BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 1476 (Padilla) Hearing Date: 05/03/2010 Amended: 04/20/2010 Consultant: Brendan McCarthy Policy Vote: EU&C 10-0, Jud. 4-0 SB 1476 (Padilla), Page 2 _________________________________________________________________ ____ BILL SUMMARY: SB 1476 requires investor owned utilities and publicly owned utilities that use smart meters to allow customers to access their consumption data without requiring the disclosure of personally identifiable information or consumption data to a third party. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund PUC enforcement $115 Special * * Public Utilities Commission Utilities Reimbursement Account. _________________________________________________________________ ____ STAFF COMMENTS: Under current regulation, the Public Utilities Commission requires the state's investor owned utilities that provide natural gas and electricity service to upgrade their metering systems to make use of advanced metering infrastructure - often referred to as "smart meters". These smart meters allow real time monitoring of consumption levels by individual customers and the utilities. In addition, smart meters allow utilities to charge customers variable rates, depending on the price of electricity at different times of the day and days of the week. San Diego Gas & Electric currently allows customers with smart meters to access information about their consumption. However, customers must use Google's Powermeter software to access this data. While the use of Powermeter is free to the customer, Google requires customers to consent to relinquish their consumption data to Google. This bill requires investor owned utilities and publicly owned utilities that utilize smart meters to allow customers to access their consumption data without having to consent to disclose personally identifiable information or consumption data to a third party. The Commission indicates that it will require one additional SB 1476 (Padilla), Page 2 staff position to implement the bill. According to the Commission, an additional position is needed to review utility marketing materials, review utility contracts with any third parties that provide consumption data to customers, and review utility practices to ensure customer information is protected. Current law requires the Commission to undertake a pilot study on rate design and metering systems to assist residential and small commercial customers better manage their electricity use. This bill repeals that requirement, as the study has been completed and the Commission has ordered the deployment of smart meters in order to better manage electricity use. SB 837 (Florez) also addresses issues of customer data and confidentiality. That bill will be heard in this committee.