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
                                                          Page  2

  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