BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 201| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 SB 201 Page 2 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. SB 201 Page 3 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 SB 201 Page 4 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 **** END ****