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
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BILL SUMMARY: SB 608 expands and clarifies the role of the
Office of Ratepayer Advocate (ORA), within the Public Utilities
Commission (PUC).
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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)
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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.