BILL NUMBER: ABX2 19	ENROLLED
	BILL TEXT

	PASSED THE ASSEMBLY  JULY 14, 2001
	PASSED THE SENATE  JULY 12, 2001
	AMENDED IN SENATE  JUNE 19, 2001
	AMENDED IN SENATE  JUNE 11, 2001

INTRODUCED BY   Assembly Members Florez and Ashburn
   (Principal coauthor:  Senator Costa)

                        MAY 17, 2001

   An act to amend Section 377 of the Public Utilities Code, relating
to electric power, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 19, Florez.  Facilities:  electric power.
   (1) Existing law requires the Public Utilities Commission to
regulate facilities for the generation of electricity owned by any
public utility prior to January 1, 1997, until the owner of those
facilities has applied to the commission to dispose of those
facilities and has been authorized by the commission to undertake
that disposal.  Existing law prohibits any facility for the
generation of electricity owned by a public utility to be disposed of
prior to January 1, 2006.
   This bill would exempt from that prohibition any public
utility-owned facility for the thermal generation of electricity that
has not been operated for at least 10 years and that has not had a
permit to generate electricity for at least 5 years.  It also would
require that any exempt facility be sold subject to the requirement
that the entity purchasing the facility shall enter into contracts to
sell power generated by the facility to the Department of Water
Resources, the California Consumer Power and Conservation Financing
Authority, or to a public utility subject to the jurisdiction of the
commission at rates established on a cost-of-service basis.
   (2) This bill would declare that it is to take effect immediately
as an urgency statute.


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


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) On January 17, 2001, Governor Davis proclaimed a State of
Emergency to exist within the State of California, due to the
shortage of electricity.
   (b) California's electricity shortage has resulted in electrical
power outages for California residents, and critical services,
including schools, transportation facilities, businesses, and
agriculture.
   (c) These power outages threaten the health and safety of
California residents, critical services, and vital segments of
California's economy.
   (d) One or more powerplants exist in California that have not been
operated for at least 10 years and have not had permits to generate
electricity for at least five years.
   (e) The prohibition against the sale of generation assets was not
intended to apply to nonoperational facilities.
  SEC. 2.  Section 377 of the Public Utilities Code is amended to
read:
   377.  (a) The commission shall continue to regulate the facilities
for the generation of electricity owned by any public utility prior
to January 1, 1997, that are subject to commission regulation until
the owner of those facilities has applied to the commission to
dispose of those facilities and has been authorized by the commission
under Section 851 to undertake that disposal.  The commission shall
ensure that public utility generation assets remain dedicated to
service for the benefit of California ratepayers.
   (b) Notwithstanding any other provision of law, no facility for
the generation of electricity owned by a public utility may be
disposed of prior to January 1, 2006.  This subdivision does not
apply to the disposition of any public utility-owned facility for the
thermal generation of electricity that has not been operated for at
least 10 years and that has not had a permit to generate electricity
for at least five years.
   (1) Any facility disposed of pursuant to this subdivision shall be
sold subject to the requirement that the entity purchasing the
facility shall enter into contracts to sell power generated by the
facility to the Department of Water Resources, the California
Consumer Power and Conservation Financing Authority, or to a public
utility subject to the jurisdiction of the commission at rates
established on a cost-of-service basis.
   (2) Any contract to sell power required by paragraph (1),
including all rates and costs contained therein, shall be subject to
approval by the commission.
  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 to permit certain nonoperational powerplants in
California to be sold to entities that would make new power available
by contract to the Department of Water Resources or a public utility
subject to the jurisdiction of the Public Utilities Commission as
soon as possible, thereby preserving the public peace, health, and
safety, it is necessary for this act to take effect immediately.