BILL NUMBER: AB 57	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wright

                        DECEMBER 4, 2000

   An act to add Section 390.5 to the Public Utilities Code, relating
to public utilities, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 57, as introduced, Wright.  Electrical energy:  forward
contracts.
   (1) Existing law restructuring the electrical service industry
requires a public utility electrical corporation to pay energy prices
to nonutility power generators based on a methodology prescribed by
the Public Utilities Commission.
   This bill would require the commission to immediately establish,
by rule or order, procedures for the preapproval of forward contracts
for the purchase of electrical energy.  Those procedures would be
required to provide for the protection of the proprietary information
of utilities and other affected parties.  Since a violation of a
rule or order of the commission is a crime, this bill would impose a
state-mandated local program by creating a new crime.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (3) 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:  yes.


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


  SECTION 1.  Section 390.5 is added to the Public Utilities Code, to
read:
   390.5.  Notwithstanding any other provision of law, the commission
shall immediately establish, by rule or order, procedures for the
preapproval of forward contracts, including, but not limited to,
bilateral contracts, for the purchase of electrical energy.  Those
procedures shall provide for the protection of the proprietary
information of utilities and other affected parties.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
  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 immediately establish procedures for the preapproval
of forward contracts for the purchase of electrical energy, thereby
providing a way of reducing electricity consumer exposure to volatile
electrical energy market prices, it is necessary that this act take
effect immediately.