BILL NUMBER: SBX1 27	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Bowen

                        JANUARY 31, 2001

   An act to amend Section 80110 of the Water Code, relating to
electric power, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 27, as introduced, Bowen.  Electric power.
   Existing law imposes various duties and responsibilities on the
Department of Water Resources with respect to the sale of water and
power.
   This bill would, after a period of time that the bill would
require the Public Utilities Commission to determine, suspend the
right of a retail end use customer to acquire service from other
providers until the department no longer supplies power, as
specified.
   The 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:  no.


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


  SECTION 1.  It is the intent of the Legislature, in enacting this
act, to establish a policy to govern the circumstances under which
retail end use customers may choose to acquire service from energy
providers other than the Department of Water Resources.  The goal of
that policy is to provide retail end use customers the greatest
possible flexibility in procuring power while preventing any negative
consequences for those customers who continue to be served by the
Department of Water Resources.
  SEC. 2.  Section 80110 of the Water Code, as proposed by Assembly
Bill No. 1 of the 2001-02 First Extraordinary Session, is amended to
read:
   80110.  The department shall retain title to all power sold by it
to the retail end use customers. The department shall be entitled to
recover, as a revenue requirement, amounts and at the times necessary
to enable it to comply with Section 80134, and shall advise the
commission as the department determines to be appropriate.  Such
revenue requirements may also include any advances made to the
department hereunder or hereafter for purposes of this division, or
from the Department of Water Resources Electric Power Fund, and
General Fund moneys expended by the department pursuant to the
Governor's Emergency Proclamation dated January 17, 2001.  For
purposes of this division and except as otherwise provided in this
section, the Public Utility Commission's authority as set forth in
Section 451 of the Public Utilities Code shall apply, except any just
and reasonable review under Section 451 shall be conducted and
determined by the department.  The commission may enter into an
agreement with the department with respect to charges under Section
451 for purposes of this division, and that agreement shall have the
force and effect of a financing order adopted in accordance with
Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of
Division 1 of the Public Utilities Code, as determined by the
commission.  In no case shall the commission increase the electricity
charges in effect on the date that the act that adds this section
becomes effective for residential customers for existing baseline
quantities or usage by those customers of up to 130 percent of
existing baseline quantities.  After the passage of such period of
time after the effective date of this section as shall be determined
by the commission, the right of retail end use customers pursuant to
Article 6 (commencing with Section 360) of Chapter 2.3 of Part 1 of
Division 1 of the Public Utilities Code to  be served by
  acquire service from  other providers shall be
suspended until the department no longer supplies power 
hereunder   under this division  . The department
shall have the same rights with respect to the payment by retail end
use customers for power sold by the department as do providers of
power to such customers.
  SEC. 3.  This act shall become operative only if Assembly Bill No.
1 of the 2001-02 First Extraordinary Session is enacted and becomes
operative.
  SEC. 4.  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 establish, at the earliest possible time, a policy to
govern the circumstances under which retail end use customers may
choose to acquire service from energy providers other than the
Department of Water Services, it is necessary that this act take
effect immediately.