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
                                                          Page  2

  Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081