BILL NUMBER: SB 944	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Sher

                        FEBRUARY 21, 2003

   An act to add Section 454.6 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 944, as introduced, Sher.  Rates:  cost recovery:  advocacy
account.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including rates.  Existing law
requires the commission to authorize public utilities to record
certain costs in catastrophic event memorandum accounts and, under
that law, the costs recorded in those accounts are recoverable in
rates following a request by the affected utility, a commission
finding of their reasonableness, and approval by the commission.
   This bill would require the commission to require each public
utility to establish a separate regulatory, legislative, and judicial
advocacy account and to record in that account all costs that the
public utility presently includes, or intends to include, in its
revenue requirement for rate recovery related to appearing at, or
participating in, certain governmental proceedings.  Under the bill,
the costs recorded in the account would be recoverable in rates
following a separate request by application by the affected utility
filed no more than once in every 3 years and, to the extent possible,
in coordination with its general rate proceeding.  The bill would
require the commission to make findings with regard to the
reasonableness of those costs.  Because a violation of a rule or
order of the commission is a crime, this bill, by requiring the
commission to impose a new requirement on public utilities, would
expand the definition of a crime, thereby imposing a state-mandated
local program.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 454.6 is added to the Public Utilities Code, to
read:
   454.6.  (a) Notwithstanding the existence, or prior commission
approval, of any account used for the purpose of recording and
recovering administrative and general expenses through rates, the
commission shall require each public utility to establish a separate
regulatory, legislative, and judicial advocacy account and to record
in that account all costs that the public utility presently includes,
or intends to include, in its revenue requirement for rate recovery
related to appearing at, or participating in, proceedings of any of
the following:
   (1) The commission and all other commissions and local agencies.
   (2) The Supreme Court, a court of appeal, or a superior court.
   (3) The Legislature or an entity in the executive branch.
   (4) Any entity of the executive, judicial, or legislative branches
of other states or the government of the United States.
   (b) The costs of "appearing at, or participating in" proceedings
as described in subdivision (a) shall include, but are not limited
to, all salaries, bonuses, consulting fees, office supplies and
expenses, and commission regulatory expenses, including any
out-of-pocket or travel expenses, related to all participation
including, but not limited to, attendance, argument, and testimony at
hearings and meetings and document drafting and filing.
   (c) The costs recorded in the account described in subdivision (a)
shall be recoverable in rates following a separate request by
application by the affected utility filed no more than once in every
three years and, to the extent possible, in coordination with its
general rate proceeding.  The commission shall make findings with
regard to the reasonableness of those costs.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.