BILL ANALYSIS
SB 1159
Page 1
Date of Hearing: July 7, 1999
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Carole Migden, Chairwoman
SB 1159 (Sher) - As Amended: April 21, 1999
Policy Committee: Utilities and
Commerce Vote: 11-0
Urgency: No State Mandated Local
Program:YesReimbursable: No
SUMMARY :
This bill deletes the requirement for third-party verification
via telephone inquiry if a residential customer switches
electric service providers using the Internet or with a written
transaction. The verification would instead use the same medium
(Internet or in writing) as used to obtain the switching of
service.
FISCAL EFFECT :
Potential minor savings to the Public Utilities Commission to
the extent that the new procedures reduce consumer complaints
that require investigation by the commission.
COMMENTS :
Background and Purpose . To protect consumers in a deregulated
electricity market, Chapter 275, Statutes of 1997 (SB 477,
Peace) required independent, third-party verification via the
telephone when a customer selects a new energy service provider.
According to the sponsors of this bill, telephone verification
works well when a customer chooses a new energy supplier via the
telephone, but problems arise when the customer signs up for
service via the Internet or the mail. In these instances, a
verification phone call takes place several days after the
initial transaction, and, if the verification company is unable
to reach the customer in a timely manner, the switch to a new
provider is delayed or canceled altogether. This bill is
intended to address these current verification requirements,
which the author believes are burdensome.
SB 1159
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Analysis Prepared by : Chuck Nicol / APPR. / (916)319-2081