BILL ANALYSIS
AB 117
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CONCURRENCE IN SENATE AMENDMENTS
AB 117 (Migden)
As Amended August 27, 2002
Majority vote
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|ASSEMBLY: |73-0 |(January 28, |SENATE: |29-2 |(August 28, |
| | |2002) | | |2002) |
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Original Committee Reference: B. & P.
SUMMARY : Allows cities and counties to aggregate their electric
loads as community choice aggregators, and provide service
directly to their residents.
The Senate amendments :
1)Establish a general exception to the direct access suspension
in existing law for community aggregation undertaken by cities
and counties serving their own residents.
2)Change the procedures governing community aggregation to allow
cities and counties to aggregate on an "opt-out" basis, rather
than an "opt-in" basis.
3)Provide for cost recovery from customers who depart from
electric service offered by the state's investor-owned
utilities (IOUs) and electricity purchased by the state
Department of Water Resources (DWR).
4)Require the IOU to direct a proportional share of its energy
efficiency activities to the community aggregator's territory.
5)Require all electric service providers (ESPs) to register with
the PUC.
EXISTING LAW :
1)Requires ESPs that are not IOUs to register with the CPUC, but
only if they serve residential and small commercial customers.
2)Requires IOUs to collect a non-bypassable surcharge in the
distribution component of rates to fund public purpose
AB 117
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programs, including energy efficiency and conservation
activities.
3)Requires the Public Utilities Commission (PUC) to suspend the
right of retail customers of IOUs to acquire electric power
service from non-IOU providers until the DWR no longer
supplies power to IOU customers. PUC suspended direct access
effective September 2001.
AS PASSED BY THE ASSEMBLY , this bill authorized end-use
customers to aggregate their electric loads with private
aggregators as individual users, or with community choice
aggregators as members of a local community.
FISCAL EFFECT : Senate Appropriations notes unknown, probably
not substantial, costs, recoverable through PUC cost recovery
mechanism.
COMMENTS : Community aggregation is direct access on a large
scale, similar to formation of a municipal utility, except that
a municipal utility is self-governing, must purchase power or
build plants and transmission lines, assume responsibility for
distribution, billing, and meter-reading. Under aggregation,
most of the responsibilities remain with the IOU. The aggregator
procures electricity on the wholesale market, to be delivered
through the IOU's infrastructure.
Opt-in community aggregation, wherein the governing body of the
community, such as the city council, chooses an electricity
supplier for the entire community, was discussed but ultimately
tabled during the 1995-96 debate on restructuring of the state's
electricity markets. This bill resurrects that concept by
permitting the governing body to select a provider of
electricity, which then becomes the default provider for
everyone in the community.
Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083
FN: 0007680