BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1082
                                                          Page  1

Date of Hearing:   May 26, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

  AB 1082 (Utilities and Commerce) - As Amended: May 12, 1999 

Policy Committee:                              Utilities and  
Commerce     Vote:                             11-0

Urgency:     No                   State Mandated Local  
Program:NoReimbursable:            

  SUMMARY  :

This bill is a spot measure intended as a vehicle for potential  
proposals regarding the employee-related transition costs of  
utility deregulation.  In its current form the bill does not  
change current law.

  FISCAL EFFECT  :

No fiscal impact.

  COMMENTS  :

  Background  . Existing law authorizes the Public Utilities  
Commission (PUC) to allow for the recovery of  
reasonable employee related transition costs incurred as a  
result of mitigation efforts related to potential negative  
impacts related to electric industry restructuring.  Reasonable  
costs include those expended for severance, retraining, early  
retirement, outplacement and related expenses for the employees.  
 These costs are to be recovered through Competition Transition  
Charges for a period not to extend beyond December  31, 2006.

This bill is sponsored by the Coalition of California Utility  
Employees and the Southern California Gas Workers Council.  The  
previous version of this bill would have  required  the PUC to  
deem the specified employee related transition costs as  
reasonable.  That version was opposed by the Office of Ratepayer  
Advocates because they believed it shifted the burden of proof  
from the investor-owned-utilities to the PUC to demonstrate that  
the employee costs are reasonable.  The objectionable language  
was deleted from the bill in the policy committee and replaced  








                                                          AB 1082
                                                          Page  2

with language that is essentially the same as existing law.



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