BILL ANALYSIS SB 1476 Page 1 SENATE THIRD READING SB 1476 (Padilla) As Amended August 2, 2010 Majority vote SENATE VOTE :30-0 UTILITIES & COMMERCE 13-0 JUDICIARY 10-0 ----------------------------------------------------------------- |Ayes:|Knight, Buchanan, Carter, |Ayes:|Feuer, Tran, Brownley, | | |Fletcher, Fong, Fuller, | |Evans, Hagman, Huffman, | | |Furutani, Huffman, Ma, | |Jones, Knight, Monning, | | |Skinner, Swanson, | |Saldana | | |Villines, Bradford | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Fuentes, Conway, | | | | |Bradford, | | | | |Charles Calderon, Coto, | | | | |Davis, | | | | |De Leon, Gatto, Hall, | | | | |Harkey, Miller, Nielsen, | | | | |Norby, Skinner, Solorio, | | | | |Torlakson, Torrico | | | | | | | | ----------------------------------------------------------------- SUMMARY : Requires an investor-owned utility (IOU) or publicly owned utility (POU) using advanced metering (smart meters) to protect consumers' energy usage data from an unauthorized access or disclosure, and prohibits IOUs and POUs from certain activities. FISCAL EFFECT : Ongoing special fund costs of about $100,000 to PUC for one position to monitor IOU compliance with the bill's requirements. [Public Utilities Reimbursement Account.] COMMENTS : A smart meter is a two-way communication device which transmits data back to the utility and negates the need SB 1476 Page 2 for manual meter readings. Also, smart meters enable a utility to provide customers with detailed information about their energy usage at different times of the day, which in turn enables customers to manage their energy use more proactively. To date, Sempra (SDG&E) is the only California utility that has a meter interface allowing the customer to access their electrical usage data through a third-party demand response provider (i.e. Google Power Meter). According to SDG&E, the customer cannot use this tool unless the customer relinquishes control of the data through the utilities' website, and makes the selection to agree to allow Google to utilize the consumption data for a commercial use. Later this year, SDG&E customers will be able to access their consumption data directly from its Web site. This bill does not intend to disrupt SDG&E's arrangement but rather require the utility to provide customers with an additional means of accessing consumption data without allowing a third party demand response provider to collect, retain, share or reuse their electric gas consumption information. In December 2008, PUC initiated a proceeding (R.08-12-009) to consider policies for IOUs to develop a smarter electric grid in the state. Within its smart grid proceeding, PUC will consider setting policies, standards and protocols to guide the development of a smart grid system, and facilitate integration of new technologies, such as, demand-side technologies, distributed generation, storage and electric vehicles. The rulemaking will also investigate the contact between the smart grid and consumers (residential, commercial, industrial, agricultural) and cyber-security issues which include policies to ensure customer privacy. On May 21, 2010, PUC rendered a proposed decision and a final decision should be released later this summer. Analysis Prepared by : DaVina Flemings / U. & C. / (916) 319-2083 FN: 0005905