BILL NUMBER: SBX1 8 AMENDED
BILL TEXT
AMENDED IN SENATE FEBRUARY 13, 2001
INTRODUCED BY Senator Alarcon
JANUARY 18, 2001
An act to amend Section Sections 366 and
9601 of the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 8, as amended, Alarcon. Electric power: retail sales.
(1) Existing law requires the Public Utilities Commission to
take necessary action to facilitate direct transactions between
electricity suppliers and end-use customers. Existing law requires
the commission to authorize all customer classes to voluntarily
aggregate their electrical loads. Existing law requires a public
agency that seeks to serve as a community aggregator on behalf of
residential customers to offer the opportunity to purchase
electricity to all residential customers within its jurisdiction.
This bill would permit a public agency that seeks to serve as a
community aggregator for direct access customers to provide
aggregation service to all of the customers within its jurisdiction
after a majority vote of its elected governing body. If a customer
of the public agency desires to receive service from a different
service provider, it may do so upon written notice to the public
agency and pursuant to the opt-out rules established by the public
agency.
(2) The Public Utilities Act prohibits a local publicly
owned electric utility or electrical corporation from selling
electric power to the retail customers of another local publicly
owned electric utility or electrical corporation unless the first
utility has agreed to let the second utility make sales of electric
power to the retail customers of the first utility.
This bill would exempt from that prohibition a local publicly
owned electric utility or electrical corporation
that proposes to sell electric power to the current retail customers
of another local publicly owned electric utility or
an electrical corporation if certain criteria
are satisfied. The bill would require a local publicly owned
electric utility or electrical corporation that
proposes to sell electricity to the retail customers of a
local publicly owned electric utility or an
electrical corporation in accordance that exemption , to
give priority to new service areas that have a higher percentage of
low-income residential and small business customers as compared with
other potential service areas. Since a violation of the act is a
crime, this bill would impose a state-mandated local program by
creating a new crime.
(2)
(3) 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 366 of the Public Utilities Code is
amended to read:
366. (a) The commission shall take actions as needed to
facilitate direct transactions between electricity suppliers and end
use customers. Customers shall be entitled to aggregate their
electric loads on a voluntary basis, provided that each customer does
so by a positive written declaration. If no positive declaration is
made by a customer, that customer shall continue to be served by the
existing electrical corporation or its successor in interest.
(b) Aggregation of customer electrical load shall be authorized by
the commission for all customer classes, including, but not limited
to small commercial or residential customers. Aggregation may be
accomplished by private market aggregators, cities, counties, special
districts or on any other basis made available by market
opportunities and agreeable by positive written declaration by
individual consumers.
(c) If Notwithstanding any other provision
of law, including, but not limited to, this Chapter, a public
agency that seeks to serve as a community aggregator
on behalf of residential customers, it shall be obligated to
offer the opportunity to purchase electricity to all residential
customers within its jurisdiction for direct access
customers of the electrical corporation may, after a majority vote of
its elected governing body, provide aggregation service to all of
the customers within its jurisdiction. If a customer of the public
agency desires to receive service from a different service provider
it may do so upon written notice to the public agency and pursuant to
the opt-out rules established by the public agency. Chapter 3
(commencing with Section 56100) of Part 1 of Division 3 of the
Government Code does not apply to aggregation service provided by a
public agency under this section .
SEC. 2. Section 9601 of the Public Utilities Code is amended
to read:
9601. (a) Except with respect to supply options of the nature
specified in Section 218, with the exception of paragraph (3) of
subdivision (b) of that section, as it existed on December 20, 1995,
no person, corporation, electrical corporation, or local publicly
owned electric utility or other governmental entity other than a
retail customer's existing electric service provider as of December
20, 1995, shall provide partial or full electric service to a retail
customer of a local publicly owned electric utility unless the
customer first confirms in writing an obligation to pay, through
tariff or otherwise, to the utility currently providing electric
service, a nonbypassable generation-related severance fee or
transition charge established by the regulatory body for that
utility. The severance fee or transition charge shall be paid
directly to the local publicly owned utility providing electricity
service in the service area in which the consumer is located.
(b) Except as provided in subdivision (a) of Section 374, no local
publicly owned electric utility or other governmental entity shall
provide partial or full electric service to a retail customer of an
electrical corporation unless the customer of that electrical
corporation first confirms in writing an obligation to pay, through
tariff or otherwise, to the electrical corporation currently
providing electric service, a nonbypassable generation-related
transition charge established by the regulatory body for that
electrical corporation. The charge shall be paid directly to the
electrical corporation providing electricity in the service area in
which the consumer is located.
(c) (1) Except as specified in paragraph (2), no local publicly
owned electric utility or electrical corporation shall sell electric
power to the retail customers of another local publicly owned
electric utility or electrical corporation unless the first utility
has agreed to let the second utility make sales of electric power to
the retail customers of the first utility.
(2) Paragraph (1) does not apply to a local publicly owned
electric utility or electrical corporation that
proposes to sell electric power to the current retail customers of
another local publicly owned electric utility or
an electrical corporation, if both of the following
criteria are satisfied:
(A) The retail customers in the service area of the
current local publicly owned electric utility or electrical
corporation agree to switch to the local publicly owned electric
utility or electrical corporation that proposes to sell
electric power .
(B) The local publicly owned electric utility or
electrical corporation that proposes to sell electric power
to the retail customers of a local publicly owned electric
utility or an electrical corporation provides
low-income public benefit programs that provide benefits that are
equal to or greater than those provided by the current local
publicly owned electric utility or electrical corporation.
(3) A local publicly owned electric utility or electrical
corporation that proposes to sell electricity to the
retail customers of a local publicly owned electric utility
or an electrical corporation in accordance with
paragraph (2) shall give priority to new service areas that have a
higher percentage of low-income residential and small business
customers as compared with other potential service areas.
SEC. 2.
SEC. 3. 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.