BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                   SB 201|
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                              UNFINISHED BUSINESS


          Bill No:  SB 201
          Author:   Speier (D)
          Amended:  7/19/01
          Vote:     21

           
           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

           SENATE FLOOR  :  27-10, 6/6/01
          AYES:  Alarcon, Alpert, Battin, Bowen, Burton, Chesbro,  
            Costa, Dunn, Escutia, Figueroa, Karnette, Kuehl, Machado,  
            Murray, O'Connell, Ortiz, Peace, Perata, Polanco, Romero,  
            Scott, Sher, Soto, Speier, Torlakson, Vasconcellos,  
            Vincent
          NOES:  Ackerman, Brulte, Haynes, Knight, Margett,  
            McClintock, Monteith, Morrow, Oller, Poochigian

           ASSEMBLY FLOOR  :  45-29, 9/4/01 -  See last page for vote


           SUBJECT  :    Public Utilities Commission:  Office of  
          Ratepayer Advocate

           SOURCE  :     Author


           DIGEST  :    This bill clarifies the existing role of the  
          Office of Ratepayer Advocate (ORA) within the California  
                                                           CONTINUED





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          Public Utilities Commission (CPUC), and repeals the sunset  
          of the statute providing the ORA's charter.

           Assembly Amendments  :

          1.Delete the requirement that the ORA director be paid a  
            salary equal of 90 percent of that received by the CPUC  
            commissioners.

          2.Delete the appropriation of $1.85 million which was to be  
            transferred from the CPUC Utilities Reimbursement  
            Account.

          3.Clarify legislative intent regarding the scope of ORA's  
            discovery rights.

          4.Clarify that the bill is not intended to expand the  
            representation and responsibilities of ORA.

           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  
          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 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  
          "within the jurisdiction of the commission," but no longer  
          limits that representation to commission proceedings.








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          The bill provides additional conditions upon ORA in  
          discovery matters by requiring that any discovery dispute  
          be decided by the president of CPUC or an assigned  
          commissioner in writing, and requiring that the division  
          agree to meet and confer with a regulated entity prior to  
          filing a complaint at CPUC.

           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  
          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:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  9/5/01)

          California State Employees Association
          Office of Ratepayer Advocate
          The Utility Reform Network
          Utility Consumer Action Network









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           ASSEMBLY FLOOR  
          AYES:  Alquist, Aroner, Calderon, Canciamilla, Cardenas,  
            Cedillo, Chan, Chu, Cohn, Corbett, Correa, Diaz, Dutra,  
            Firebaugh, Frommer, Goldberg, Havice, Horton, Jackson,  
            Keeley, Kehoe, Koretz, Liu, Longville, Lowenthal,  
            Matthews, Migden, Nakano, Nation, Negrete McLeod,  
            Oropeza, Pavley, Salinas, Shelley, Simitian, Steinberg,  
            Strom-Martin, Thomson, Vargas, Washington, Wayne, Wesson,  
            Wiggins, Wright, Hertzberg
          NOES:  Aanestad, Ashburn, Bates, Bogh, Briggs, Bill  
            Campbell, John Campbell, Cogdill, Cox, Daucher,  
            Dickerson, Harman, Hollingsworth, La Suer, Leach,  
            Leonard, Leslie, Maddox, Maldonado, Mountjoy, Robert  
            Pacheco, Rod Pacheco, Pescetti, Richman, Runner,  
            Strickland, Wyland, Wyman, Zettel


          NC:kb  9/5/01   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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