BILL ANALYSIS                                                                                                                                                                                                    



                                                             


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|SENATE RULES COMMITTEE            |                  SB 1153|
|Office of Senate Floor Analyses   |                         |
|1020 N Street, Suite 524          |                         |
|(916) 445-6614         Fax: (916) |                         |
|327-4478                          |                         |
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                       THIRD READING
                              

Bill No:  SB 1153
Author:   Brulte (R)
Amended:  4/20/99
Vote:     21

  
  SENATE ENERGY, U.&C. COMMITTEE :  8-0, 4/13/99
AYES:  Bowen, Baca, Brulte, Hughes, Kelley, Mountjoy,  
  Solis, Vasconcellos
NOT VOTING:  Alarcon, Peace, Speier
 

  SUBJECT  :    Gas utility programs

  SOURCE  :     California Manufacturers Association

 
  DIGEST  :    This bill states legislative intent to resolve  
issues regarding the funding of gas utility programs in a  
manner that preserves the programs and addresses any  
competitive inequities resulting from the programs' funding  
methodologies.

  ANALYSIS  :    Current law provides for several programs  
which help achieve statutorily directed social goals,  
including aid to low income natural gas customers, as well  
as assistance for natural gas research and development  
efforts.  
  
  Over the years, a number of natural gas public purpose  
programs have been enacted into statute.  These programs  
provide discounts to low income customers, assist in home  
weatherization efforts, encourage research and development,  
and aid in the deployment of cleaner generation  
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                                                     SB 1153
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technologies.  The total expenditures for these programs by  
California's major natural gas utilities approaches $140  
million annually, financed by ratepayers via a surcharge on  
gas transported by intrastate pipelines.

Large customers are permitted to shop for natural gas and  
can buy from out-of-state producers via interstate pipeline  
that, because they are interstate, are not subject to the  
state surcharges which pay for the public purpose programs.  
 This creates a competitive inequity which potentially  
biases customers against natural gas provided by the  
regulated utility and leads to a decrease in the money  
available to fund the state's natural gas public purpose  
programs.  

This bill states legislative intent to resolve issues  
regarding the existing funding sources for these programs,  
in a manner that preserves the programs and addresses any  
competitive inequities resulting from the programs' funding  
methodologies.

  FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
Local:  No


  SUPPORT  :   (Verified  5/5/99)

California Manufacturers Association (source)
The Williams Companies


NC:sl  5/5/99   Senate Floor Analyses 

               SUPPORT/OPPOSITION:  SEE ABOVE

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