CONTACT: Dianne Dienstein September 24, 1997 CPUC - 105
415-703-2423 (R94-04-031)

ENERGY PUBLIC PURPOSE PROGRAMS WILL CONTINUE, CPUC OUTLINES TRANSITION FROM UTILITY TO INDEPENDENT CONTROL

The California Public Utilities Commission (CPUC) today explained how energy public purpose programs will be transferred from utility responsibility to independent board responsibility in the competitive electric market beginning in California next year.

Currently, utilities under Commission jurisdiction administer public purpose programs established by the Legislature and the Commission to benefit low income customers and encourage all classes of customers to use energy efficiently and conserve energy. In the coming competitive electricity market, Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric will gradually transfer their current administration of these programs to the Low Income Governing Board by January 1, 1999 and to the California Board for Energy Efficiency by October 1, 1998, respectively. Each Board is an independent entity with members appointed by the Commission. The Boards are advisory in nature and have no policy or program decision-making authority, deferring those roles to the Commission.

A 'public purpose surcharge' on monthly electric bills will show the amount customers pay to fund these programs - it is not a new charge. Customers currently support these programs through their rates, but the itemized electricity bills customers will receive beginning next year will show the costs of each element of electric service.

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ENERGY PUBLIC PURPOSES PROGRAMS CONTINUE 2

Annual funding for low income assistance programs is $179 million, which includes funding for Low Income Governing Board start-up of $589,000 for 1997. This Board is responsible for assuring that low-income rate and weatherization assistance programs continue, but supported by private initiative.

Annual funding for energy efficiency programs is $278 million, which includes start-up funding for the California Board for Energy Efficiency of $655,300 for 1997. This Board will encourage private companies and builders to develop and market cost-effective energy efficiency services and products and directly negotiate with customers.

The CPUC will conduct annual financial and administrative audits of both Boards for at least the next three years.

All Board members must comply with the Fair Political Practices and Commission Conflict of Interest Code to assure their impartiality and prohibition of personal gain from their positions. Deliberations or actions by any Board subcommittee of three or more persons must be publicly noticed as required by the Bagley-Keene Open Meeting Act. Documents from the meetings are to be available to the public, possibly at a fee, and in accordance with Government Code section 11125.1(e).