BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1393
                                                          Page  1

Date of Hearing:   May 26, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

          AB 1393 (Wright) - As Amended: May 24, 1999 

Policy Committee:                              None Vote:

Urgency:     No                   State Mandated Local  
Program:YesReimbursable:          No

  SUMMARY  :

This bill:

1)Specifies non-cost factors to be used as bidding criteria for  
  contracts funded under energy-efficiency programs targeted to  
  low-income electricity customers.  (Examples of these factors  
  include the bidder's knowledge of the targeted communities and  
  the bidder's ability to employ people from the local area.)

2)Specifies that these programs are to continue to be  
  administered by the investor-owned utilities.
 
  FISCAL EFFECT  :

The Public Utilities Commission (PUC) indicates the bill would  
have no fiscal impact on its operations.

  COMMENTS  :

  1)Background and Purpose  . Existing law establishes programs to  
  provide energy-efficiency services to low-income electricity  
  customers.  These programs, which include weatherization,  
  appliance repair and maintenance, energy education, and rate  
  discounts, are to be funded at not less than 1996 authorized  
  levels based on the assessment of customer need.  The PUC is  
  required to allocate funds necessary to meet program  
  objectives and requires the utility corporations to administer  
  the programs.  The utilities may contract out for the services  
  provided under the programs.  The author's office indicates  
  that the intent of this bill is to ensure that factors other  
  than cost are taken into account by the utility companies in  
  awarding these service contracts.








                                                          AB 1393
                                                          Page  2


2)This bill was not heard in a policy committee.  As heard in  
  the Utilities and Commerce Committee, this bill would have  
  required the utility companies to collect a specified  
  surcharge in order to continue funding energy efficiency and  
  conservation programs.  In the current version of the bill,  
  those provisions have been entirely removed and replaced with  
  the contracting provisions described in this analysis, which  
  were included AB 650, which was never heard in policy  
  committee.

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