through their exercise of the initiative process, from conferring additional powers or authority upon the PUC. 9
IV
For the reasons discussed above, we conclude that the judgment of the Court of Appeal must be reversed. Because Proposition 80 was defeated at the November 8, 2005, election, the challenge to that proposition in this proceeding is moot. Accordingly, the judgment of the Court of Appeal is reversed and the matter is remanded to that court with directions to dismiss the proceeding as moot.
Kennard, J., Baxter, J., Werdegar, J., Chin, J., Moreno, J., and Corrigan, J., concurred.
Notes
Among other changes, the initiative proposed (1) to add to section 218.3 of the Public Utilities Code—the existing section defining “electric service provider"—the following sentence: “An electric service provider is subject to the jurisdiction, control, and regulation of the commission, and the provisions of this part, pursuant to subdivision (f) of Section 394,” and (2) to add a new subdivision (f) to Public Utilities Code section 394, providing: “Registration *1027 with the commission is an exercise of the licensing function of the commission, and registration by an electric service provider constitutes agreement of the electric service provider to the jurisdiction, control, and regulation of its rates and terms and conditions of service by the commission. The commission shall exercise such jurisdiction, control, and regulation of electric service providers in their provision of electrical service in the same manner as its exercise of jurisdiction, control, and regulation of electrical corporations, including, but not limited to, enforcement of: energy procurement and contracting standards and requirements; resource adequacy requirements; energy efficiency and demand response requirements; renewable portfolio standards; and appropriate assignment of costs among customers to prevent cost shifting.” (Voter Information Guide, supra, text of proposed laws, Prop. 80, §§ 3, 9, pp. 73, 75.)
The title and summary prepared by the Attorney General for the initiative measure stated as follows: “Electric Service Providers. Regulation. Initiative Statute. [$] Subjects electric service providers, as defined, to control and regulation by California Public Utilities Commission, [f] Imposes restrictions on electricity customers’ ability to switch from private utilities to other electric providers, [f] Provides that registration by electric service providers with Commission constitutes providers’ consent to regulation, [f] Requires all retail electric sellers, instead of just private utilities, to increase renewable energy resource procurement by at least 1% each year, with 20% of retail sales procured from renewable energy by 2010, instead of current requirement of 2017. [f] Imposes duties on Commission, Legislature and electrical providers.” (Voter Information Guide, supra, official title and summary of Prop. 80, p. 50.)
“ ‘The presence of an invalid measure on the ballot steals attention, time, and money from the numerous valid propositions on the same ballot. It will confuse some voters and frustrate others, and an ultimate decision that the measure is invalid, coming after the voters have voted in favor of the measure, tends to denigrate the legitimate use of the initiative procedure.’ ”
(Senate v. Jones, supra,
Although petitioners rely upon a passage in
Pacific Telephone etc. Co. v. Eshleman
(1913)
In setting forth the powers of the commission, the measure stated: “Said commission shall have the power to establish rates of charges for the transportation of passengers and freight by railroads and other transportation companies, and no railroad or other transportation company shall charge or demand or collect or receive a greater or less or different compensation for such transportation of passengers or freight, or for any service in connection therewith, between the points named in any tariff of rates, established by said commission, than the rates, fares and charges which are specified in such tariff. The commission shall have the further power to examine books, records and papers of all railroad and other transportation companies; to hear and determine complaints against railroad and other transportation companies; to issue subpoenas and all necessary process and send for persons and papers; and the commission and each of the commissioners shall have the power to administer oaths, take testimony and punish for contempt in the same manner and to the same extent as courts of record; the commission may prescribe a uniform system of accounts to be kept by all railroad and other transportation companies.” (ACA No. 6.)
Although the parties identify only ACA No. 6 as the origin of the current language of article XII, section 5, a second measure on the October 10, 1911, special election ballot also contained language similar to that now found in article XU, section 5. Senate Constitutional Amendment No. 47 (SCA No. 47) proposed amending article XU, former section 23 to grant the Legislature the authority to significantly expand the power of the Railroad Commission by affording the commission the authority to supervise and regulate all “public utilities”-—not only railroad and other transportation companies—and by defining “public utility” very broadly. After setting forth its broad definition of public utility, the measure went on to provide: “The railroad commission shall have and exercise such power and jurisdiction to supervise and regulate public utilities in the State of California, and to fix the rates to be charged for commodities furnished, or services rendered by public utilities as shall be conferred upon it by the legislature, and the right of the legislature to confer powers upon the railroad commission respecting public utilities is hereby declared to be plenary and to be unlimited by any provision of this constitution.” (Cal. Const., art. XII, former § 23, as amended by voters, Oct. 10, 1911, italics added.)
Unlike the argument relating to ACA No. 6, the argument in favor of SCA No. 47 did not specifically discuss the italicized language of the proposed amendment, but, as with ACA No. 6, nothing in the materials related to SCA No. 47 suggests that this language was intended to exclude the potential use of the initiative power in this area. SCA No. 47 was approved by the people at the October 1911 election, and the language in question remained a part of article XII, former section 23 until the comprehensive revision of article XU in 1974, when this language, along with the similar language in article XII, former section 22, was revised and moved to article XU, section 5. (See
County of Sonoma v. State Energy Resources Conservation etc. Com.
(1985)
In addition to the provisions relating to the initiative, referendum, and recall and those revising and expanding the authority of the Railroad Commission, the October 10, 1911, ballot contained significant measures relating, among other subjects, to women’s suffrage, civil service, workers’ compensation, biennial legislative sessions, harmless error in criminal cases, and local home rule.
Although we agree with the ultimate conclusion advanced by real parties in interest, we find one portion of their argument unpersuasive. In addition to including the language quoted above, from which the current language of article XII, section 5 is derived, ACA No. 6 specified: “The provisions of this section shall not be construed to repeal in whole or in part any existing law not inconsistent herewith, and the ‘Railroad Commission Act’ of this state approved February 10, 1911, shall be construed with reference to this constitutional provision and any other constitutional provision becoming operative concurrently herewith. And the said act shall have the same force and effect as if the same had been passed after the adoption of this provision of the constitution and of all other provisions adopted concurrently herewith, except that the three commissioners referred to in said act shall be held and construed to be the five commissioners provided for herein.” (Italics added.) Real parties in interest suggest that this passage’s reference to other constitutional provisions that might be adopted concurrently with ACA No. 6 likely was to the initiative constitutional amendment that also was on the October 10, 1911, ballot, and they maintain that “[t]he clear implication of this language is that, if the initiative provisions in SCA [No.] 22 should pass, they would apply to allow amendments by initiative to the Railroad Commission Act.”
In our view, it is much more likely that this passage in ACA No. 6 was intended to refer to a number of other constitutional amendments on the October 10, 1911, ballot that dealt specifically with the powers of the Railroad Commission, rather than to the initiative amendment. As noted above (see, ante, p. 1040, fn. 6), SCA No. 47 on the October 1911 ballot contained a proposed amendment to article XU, former section 23 authorizing the Legislature to expand the Railroad Commission’s jurisdiction to include a wide range of public utilities. In addition, Assembly Constitutional Amendment No. 50 (ACA No. 50) on the same ballot contained a proposed amendment to article XU, former sections 20 and 21 that, among other matters, required a railroad company to obtain permission from the Railroad Commission before raising rates and explicitly authorized the Railroad Commission to grant exemptions from a separate constitutional provision that generally prohibited a railroad from charging a lower rate for a long haul than for a short haul. We believe it is much more reasonable to interpret the language of ACA No. 6 as directing that the Railroad Commission Act “shall be construed with reference” to these other measures related to the Railroad Commission, rather than as requiring that the Railroad Commission Act be construed with reference to the initiative measure. (See Sect. of State, Proposed Amends, to Const. with Legislative Reasons, Special Elec. (Oct. 10, 1911), Reasons Why ACA No. 50 Should Be Adopted [“The amendment is one of the series composed of Senate Constitutional Amendment No. 47 and Assembly Constitutional Amendments Nos. 6 and 50, and as an amendment in the direction of efficient railroad rate regulation should unquestionably be ratified by the people”].)
Accordingly, contrary to the argument of real parties in interest, we conclude that the reference in ACA No. 6 to other constitutional provisions considered at the same election provides no additional support for their position. Nonetheless, for the other, more persuasive reasons discussed above, we conclude that the Court of Appeal erred in its interpretation of article XII, section 5.
To avoid any potential misunderstanding, we emphasize that our holding is limited to a determination that the provisions of article XII, section 5 do not preclude the use of the initiative process to enact statutes conferring additional authority upon the PUC. We have no occasion in this case to consider whether an initiative measure relating to the PUC may be challenged on the ground that it improperly limits the PUC’s authority or improperly conflicts with the Legislature’s exercise of its authority to expand the PUC’s jurisdiction or authority. Should these or other issues arise in the future, they may be resolved through application of the relevant constitutional provision or provisions to the terms of the specific legislation at issue.