BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
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          |                               |28(Migden)                  |
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          |Hearing Date:  9/6/01          |Amended: 8/21/01            |
          |-------------------------------+----------------------------|
          |Consultant:  Lisa Matocq       |Policy Vote: E, U & C 7-0   |
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          BILL SUMMARY:  AB 28xx expands the authority of the  
          Electricity Oversight Board (EOB), as specified, and  
          establishes reporting procedures for electric generation  
          and transmission facilities related to their availability. 
                              Fiscal Impact (in thousands)
           Major Provisions                     2001-02              2002-03          
            2003-04                Fund  
          EOB                     Potentially $575-750* annually until 1-1-03   
            General                           
          PUC                     Probably minor and offset by fee revenues     
          Special**
                                   
          *The 2001 Budget Act contains $750,000 for similar purpose. 
          **Public Utilities' Reimbursement Account (PURA)
          
          STAFF COMMENTS:  SUSPENSE FILE.   Current law establishes  
          the EOB to, among other things, oversee the Independent  
          System Operator (ISO).  The ISO maintains a schedule of  
          facilities' outages for planned maintenance.  This bill:

           until January 1, 2003, or when a specified event occurs,  
            whichever is earlier, (1) requires the EOB to adopt, by  
            March 1, 2002, protocols for transmission and generation  
            equipment outages for maintenance and other reasons, (2)  
            requires generating facilities over 10 megawatts to  
            report monthly to the ISO any periods of unavailability  
            or reduced capacity, and requires the ISO to forward that  
            information to the EOB, and (3) requires municipal  
            utilities to, among other things, report actual and  
            planned outages, 
           authorizes the EOB to investigate matters related to the  










            wholesale electricity market in order to ensure  
            availability during peak demand,  
           requires the EOB to report to the Legislature quarterly  
            on these provisions,
           and makes related changes. 

          The Governor's Executive Order D-23-01 directs the  ISO  to,  
          among other things, obtain records of unplanned outages  
          from generators daily, and prepare a coordinated outage  
          plan.  The 2001 Budget Act includes $750,000 for EOB to  
          undertake specific activities regarding transmission and  
          generation equipment outages, contingent upon enactment of  
          legislation authorizing such activities.  The provision  
          authorizing the EOB to investigate certain matters is not  
          subject to the 1-1-03 sunset, therefore costs in outyears  
          are unknown, but probably not significant.  PURA revenues  
          are derived from an annual fee charged to public utilities.  
          Therefore, any increased costs to the PUC should be  
          recovered in fee revenues.  Increased costs to municipal  
          utilities are unknown, but probably not substantial and  
          probably recoverable in rates.  The provisions of this bill  
          are contingent upon enactment of SB 39xx (Speier), pending  
          in the Assembly, which authorizes the PUC to develop  
          inspection, maintenance, and operating procedures for  
          generators to ensure reliability.