BILL NUMBER: SB 1153	AMENDED
	BILL TEXT

	AMENDED IN SENATE   APRIL 20, 1999

INTRODUCED BY   Senator Brulte

                        FEBRUARY 26, 1999

   An act to add Section 745 to the Public Utilities Code, relating
to gas utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1153, as amended, Brulte.  Gas utility programs  :
study  . 
   Existing law sets forth a legislative statement that declares that
natural gas utilities should seek to exploit all practicable and
cost-effective conservation and improvements in the efficiency of
energy use and distribution that offer equivalent or better system
reliability, and which are not being exploited by any other entity.
Existing law requires the Public Utilities Commission, in calculating
the cost effectiveness of energy resources, including conservation
and load management options, to include a value for any costs and
benefits to the environment, including air quality.  Existing law
authorizes the commission, for purposes of setting the rates to be
charged by every gas corporation, to allow the inclusion of research
and development expenses. 
   Existing law requires the commission to establish a prescribed
program of assistance to low-income gas customers, referred to as the
California Alternate Rates for Energy Program.  Existing law
requires the commission to require a gas corporation to perform home
weatherization services for low-income customers if the commission
determines that a significant need for those services exists in the
corporation's service territory, as prescribed.
   This bill would  require the State Auditor, in
consultation with the commission, the State Energy Resources
Conservation and Development Commission, and the Office of Ratepayer
Advocates, to conduct a study to review the funding sources for
 state that it is the intent of the Legislature to
resolve issues regarding the funding of  the gas utility
programs described above,  as prescribed   in a
manner that preserves the programs and addresses any competitive
inequities resulting from the programs' funding methodologies  .
   The bill would require the commission to reimburse the
State Auditor for the reasonable costs of the study in an amount not
to exceed $500,000.  The bill would require the State Auditor to
complete the study and submit recommendations to the Legislature on
or before January 1, 2001. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  
yes   no  . State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 745 is added to the Public Utilities Code, to
read:  
   745.  (a) The State Auditor, in consultation with the 

   745.  It is the intent of the Legislature to resolve issues
regarding the funding of those natural gas public purpose programs,
such as those authorized under Section 701.1, 739.1, 739.2, 740, and
2790, in a manner that preserves the programs and addresses any
competitive inequities resulting from the programs' funding
methodologies.   commission, the State Energy Resources
Conservation and Development Commission, and the Office of Ratepayer
Advocates, shall conduct a study to review the existing funding
sources for gas utility public purpose programs authorized under
Sections 701.1, 739.1, 739.2, 740, and 2790.
   (b) The State Auditor, in carrying out the study, shall identify
the programs, consider the impacts of these programs on competitive,
deregulated natural gas markets, make recommendations for an
appropriate, stable funding source for these programs, and examine
the costs incurred in connection with these programs, and the extent
to which these programs are provided by utilities, competing
suppliers, nonprofit organizations, and local, state, and federal
public agencies.
   (c) The State Auditor may contract with qualified technical
analysts and economists necessary to conduct the study.
   (d) The commission, with existing resources, shall reimburse the
State Auditor for the reasonable costs of the study, as determined by
the commission, in an amount not to exceed five hundred thousand
dollars ($500,000).
   (e) The State Auditor shall complete the study and submit its
findings and recommendations to the Legislature on or before January
1, 2001.