BILL ANALYSIS
Appropriations Committee Fiscal Summary
12 (Vargas)
Hearing Date: 8/30/02 Amended: 8/22/02
Consultant: Lisa Matocq Policy Vote: CA 3-1
E, U & C 5-2
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BILL SUMMARY:
ACA 12 attempts to mandate state control of the state's
electric transmission grid by specifying that the "people
of this State have the exclusive right to protect their
health, safety, and welfare by ensuring the availability of
a reliable, adequate, and affordable supply of
electricity", and by prohibiting the Legislature, the
Public Utilities Commission, or any state or local entity
from allowing any entity that is not subject to the
exclusive authority of the people, through state agencies
or political subdivisions, from owning or managing an
electric transmission facility.
Fiscal Impact (in thousands)
Major Provisions 2002-03 2003-04
2004-05 Fund
Secretary of State -- $220
-- General
Regulation Unknown potential costs, potentially
Various
offset by fee revenue
STAFF COMMENTS: This bill meets the criteria for referral
to the Suspense File.
The California Independent System Operator (ISO) is subject
to both federal and state regulation. According to the
Senate Energy, Utilities and Communication Committee
analysis, this measure, if enacted, would effectively
require the ISO to submit to exclusive state authority, or
be replaced with another entity subject to exclusive state
authority. The provisions of this measure may also impact
electrical corporations which own public utility electric
transmission facilities.
If enacted and enforced, this bill could increase the
state's regulatory authority and activities. To some
extent such costs would be offset by regulatory fee
revenues.
Constitutional amendments are subject to voter approval.
The costs to the Secretary of State to put a measure on the
ballot are about $55,000 per page. Assuming a four-page
measure, one-time costs would be $220,000.