BILL NUMBER: AB 2523	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Canciamilla

                        FEBRUARY 21, 2002

   An act to add Sections 367.2 and 367.3 to the Public Utilities
Code, relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2523, as introduced, Canciamilla.  Electrical corporations:
rates.
   Existing law authorizes the Public Utilities Commission to
establish rates for public utilities, including electrical
corporations.
   This bill would require the commission to establish, for the
accounting purposes of the electrical corporations, the Ratepayer
Benefit Account with separate accounts for each electrical
corporation that  serves more than 100,000 customers in the state.
The bill would require that all funds recovered by an electrical
corporation from any litigation or agreement relative to the
charging, either directly or indirectly, of excessive costs for power
by electric power generators, suppliers, and marketers, and
excessive costs for natural gas charged either directly or
indirectly, to natural gas suppliers or marketers for periods ending
January 18, 2001, to be credited to the account.  The bill would
require the commission to require the electrical corporation to
allocate moneys credited to a subaccount to ratepayers as a rate
refund when the subaccount exceeds an amount over $10,000,000.  The
bill would also require the commission to impose a rate reduction for
designated customers, if the commission determines that the revenue
requirement of an electrical corporation should be reduced.  Because
under the Public Utilities Act, a violation of an order of the
commission is a crime, the bill would impose a state-mandated local
program by expanding the definition of a crime.
  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.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


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


  SECTION 1.  Section 367.2 is added to the Public Utilities Code, to
read:
   367.2.  (a) The commission shall, for the accounting purposes of
the electrical corporations, establish a Ratepayer Benefit Account
with a separate subaccount for each electrical corporation serving
more than 100,000 customers in the state.
   (b) The funds credited to an electrical corporation's subaccount
shall be all funds recovered by an electrical corporation resulting
from any state or federal litigation or regulatory agreement relative
to the charging, either directly or indirectly, of excessive costs
for power by electric power generators, suppliers, and marketers and
excessive costs for natural gas charged either directly or indirectly
by natural gas suppliers or marketers, for periods ending January
18, 2001.
   (c) Whenever the total funds credited to a subaccount of the
Ratepayer Benefit Account for an electrical corporation exceed ten
million dollars ($10,000,000), the commission shall require the
electrical corporation to allocate the money credited to the Ratepay
Benefit Account subaccount to all customers in the form of rate
refunds.  The refunds shall be allocated among the several retail
customer classes of ratepayers of the electrical corporation in the
same proportion as the class percentage rate increases that were
adopted in the commission's Decision Number 01-05-064.
  SEC. 2.  Section 367.3 is added to the Public Utilities Code, to
read:
   367.3.  If the commission determines that the revenue requirement
of an electrical corporation should be reduced, consistent with this
code, the commission shall impose a corresponding rate reduction to
allocate the amount of the revenue requirement reduction among each
retail customer class of ratepayers of the electrical corporation in
the same proportion as the class percentage rate increases that were
adopted in the commission's Decision Number 01-05-064.
  SEC. 3.  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.