BILL ANALYSIS Ó SB 900 Page 1 Date of Hearing: August 6, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 900 (Hill) - As Amended: July 1, 2014 Policy Committee: Utilities and Commerce Vote: 15-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires the California Public Utilities Commission (PUC) to develop formal procedures to consider safety in electrical or gas rate cases. This bill also requires the PUC to assess the consequences and mitigate the impacts of all its decisions on customer, public and employee safety. FISCAL EFFECT Minor absorbable costs. This bill codifies current PUC practices. COMMENTS 1)Purpose. According to the author, over the last two years, the PUC has recognized the need to include safety in its proceedings. However, the development of effectiveness procedures for addressing safety so far has been slow. This bill ensures the PUC will integrate safety information in its rate cases and general decision making proceedings. 2)Background. In response to the San Bruno gas pipeline explosion, the PUC established an independent review panel to study the explosion. In June 2011 report, the panel found safety had not been effectively included in PUC decision making, particularly in general rate cases and made various recommendations. In response, the PUC held a workshop in January 2012 on this matter and in March 2012 ordered Pacific Gas & Electric (PG&E) to pay for an independent safety review of its GRC SB 900 Page 2 application. In November 2013, the PUC opened a rulemaking proceeding to integrate safety into rate case proceedings (R.13-11-006). Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081