BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 488|
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THIRD READING
Bill No: SB 488
Author: Pavley (D)
Amended: 5/28/09
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE : 11-0, 4/27/09
AYES: Padilla, Benoit, Calderon, Corbett, Cox, Kehoe,
Lowenthal, Simitian, Strickland, Wiggins, Wright
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Energy usage information
SOURCE : Author
DIGEST : This bill requires each electrical corporation,
gas corporation and publicly owned electric and gas utility
to adopt a pilot program to disclose, not less frequently
than quarterly, on the billing statement of a residential
subscriber, information documenting the amount of energy
used by the metered residence compared to similar
residences in the subscriber's geographical area. This
bill requires each electrical corporation, gas corporation,
and each publicly owned electric utility to identify those
residences that used significantly more energy during the
period than was used by similar residences with comparable
household square footage in the subscriber's geographical
area. The utility shall provide those heavy users with
information on energy saving strategies and programs
available to assist in financing energy efficiency
CONTINUED
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improvements. This bill requires that the cost of any
pilot program adopted pursuant to these requirements be
recovered only from the residential ratepayers of the
electrical corporation or gas corporation.
ANALYSIS : Current law requires each electrical
corporation and each gas corporation to disclose on the
residential customer's billing statement specified
information on usage and cost, and contact information for
the Consumer Affairs Branch of the Public Utilities
Commission (PUC), and to make available online to
residential customers specified information on usage and
energy conservation measures.
Current law requires the PUC, as part of the general rate
case of an electrical corporation or gas corporation, to
assess opportunities to improve the quality of information
contained in the utility's periodic billings.
This bill requires the PUC, on or before July 1, 2010, to
require each electrical corporation and each gas
corporation to adopt a pilot program to disclose, not less
frequently than quarterly, either in a separate mailing or
on the billing statement of a residential subscriber,
information documenting the amount of energy used by the
metered residence compared to similar residences in the
subscriber's geographical area. This bill requires the PUC
to require each electrical corporation and each gas
corporation to identify those residences that used
significantly more energy during the period than was used
by similar residences with comparable household square
footage in the subscriber's geographical area and to ensure
that information is provided most frequently to those
subscribers on energy saving strategies or programs
available to assist in financing energy efficiency
improvements, in addition to the above-described
information relative to energy usage. This bill requires
each electrical corporation and each gas corporation, on or
before July 1, 2011, and each July 1 thereafter, to submit
to the PUC and the Legislature a report on the energy
savings resulting from the pilot program adopted by the
utility.
This bill requires the PUC, on or before July 1, 2010, to
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require each electrical corporation and each gas
corporation to adopt a pilot program to disclose, not less
frequently than quarterly, either in a separate mailing or
on the billing statement of a residential subscriber,
information documenting the amount of energy used by the
metered residence compared to similar residences in the
subscriber's geographical area. This bill requires the PUC
to require each electrical corporation and each gas
corporation to identify those residences that used
significantly more energy during the period than was used
by similar residences with comparable household square
footage in the subscriber's geographical area and to ensure
that information is provided most frequently to those
subscribers on energy saving strategies or programs
available to assist in financing energy efficiency
improvements, in addition to the above-described
information relative to energy usage. This bill requires
that the cost of any pilot program adopted pursuant to
these requirements be recovered only from the residential
ratepayers of the electrical corporation or gas
corporation. This bill requires each electrical
corporation and each gas corporation, on or before July 1,
2011, and each July 1 thereafter, to submit to the PUC and
the Legislature a report on the energy savings resulting
from the pilot program adopted by the utility.
Background
Energy efficiency is the most cost-effective way in
reducing energy consumption. State energy policies
prioritize energy efficiency as a way to reduce energy
usage reducing the need for new power plants and
transmission lines and support multibillion dollar energy
efficiency programs.
The California Energy Commission has established
regulations for a Home Energy Rating System Program to
certify home energy rating services in California. The
Home Energy Rating System Program is a voluntary program
with a goal of providing reliable information to
differentiate the energy efficiency levels among California
homes and to guide investment in cost-effective home energy
efficiency measures.
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Academic research suggests that high energy using customers
reduce their energy use when they are presented information
comparing their usage to that of their neighbors. Major
utilities, such as San Diego Gas & Electric, Southern
California Edison, and the Sacramento Municipal Utility
District (SMUD) already have pilot programs in place that
monitor the energy consumption of a group of customers
compared to a controlled group. Other investor owned and
publicly owned utilities are looking into similar programs.
These pilot programs are too new to have any reported
results.
Comments
A number of utilities are already running pilot programs
that do this, and are enjoying considerable success. Last
March, SMUD began a pilot program with 35,000 residents.
These customers receive notices telling them how their
energy usage compares to that of customers of similar size.
When compared to 50,000 homes that did not receive the
notices, SMUD found that those who received the notices
reduced their energy use by 2.4 percent in April - just one
month after the program started. Households with higher
than average energy use receive specific tips for reducing
energy use, and information about available programs.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 5/26/09)
American Federation of State, County and Municipal
Employees, AFL-CIO
California Association of Realtors
Coalition of California Utility Employees
Positive Energy
OPPOSITION : (Verified 5/26/09)
Northern California Power Agency
ARGUMENTS IN SUPPORT : The California Association of
Realtors states:
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"The key to achieving energy efficiency in existing
buildings lies in a broad, statewide approach that would
reach all California homes and businesses, and SB 488
(Pavley) can make this happen. The greatest barrier to
achieving retrofits and upgrades is upfront costs. The
on-bill cost avoidance financing program proposed in SB
488 (Pavley) is the ideal approach to constructively
mitigating the negative impact of these costs. In
removing the financial barrier to achieving energy
efficiency improvements, the biggest hurdle to
revolutionizing the energy efficiency of California
buildings disappears. Building owners, renters, lessees
and municipalities will be free to attain a higher level
of energy efficiency in their homes, offices, businesses
and industries.
"People want to do the 'right thing'. SB 488 (Pavley)
would not only allow building owners and occupants [to]
cut down on energy usage and reduce their utility bills;
it will also empower all Californians to actively
contribute to the statewide efforts to meet the goals of
[the] Global Warming Solutions Act of 2006."
ARGUMENTS IN OPPOSITION : The Northern California Power
Agency (NCPA) states:
"SB 488 would create additional burdensome reporting and
technologically unworkable data gathering requirements of
publicly owned utilities. It calls on all public power
utilities to 'identify residents that [use] significantly
more energy ? than was used by similar residences in the
subscriber's geographical area and ensure that
information is provided to those subscribers on energy
saving strategies and programs available to assist in
financing energy efficiency improvements.'
"Such requirements are either duplicative or infeasible.
As part of their existing energy efficiency programs,
NCPA members already provide information on all available
energy efficiency programs to all of their customers,
through direct mail and their websites. Publicly owned
utilities-many of whom are very small operations with no
more than a few full-time staff-are not equipped to
gather and process such detailed information on each of
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their customers. Additionally, comparing the energy
usage of customers on a one-to-one basis is misleading,
and will not lead to increased adoption of energy
efficiency programs by consumers."
DLW:mw 5/29/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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