BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1122 (Cannella) - Telecommunications: small independent
telephone corporations: rates: universal service: California
High-Cost Fund-A
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|Version: March 29, 2016 |Policy Vote: E., U., & C. 11 - |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 27, 2016 |Consultant: Narisha Bonakdar |
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Bill
Summary: SB 1122 requires the California Public Utilities
Commission (CPUC) to make a final decision in a general rate
case of a small independent telephone company no later than 390
days following the company's filing and, if the deadline is
missed, provides that the proposed rates will take effect on an
interim basis subject to an accounting true-up if a decision is
issued within 420 days of the filing. If a final decision is
made after 420th day, the new rate will take effect
prospectively with no true-up to the interim rates. This bill
also allows rate case expenses to be an eligible expense within
the California High-Cost Fund-A Program that provides universal
service rate support to small independent telephone
corporations.
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
SB 1122 (Cannella) Page 1 of
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Fiscal
Impact:
Approximately $184,000 (Public Utilities Commission Utilities
Reimbursement Account) to the CPUC for one full-time
Administrative Law Judges to ensure that the codified
deadlines are met.
Committee
Amendments:
Amends the definition of rate case expense to allow reasonable
costs to be determined by the CPUC.
Strikes provision allowing rate case expenses to be separately
included in the revenue requirement regardless of any CPUC
determinations regarding the reasonableness of other expenses.
Allows small independent telephone corporation to file a
tariff implementing interim rates equal to the current rate
plus inflation if the CPUC does not meet the deadlines for
approving rate cases.
Specifies that the interim rates become effective on the first
day of the first test year in the general rate case
application, unless the presiding officer or the CPUC
determine that the decision cannot become effective on the
first day of the first test year due to actions by the small
independent telephone corporation.
Specifies that interim rates must be adjusted upward or
downward back to the interim rate effective date to reflect
the final rates adopted by the CPUC.
SB 1122 (Cannella) Page 2 of
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Allows the CPUC to authorize a lesser increase in interim
rates if the CPUC finds the rates to be in the public
interest.
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