BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 900
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                      SB 900 (Hill) - As Amended:  July 1, 2014 

          Policy Committee:                             Utilities and  
          Commerce     Vote:                            15-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the California Public Utilities Commission  
          (PUC) to develop formal procedures to consider safety in  
          electrical or gas rate cases.  This bill also requires the PUC  
          to assess the consequences and mitigate the impacts of all its  
          decisions on customer, public and employee safety.

           FISCAL EFFECT  

          Minor absorbable costs.  This bill codifies current PUC  
          practices.

           COMMENTS  

           1)Purpose.   According to the author, over the last two years,  
            the PUC has recognized the need to include safety in its  
            proceedings.  However, the development of effectiveness  
            procedures for addressing safety so far has been slow.  This  
            bill ensures the PUC will integrate safety information in its  
            rate cases and general decision making proceedings.

           2)Background.   In response to the San Bruno gas pipeline  
            explosion, the PUC established an independent review panel to  
            study the explosion.  In June 2011 report, the panel found  
            safety had not been effectively included in PUC decision  
            making, particularly in general rate cases and made various  
            recommendations.

            In response, the PUC held a workshop in January 2012 on this  
            matter and in March 2012 ordered Pacific Gas & Electric (PG&E)  
            to pay for an independent safety review of its GRC  








                                                                  SB 900
                                                                  Page  2

            application.

            In November 2013, the PUC opened a rulemaking proceeding to  
            integrate safety into rate case proceedings (R.13-11-006). 
             
           
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081