BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 608|
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THIRD READING
Bill No: SB 608
Author: Escutia (D)
Amended: 4/18/05
Vote: 21
SENATE ENERGY, UTIL. & COMMUNICATIONS COMM. : 8-2, 4/5/05
AYES: Escutia, Alarcon, Bowen, Cox, Dunn, Kehoe, Murray,
Simitian
NOES: Battin, Campbell
NO VOTE RECORDED: Morrow
SENATE APPROPRIATIONS COMMITTEE : 8-4, 5/9/05
AYES: Migden, Alquist, Bowen, Escutia, Florez, Murray,
Ortiz, Speier
NOES: Aanestad, Ashburn, Battin, Poochigian
NO VOTE RECORDED: Dutton
SUBJECT : Public Utilities Commission: Division of
Ratepayer
Advocates
SOURCE : Author
DIGEST : This bill expands and clarifies the role of the
Office of the Ratepayer Advocate, within the Public
Utilities Commission.
ANALYSIS : Existing law establishes within the Public
Utilities Commission (PUC), a division to represent the
interests of public utility customers and subscribers known
CONTINUED
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as the Office of the Ratepayer Advocate (ORA). The ORA
Director is a pleasure appointment of the Governor, subject
to Senate confirmation.
Existing law establishes within the PUC an office of the
public advisor to assist the public who desire to testify
or present information to the PUC.
This bill:
1. Changes the name of the division to the Division of
Ratepayer Advocates (DRA).
2. Requires the DRA to represent the interests of customers
in all significant proceedings and forums, rather than
just proceedings.
3. Authorizes the DRA Director to appoint a lead attorney,
who serves at the pleasure of the Director, to represent
DRA.
4. Requires the DRA Director to develop the DRA budget,
subject to PUC approval.
5. Clarifies that the PUC must provide to the DRA attorneys
and legal support sufficient to ensure that customers'
interests are effectively represented.
6. Expands the PUC's public outreach program by requiring
the commission to publicize programs that encourage
participation in proceedings.
7. Makes related changes.
Comments
In 1996, the Legislature created the ORA to represent
consumer interests at the PUC [SB 960 (Leonard), Chapter
856, Statutes of 1996]. This legislation formalized an
organizational structure created by the PUC that
established a consumer advocacy function separate from the
PUC's decision-making apparatus. The Legislature
strengthened the consumer advocacy function by making the
ORA Director a Governor's Appointment and dealt with
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conflict of interest concerns by requiring the creation of
appropriate rules.
Concerns have been raised about shortcomings in the
statutes which hamper ORA's effectiveness. Those concerns,
reflected in the testimony of the ORA Director in the March
1, 2005 hearing of the Senate Energy, Utilities and
Communications Committee, include ORA's lack of a separate
budget and spending authority and ORA's lack of control
over its attorneys.
Prior to the 1996 legislation, ORA had 210 employees.
Currently, ORA has 116 employees.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
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 ORA's duties, i.e.,
representing customers in additional forums are
approximately $150,000+ to several hundred thousand dollars
annually. Public Utilities' Reimbursement Account revenues
are derived from an annual fee imposed on utilities.
Therefore, any increased costs should be recovered from fee
revenues.
SUPPORT : (Verified 5/12/05)
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OPPOSITION : (Verified 5/12/05)
Pacific Gas & Electric Company
NC:mel 5/12/05 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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