BILL NUMBER: ABX1 3	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wright

                        JANUARY 9, 2001

   An act relating to public utilities, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 3, as introduced, R. Wright.  California Alternate Rates for
Energy or CARE program.
   Existing law requires the Public Utilities Commission to establish
a program of assistance to low-income electric and gas customers,
which is referred to as the California Alternate Rates for Energy or
CARE program.
   This bill would require the commission to immediately develop and
adopt regulations that will result in a significantly increased
participation (or "penetration") rate for the CARE program.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote:  2/3.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) Commencing in the summer of 2000 and continuing to the
present, wholesale prices for electricity have skyrocketed in
California.
   (2) In recent months, natural gas prices have increased
significantly.
   (3) The extraordinarily high costs of electricity and natural gas
are threatening the economic well-being of the state.
   (4) Low-income and senior households, who spend a disproportionate
portion of their income on energy costs, have been particularly
affected.
   (5) The energy burden borne by low-income and senior customers is
greater than the energy burden of most other households in
California. California low-income households spend approximately 10
percent of their incomes on energy bills, compared to the average
energy burden of 2.9 percent for a median-income household.
   (6) Under the California Alternate Rates for Energy program
(CARE), low-income customers are eligible to receive gas and electric
services at a discounted rate.
   (b) It is therefore the intent of the Legislature to protect
low-income and senior customers from the impacts of skyrocketing
electric and gas rates and to enact legislation to increase the CARE
penetration rate, and to look at other means to expand the program to
all eligible low-income and senior customers.
  SEC. 2.  The Public Utilities Commission shall immediately develop
and adopt regulations to expand substantially the participation rate,
also known as "penetration rate," for the California Alternate Rates
for Energy or CARE program.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order that low-income and senior customers are protected from
the extraordinarily high electricity and gas prices, it is necessary
that this act take effect immediately.