BILL ANALYSIS
AB 69
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 69 (Wright)
As Amended September 5, 2001
2/3 vote. Urgency
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|ASSEMBLY: | |(May 30, 2001) |SENATE: |40-0 |(September 6, |
| | | | | |2001) |
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(vote not relevant)
Original Committee Reference: U. & C.
SUMMARY : Permits specified government entities that are served
by Southern California Edison Company (SCE) within Los Angeles
County to purchase electricity for use in those areas from the
Los Angeles Department of Water and Power (LADWP).
Specifically, this bill :
1)Authorizes the California Public Utilities Commission (CPUC)
to limit the right of government entities purchasing power
from an electrical corporation to purchase power from LADWP,
if necessary to satisfy power purchase or bond obligations of
Department of Water Resources (DWR).
2)Authorizes government entities to elect to take service from
LADWP and avoid limitations on these purchases by paying DWR's
net unavoidable costs of future procurement and the difference
between DWR's total actual procurement costs and the rates
collected by DWR from the governmental entity.
3)Authorizes governmental entities to request a calculation of
its share of DWR costs before electing to take service from
LADWP.
The Senate amendments gut and amend this bill to make it a
vehicle to allow governmental agencies within Los Angeles County
and within the service territory of SCE to purchase electricity
for use in those areas from LADWP. Provide limitations on
procurement and require payment of applicable DWR costs to avoid
any limitations on procurement from LADWP by a governmental
entity.
EXISTING LAW prohibits governmental entities in the service
territory of electrical corporations from purchasing power from
AB 69
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municipally owned utilities.
AS PASSED BY THE ASSEMBLY , this bill required the Green Team to
make expedited repowering of existing power plants in the state
a priority and required Green Team to encourage appropriate
regulatory agencies to take all actions to promote repowering.
FISCAL EFFECT : Negligible fiscal impact.
COMMENTS : This bill allows governmental entities in Los Angeles
County to purchase electricity from LADWP rather than from SCE,
if they are within SCE's service territory under existing
requirements and terms of direct transactions. The electricity
purchases subject to direct transaction with LADWP may only be
used by the governmental entity and to perform governmental
services.
This bill will allow governmental entities to purchase from the
more certain and stable energy supply of LADWP and will at the
same time reduce the procurement requirements of DWR for SCE
customers based on contracted amounts between the governmental
entities and LADWP. This bill provides for a similar situation
to that contemplated in SB 1172 (Kuehl), pending in the
Assembly, to allow customers with contiguous properties spanning
both LADWP and SCE to elect to purchase all of their electricity
from LADWP. Under a direct transaction agreement, customers
exiting SCE's service obligation will continue to have a rate
obligation for DWR procurement of power up to the time the
customers cease to be provided service by SCE. This prevents
any cost shift to existing customers of SCE at the same time
that it helps reduce the procurement burden of DWR. Provisions
of this bill also require the customers to pay all applicable
DWR costs.
Analysis Prepared by : Kelly Boyd / U. & C. / (916) 319-2083
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