BILL ANALYSIS Ó
AB 1409
Page 1
ASSEMBLY THIRD READING
AB 1409 (Utilities and Commerce Committee)
As Introduced March 13, 2013
Majority vote
UTILITIES & COMMERCE 10-5
APPROPRIATIONS 12-5
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|Ayes:|Bradford, Bonilla, |Ayes:|Gatto, Bocanegra, |
| |Buchanan, Fong, Garcia, | |Bradford, |
| |Roger Hernández, Quirk, | |Ian Calderon, Campos, |
| |Rendon, Skinner, Williams | |Eggman, Gomez, Hall, |
| | | |Ammiano, Pan, Quirk, |
| | | |Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Patterson, Chávez, Beth |Nays:|Harkey, Bigelow, |
| |Gaines, Gorell, Jones | |Donnelly, Linder, Wagner |
| | | | |
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SUMMARY : Corrects incorrect code references in statute and
revises the statutory cap on fees necessary to obtain a
certificate of public convenience and necessity (CPCN) 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moved or repealed as a result of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 PUC to adjust for inflation the fee required to obtain
a CPCN.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, potential minor annual costs savings in the tens of
thousands of dollars range for PUC due to the increased fee
revenue. For example, there are between 15-30 telephone
corporation CPCN applications per year. PUC has proposed to set
the fee at $500 pending the enactment of this bill. After the
initial process at PUC, a new CPCN is not needed for the
telephone corporation. Occasionally new CPCNs are needed for
other public utilities.
AB 1409
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COMMENTS : This is a committee bill which revises incorrect code
references in statute and revises the statutory cap on fees
necessary to obtain a CPCN from PUC.
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)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 CPCN application has not adjusted for
inflation. According to PUC, the Consumer Price Index (CPI)
has increased 530.5% since 1969. If the application fee had
been adjusted for inflation, using CPI calculator, the fee
would be approximately $473. Currently, 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
this bill.
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 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. PUC will subsequently vote on the matter after
comments are addressed.
AB 1409
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Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083
FN: 0000558