BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 201|
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THIRD READING
Bill No: SB 201
Author: Speier (D)
Amended: 6/4/01
Vote: 27
SENATE ENERGY, U.&C. COMMITTEE : 5-1, 4/24/01
AYES: Bowen, Alarcon, Murray, Speier, Vincent
NOES: Morrow
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/31/01
AYES: Alpert, Bowen, Escutia, Karnette, Murray, Perata,
Speier
SUBJECT : Public Utilities Commission
SOURCE : Author
DIGEST : This bill makes changes to the Office of
Ratepayer Advocate within the California Public Utilities
Commission, intended to enhance consumer and ratepayer
advocacy services. The bill transfers $1.85 million from
the Public Utilities Commission Utilities Reimbursement Act
to the California Public Utilities Commission Ratepayer
Advocate Account.
ANALYSIS : Current law establishes a division within the
California Public Utilities Commission (CPUC) to represent
the interests of public utility customers in CPUC
proceedings. The director of the division, known as the
Office of Ratepayer Advocate (ORA), serves at the pleasure
of the Governor and is subject to confirmation by the
CONTINUED
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Senate. The Governor's ability to appoint the ORA director
and the specific Ratepayer Advocate Account in the State
General Fund are scheduled to sunset on January 1, 2002.
Current law provides that should the sunset take place, the
law would return to the way it read prior to 1997, whereby
the CPUC appointed and funded the ORA to represent the
interests of utility customers and subscribers in CPUC
proceedings.
This bill removes the sunset, requires the ORA director to
be paid a salary equal to 90 percent of that received by
the CPUC commissioners (an increase of probably less than
$2,000 annually), and deletes the replacement section of
law that would take effect should the sunset actually take
place.
The bill provides that the ORA shall represent the
interests of public utility customers and subscribers, but
no longer limits that representation to commission
proceedings.
The bill transfers $1.85 million from the CPUC Utilities
Reimbursement Account to the CPUC Ratepayer Advocate
Account in 2001-02 and appropriates that amount for the
bill's purposes.
Background
ORA is the state-sanctioned representative of consumers at
the CPUC and it's required to participate in all
significant electric, telecommunications, natural gas, and
water cases. In the smallest cases, ORA may provide the
only financial analysis of the case, but in larger cases,
ORA frequently presents the only comprehensive alternative
analysis to the one put forth by the utility.
In 1996, concurrent with the electric restructuring effort,
the existing ORA was modified to make its director a
Governor's appointment and to provide a separate line item
within the CPUC budget. The purpose of this change was to
ensure ORA accountability. Without this bill, those
provisions will sunset, meaning ORA will be returned to its
former status and make its director an appointee of the
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CPUC.
Many other consumer groups are represented at the CPUC. In
order to encourage participation, state law provides for
compensation of costs if that group makes a substantial
contribution to the case and participation by that group
couldn't occur without significant financial hardship, as
determined by the CPUC.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2001-02 2002-03 2003-04 Fund
Enhanced ratepayer $1,850* $3,700
$3,700Special*
Advocacy Increased costs are potentially offset
By increased fee revenues
*Transfers $1.85 million from the URA to the RAA.
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.
NC:kb 6/4/01 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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