BILL ANALYSIS
SB 608
Page 1
SENATE THIRD READING
SB 608 (Escutia)
As Amended July 1, 2005
Majority vote
SENATE VOTE :27-12
UTILITIES & COMMERCE 7-3 APPROPRIATIONS 13-5
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|Ayes:|Levine, Baca, Blakeslee, |Ayes:|Chu, Bass, Berg, |
| | De La | |Calderon, Karnette, |
| |Torre, Montanez, | |Klehs, Leno, Nation, |
| | Ridley-Thomas, | |Oropeza, Laird, Saldana, |
| |Wyland | |Lee, Mullin |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bogh, Calderon, Keene |Nays:|Sharon Runner, Emmerson, |
| | | |Haynes, Nakanishi, |
| | | |Walters |
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SUMMARY : Expands and clarifies the role of the Office of the
Ratepayer Advocates (ORA), within the California Public
Utilities Commission (PUC). Specifically, this bill :
1)Changes the name of the Office of Ratepayer Advocates to the
Division of Ratepayer Advocates (DRA).
2)Makes the DRA Director a position that serves for a set
six-year term.
3)Requires the DRA Director to develop the DRA budget, subject
to PUC approval.
4)Authorizes the DRA Director to appoint a lead attorney, who
serves at the pleasure of the Director, to represent DRA.
5)Clarifies that PUC must provide DRA with sufficient legal
support to ensure that customers' interests are effectively
represented.
6)Expands PUC's public outreach program by requiring the
commission to publicize programs that encourage participation
SB 608
Page 2
in proceedings.
EXISTING LAW :
1)Establishes ORA at PUC to represent the interests of public
utility customers and subscribers at all significant
proceedings at PUC. The ORA Director is a pleasure
appointment of the Governor, subject to Senate confirmation.
2)Establishes within PUC an Office of the Public Adviser to
assist the public who desire to testify or present information
to PUC.
FISCAL EFFECT : Ongoing special fund costs of $147,000 for the
lead attorney position.
COMMENTS : In 1996, the Legislature created ORA to represent
consumer interests at PUC (SB 960 (Leonard), Chapter 856,
Statutes of 1996). This legislation formalized an
organizational structure created by PUC that established a
consumer advocacy function separate from 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 ORA's effectiveness. Those concerns include
ORA's lack of a separate budget and spending authority and ORA's
requirement to use PUC Legal Division's attorneys, which can
compromise the ORA's representations.
This bill attempts to strengthen ORA by giving the ORA Director
more control over the resources necessary to perform the work.
Currently, ORA's budget is included within the utility
regulation allocation of the entire PUC budget. As such, PUC
possesses some flexibility to redirect resources toward other
utility oversight programs, such as utility safety and market
monitoring. The supporters of this bill believe that this
flexibility has allowed PUC to transfer resources away from ORA
to other programs and PUC, leaving ORA with insufficient
resources.
SB 608
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This bill attempts to address ORA's budgeting problem by: 1)
requiring the ORA Director to develop a budget for the division
subject to final approval by PUC; 2) requiring PUC to assign
personnel to ORA; and, 3) creating a separate PUC Ratepayer
Advocate Account in the General Fund.
Currently, ORA is represented by lawyers who serve under PUC's
General Counsel in PUC's legal division, who in turn report to
the PUC President. This means that ORA attorneys may actually
have conflicts of interest as they report to both the PUC's
General Counsel and to an entity that represents ratepayer
interests in front of PUC itself. This bill attempts to resolve
that conflict by authorizing the ORA Director to appoint an
attorney to represent ORA who reports to the Director and serves
at the pleasure of the Director.
Analysis Prepared by : Edward Randolph / U. & C. / (916)
319-2083
FN: 0011739