BILL ANALYSIS
AB 1393
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Date of Hearing: April 19, 1999
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick Wright, Chair
AB 1393 (Wright) - As Amended: April 15, 1999
SUBJECT : Electrical restructuring: programs: funding.
SUMMARY : Requires specified electric corporations, on or after
January 1, 2002, to collect a surcharge to support
cost-effective energy efficiency and conservation programs, and
requires CPUC to allocate funds in accordance with criteria
established by the Legislature. Specifically, this bill :
1)Requires the California Public Utilities Commission (CPUC) to
order specified electrical corporations to collect and expend
funds for cost-effective energy efficiency and conservation
activities, and to allocate 35% of those funds to programs
that affect residential energy use;
2)Requires specified electrical corporations, on or after
January 1, 2002, to collect a surcharge of 1.5 mills ($0.0015)
per kilowatt hour to support cost-effective energy efficiency
and conservation programs;
3)Requires CPUC to allocate funds in accordance with
administration and expenditure criteria established by the
Legislature;
4)Requires CPUC to order the electrical corporations to collect
and expend funds for targeted energy efficiency programs for
low-income electricity customers in accordance with a
prescribed schedule;
5)States legislative intent that special emphasis be placed on
programs to reduce electricity bills of customer groups that
have been historically underserved by energy efficiency or
conservation programs.
EXISTING LAW :
1)Requires specified electrical corporations to allow customers
to make voluntary contributions through their utility bill
payments as either a fixed amount or a variable amount to
support programs established for the in-state operation and
AB 1393
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development of existing, new, and emerging renewable resource
technologies, as described.
2)Requires CPUC to order certain electrical corporations to
collect and spend funds for, among other purposes,
cost-effective energy efficiency and conservation activities,
in accordance with a prescribed schedule.
3)Requires programs provided to low-income electricity
customers, including, but not limited to, targeted
energy-efficiency services and the California Alternative
Rates for Energy (CARE) program to be funded at not less than
1996 authorized levels based on the assessment of customer
need, and requires CPUC to allocate funds necessary to meet
those low-income objectives.
FISCAL EFFECT : Unknown.
COMMENTS : AB 1890 (Brulte), [Chapter 854, Statutes of 1996]
specified funding levels for energy efficiency programs,
collected by the state's three largest investor-owned utilities
(IOUs), until December 31, 2001. The three IOUs are required to
collect and spend a total of $840 million over the four-year
electric restructuring transition period. This bill extends the
funding beyond December 31, 2001.
This bill would establish a surcharge of 1.5 mills ($0.0015) per
kilowatt hour to support cost-effective energy efficiency and
conservation programs. The surcharge would be collected by the
following IOUs: Pacific Gas & Electric (PG&E), Southern
California Edison (SCE), and San Diego Gas & Electric (SDG&E).
According to the author, the surcharge rate would closely
approximate the current contribution of IOU ratepayers
This bill requires CPUC to allocate 35% of the funds to
cost-effective energy efficiency and conservation programs that
affect residential energy use. The measure additionally states
legislative intent that special emphasis be placed on reducing
electricity bills of customer groups that have historically been
underserved by energy efficiency and conservation programs.
REGISTERED SUPPORT / OPPOSITION :
Support
AB 1393
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None on file.
Opposition
None on file.
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083