BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 512 (Hill) - Public Utilities Commission
          
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          |Version: January 4, 2016        |Policy Vote: E.U.&C. 10 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: January 19, 2016  |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  SB 512 would make various changes to the governance of  
          the California Public Utilities Commission (CPUC). 


          Fiscal  
          Impact:  
           Ongoing costs of up to $120,000 annually to the Public  
            Utilities Reimbursement Account (special) to have at least six  
            meetings in Sacramento.

           Ongoing costs of $65,000 annually to the Public Utilities  
            Reimbursement Account (special) to evaluate and report to the  
            Legislature on the performance of the commission and the  
            executive director.









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           One-time costs of $263,000 for two years to the Public  
            Utilities Reimbursement Account (special) for a proceeding to  
            develop rules for the seeking of views of interested parties  
            for all proceedings.

           Ongoing costs of $450,000 annually to the Public Utilities  
            Reimbursement Account (special) to views of those likely to be  
            affected by a proceeding.

           Unknown one-time and ongoing costs, potentially the hundreds  
            of thousands to millions of dollars, to the Public Utilities  
            Reimbursement Account (special) to upgrade and maintain  
            information technology systems to fulfill public information  
            requirements.



          Background:  The CPUC is established in the California Constitution and is  
          governed by five full-time commissioners, appointed by the  
          governor and confirmed by the Senate, and staffed by  
          approximately 1,000 individuals. The CPUC regulates  
          privately-owned electric, natural gas, telecommunications,  
          water, railroad, rail transit, and passenger transportation  
          companies. CPUC staff includes four personal advisors to each  
          commissioner, except five to the president, as well as the 42  
          judges of the Administrative Law Division - attorneys, engineers  
          and accountants who prepare the docket for all CPUC official  
          filings, including maintenance of the official record of  
          proceedings.


          Proposed Law:  
            This bill would require several changes to the governance of  
          the CPUC and the disclosure of information to the public.  
          Specifically, this bill would:
           Require that the CPUC hold at least six sessions a year in  
            Sacramento.


           Require all prepared written testimony and advice letter  
            filings, protests, and responses to be part of the public  
            docket and posted on the CPUC's website.


           Make specific information on the CPUC's processes available to  







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            the public on its website.


           Require the CPUC to prepare an annual report with specific  
            information, including a workplan for the preceding year and  
            an evaluation of the performance of the commission and the  
            executive director in the previous calendar year. This report  
            would be required to be available to the public on the CPUC  
            website.


           Revise the required content of the existing annual Legislative  
            report regarding on the duration of cases.


           Apply the Administrative Adjudication Code of Ethics to the  
            CPUC's administrative law judges.


           Generally require the CPUC to seek the views of all parties  
            likely to be affected by a proceeding before institution that  
            proceeding.




          Related  
          Legislation:  The provisions of this bill are substantially  
          similar to provisions in SB 48 (Hill), which was passed by the  
          legislature but vetoed by the governor. In his veto statement,  
          Governor Brown stated, "I support the intent of [SB 18, 48, and   
          AB 825] and many of their proposed reforms, however some  
          additional work is needed to ensure that they achieve their  
          intended purposes and can be effectively implemented."


          Staff  
          Comments:  In order to have at least six meetings in Sacramento  
          instead of San Francisco, the CPUC estimates annual costs of  
          approximately $120,000. This cost would include travel costs for  
          approximately 40 people including CPUC staff and commissioners.  
          The CPUC notes that it would attempt to reserve free rooms for  
          meetings that meet its space and technology requirements, which  
          may lower these costs, but its ability to do so is not a  
          certainty.







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          This bill would require the CPUC to post thousands of additional  
          documents on its website. Under the CPUC's current IT system,  
          rudimentary compliance with this bill's provisions could  
          potentially be achieved through the manual collection and  
          posting of the necessary documents. Assuming this could be done  
          with no major changes to its IT system, staff estimates that  
          this would result in hundreds of thousands of dollars in  
          additional workload. However, the CPUC notes that it has  
          substantial agency-wide IT needs and as such, it has submitted a  
          budget change proposal in the Governor's proposed 216-17 budget  
          that requests $5.4 million to implement a new agency-wide  
          technology platform (eFiling Administration Support, aka eFAST)  
          that will allow the hosting of the information required by this  
          bill on its website among many other functions. The cost of this  
          system would be spread proportionately among the CPUC's special  
          funds should it be approved. Staff notes that this bill does not  
          require the development of eFAST or an equivalent system and  
          therefore the costs associated with developing an agency-wide  
          new system are not attributable to this bill. However, should  
          the eFAST system be approved and developed, there will be no  
          costs to the CPUC to comply with the additional posting  
          requirements proposed by this bill.




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