BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
           ------------------------------------------------------------ 
          |                               |1(Aanestad)                 |
          |-------------------------------+----------------------------|
          |                               |                            |
          |-------------------------------+----------------------------|
          |Hearing Date:  8/20/01         |Amended: 7/10/01            |
          |-------------------------------+----------------------------|
          |Consultant:  Lisa Matocq       |Policy Vote: E, U & C       |
          |                               |5-0                         |
          |                               |                            |
           ------------------------------------------------------------ 
          ____________________________________________________________ 
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          BILL SUMMARY: 
          
          AB 1 establishes a dispute resolution process for  
          investor-owned utilities (IOUs) and nonresidential  
          customers to determine the amount of energy efficiency  
          rebate that the customer is eligible to receive from the  
          IOU, as specified.   

                              Fiscal Impact (in thousands)
           
          Major Provisions                     2001-02              2002-03          
            2003-04                Fund  
          
          PUC                     Unknown, probably not significant costs,      
             Special*
                                  depends on the number of complaints

          *Public Utilities' Reimbursement Account (PURA)
          
          STAFF COMMENTS:   
          
          Under current law, the Public Utilities Commission (PUC)  
          establishes a surcharge to be imposed on all energy bills  
          to fund a variety of programs.  These revenues are  
          collected by the IOUs and used, subject to PUC approval, to  
          fund a variety of programs, including rebate programs for  
          the installation of energy efficient appliances, or  
          systems.     

          The bill provides that if a dispute is not resolved, the  
          customer may file a complaint with the PUC, and requires  










          the PUC to issue findings within 30 days. Additionally, the  
          bill requires the amount of estimated rebate to be held in  
          reserve until the matter is resolved.

          Increased costs to the PUC are unknown and depend on the  
          number of complaints it receives, but are probably not  
          significant.  PURA revenues are derived from an annual  
          charged to public utilities, therefore, any increased costs  
          to the PUC should be recovered through increased fee  
          revenues.