BILL NUMBER: SBX1 43 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 1, 2001
INTRODUCED BY Senators Alpert, Battin, Morrow, and Peace
(Coauthors: Assembly Members Bates, Kehoe, 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 , and declaring the urgency
thereof, to take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
SB 43, as amended, 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
kilowatthour 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 $.065 per kilowatt hour kilowatthour
on the energy component of electric bills for all customers of
the San Diego Gas and Electric Company not subject to the ceiling
imposed by existing law, through December 31, 2002, retroactive to
February 7, 2001. The bill would require the commission to adjust
the California Procurement Adjustment and the Fixed Department of
Water Resources Set-Aside for those customers, as prescribed. The
bill would make a related statement about the construction of the
bill. Since a violation of a rule or order of the commission is a
crime, this bill would impose a state-mandated local program by
creating a new crime.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: majority 2/3 .
Appropriation: no. Fiscal committee: yes. State-mandated local
program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 332.1 of the Public Utilities Code is amended
to read:
332.1. (a) (1) It is the intent of the Legislature to enact Item
1 (revised) on the commission's August 21, 2000, agenda, entitled
"Opinion Modifying Decision (D.) D.00-06-034 and D.00-08-021 to
Regarding Interim Rate Caps for San Diego Gas and Electric Company,"
as modified below.
(2) It is also the intent of the Legislature that to the extent
that the Federal Energy Regulatory Commission orders refunds to
electrical corporations pursuant to their findings, the commission
shall ensure that any refunds are returned to customers.
(b) The commission shall establish a ceiling of six and
five-tenth five-tenths cents ($.065) per
kilowatt hour 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).
(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 levels specified in
subdivision (e) (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, restaurants, shopping centers, and all
accounts on Rate Schedule AL-TOU under 100 kilowatts.
(e)
(f) The commission shall establish a
an initial frozen rate of six and five-tenth
five-tenths cents ($.065) per kilowatt
hour kilowatthour on the energy component of
electric bills for all customers of the San Diego Gas and Electric
Company not subject to subdivision (b), through December 31,
2002, retroactive to February 7, 2001. If the commission finds it
in the public interest, this rate may be extended through December
2003 and may be adjusted as provided in subdivision (d). The
for the time period ending with the end of the rate
freeze for the Pacific Gas and Electric Company and the Southern
California Edison Company pursuant to Section 368, retroactive to
February 7, 2001. The commission shall consider the comparable
energy components of rates for comparable customer classes served by
the Pacific Gas and Electric Company and the Southern California
Edison Company and, if it determines it to be in the public interest,
the commission may adjust this frozen rate, and may do so,
retroactive to February 7, 2001. The commission shall adjust
the California Procurement Adjustment and the Fixed Department of
Water Resources Set-Aside determined pursuant to Section 360.5 for
customers subject to this subdivision to reflect a retail rate
consistent with the rate of six and five tenths cents
($.065) per kilowatt hour 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.
(f)
(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 mitigate the high energy costs for large consumers
such as schools and businesses, due to the energy situation of 2001,
it is necessary that this act take effect immediately.