BILL ANALYSIS Ó
AB 1409
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Date of Hearing: April 22, 2013
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 1409 (Utilities and Commerce Committee) - As Introduced:
March 13, 2013
SUBJECT : Energy
SUMMARY : Corrects incorrect code references in statute and
revises the statutory cap on fees necessary to obtain a
certificate of public convenience and necessity from the
California Public Utilities Commission (PUC) to adjust for
inflation. Specifically, this bill :
1)Corrects incorrect code references to code sections that were
moved or repealed as a result of
other enacted statutes.
2)Allows the PUC to adjust for inflation the fee required to
obtain a certificate of public convenience and necessity.
EXISTING LAW :
1)States the PUC has regulatory authority over public utilities,
including electrical corporations.
2)Requires the governing body of a local publicly owned electric
utility that sells electricity at retail to adopt, implement,
and finance a solar initiative program for the purpose of
investing in, and encouraging the increased installation of,
residential and commercial solar energy systems.
3)Allows the PUC to charge and collect a fee of $75 for filing
each application for a certificate of public convenience and
necessity, or for the mortgage, lease, transfer, or assignment
of a certificate.
FISCAL EFFECT : Unknown.
COMMENTS : This is a committee bill which revises incorrect
code references in statute and revises the statutory cap on fees
necessary to obtain a certificate of public convenience and
necessity from the PUC.
AB 1409
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1)Incorrect code references : Current law requires the governing
body of a local publicly owned
electric utility that sells electricity at retail to adopt,
implement, and finance a solar initiative program for the
purpose of investing in, and encouraging the increased
installation of, residential and commercial solar energy
systems. Provisions in this bill would move the above described
requirements from local publicly owned electric utilities from
an area of the Public Utilities Code pertaining to electrical
restructuring, to the area of the code pertaining to the
implementation of the California Solar Initiative (CSI).
2)Certificate of Public Convenience and Necessity (CPCN) fee
adjustment : The $75 fee to file an application for a CPCN for
telephone corporations and other utilities except for passenger
state corporations, and for the mortgage, lease, transfer, or
assignment of a CPCN has been in statute since 1969. The cost
of the CPCN application has not adjusted for inflation.
According to the PUC, the Consumer Price Index has increased
530.5% since 1969. If the application fee had been adjusted for
inflation, using the CPI calculator, the fee would be
approximately $473. Currently, the PUC does not have the
authority to raise the fee unless there is a change in statute
through legislative action, thus the creating the need for AB
1409.
The current CPCN application fee does not reflect the current
cost of PUC resources required to process the application. The
application requires extensive review and evaluation by an
Administrative Law Judge, is assigned to the Communications
Division to review tariffs and other technical aspects of the
application. Hearings may be required due to protest filed by
other parties or by the PUC's Consumer Protection and Safety
Division due to regulatory issues in another district, or a
California Environmental Quality Act review if the applicant is
proposing to build facilities. Depending on the initial review,
PUC staff may require the applicant to submit additional
information. After all the necessary information is provided, a
draft decision is prepared which may be sent out for a 30-day
comment period. The PUC will subsequently vote on the matter
after comments are addressed.
REGISTERED SUPPORT / OPPOSITION :
AB 1409
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Support
California Public Utilities Commission (CPUC)
Opposition
None on file.
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083