BILL ANALYSIS
Appropriations Committee Fiscal Summary
2303 (Leno)
Hearing Date: 8/02/04 Amended: 6/17/04
Consultant: Lisa Matocq Policy Vote: E, U & C
5-2
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BILL SUMMARY:
AB 2303 (1) except as otherwise specified, provides that
any bonus paid to an officer of an insolvent public utility
shall be borne by the utility's shareholders and may not be
recovered from rates, and (2) requires the Public Utilities
Commission (PUC) to audit insolvent public utilities to
ensure compliance with this provision.
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Fiscal Impact (in thousands)
Major Provisions 2004-05 2005-06
2006-07 Fund
PUC Unknown, could range from $100 to
$250 Special*
per audit
*Public Utilities' Reimbursement Account (PURA)
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STAFF COMMENTS:
Increased costs are unknown and depend on the number of
public utilities that file for bankruptcy protection.
According to PUC staff, Pacific Gas & Electric is the only
public utility that has filed for bankruptcy protection in
the last ten years. The costs of conducting an audit could
range from $100,000 to $250,000.
PURA revenues are derived from an annual fee imposed on
public utilities. Therefore, any increased costs to the
PUC should be recovered from fee revenues.