BILL ANALYSIS Ó
SB 631
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Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 631
(Hueso) - As Amended June 17, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill increases the application filing fee for a certificate
of public convenience and necessity (CPCN) issued to a telephone
corporation and other utilities from $75 to $500. This bill
authorizes the Public Utilities Commission (PUC) to adjust the
SB 631
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fee based on the Consumer Price Index. Additionally, this bill
deletes an obsolete code referencing the deposit of fees.
FISCAL EFFECT:
Minor annual fee revenue increases of approximately $8,500
(Public Utilities Reimbursement Account). According to the PUC,
there are approximately 20 CPCN application filings per year.
COMMENTS:
Purpose and Background. CPCNs are generally required before a
telephone corporation or other specified utility may begin
construction or extend a transmission line, plant or system.
The certificate states that the present or future public
convenience and necessity require such construction. The
current CPCN fee has been in statute since 1969 and does not
reflect the current cost to PUC to process the application.
The Consumer Price Index has increased 548% since 1969. If the
application fee had been adjusted for inflation, the current fee
would be about $486. This bill is intended to increase the fee
level to meet current PUC costs and give the PUC the ability to
raise the fee in the future without legislative action.
This bill also deletes a code reference that became inoperative
as a result of other enacted statutes.
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Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081