BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
           ------------------------------------------------------------ 
          |                               |201(Speier)                 |
          |-------------------------------+----------------------------|
          |                               |                            |
          |-------------------------------+----------------------------|
          |Hearing Date:  5/31/01         |Amended: 5/1/01 and         |
          |                               |proposed to be amended      |
          |-------------------------------+----------------------------|
          |Consultant:  Lisa Matocq       |Policy Vote: E, U & C 5-1   |
          |                               |                            |
          |                               |                            |
           ------------------------------------------------------------ 
          ____________________________________________________________ 
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          BILL SUMMARY:  SB 201:

           is intended to enhance consumer and ratepayer advocacy  
            services of the Office of Ratepayer Advocate (ORA) within  
            the Public Utilities Commission (PUC), and transfers  
            $1.85 million from the PUC Utilities' Reimbursement  
            Account (URA) to the PUC Ratepayer Advocate Account (RAA)  
            in 2001-02 and appropriates that amount for these  
            purposes, and
           requires the salary of the director of the division of  
            Ratepayer Advocate to be 90% of the salary of a PUC  
            commissioner (an increase of probably less than $2,000  
            annually).
             
                              Fiscal Impact (in thousands)
           Major Provisions                     2001-02              2002-03          
            2003-04                Fund  
          
          Enhanced ratepayer        $1,850*           $ 3,700          $3,700   
                        Special*
          advocacy                Increased costs are potentially offset by
                                  increase fee revenues          

          *Transfers $1.85 million from the URA to the RAA. 

          
          STAFF COMMENTS:  SUSPENSE FILE.   Current law, until  
          January 1, 2002, establishes a division within the PUC to  
          represent the interests of public utility customers  in  
          commission proceedings  .  This bill specifies that the ORA  










          shall represent the interests of public utility customers  
          (regardless of whether or not it relates to commission  
          proceedings), which arguably expands the ORA's authority.   
          Effective January 1, 2002, the ORA provisions are repealed  
          and replaced with a requirement that the PUC establish a  
          division to represent the interests of customers in  
          commission proceedings, and authority to assign staff.  It  
          is unclear how the ORA would change effective January 1,  
          2002.  This bill repeals the sunset and deletes the  
          provisions that would otherwise take effect January 1,  
          2002, and establishes a permanent, and likely expanded  
          program.

          Existing law also requires that moneys from the URA be  
          transferred in the annual budget act to the RAA to cover  
          the costs of the program.  The URA receives about $60  
          million annually from fee revenues.  The funds may be used  
          for specified purposes including the PUC's budget.  The  
          Governor's Budget includes $13.4 million for the ORA.  The  
          increased costs are estimated at $3.7 million annually.   
          This shift could result in decreased funding for other PUC  
          operations, or increased fees to cover the costs associated  
          with enhanced advocacy.