BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1153|
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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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