BILL NUMBER: AJR 45	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 12, 2002
	AMENDED IN ASSEMBLY  AUGUST 7, 2002

INTRODUCED BY   Assembly Members Canciamilla and Florez
    (Coauthors:  Assembly Members Aanestad, Alquist, Aroner,
Ashburn, Bates, Briggs, Calderon, Bill Campbell, Cardenas, Cardoza,
Cedillo, Chan, Chavez, Chu, Cogdill, Cohn, Corbett, Correa, Cox,
Daucher, Diaz, Dutra, Firebaugh, Frommer, Harman, Havice,
Hollingsworth, Horton, Keeley, Kehoe, Kelley, Koretz, La Suer, Leach,
Leonard, Leslie, Liu, Longville, Maddox, Maldonado, Matthews,
Migden, Mountjoy, Nakano, Nation, Negrete McLeod, Oropeza, Robert
Pacheco, Papan, Pavley, Pescetti, Richman, Runner, Salinas, Shelley,
Simitian, Steinberg, Strickland, Thomson, Vargas, Washington, Wesson,
Wright, Wyman, and Zettel) 
   (Coauthors: Senators Costa, Machado, and Torlakson)

                        APRIL 17, 2002

   Assembly Joint Resolution No. 45--Relative to the Independent
System Operator.


	LEGISLATIVE COUNSEL'S DIGEST


   AJR 45, as amended, Canciamilla.  Independent System Operator.
   This measure would urge the Federal Energy Regulatory Commission
(FERC) to maintain long-standing federal policies to promote the
development of customer generation resources and to ensure the
California electricity load served by customer generation  does
 not incur costs for any transmission related service in excess
of the transmission costs included in standby service rates developed
using ratemaking principles that existed prior to the establishment
of the Independent System Operator (ISO).  The measure would also
urge  the  FERC to reject the ISO's proposed gross
metering policy as well as other policies detrimental to the further
development of customer generation in California.
   Fiscal committee:  no.




   WHEREAS, California has a long established policy of supporting
customer generation resources; and
   WHEREAS, Customer generation includes all manner of customer
self-reliance, such as cogeneration, distributed generation, and
self-generation; and
   WHEREAS, Both the California legislative and executive branches of
government have consistently supported the development of customer
generation; and
   WHEREAS, Customer generation promotes energy self-sufficiency
through private capital investment; and
   WHEREAS, These resources assist in relieving transmission
congestion and enhancing the reliability of the electric system by
local deployment of generating resources; and
   WHEREAS, The Independent System Operator (ISO) is currently
pursuing unnecessary and burdensome changes to the metering,
scheduling, and operational requirements of customer generation and
cogeneration resources in tariff proposals before the Federal Energy
Regulatory Commission (FERC); and
   WHEREAS, The ISO's proposed gross metering policy, that would
attribute a disproportionate share of ISO costs to electricity load
served by customer generation over private transmission or
distribution facilities, would result in substantially higher ISO
fees for electricity load served by customer generation without any
additional benefit for customers or for grid reliability; and
   WHEREAS, The ISO's proposed policy is a major disincentive to the
successful development of customer generation in California; now,
therefore, be it
   Resolved by the Assembly and the Senate of the State of
California, jointly That the Legislature of the State of California
urges FERC to do all of the following:
   (1) Maintain long-standing federal policies to promote development
of customer generation resources.
   (2) Ensure the California electricity load served by customer
generation not incur costs for any transmission related service in
excess of the transmission costs included in standby service rates
developed using ratemaking principles that existed prior to the
establishment of the ISO; and be it further
   Resolved, That the Legislature urges FERC to reject the ISO's
proposed gross metering policy as well as other policies detrimental
to the further development of customer generation in California; and
be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the author for appropriate distribution.
                      ____ CORRECTIONS Heading -- authors line 9.
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