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 | | | | | | | ------------------------------------------------------------ ____________________________________________________________ ___ 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 Effective January 1, 2002, the ORA provisions are repealed and replaced with a requirement that the PUC establish a division to represent the interests of customers in commission proceedings, and authority to assign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.