BILL ANALYSIS                                                                                                                                                                                                    1
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   SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                  DEBRA BOWEN, CHAIRWOMAN


AB 1149 -  Aroner                                 Hearing  
Date:  July 13, 1999                 A
As Amended:         April 26, 1999           FISCAL       B
                                                             
  
                                                             
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                         DESCRIPTION
  
  Current regulation  allows ratepayer funds to be used to pay  
for the undergrounding of overhead electric utility  
infrastructure, such as electrical lines and transformers.

  This bill  requires the California Public Utilities  
Commission (CPUC) to review its regulations which govern  
this undergrounding process and issue a report to the  
Legislature by January 1, 2001.


                          BACKGROUND
  
  Presto, Chango  .  For many years the CPUC has encouraged  
moving overhead electric facilities underground as a way to  
improve public safety, improve the aesthetics of a  
community, and lower maintenance costs.  The CPUC allocates  
roughly $60 million annually each from Pacific Gas &  
Electric and Southern California Edison, and $15 million  
from San Diego Gas & Electric which may be included in the  
utility ratebase to pay for the undergrounding.  However,  
because undergrounding is very costly, very few  
undergrounding projects have actually moved forward.

  Putting Someone In Charge Of The Chunneling  .  The author  











introduced this bill in response to a concern that  
undergrounding projects proposed by the City of Oakland  
weren't approved by the local utility.  Furthermore, the  
author believes that recent undergrounding projects have  
led to a patchwork of underground and overhead lines.  This  
bill requires the CPUC to study the current undergrounding  
rules and determine how those rules can be improved to  
eliminate the patchwork of overhead and underground  
facilities, improve reliability, improve public safety, and  
enhance local control.

                           COMMENTS

1.The CPUC Is On The Case  .  Largely as a consequence of  
  this bill, the CPUC is preparing to undertake an  
  investigation of its rules concerning undergrounding of  
  electric and telephone facilities.  However,  the author  
  and the Committee may wish to consider  making it clear  
  that the CPUC can change its rules without prior  
  legislative approval. 

  2.Local Government Flexibility  .  Since the issue of "local  
  control" is what gave rise to this bill,  the author and  
  Committee may wish to consider  inserting the term "and  
  control" after "flexibility" on Page 2, Line 13, to  
  provide the CPUC with a bit more direction in its study.

  3.Technically Speaking  .  As a technical matter, the author  
  may wish to substitute "rule" for "tariff" throughout the  
  bill to make it consistent with current regulations and  
  related statutes.
                               
                       ASSEMBLY VOTES
  
Assembly U & C                     (12-0)
Assembly Appropriations            (15-2)
Assembly Floor                     (59-17)

                          POSITIONS
  
  Support:
  California Public Utilities Commission
City of Oakland (Sponsor)











  Oppose:
  None reported to Committee.


Randy Chinn 
AB 1149 Analysis
Hearing Date:  July 13, 1999