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