BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
           ------------------------------------------------------------ 
          |                               |1790(Bowen)                 |
          |-------------------------------+----------------------------|
          |                               |                            |
          |-------------------------------+----------------------------|
          |Hearing Date:  5/13/02         |Amended: 4/17/02            |
          |-------------------------------+----------------------------|
          |Consultant:  Lisa Matocq       |Policy Vote: E, U, & C      |
          |                               |6-2                         |
          |                               |                            |
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          ____________________________________________________________ 
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          BILL SUMMARY: 
          
          SB 1790 requires the Public Utilities Commission (PUC) to  
          establish, in consultation with the California Energy  
          Commission (CEC), a residential and commercial customer air  
          conditioning load control program.

                              Fiscal Impact (in thousands)
           Major Provisions                      2002-03             2003-04          
            2004-05                   Fund  
          
          PUC                      Unknown costs, potentially under $250.       
          Special*
                                   Costs should be offset by fee revenues.

          CEC                       Minor, absorbable costs                 
          General

          *Public Utilities' Reimbursement Account (PURA) 
          
          STAFF COMMENTS:   Air conditioning represents the single  
          largest electricity demand. Several utilities have limited  
          air conditioning load control programs in place.  For  
          example, Southern California Edison (SCE) has a program in  
          place where enrolled customers receive a credit on their  
          electricity bill ranging from $25-$50 per month (July  
          through September) in exchange for allowing SCE to shut off  
          their air conditioning (via a cycling device installed by  
          SCE) for a certain number of minutes per hour during peak  
          times.  The goal of the program in this bill is to reduce  
          electricity consumption and consumers' costs.











          Staff notes that there is no requirement in the bill that  
          electrical corporations implement the air conditioning load  
          control program once it is developed, and there is no  
          deadline by which the PUC must develop the program. 

          The costs of implementing an air conditioning load control  
          program are unknown, but potentially significant, and  
          depend on program design. Southern California Edison's  
          (SCE) program costs about $15 million annually; these costs  
          are recovered through rates.  To the extent that an air  
          conditioning load control program reduces consumption in  
          state agencies, there are unknown energy cost savings.