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 ****