Legislative Update: Spring 2009

MORE GREEN FOR YOUR GREEN
Energy Efficiency Cost Controls
All Californians pay a fee on our utility bills to fund energy efficiency programs.  That monthly investment is supposed to provide us with resources to save both energy and money, including consumer education programs, rebates and other direct benefits.  But under the administration of Edison, SDG&E, PG&E and SoCal Gas, the programs have become top-heavy.  The utilities pay themselves handsomely to run the programs, and don’t spend enough on achieving actual energy savings.

TURN has long advocated for independent administration of energy efficiency programs, and we will continue to do so.  In the meantime, SB 806 (Wiggins, D-Santa Rosa) will improve the programs by capping how much the utility companies can spend on administering them.  Limiting administrative expenses for payroll and overhead to 5% of the total budget will free up more money to devote to achieving actual energy savings that benefit consumers and the environment.

ACTION POINT  
Get the Energy Savings You Are Paying for
Consumers pay fees on every gas and electric bill to support energy efficiency programs that are run by the utility companies.  Demand that your money be spent more efficiently by asking your legislators to vote YES on SB 806, state senator Pat Wiggins’ bill to cap utility administrative costs, so more of your money can be spent on actual energy savings.  

Energy Efficiency Financing
Retrofitting old buildings can be a cost-effective way to reduce energy usage and lower bills at the same time.  However, the upfront cost of energy efficiency improvements makes it difficult for both residential and commercial property owners to afford them, denying them the long-term savings those measures can bring.  

Senate Bill 488 (Pavley, D-Agoura Hills) would require California to develop an energy efficiency financing program so that property owners could finance improvements through the energy savings those improvements achieve.  This would allow participants to pay for energy efficiency measures over time through their utility bills, giving more Californians a chance to save both energy and money.

Renewable Energy—Good for the Planet and the Pocketbook
TURN was a primary backer of the original law requiring utility companies to purchase energy from renewable resources because renewables can be clean, green and affordable.  But we have resisted attempts to increase California’s Renewable Portfolio Standard (RPS) without adequate cost protections for consumers.  This year TURN supports a bill that will increase the renewables requirement in an affordable way.

Senate Bill 14 (Simitian, D-Palo Alto) would revise the RPS to require utility companies to increase their purchases of renewable energy to 33% by 2020, so long as the costs do not cause a significant impact on rates.  This bill will keep California on track toward a clean, green and affordable energy future.

CONSUMER PROTECTIONS
Ban the Privacy Penalty
Since the California Public Utilities Commission (CPUC) removed price controls on basic phone service, phone companies have begun charging consumers up to $2 every month for unlisted numbers.  Over 40% of Californians choose to keep their landline numbers unlisted, which means the phone companies are raking in millions in profits from the privacy penalty.  Privacy is a constitutionally guaranteed right in California, and should not be used as a new source of profits by the phone companies.

The phone companies succeeded in killing our bill to ban the privacy penalty last year, but TURN has not given up.  We have joined with a true consumer champion, Senator Fran Pavley, to support SB 437, a bill to eliminate fees for unlisted numbers.  If we are able to pass this important legislation, the phone companies will no longer be able to charge customers outlandish fees to keep their phone numbers private.

Avoiding Shut-offs
TURN’s mission to keep essential services available to every single person in our state is more important than ever in the current recession.  With unemployment on the rise, and many people facing lost savings and declining house values, more and more consumers are struggling just to afford the basics.  TURN believes it should be the state policy to keep essential services of heat, light, electricity, and water affordable and accessible to all residents of California.

Assembly Bill 771 (Torres, D-Pomona and De Leon, D-Los Angeles) contains new consumer protections designed to help avoid shut-offs.  This bill would protect tenants and landlords from charges for previous tenants’ arrears, cap the amount that utilities can charge for deposits and prohibit utilities from charging a reconnection fee following a shut-off.  

In addition, consumers with medical conditions that would make a shut-off life threatening would be given more time to pay outstanding bills. Prohibiting unfair deposits and fees and making it easier for customers to pay their bills will improve access to essential services and prevent the public health crisis of utility shut-offs.  

A Lifeline for Low-Income Consumers
The Legislature created the California LifeLine program to ensure “high quality basic telephone service at affordable rates to the greatest number...”.  Every LifeLine customer paid only $5.47 for reliable service that included free local calls, dependable 911 access, free phone books, free operator services and more.  The affordability of LifeLine is jeopardized by deregulation, which allows phone companies to raise LifeLine rates.

Assembly Bill 1528 (Ruskin, D-Redwood City) would keep basic phone service affordable for low-income customers.  Under this bill, rate increases for LifeLine would be tied to CALWORKS cost of living adjustments, and LifeLine customers would be protected from cutbacks in the level of service they receive.

TURN's Letters to Legislators

Download TURN's letter opposing AB 64 unless amended	Download TURN's letter opposing AB 560 unless amended
Download TURN's letter opposing AB 1035	Download TURN's letter supporting AB 920