BILL ANALYSIS
SB 1153
Page 1
Date of Hearing: August 23, 1999
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick Wright, Chair
SB 1153 (Brulte) - As Amended: July 14, 1999
SENATE VOTE : 37-0
SUBJECT : Gas utility programs.
SUMMARY : Requires the California Public Utilities Commission
(CPUC) to determine the most efficient and cost-effective way to
provide natural gas public purpose programs, as specified, and
to develop and implement their findings and recommendations on
or before July 1, 2001. Additionally, permits CPUC to conduct
compliance and financial audits to ensure compliance with CPUC
orders or resolutions relating to the implementation of these
programs.
EXISTING LAW provides for several natural gas-related public
purpose 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.
FISCAL EFFECT : Unknown.
COMMENTS :
1)California's natural gas public purpose programs provide
discounts to low income customers, assist in home
weatherization efforts, encourage research and development,
and assist in the deployment of cleaner generation
technologies, and are financed by ratepayers via a surcharge
on gas transported by intrastate pipelines.
2)Low income gas customers are eligible for two gas public
purpose programs, CARE, a 15% percent rate discount, and
targeted energy efficiency services, such as weatherization to
improve the energy efficiency of low-income homes. The
programs are administered by utilities, although the service
delivery is often contracted out to community-based
organizations.
3)Programs costs and penetration rates (the number of eligible
SB 1153
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customers served) vary by utility service territory. This
impacts both the costs to ratepayers (who bear the costs of
these programs) and the ultimate goal of these programs, to
reach the targeted population. This bill requires CPUC to
determine the most efficient and cost-effective way to provide
gas public purpose programs in a consistent manner among the
utility service territories, and to develop and implement
their findings and recommendations on or before July 1, 2001.
CPUC is specifically directed to consider outreach efforts to
reach the targeted population and the types of services and
discounts that should be provided by each utility.
4)Related legislation: AB 1002 (Wright), which would make the
costs of gas public purpose programs nonbypassable, ensuring
that the departure of current customers from CPUC-regulated,
intrastate system would not increase the relative public goods
funding burden of remaining customers. AB 1393 (Wright) would
specify quality of service factors to be used in the
competitive bidding for low-income energy efficiency programs.
Both measures are currently in the Senate.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Carolyn Veal-Hunter / U. & C. / (916)
319-2083