BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                          Senator Carole Migden, Chairwoman

                                           580 (Escutia)
          
          Hearing Date:  4/18/05          Amended: 3/31/05
          Consultant:  Lisa Matocq        Policy Vote: E, U & C 9-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:    SB 580 expands the jurisdiction of the  
          Low-Income Oversight Board (LIOB), an advisory board to the  
          Public Utilities Commission (PUC), to include low-income  water   
          ratepayers' issues, and increases the membership of the board,  
          from nine to 11 members, as specified.  
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions               2005-06     2006-07    2007-08    Fund
                                                                   
          PUC                                    Probably under $100  
          annually.  Costs        Special*
                                                 should be offset by fee  
          revenues.                         

          *Public Utilities' Reimbursement Account (PURA)   
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  Current law (Moore, Chapter 549, Statutes of  
          1992) requires the PUC to consider, and authorizes the  
          commission to implement, programs to (1) provide rate relief for  
          low-income water ratepayers, and (2) provide incentives for  
          water conservation goals. 

          The LIOB was established in 2001 to advise the PUC on the  
          low-income assistance programs of  electric and gas  utilities,  
          and to serve as liaison for the PUC to low-income ratepayers.   
          The California Alternative Rates for Energy (CARE) program that  
          provides rate discounts for eligible customers, and low-income  
          energy efficiency (LIEE) programs that reduce energy demand by  
          providing such things as free weatherization, are examples of  
          low-income assistance programs. These programs are required to  
          be administered by the investor-owned utilities and are funded  
          by a surcharge on energy bills.  However, staff notes that SB 5X  
          (Sher, Ch. 7, St. of 2001) augmented these programs by $100  










          million for the CARE program, $20 million for additional  
          low-income weatherization services, and $120 million to  
          supplement and expand the Low-Income Home Energy Assistance  
          Program.

          Staff recommends that the bill be amended on page 2, line 5, to  
          strike "telecommunications" as recent amendments were intended  
          to delete all references to telecommunications. 

          Increased costs to the LIOB are probably under $100,000  
          annually. The LIOB is funded with PURA revenues.  PURA revenues  
          are derived from an annual fee imposed on the utilities.   
          Therefore, any increased costs to the PUC for the provisions of  
          this bill should be offset by fee revenues.