BILL ANALYSIS
Appropriations Committee Fiscal Summary
7 (Burton)
Hearing Date: 1/18/01 Amended: As Introduced and
proposed to be amended
Consultant: Lisa Matocq Policy Vote: E, U & C
10-0
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BILL SUMMARY: SB 7X, an urgency measure, authorizes,
until February 2, 2001, the Department of Water Resources
(DWR) to purchase electricity from any party and then sell
it at cost plus administrative, transmission, scheduling,
and other related costs, to the Independent System Operator
(ISO), public utility electrical corporations, or retail
end-users, as specified. The bill also appropriates $400
million from the General Fund to the Department of Water
Resources Electric Power Fund (EPF) for purposes of the
bill.
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02
2002-03 Fund
Appropriation $400,000* --
-- General
Potential offsetting Unknown Special**
revenues
PUC costs Unknown, probably under $150 one-time
Special***
*The bill transfers $400,000 from the General Fund to the Electric
Power Fund.
**Electric Power Fund.
***Public Utilities Commission Utilities Reimbursement Account.
STAFF COMMENTS: This bill:
Authorizes DWR, for a period not to exceed 12 days from
the effective date of this bill, to purchase electric
power;
Creates the EPF, a continuously appropriated fund;
Authorizes DWR to sell purchased electric power at cost
plus administrative (not to exceed 1% or $4 million),
transmission, scheduling, and other related costs;
Specifies that contracts for the purchase or sale of
electric power shall contain provisions securing the
state's interest in recovery of funds expended;
Requires the Public Utilities Commission to adopt
necessary billing mechanisms;
Provides that no purchase of electric power may extend in
duration past February 1, 2001;
Is repealed January 1, 2002;
Contains legislative findings and declarations; and
Makes related changes.
STAFF NOTES that there is no guarantee of General Fund
repayment.