California Public Utilities Commission President Marybel Batjer said Tuesday she would step down at the end of the year with five years still left in her seven-year term.

Batjer broke the unexpected news in a letter to CPUC staff Tuesday.

“I write to inform you, after much thinking and reflection, that I have decided to conclude my service as president of the CPUC at the end of this year,” Batjer wrote. “This was a difficult decision, as I am so proud of the work we have done together in the face of a changing climate and global pandemic.

“Your deep commitment to our mission to ensure Californians have access to safe, clean and affordable utility services has sustained me during my tenure and makes it very tough to leave,” she told commission staff.

Gov. Gavin Newsom named Batjer, then the state’s government operations secretary, to fill out the term of retiring President Michael Picker in July 2019 and reappointed her to a full term last year.

In her decades of government service, Batjer had established a reputation for shaking up entrenched bureaucracies. She served as former Gov. Arnold Schwarzenegger’s cabinet secretary, and Gov. Jerry Brown named her in 2013 to head the Government Operations Agency, a new entity charged with improving efficiency and accountability in state government. Newsom kept her on in that role and put her in charge of reforming the Department of Motor Vehicles, one of the state’s most inefficient bureaucracies.

When Picker decided to retire, the governor assigned Batjer the job of speeding up the CPUC’s ponderous decision making as it struggled to cope with more wildfires, capacity shortfalls and the crimes and bankruptcy of Pacific Gas and Electric. (See Newsom Names New California PUC President.)

“She is about reorganization. She is about governance,” Newsom said at the time, calling her “one of the best in the business.”

As part of PG&E’s Chapter 11 reorganization, Batjer insisted on and obtained additional oversight of the troubled utility. The new powers included a six-step enforcement process that could eventually end with PG&E’s license being revoked. It is currently in the first step of that process for failing to clear trees from its power lines, resulting in wildfires.

The CPUC has worked to prevent more fires and to rein in the use by investor-owned utilities of public safety power shutoffs under Batjer’s leadership.

The commission also came under fire for failing to anticipate the capacity shortfalls that have plagued the state in the past two years and are expected to continue next summer. The retirement of fossil-fuel plants without sufficient replacements led to rolling blackouts in August 2020 and close calls on subsequent occasions.

The CPUC is charged with ordering procurement by the state’s three big IOUs: PG&E, Southern California Edison and San Diego Gas & Electric

“It’s difficult to understand why the CPUC did not appreciate the gravity of the shortfall sooner and take action to mitigate its impact,” Chris Holden, chairman of the state Assembly’s Utilities and Energy Committee, told Batjer at a hearing in January 2020. (See CPUC President Vows to be ‘Damn Nimble’.)

In response, the CPUC ordered load-serving entities under its jurisdiction to procure large amounts of new capacity including an additional 11.5 GW in June. (See CPUC Orders Additional 11.5 GW but No Gas.)

“Since my appointment, the CPUC has been called upon to translate its rules and processes into timely actions and outcomes to better protect and improve the quality of life for Californians,” Batjer said. “I can say with confidence that we — at all levels of the CPUC — have worked tirelessly to support Californians during these challenging times. This became my mission, and I will leave the CPUC knowing its leadership will continue to uphold this focus and determination.”

During Batjer’s tenure, CPUC commissioners became embroiled in an ugly and very public battle with former executive director, Alice Stebbins, whom they fired for allegedly hiring poorly qualified former colleagues for key positions. Stebbins has continued to criticize the commission in the media and to sue the commission, claiming she was retaliated against for blowing the whistle on $200 million in missing funds. (CPUC Fires Executive Director for Improper Hiring.)

The fight with Stebbins took an especially heavy toll on Batjer, colleagues have said.

Batjer said in her message to staff that she needed a change.

“I have had the privilege of serving four California governors and have given my all to public service for many decades,” she said. “I am now ready for a new challenge and adventure.”

CAISO CEO Elliot Mainzer, who has worked closely with Batjer and their counterparts at the California Energy Commission, said Tuesday, “I have very much appreciated working with President Batjer over the past year. She has brought tremendous leadership, vision, and focus to the CPUC, and I will miss interacting with her on a regular basis. I wish her the very best as she moves on to new challenges and hopefully gets some well-deserved rest.”