BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                          Senator Carole Migden, Chairwoman

                                           608 (Escutia)
          
          Hearing Date:  5/9/05           Amended: 4/18/05
          Consultant:  Lisa Matocq        Policy Vote: E, U & C 8-2
          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 608 expands and clarifies the role of the  
          Office of Ratepayer Advocate (ORA), within the Public Utilities  
          Commission (PUC). 
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions               2005-06     2006-07    2007-08    Fund
                                                                   
          PUC                                            >$150       >$300  
                      >$300       Special*
                                                     Costs should be  
          offset by fee revenues.                   

          *Public Utilities' Reimbursement Account (PURA) 
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          
          Current law establishes the ORA, a unit within the PUC, to  
          represent the interests of public utility customers.  The ORA  
          budget for 2004-05 is $21.8 million, with a staff of 116 (in  
          past years that number has been as high as 223).  Because the  
          ORA is a unit within the PUC, it lacks separate budget and  
          spending authority, and control over its legal resources. In an  
          effort to increase the ORA's effectiveness and eliminate  
          potential conflicts of interest, this bill: 

           changes the name from ORA to Division of Ratepayer Advocate  
            (DRA); 
           requires the DRA to represent the interests of customers in  
            all significant proceedings and forums, rather than just  
            proceedings;   
           authorizes the DRA director to appoint a lead attorney, who  
            serves at the pleasure of the director, to represent the  
            division;










           requires the DRA director to develop the DRA budget, subject  
            to PUC approval;
           clarifies that the PUC must provide to the DRA attorneys and  
            legal support sufficient to ensure that customers' interests  
            are effectively represented;
           expands the PUC's public outreach program by requiring the  
            commission to publicize programs that encourage participation  
            in proceedings; 
           and makes related changes. 
          
          Some provisions of the bill codify current practice, for  
          example, the budget development provision.  Increased costs to  
          hire a lead attorney ($150,000 annually), expand the public  
          outreach program, and expand the ORA's duties, i.e.,  
          representing customers in additional forums are probably  
          $150,000+ to several hundred thousand dollars annually.  PURA  
          revenues are derived from an annual fee imposed on utilities.   
          Therefore, any increased costs should be recovered from fee  
          revenues.