BILL NUMBER: SBX1 32 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 14, 2001
INTRODUCED BY Senator Alpert
FEBRUARY 5, 2001
An act to amend Section 332.1 of the Public Utilities Code,
relating to public utilities, and declaring the urgency thereof, to
take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 32, as amended, Alpert. Electric bills: bill stabilization.
(1) The Public Utilities Act requires the Public Utilities
Commission to establish a ceiling of $0.065 per kilowatthour on the
energy component of electric bills for electricity supplied to
residential, small commercial, and street lighting customers by the
San Diego Gas and Electric Company, through December 31, 2002,
retroactive to June 1, 2000. The commission may extend the ceiling
through December 2003. Existing law requires the commission to
establish an accounting procedure to track and recover reasonable and
prudent costs of providing electric energy to retail customers
unrecovered through retail bills due to the application of this
ceiling, as prescribed, which shall provide a reasonable opportunity
for San Diego Gas and Electric Company to recover its reasonable and
prudent costs of service over a reasonable period of time.
This bill would also require that any cost recovery authorized by
these provisions shall be adjusted to ensure that any residential or
small commercial customer who has purchased energy from a provider
other than the San Diego Gas and Electric Company on or after June 1,
2000, does not pay the San Diego Gas and Electric Company for energy
the customer has not purchased from that company. Because a
violation of the Public Utilities Act is a crime, this bill would
impose a state-mandated local program by changing the definition of a
crime.
(1) Existing law restructuring the electrical industry establishes
a process for the recovery by specified electrical corporations of
certain uneconomic costs during a transition period that began on
January 1, 1998, and ends for an electrical corporation on the
earlier of March 31, 2002, or the date that the electrical
corporation fully recovers its uneconomic costs. During the
transition period, existing law imposes a rate freeze and a rate
reduction, as prescribed, to remain in effect until March 31, 2002,
unless the electrical corporation fully recovers its uneconomic costs
at an earlier date.
The San Diego Gas and Electric Company has recovered all
uneconomic costs subject to existing law, and, pursuant to a decision
of the Public Utilities Commission, is no longer subject to the rate
freeze and rate reduction. An existing order of the commission
adopts a bill stabilization plan for certain customers of the
company, as prescribed.
(2) 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.
(3) 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: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 332.1 of the Public Utilities Code is amended
to read:
332.1. (a) (1) It is the intent of the Legislature to enact Item
332.1. (a) (1) It is the intent of the Legislature to enact Item
1 (revised) on the commission's August 21, 2000, agenda, entitled
"Opinion Modifying Decision (D.) D.00-06-034 and D.00-08-021 to
Regarding Interim Rate Caps for San Diego Gas and Electric Company,"
as modified below.
(2) It is also the intent of the Legislature that to the extent
that the Federal Energy Regulatory Commission orders refunds to
electrical corporations pursuant to their findings, the commission
shall ensure that any refunds are returned to customers.
(b) The commission shall establish a ceiling of six and
five-tenths cents ($0.065) per kilowatthour on the energy component
of electric bills for electricity supplied to residential, small
commercial, and street lighting customers by the San Diego Gas and
Electric Company, through December 31, 2002, retroactive to June 1,
2000. If the commission finds it in the public interest, this
ceiling may be extended through December 2003 and may be adjusted as
provided in subdivision (d).
(c) The commission shall establish an accounting procedure to
track and recover reasonable and prudent costs of providing electric
energy to retail customers unrecovered through retail bills due to
the application of the ceiling provided for in subdivision (b). The
accounting procedure shall utilize revenues associated with sales of
energy from utility-owned or managed generation assets to offset an
undercollection, if undercollection occurs. The accounting procedure
shall be reviewed periodically by the commission, but not less
frequently than semiannually. The commission may utilize an existing
proceeding to perform the review. The accounting procedure and
review shall provide a reasonable opportunity for San Diego Gas and
Electric Company to recover its reasonable and prudent costs of
service over a reasonable period of time. For any residential
or small commercial customer who has purchased energy from a provider
other than the San Diego Gas and Electric Company on or after June
1, 2000, any cost recovery authorized pursuant to this section shall
be adjusted to ensure that the customer does not pay the San Diego
Gas and Electric Company for energy the customer has not purchased
from the San Diego Gas and Electric Company.
(d) If the commission determines that it is in the public interest
to do so, the commission, after the date of the completion of the
proceeding described in subdivision (g), may adjust the ceiling from
the level specified in subdivision (b), and may adjust the frozen
rate from the levels specified in subdivision (f), consistent with
the Legislature's intent to provide substantial protections for
customers of the San Diego Gas and Electric Company and their
interest in just and reasonable rates and adequate service.
(e) For purposes of this section, "small commercial customer"
includes, but is not limited to, all San Diego Gas and Electric
Company accounts on Rate Schedule A of the San Diego Gas and Electric
Company, all accounts of customers who are "general acute care
hospitals," as defined in Section 1250 of the Health and Safety Code,
all San Diego Gas and Electric Company accounts of customers who are
public or private schools for pupils in kindergarten or any of
grades 1 to 12, inclusive, and all accounts on Rate Schedule AL-TOU
under 100 kilowatts.
(f) The commission shall establish an initial frozen rate of six
and five-tenths cents ($0.065) per kilowatthour on the energy
component of electric bills for electricity supplied to all customers
by the San Diego Gas and Electric Company not subject to subdivision
(b), for the time period ending with the end of the rate freeze for
the Pacific Gas and Electric Company and the Southern California
Edison Company pursuant to Section 368, retroactive to February 7,
2001. The commission shall consider the comparable energy components
of rates for comparable customer classes served by the Pacific Gas
and Electric Company and the Southern California Edison Company and,
if it determines it to be in the public interest, the commission may
adjust this frozen rate, and may do so, retroactive to the date that
rate increases took effect for customers of Pacific Gas and Electric
Company and Southern California Edison Company pursuant to the
commission's March 27, 2001, decision. The commission shall
determine the Fixed Department of Water Resources Set-Aside pursuant
to Section 360.5 for customers subject to this section, reflecting a
retail rate consistent with the rate for the energy component of
electric bills as determined in this subdivision, in place of the
retail rate in effect on January 5, 2001. This section shall be
construed to modify the payment provisions, but may not be construed
to modify the electric procurement obligations of the Department of
Water Resources, pursuant to any contract or agreement in accordance
with Division 27 (commencing with Section 80000) of the Water Code,
and in effect as of February 7, 2001, between the Department of Water
Resources and San Diego Gas and Electric Company.
(g) The commission shall institute a proceeding to examine the
prudence and reasonableness of the San Diego Gas and Electric Company
in the procurement of wholesale energy on behalf of its customers,
for a period beginning at the latest on June 1, 2000. If the
commission finds that San Diego Gas and Electric Company acted
imprudently or unreasonably, the commission shall issue orders that
it determines to be appropriate affecting the retail rates of San
Diego Gas and Electric Company customers including, but not limited
to, refunds.
(h) Nothing in this section shall be construed to limit the
authority of the Department of Water Resources pursuant to Division
27 (commencing with Section 80000) of the Water Code. 1
(revised) on the commission's August 21, 2000, agenda, entitled
"Opinion Modifying Decision (D.) D.00-06-034 and D.00-08-021 to
Regarding Interim Rate Caps for San Diego Gas and Electric Company,"
as modified below.
(2) It is also the intent of the Legislature that to the extent
that the Federal Energy Regulatory Commission orders refunds to
electrical corporations pursuant to their findings, the commission
shall ensure that any refunds are returned to customers.
(3) It is the intent of the Legislature that direct access
customers in the San Diego Gas and Electric Company territory not be
discriminated against in the implementation of this section.
(b) The commission shall establish a ceiling of six and five-tenth
cents ($.065) per kilowatthour on the energy component of electric
bills for residential, small commercial, and street lighting
customers of the San Diego Gas and Electric Company, through December
31, 2002, retroactive to June 1, 2000. If the commission finds it
in the public interest, this ceiling may be extended through December
2003 and may be adjusted as provided in subdivision (d). The
commission shall require the San Diego Gas and Electric Company to
provide the economic value of the rate cap imposed in this
subdivision to direct access customers through a credit on their
bills.
(c) The commission shall establish an accounting procedure to
track and recover reasonable and prudent costs of providing electric
energy to retail customers unrecovered through retail bills due to
the application of the ceiling provided for in subdivision (b). The
accounting procedure shall utilize revenues associated with sales of
energy from utility-owned or managed generation assets to offset an
undercollection, if undercollection occurs. The accounting procedure
shall be reviewed periodically by the commission, but not less
frequently than semiannually. The commission may utilize an existing
proceeding to perform the review. The accounting procedure and
review shall provide a reasonable opportunity for San Diego Gas and
Electric Company to recover its reasonable and prudent costs of
service over a reasonable period of time.
(d) If the commission determines that it is in the public interest
to do so, the commission, after the date of the completion of the
proceeding described in subdivision (g), may adjust the ceiling from
the level specified in subdivision (b), consistent with the
Legislature's intent to provide substantial protections for customers
of the San Diego Gas and Electric Company and their interest in just
and reasonable rates and adequate service.
(e) For purposes of this section, "small commercial customer"
includes, but is not limited to, all San Diego Gas and Electric
Company accounts on Rate Schedule A of the San Diego Gas and Electric
Company, all accounts of customers who are "general acute care
hospitals," as defined in Section 1250 of the Health and Safety Code,
all San Diego Gas and Electric Company accounts of customers who are
public or private schools for pupils in kindergarten or any of
grades 1 to 12, inclusive, and all accounts on Rate Schedule AL-TOU
under 100 kilowatts.
(f) The commission shall establish a program for large commercial,
agricultural, and industrial customers who buy energy from the San
Diego Gas and Electric Company, on a voluntary basis, at the election
of the customer, to set the energy component of their bills at six
and five-tenths cents ($.065) per kilowatthour with a true-up after a
year.
(g) The commission shall institute a proceeding to examine the
prudence and reasonableness of the San Diego Gas and Electric Company
in the procurement of wholesale energy on behalf of its customers,
for a period beginning at the latest on June 1, 2000. If the
commission finds that San Diego Gas and Electric Company acted
imprudently or unreasonably, the commission shall issue orders that
it determines to be appropriate affecting the retail rates of San
Diego Gas and Electric Company customers including, but not limited
to, refunds.
SEC. 2. 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.
SEC. 3. 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 ensure that the bill stabilization plan is implemented
in an equitable fashion as soon as possible, it is necessary that
this act take effect immediately.
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