BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1207|
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UNFINISHED BUSINESS
Bill No: SB 1207
Author: Fuller (R)
Amended: 8/20/12
Vote: 21
SENATE ENERGY, UTIL. & COMMUNIC. COMM. : 12-0, 4/24/12
AYES: Padilla, Fuller, Berryhill, Corbett, De Le�n,
DeSaulnier, Emmerson, Kehoe, Pavley, Rubio, Simitian,
Wright
NO VOTE RECORDED: Strickland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/24/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
SENATE FLOOR : 39-0, 5/29/12
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Cannella, Corbett, Correa, De Le�n, DeSaulnier, Dutton,
Emmerson, Evans, Fuller, Gaines, Hancock, Harman,
Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu,
Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio,
Simitian, Steinberg, Strickland, Vargas, Walters, Wolk,
Wright, Wyland, Yee
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR : Not available
SUBJECT : California Alternate Rates for Energy program
SOURCE : Author
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DIGEST : This bill authorizes investor owned utilities
(IOUs) to take certain actions on participants of the
California Alternate Rates for Energy (CARE) program.
Assembly Amendments add language that states the bill
authorizes a CARE program participant with electricity
usage exceeding 600% of baseline usage to participate in an
appeals process with the electrical corporation to
determine whether the participant's usage levels are
legitimate. The amendments prohibit a CARE program
participant in a rental residence from being removed from
the program in situations where the landlord is
nonresponsive when contacted by the electrical corporation
or does not provide for ESAP participation, and make
technical changes.
ANALYSIS : Existing law requires the Public Utilities
Commission (PUC) to establish the CARE program which
provides a discount for electric and gas service for
customers whose incomes are below 200 percent of the
federal poverty guideline levels and limits the rate
structure for CARE customers to no more than three tiers.
The commission is required to set penetration rates for the
IOUs and examine methods to improve enrollment and
participation.
Existing law limits rate increases for CARE customers,
until January 1, 2019, to no more than the annual
percentage increase in the CalWORKS program, not to exceed
three percent annually, and thereafter requires that CARE
customers receive at least a 20 percent rate discount for
service.
This bill:
1.Authorizes IOUs to require proof of income eligibility
for CARE customers whose usage exceeds 400% of baseline.
2.Authorizes IOUs to require CARE customers whose usage
exceeds 400% of baseline to participate in an energy
savings assistance program (ESAP) that includes a
residential energy assessment.
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3.Authorizes IOUs to condition continued participation in
an ESAP if CARE customer usage exceeds 400% of baseline.
4.Authorizes IOUs to require CARE customers to notify the
utility of whether the residence is rented, and identify
the landlord. The IOU may share any evaluation and
recommendation relative to the residential structure that
is made as part of an energy assessment, with the
landlord of the CARE customer.
5.Authorizes IOUs to require CARE customers whose usage
exceeds 600% of baseline to participate in an ESAP that
includes a residential energy assessment.
6.Makes participation in the ESAP mandatory if a CARE
customer's usage exceeds 600% of baseline.
7.Authorizes IOUs to remove a CARE customer from the
program, after the completion of a residential energy
assessment, if the customer's monthly usage exceeds 600%
of baseline. CARE customer may appeal to the IOU to
demonstrate usage levels are legitimate.
8.Exempts CARE gas customers from the provisions of this
bill.
Background
California Alternate Rates for Energy (CARE ) - The CARE
program was designed to provide a 20 percent discount on
monthly gas and electric bills to income-qualified
customers at their primary residence and is funded through
a rate surcharge paid by all other utility customers. The
income cap on CARE eligibility is up to 200 percent above
Federal Poverty Guidelines, which are updated annually in
June. Income guidelines are determined by the total number
of persons in the household and total combined annual
income as follows:
------------------------------
| Household | Care Income |
| Size | Limit |
|-------------+----------------|
| 1 to 2 | $31,800 |
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|-------------+----------------|
| 3 | $37,400 |
|-------------+----------------|
| 4 | $45,100 |
|-------------+----------------|
| 5 | $52,800 |
|-------------+----------------|
| 6 | $60,500 |
|-------------+----------------|
| Each |$7,700 |
| additional | |
------------------------------
Customers can enroll by self-certifying eligibility through
an IOU website, mail, or over the phone. Automatic
enrollment occurs if the customer is already enrolled in
one of several means-tested state or federal assistance
programs such as Temporary Assistance for Needy Families,
MediCal or Medicaid. Community based organizations are
also paid capitation fees of up to $15 per enrollment. The
IOUs conduct a post enrollment verification process (PEV)
for 1-5 percent of the enrolled CARE customers. Selection
of those PEV'd are either random for some IOUs, or based on
a computer stratified selection model that targets certain
customers. If a customer fails to provide all the
available income documentation when selected for PEV, they
are removed from the CARE program, no back charges or
penalties are assessed.
The PUC directed the IOUs to achieve a 90 percent
penetration rate for participation of eligible customers in
the CARE program, which is approximately 4.9 million
households. According to the PUC CARE penetration rates
are:
-------------------------------------------------------------------------------------------------------
|IOU | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | *2011 |
-------------------------------------------------------------------------------------------------------
|--------+------+------+-----+------+----+-----+-----|
|PGE | 68% | 74% | 69% | 74% |86% | 93% | 90% |
|--------+------+------+-----+------+----+-----+-----|
|SCE | 73% | 78% | 75% | 83% |89% | 97% | 99% |
|--------+------+------+-----+------+----+-----+-----|
|SDGE | 61% | 65% | 69% | 74% |80% | 83% | 85% |
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|--------+------+------+-----+------+----+-----+-----|
|SoCalGas| 67% | 73% | 75% | 84% |88% | 93% |93% |
| | | | | | | | |
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* 2011 figures are based on IOU December 2011 monthly
reports and have yet to be finalized.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, any costs
to the PUC will be minor and absorbable.
SUPPORT : (Verified 8/23/12)
California Chamber of Commerce
County of Humboldt
Division of Ratepayer Advocates
Greenlining Institute (if amended)
League of California Cities
Pacific Gas and Electric Company
San Diego Gas & Electric Company
Sempra Energy Utilities
Southern California Edison (if amended)
Southern California Gas Company
TURN (The Utility Reform Network) (if amended)
RM:n 8/28/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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