BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 512 (Hill) - Public Utilities Commission ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: January 4, 2016 |Policy Vote: E.U.&C. 10 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: January 19, 2016 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- 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. SB 512 (Hill) Page 1 of ? 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 SB 512 (Hill) Page 2 of ? 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. SB 512 (Hill) Page 3 of ? 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. -- END --