BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2803
                                                                  Page  1

          Date of Hearing:   May 12, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                AB 2803 (Jerome Horton) - As Amended:  April 27, 2004 

          Policy Committee:                               
          UtilitiesVote:10-0
                        Jobs                                    9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill,  as proposed to be amended  : 

          1)Requires the assigned Public Utilities Commission (PUC)  
            commissioner to determine, in their scoping memorandum for a  
            ratemaking or quasi-legislative case, whether economic issues  
            need to presented as part of the proceeding.

          2)Requires, pursuant to (1) above, that parties to the  
            proceeding, including public utilities, assess whether the  
            case is likely to affect employment, capital investment,  
            infrastructure deployment, public safety or any other element  
            determined to be of economic significance.  

          3)Requires any economic impact findings, pursuant to (2) above,  
            to be included as part of the final written decision if the  
            assigned commissioner determines that such a record is  
            necessary.

          4)Requires the PUC's costs of evaluating submitted economic  
            impact analyses to be reimbursed by the utilities.

           FISCAL EFFECT  

          Any costs to the PUC would be absorbable or reimbursable.

           COMMENTS  

           1)Purpose  .  This bill is sponsored by the California Chamber of  
            Commerce.  The chamber and other supporters indicate that the  








                                                                  AB 2803
                                                                  Page  2

            PUC's regulatory decisions can impact whether capital  
            investments are made in electrical generation facilities or  
            natural gas pipelines, or communications technology.  
            Supporters believe that sound policy needs to be adopted so as  
            not to deter investment or increase costs, resulting in job  
            losses.

           2)Amendments  . The amendments clarify that a) the economic  
            analyses shall be prepared and submitted by parties to a  
            proceeding and not by PUC staff, and b) the PUC shall be  
            reimbursed for its costs to review economic analyses.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081