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 


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