BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1414
                                                                  Page  1

          SENATE THIRD READING
          SB 1414 (Kehoe)
          As Amended  August 20, 2010
          Majority vote

           SENATE VOTE  :31-0  
           
           UTILITIES & COMMERCE              14-0               
          APPROPRIATIONS      12-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bradford, Tom Berryhill,  |Ayes:|Fuentes, Bradford,        |
          |     |Buchanan, Carter,         |     |Huffman, Coto, Davis, De  |
          |     |Fletcher, Fong, Fuentes,  |     |Leon, Gatto, Hall,        |
          |     |Fuller, Furutani,         |     |Skinner, Solorio,         |
          |     |Huffman, Ma, Skinner,     |     |Torlakson, Torrico        |
          |     |Swanson, Villines         |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Clarify the timeline and manner in which the  
          California Public Utilities Commission (PUC) may extend the  
          review period for a rehearing application.

           FISCAL EFFECT :  Establishing a 120-day deadline for rehearing  
          applications, though this timeline can be extended by commission  
          action, will create workload-related cost pressures. If up to  
          two full-time attorney positions are needed to meet this  
          deadline, annual costs to the commission would be up to  
          $290,000. [Public Utilities Reimbursement Account] 

           COMMENTS  :   Under current law, parties and certain other  
          entities are directly affected by an action, decision, or order  
          of PUC may apply to PUC in order to have a rehearing on their  
          matter of concern.  Moreover, a party may petition a state  
          appellate court or the state Supreme Court to review a PUC  
          decision, but the party must first seek a rehearing by PUC.  

          PUC has no statutory deadline to act on rehearing applications.  
          However, parties are allowed to file a writ of review after 60  
          days if PUC has not acted upon rehearing application.  Often,  
          PUC will ask the court to stay any action until PUC rules on the  
          application for rehearing.  Under this scenario, the court,  
          exercising its discretion, generally declines review until PUC  
          acts within a court given timeline. 









                                                                  SB 1414
                                                                  Page  2

          During this period of delay, the underlying PUC decision remains  
          in effect.  Existing law provides that a rehearing application  
          "shall not excuse any corporation or person from complying with  
          and obeying any order" of PUC nor shall an application for  
          rehearing "operate in any manner to stay or postpone the  
          enforcement" of that order, unless PUC orders a stay.  

          This bill provides that if the PUC has not acted upon a  
          rehearing application filed on or after January 1, 2011, within  
          120 days, the PUC by order may extend the period for action upon  
          the application.  Any single order shall not extend the review  
          period for more than an additional 120 days.  This "extension by  
          order" provision may increase the visibility and highlight for  
          the commissioners those cases that are still outstanding which  
          may help PUC with managing the backlog.  In any case, if PUC  
          orders an extension, a party is not precluded from exercising  
          its right to take the case to court.  


           Analysis Prepared by  :    DaVina Flemings / U. & C. / (916)  
          319-2083 
                                                                FN: 0006553