[Nexus 4 Android Development] ziddey:
OTG has nothing to do with it. There were ramdisk changes between r195 and r199:

diff krt16s vs r195:

Only in r195: init.environ.rc~
diff -r krt16s/init.mako.rc r195/init.mako.rc
210,211c210,211
< mkdir /dev/socket/mpdecision 0770 system system
< chmod 2770 /dev/socket/mpdecision
---
> #mkdir /dev/socket/mpdecision 0770 system system
> #chmod 2770 /dev/socket/mpdecision
214c214
< write /sys/class/timed_output/vibrator/amp 70
---
> write /sys/class/timed_output/vibrator/amp 100
226,233d225
< write /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor "ondemand"
< write /sys/devices/system/cpu/cpu1/cpufreq/scaling_governor "ondemand"
< write /sys/devices/system/cpu/cpu2/cpufreq/scaling_governor "ondemand"
< write /sys/devices/system/cpu/cpu3/cpufreq/scaling_governor "ondemand"
< write /sys/devices/system/cpu/cpufreq/ondemand/up_threshold 90
< write /sys/devices/system/cpu/cpufreq/ondemand/sampling_rate 50000
< write /sys/devices/system/cpu/cpufreq/ondemand/io_is_busy 1
< write /sys/devices/system/cpu/cpufreq/ondemand/sampling_down_factor 4
241,264d232
< write /sys/module/rpm_resources/enable_low_power/L2_cache 1
< write /sys/module/rpm_resources/enable_low_power/pxo 1
< write /sys/module/rpm_resources/enable_low_power/vdd_dig 1
< write /sys/module/rpm_resources/enable_low_power/vdd_mem 1
< write /sys/module/pm_8x60/modes/cpu0/power_collapse/suspend_enabled 1
< write /sys/module/pm_8x60/modes/cpu1/power_collapse/suspend_enabled 1
< write /sys/module/pm_8x60/modes/cpu2/power_collapse/suspend_enabled 1
< write /sys/module/pm_8x60/modes/cpu3/power_collapse/suspend_enabled 1
< write /sys/module/pm_8x60/modes/cpu0/power_collapse/idle_enabled 1
< write /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor "powersave"
< write /sys/devices/system/cpu/cpu1/cpufreq/scaling_governor "powersave"
< write /sys/devices/system/cpu/cpu2/cpufreq/scaling_governor "powersave"
< write /sys/devices/system/cpu/cpu3/cpufreq/scaling_governor "powersave"
< write /sys/devices/system/cpu/cpufreq/ondemand/up_threshold 90
< write /sys/devices/system/cpu/cpufreq/ondemand/sampling_rate 50000
< write /sys/devices/system/cpu/cpufreq/ondemand/io_is_busy 1
< write /sys/devices/system/cpu/cpufreq/ondemand/sampling_down_factor 4
< write /sys/devices/system/cpu/cpu0/cpufreq/scaling_min_freq 384000
< write /sys/devices/system/cpu/cpu1/cpufreq/scaling_min_freq 384000
< write /sys/devices/system/cpu/cpu2/cpufreq/scaling_min_freq 384000
< write /sys/devices/system/cpu/cpu3/cpufreq/scaling_min_freq 384000
< write /sys/devices/system/cpu/cpu1/online 0
< write /sys/devices/system/cpu/cpu2/online 0
< write /sys/devices/system/cpu/cpu3/online 0
381,382c349,350
< service thermald /system/bin/thermald
< class main
---
> #service thermald /system/bin/thermald
> # class main
384,385c352,353
< service mpdecision /system/bin/mpdecision --no_sleep --avg_comp
< class main
---
> #service mpdecision /system/bin/mpdecision --no_sleep --avg_comp
> # class main
419a388,401
>
> service fkbootscript /sbin/fkbootscript.sh
> class late_start
>	user root
>	disabled
> oneshot
>
> on property:sys.boot_completed=1
[color=red]>	write /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor "interactive"
> write /sys/devices/system/cpu/cpu1/cpufreq/scaling_governor "interactive"
> write /sys/devices/system/cpu/cpu2/cpufreq/scaling_governor "interactive"
> write /sys/devices/system/cpu/cpu3/cpufreq/scaling_governor "interactive'[/color]
>	start fkbootscript
>	write /dev/cpuctl/apps/cpu.notify_on_migrate 1
Only in r195: init.mako.rc~
diff -r krt16s/init.rc r195/init.rc
94c94
< write /proc/sys/kernel/randomize_va_space 2
---
> write /proc/sys/kernel/randomize_va_space 0
[color=red]304c304
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/timer_rate
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/timer_rate
306c306
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/timer_slack
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/timer_slack
308c308
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/min_sample_time
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/min_sample_time
310c310
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/hispeed_freq
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/hispeed_freq
312c312
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/target_loads
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/target_loads
314c314
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/go_hispeed_load
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/go_hispeed_load
316c316
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/above_hispeed_delay
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/above_hispeed_delay
318c318
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/boost
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/boost
321c321
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/input_boost
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/input_boost
323c323
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/boostpulse_duration
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/boostpulse_duration
325c325
< chmod 0660 /sys/devices/system/cpu/cpufreq/interactive/io_is_busy
---
> chmod 0664 /sys/devices/system/cpu/cpufreq/interactive/io_is_busy
329c329,333
< chmod 0660 /sys/devices/system/cpu/cpu0/cpufreq/scaling_max_freq
---
> chmod 0664 /sys/devices/system/cpu/cpu0/cpufreq/scaling_max_freq
>	chown system system /sys/devices/system/cpu/cpu0/cpufreq/scaling_min_freq
> chmod 0664 /sys/devices/system/cpu/cpu0/cpufreq/scaling_min_freq
>	chown system system /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor
> chmod 0664 /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor[/color]
Only in r195: init.rc~
Only in r195/sbin: fkbootscript.sh
Only in r195/sbin: fkbootscript.sh~

diff kot49e vs r199:

diff -r kot49e/init.mako.rc r199/init.mako.rc
210,211c210,211
< mkdir /dev/socket/mpdecision 0770 system system
< chmod 2770 /dev/socket/mpdecision
---
> #mkdir /dev/socket/mpdecision 0770 system system
> #chmod 2770 /dev/socket/mpdecision
214c214
< write /sys/class/timed_output/vibrator/amp 70
---
> write /sys/class/timed_output/vibrator/amp 100
226,233c226,229
< write /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor "ondemand"
< write /sys/devices/system/cpu/cpu1/cpufreq/scaling_governor "ondemand"
< write /sys/devices/system/cpu/cpu2/cpufreq/scaling_governor "ondemand"
< write /sys/devices/system/cpu/cpu3/cpufreq/scaling_governor "ondemand"
< write /sys/devices/system/cpu/cpufreq/ondemand/up_threshold 90
< write /sys/devices/system/cpu/cpufreq/ondemand/sampling_rate 50000
< write /sys/devices/system/cpu/cpufreq/ondemand/io_is_busy 1
< write /sys/devices/system/cpu/cpufreq/ondemand/sampling_down_factor 4
---
[color=red]> write /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor "interactive"
> write /sys/devices/system/cpu/cpu1/cpufreq/scaling_governor "interactive"
> write /sys/devices/system/cpu/cpu2/cpufreq/scaling_governor "interactive"
> write /sys/devices/system/cpu/cpu3/cpufreq/scaling_governor "interactive"
237a234,236
> write /sys/devices/system/cpu/cpu1/online 1
> write /sys/devices/system/cpu/cpu2/online 1
> write /sys/devices/system/cpu/cpu3/online 1[/color]
241,264d239
< write /sys/module/rpm_resources/enable_low_power/L2_cache 1
< write /sys/module/rpm_resources/enable_low_power/pxo 1
< write /sys/module/rpm_resources/enable_low_power/vdd_dig 1
< write /sys/module/rpm_resources/enable_low_power/vdd_mem 1
< write /sys/module/pm_8x60/modes/cpu0/power_collapse/suspend_enabled 1
< write /sys/module/pm_8x60/modes/cpu1/power_collapse/suspend_enabled 1
< write /sys/module/pm_8x60/modes/cpu2/power_collapse/suspend_enabled 1
< write /sys/module/pm_8x60/modes/cpu3/power_collapse/suspend_enabled 1
< write /sys/module/pm_8x60/modes/cpu0/power_collapse/idle_enabled 1
< write /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor "powersave"
< write /sys/devices/system/cpu/cpu1/cpufreq/scaling_governor "powersave"
< write /sys/devices/system/cpu/cpu2/cpufreq/scaling_governor "powersave"
< write /sys/devices/system/cpu/cpu3/cpufreq/scaling_governor "powersave"
< write /sys/devices/system/cpu/cpufreq/ondemand/up_threshold 90
< write /sys/devices/system/cpu/cpufreq/ondemand/sampling_rate 50000
< write /sys/devices/system/cpu/cpufreq/ondemand/io_is_busy 1
< write /sys/devices/system/cpu/cpufreq/ondemand/sampling_down_factor 4
< write /sys/devices/system/cpu/cpu0/cpufreq/scaling_min_freq 384000
< write /sys/devices/system/cpu/cpu1/cpufreq/scaling_min_freq 384000
< write /sys/devices/system/cpu/cpu2/cpufreq/scaling_min_freq 384000
< write /sys/devices/system/cpu/cpu3/cpufreq/scaling_min_freq 384000
< write /sys/devices/system/cpu/cpu1/online 0
< write /sys/devices/system/cpu/cpu2/online 0
< write /sys/devices/system/cpu/cpu3/online 0
381,382c356,357
< service thermald /system/bin/thermald
< class main
---
> #service thermald /system/bin/thermald
> # class main
384,385c359,360
< service mpdecision /system/bin/mpdecision --no_sleep --avg_comp
< class main
---
> #service mpdecision /system/bin/mpdecision --no_sleep --avg_comp
> # class main
422a398,407
>
> service fkbootscript /sbin/fkbootscript.sh
> class late_start
>	user root
>	disabled
> oneshot
>
> on property:sys.boot_completed=1
>	start fkbootscript
>	write /dev/cpuctl/apps/cpu.notify_on_migrate 1
diff -r kot49e/init.rc r199/init.rc
92c92
< write /proc/sys/kernel/randomize_va_space 2
---
> write /proc/sys/kernel/randomize_va_space 0
Only in r199/sbin: fkbootscript.sh

In red are the differences between r195 and r199. World read access to tunables is no longer allowed (irrelevant). In r195, all lines related to ondemand are deleted, and the governor is set to interactive on boot completion. In recent versions, it's set where ondemand would normally be set (on post-fs-data).

I downloaded a recent nightly of cm11 to analyze the ramdisk, and don't see anything else that would be manipulating the governor. It's possible there's something rom-side that's responsible.