BILL NUMBER: SBX1 43 INTRODUCED
BILL TEXT
INTRODUCED BY Senators Alpert, Battin, Morrow, and Peace
(Coauthors: Assembly Members Bates, La Suer, Vargas, Wayne,
Wyland, and Zettel)
FEBRUARY 9, 2001
An act to amend Section 332.1 of the Public Utilities Code,
relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 43, as introduced, Alpert. San Diego Gas and Electric Company:
rates.
(1) The Public Utilities Act requires the Public Utilities
Commission to establish a ceiling of $.065 per kilowatt hour on the
energy component of electric bills for residential, small commercial,
and lighting customers of the San Diego Gas and Electric Company,
through December 31, 2002, retroactive to June 1, 2000, as
prescribed. The commission may extend the ceiling through December
2003, as specified. Existing law requires the commission to
determine that portion of each existing electrical corporation's
retail rate effective on January 5, 2001, that is equal to the
difference between the generation related component of the retail
rate and the sum of the costs of the utility's own generation,
qualifying facility contracts, existing bilateral contracts, and
ancillary services, to be known as the California Procurement
Adjustment. Existing law requires the commission to further
determine the amount of the California Procurement Adjustment that is
allocable to the power sold by the Department of Water Resources,
which is payable by each electrical corporation to the department for
deposit in the Department of Water Resources Electric Power Fund,
and known as the Fixed Department of Water Resources Set-Aside.
This bill would require the commission to also establish a frozen
rate of $.065 per kilowatt hour on the energy component of electric
bills for all customers of the San Diego Gas and Electric Company not
subject to the ceiling imposed by existing law, through December 31,
2002, retroactive to February 7, 2001. The bill would require the
commission to adjust the California Procurement Adjustment and the
Fixed Department of Water Resources Set-Aside for those customers, as
prescribed. The bill would make a related statement about the
construction of the bill. Since a violation of a rule or order of
the commission is a crime, this bill would impose a state-mandated
local program by creating a new crime.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 332.1 of the Public Utilities Code is amended
to read:
332.1. (a) (1) It is the intent of the Legislature to enact Item
1 (revised) on the commission's August 21, 2000 agenda, entitled
"Opinion Modifying Decision (D.) D.00-06-034 and D.00-08-021 to
Regarding Interim Rate Caps for San Diego Gas and Electric Company,"
as modified below.
(2) It is also the intent of the Legislature that to the extent
that the Federal Energy Regulatory Commission orders refunds to
electrical corporations pursuant to their findings, the commission
shall ensure that any refunds are returned to customers.
(b) The commission shall establish a ceiling of six and five-tenth
cents ($.065) per kilowatt hour 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).
(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) , and may adjust the
frozen rate from the level specified in subdivision (e) ,
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, restaurants, shopping centers, 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 all accounts on
Rate Schedule AL-TOU 500 kilowatts and above, at the election of the
customer, to set the energy component of their bills at six and
five-tenths cents ($.065) per kilowatt hour with a true-up after a
year.
(e) The commission shall establish a frozen rate of six and
five-tenth cents ($.065) per kilowatt hour on the energy component of
electric bills for all customers of the San Diego Gas and Electric
Company not subject to subdivision (b), through December 31, 2002,
retroactive to February 7, 2001. If the commission finds it in the
public interest, this rate may be extended through December 2003 and
may be adjusted as provided in subdivision (d). The commission shall
adjust the California Procurement Adjustment and the Fixed
Department of Water Resources Set-Aside determined pursuant to
Section 360.5 for customers subject to this subdivision to reflect a
retail rate consistent with the rate of six and five tenths cents
($.065) per kilowatt hour, 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)
(f) 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.
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