BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  SB 1624|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 445-6614         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 1624
          Author:   Bowen (D)
          Amended:  5/24/04
          Vote:     21

           
           SENATE ENERGY, UTIL. & COMM. COMMITTEE  :  5-0, 4/13/04
          AYES:  Bowen, Dunn, McClintock, Murray, Sher 
          NO VOTE RECORDED:  Morrow, Alarcon, Battin, Vasconcellos

           SENATE APPROPRIATIONS COMMITTEE  :  8-5, 5/20/04
          AYES:  Alpert, Bowen, Burton, Escutia, Karnette, Machado,  
            Murray, Speier
          NOES:  Battin, Aanestad, Ashburn, Johnson, Poochigian


           SUBJECT  :    State Public Utilities Commission:  Office of  
          Ratepayer 
                        Advocates

           SOURCE  :     Author


           DIGEST  :    This bill makes minor and clarifying changes  
          related to the State Office of Ratepayer Advocates, within  
          the State Public Utilities Commission.

           ANALYSIS  :    Current law establishes a division within the  
          PUC to represent the interests of public utility customers  
          and subscribers.  That division is known as the Office of  
          Ratepayer Advocates (ORA).

          The PUC decision-making process is a formalized,  
          evidence-driven process where interested parties submit  
                                                           CONTINUED





                                                               SB 1624
                                                                Page  
          2

          testimony and are subjected to cross-examination by  
          opposing parties.  PUC decisions are supposed to be made  
          based on the weight of the evidence, subject to consistency  
          with the laws of the state.  Because the evidence is so  
          crucial to PUC decision-making, the Legislature created the  
          ORA as a counterweight to the perspective of the utilities,  
          tasking it with the responsibility of providing independent  
          evidence and analysis.   ORA participates in virtually all  
          PUC cases with the duty of representing the interests of  
          public utility customers to obtain the lowest possible rate  
          consistent with reliable and safe service levels.  The ORA  
          Director is appointed by the Governor and confirmed by the  
          Senate.

          Parties who disagree with PUC decisions may appeal those  
          decisions, first to the PUC itself, then to the Court of  
          Appeals or the California Supreme Court.  The Court has the  
          discretion to accept the case or refuse to hear it.  There  
          is some question as to whether the ORA, as a representative  
          of public utility customers, can challenge a PUC decision  
          in court. 

          The bill may require the PUC to modify its code of conduct,  
          related to ORA, to clarify that advocates and their  
          representative son a particular case or proceeding do not  
          have preferential access to information regarding the PUC's  
          deliberative process.  The bill also makes other minor and  
          technical changes related to ORA.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

          Increased costs are probably minor.  Public Utilities'  
          Reimbursement Account revenues are derived from an annual  
          fee imposed on public utilities.  Therefore, any increased  
          costs to the PUC should be offset by increased fee  
          revenues.

           SUPPORT  :   (Verified  5/24/04)

          California Alliance for Consumer Protection


          NC:mel  5/24/04  Senate Floor Analyses 







                                                               SB 1624
                                                                Page  
          3


                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****