BILL ANALYSIS �
AB 976
Page 1
Date of Hearing: May 18, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 976 (Hall) - As Amended: April 25, 2011
Policy Committee:
UtilitiesVote:12-2
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill prohibits any person or firm that contracted with a
public entity on the feasibility of creating a community choice
aggregator (CCA) from subsequently bidding or being awarded a
contract for any work required or suggested by that feasibility
study.
FISCAL EFFECT
Negligible costs for local entities to comply with the bill's
prohibition.
COMMENTS
1)Purpose . Under current law, a community (city, county, special
district) to may elect to aggregate its electric load and, if
approved by the community, form a CCA to arrange contracts for
electricity service for the community. According to the
author, firms hired by local governments to make
recommendations on forming a CCA often seek contracts to
implement their project recommendations. The author points out
that there is a conflict of interest that generally would
benefit the consulting firm and that current law does not
adequately protect the interests of the taxpayers or affected
ratepayers.
2)Opposition . The San Francisco Public Utilities Commission
(SFPUC) argues the bill effectively bans a consulting services
AB 976
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company from doing further business with the CCA program in
perpetuity. The SFPUC contends there are few companies with
experience in the launch of CCA programs and AB 976 would
discourage consultants from providing any services to a CCA
prior to commencement of service, thus greatly curtailing a
local government's ability to exercise its right under state
law to establish and operate a CCA program.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081