BILL ANALYSIS                                                                                                                                                                                                    




  AB 1149
                                                          Page  1

CONCURRENCE IN SENATE AMENDMENTS
AB 1149 (Aroner)
As Amended August 17, 1999
Majority vote
  
ASSEMBLY: 59-17                 (May 25, 1999)                   
SENATE:   24-13                 (August 25, 1999)               
   
  Original Committee Reference:    U. & C.  

  SUMMARY  :  Requires the California Public Utilities Commission  
(CPUC) to conduct a study and submit a report to the  
Legislature, by January 1, 2001, on existing regulations  
relating to underground electric and communications facilities.

  The Senate amendments  permit CPUC to revise undergrounding  
regulations without prior approval of the Legislature.

  EXISTING LAW  specifies that CPUC has regulatory authority over  
public utilities and, under that authority, has adopted rules  
for the replacement of overhead electric and communications  
facilities with underground facilities.

  AS PASSED BY THE ASSEMBLY  , this bill required CPUC to  
investigate and assess the following aspects of its  
undergrounding program:

1)The continuity of the existing underground system and ways to  
  eliminate uneven patches of overhead facilities;

2)Ways to enhance public safety;

3)Ways to improve reliability; and,

4)Ways to provide more flexibility to local governments.

  FISCAL EFFECT  :  Minor costs to CPUC for the study and report.

  COMMENTS  :  The author has introduced this bill to address a  
district issue.  Recent undergrounding projects within the City  
of Oakland have resulted in an uneven patchwork of overhead and  
underground utility lines.  Scattered streets within each  
undergrounding district failed to meet CPUC criteria for  
undergrounding projects.  When a project fails to meet CPUC  









  AB 1149
                                                          Page  2

criteria, the local investor-owned utility cannot utilize  
existing funds set aside for construction costs.  In these  
instances, the costs to install the undergrounding facilities  
must be paid by the property owners, "which becomes extremely  
cost-prohibitive."  This results in an uneven patchwork of  
overhead and underground facilities.

This bill would require CPUC to conduct a study as to ways to  
amend, revise, and improve CPUC's undergrounding rules and  
procedures.  The issues to be addressed would include  
discovering and eliminating barriers to establishing continuity  
of the existing underground system, and ways to eliminate uneven  
patches of overhead facilities.  The study would also explore  
ways to provide more flexibility to local governments.  CPUC  
would additionally be required to submit a report on the study  
to the Legislature on or before January 1, 2001. 

In a 1967 ruling, CPUC established overhead to underground  
conversion programs for aesthetic and safety reasons.  According  
to CPUC staff, this bill is a worthy approach to address the  
need to revise and update CPUC's undergrounding rules, which  
have not been substantially amended in the three decades since  
they were put into effect.


  Analysis Prepared by  :  Joseph Lyons / U. & C. / (916) 319-2083 


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