BILL ANALYSIS
AB 1031
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Date of Hearing: May 7, 2001
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick D. Wright, Chair
AB 1031 (Canciamilla) - As Amended: May 1, 2001
SUBJECT : Natural Gas Supplies.
SUMMARY : This bill requires the California Public Utilities
Commission (CPUC) to report to the Legislature by January 1,
2004 and every two years thereafter, a 10 year forecast of
demand for natural gas in the state. Specifically this bill:
Requires the forecast presented by CPUC to analyze long-term
trends in natural gas demand in the state and to evaluate a wide
variety of natural gas demand scenarios, including but not
limited to, average conditions, and best and worst-case
scenarios.
EXISTING LAW : Establishes the California Public Utilities
Commission (CPUC) and authorizes CPUC to regulate every public
utility in the state, including every gas corporation.
FISCAL EFFECT : Unknown.
COMMENTS :
This bill requires CPUC to issue a report by January 1, 2004,
and every two years thereafter, that forecasts the demand for
natural gas in the state. This bill requires such a report to
incorporate an analysis of long term trends in natural gas
demand in the state and to evaluate a wide variety of natural
gas demand scenarios.
Similar Legislation:
AB 1445, which passed out of this committee on April 26, 2001,
requires CPUC to determine, on or before January 1, 2002,
whether the natural gas infrastructure in California is adequate
to meet both core and non-core customer demand without service
curtailment requirements for at least five years. AB 1445 also
requires CPUC to evaluate storage and pipeline capacity to meet
peak natural gas demand, expected changes in electric patterns
over a ten year period impacting natural gas demand, and
infrastructure utilization study for the past ten years in
AB 1031
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California and other areas.
The study required by AB 1031 and the study and actions required
in AB 1445 should be complementary. It is most efficient to
conduct any additional demand forecasting studies at CPUC in
consort with the capacity and demand forecasting required by AB
1445 and in conjunction with rate-setting proceedings at CPUC.
The provisions of AB 1445 are more detailed, and are end product
oriented toward finding solutions to the natural gas supply and
price crisis the state is currently experiencing. Augmenting AB
1445's studies and requirements with the demand forecasting
required by AB 1031 would provide a broader overall picture of
California's natural gas situation. The demand forecasting will
also better enable CPUC rate design efforts for gas corporations
going forward and allow for demand estimate adjustments over
time.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Kelly Boyd / U. & C. / (916) 319-2083