BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 608
                                                                  Page  1

          Date of Hearing:   July 13, 2005

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                    SB 608 (Escutia) - As Amended:  July 1, 2005 

          Policy Committee:                              UtilitiesVote:7-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill modifies the structure and function of the Public  
          Utility Commission's (PUC's) Office of Ratepayer Advocates  
          (ORA). Specifically, this bill:

          1)Renames the ORA the Division of Ratepayer Advocates (DRA). 

          2)Makes the director's appointment, commencing April 1, 2007, a  
            six-year term rather than a term served at the pleasure of the  
            governor.

          3)Requires the director to develop the division's budget, which  
            is subject to approval by the PUC. 

          4)Authorizes the director to appoint a lead attorney, who serves  
            at the director's pleasure. 

          5)Clarifies that all attorneys assigned by the commission to  
            perform services for the division shall report to, and be  
            directed by, the lead attorney. 

          6)Requires the commission to publicize programs that encourage  
            participation in commission proceedings.

           FISCAL EFFECT  

          Ongoing special fund costs of $147,000 for the lead attorney  
          position. Any other costs are absorbable. [Public Utilities  
          Reimbursement Account]

           COMMENTS  









                                                                  SB 608
                                                                  Page  2

           Purpose  . SB 960 (Leonard), Statutes of 1996, created the ORA to  
          represent consumer interests at the PUC.  That legislation  
          formalized an organizational structure originally created by the  
          PUC to establish 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 conflict of interest  
          concerns by requiring the creation of appropriate rules.

          Concerns have been raised about shortcomings in the statutes  
          which could limit the ORA's effectiveness.  Those concerns  
          include ORA's lack of a separate budget and spending authority,  
          and the requirement that ORA use the PUC Legal Division's  
          attorneys, which can compromise the ORA's representations. This  
          bill is intended to address some of these concerns.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081