BILL ANALYSIS Appropriations Committee Fiscal Summary ------------------------------------------------------------ | |28(Migden) | |-------------------------------+----------------------------| | | | |-------------------------------+----------------------------| |Hearing Date: 9/6/01 |Amended: 8/21/01 | |-------------------------------+----------------------------| |Consultant: Lisa Matocq |Policy Vote: E, U & C 7-0 | | | | | | | ------------------------------------------------------------ ____________________________________________________________ ___ 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.