Ratepayer Advocates' Staff Transfer Scrutinized

The chair of the Senate budget subcommittee is concerned that the governor's proposed redirection of Division of Ratepayer Advocates staff would "negatively impact" its ability to represent ratepayer interests in electricity and gas proceedings. Governor Schwarzenegger's proposed 2006-07 budget would transfer six division staff members from the electricity branch to water and telecommunications assignments. It also would assign new duties to all the staff working for the Low Income Oversight Board. The DRA has 122 staff positions, less than half the number it had in the mid-1990s. Last year, lawmakers gave the division some budget and legal independence from the California Public Utilities Commission. However, it still shares resources - including office space - with the commission, even though it is supposed to be independent. At a March 8 hearing, Senator Sheila Kuehl (D-Los Angeles) directed the commission to work with the division and report on the level of staff and funding needed to carry out statutorily required ratepayer protections. The panel wants to know, for instance, what level of resources is needed to support ongoing programs versus those necessary for involvement in regulatory and policy proceedings. Those range from general rate cases to mergers and acquisitions in the wake of the repeal of the Public Utility Holding Company Act. As well as shifting Ratepayer Advocates' staff, the administration proposes to redirect the entire six-member staff working for the Low Income Oversight Board. The legislatively created board works with community groups representing struggling ratepayers, and the board serves as the liaison between the groups and the CPUC. One of the board's six staff members would be reassigned to work on advanced-metering proceedings. Two others would be redirected to electricity procurement work. The other three would be moved to renewables and distributed-generation activities. Lenny Goldberg, The Utility Reform Network lobbyist, objected to the proposed staff changes. "We have to keep our vigilance on how the [CPUC's] programs are affecting low-income folks," he said. Lawmakers and the CPUC have been at odds over the adequacy of staffing required to carry out legislatively mandated consumer protection programs. Last October, the chairs of the Senate and Assembly energy committees complained about the lack of staff dedicated to the low-income board and its impact on the participation of community groups representing poor ratepayers (Circuit, Oct. 7, 2005). Legislators attempted in 2005 to augment staff at the CPUC, including creating 10 new positions for the ratepayer advocate, but the governor vetoed the increase. Also at this week's hearing, Kuehl told the heads of the various agencies working on liquefied natural gas project permitting to report this month on their roles in the process. The CPUC, the California Energy Commission, the California Coastal Commission, the State Lands Commission, and the Electricity Oversight Board are part of an interagency LNG permitting review group. They play a limited role because the Federal Energy Regulatory Commission has sole jurisdiction over LNG projects on the coastline. Figuring out the different agencies' roles "is like trying to put together a jigsaw puzzle," Kuehl said. The Lands Commission is the lead agency on the state environmental documentation for offshore LNG projects. It also believes it has authority over LNG facilities under the Oil Spill Prevention and Administration Fund. The Lands Commission is reviewing LNG applications, including those for Sound Energy Solutions' proposed terminal in Long Beach, BHP Billiton's project 14 miles off the coast of Ventura, and Crystal Energy's venture that would sit 11 miles offshore of Ventura (see sidebar). The draft environmental report for the Sound Energy project is under FERC's jurisdiction, with the Lands Commission a minor player under the California Environmental Quality Act. The draft report for that Long Beach LNG project was released last year, and a final report is due soon. The Lands Commission is expecting applications from other LNG developers as well, including Woodside Energy and Excelerate Energy. It hopes to turn a temporary position dedicated to LNG application analyses into a permanent post to ensure job security for the staff member, said Dwight Sanders, Lands Commission division chief for environmental planning

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Ratepayer Advocates’ Staff Transfer Scrutinized

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