BILL ANALYSIS
Appropriations Committee Fiscal Summary
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| |9(Migden) |
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|Hearing Date: 9/10/01 |Amended: 9/6/01 |
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|Consultant: Lisa Matocq |Policy Vote: E, U & C |
| |8-0 |
| | |
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BILL SUMMARY: AB 9xx restructures statutes that allow
certain entities to "aggregate" their electric loads, as
specified.
Fiscal Impact (in thousands)
Major Provisions 2001-02 2002-03
2003-04 Fund
PUC $100 annually, probably offset by fee
Special*
revenues
*Public Utilities Reimbursement Account (PURA)
STAFF COMMENTS: An aggregator combines the electric loads
of multiple end-use customers in order to facilitate the
sale and purchase of electricity, and presumably, to reduce
costs. Current law allows public agencies, special
districts, and others to aggregate their electric loads
under certain circumstances. This bill (1) redefines
aggregator, (2) specifies that electrical corporations are
entitled to recover their implementation costs from
ratepayers, (3) clarifies that administrative costs for
services provided by an aggregator shall be recovered from
the aggregator or its customers, as determined by the
Public Utilities Commission (PUC), (4) makes a community
aggregator responsible for the Department of Water
Resource's (DWR) uncollected costs of providing service to
its customers, and (5) makes related changes.
Existing law also provides for a public goods surcharge to
be imposed on energy bills. The surcharge generates about
$135-140 million annually. The revenues are held by each
of the participating utilities, to be used, subject to PUC
approval, for specified purposes including low-income
assistance, and energy efficiency programs. This bill
requires the PUC to ensure that energy efficiency programs
continue to be offered in the community aggregator's
territory.
PURA revenues are derived from an annual fee charged to
public utilities sufficient to cover the costs of the PUC's
annual budget. Therefore, any increased costs to the PUC
should be recovered through fee revenues.
The provisions of the bill relating to cities and counties
are permissive, therefore, any increased costs would be
nonreimbursable.
STAFF NOTES that the author or committee may wish to
consider amending the provision of the bill related to
DWR's uncollected costs to ensure recovery of potential
uncollected costs associated with any future purchases for
which DWR is obligated on the customer's behalf, and to
require that DWR provide the
AB 9xx (Migden)
Page Two
calculation and methodology to the customer, within 30 days
of request, with a copy to the Legislature.
SB 27xx (Bowen), pending in the Senate, allows customers of
electrical corporations, who are also being served by DWR,
to use an alternate provider, subject to payment of DWR's
net unavoidable costs. SB 1172 (Kuehl), pending in the
Assembly, allows customers whose property straddles the
service areas of Los Angeles Department of Water and Power
(LADWP) and Southern California Edison (SCE), to obtain
service from only LADWP, subject to payment of DWR's
uncollected costs. AB 69 (Wright), pending in the Assembly,
allows specified Los Angeles governmental entities served
by SCE, to obtain power from LADWP, subject to payment of
DWR's uncollected costs.