BILL NUMBER: SBX2 18	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Escutia
   (Principal coauthor: Senator Burton)
   (Coauthors: Senators Polanco and Vincent)
   (Coauthors: Assembly Members Firebaugh and Frommer)

                        MAY 17, 2001

   An act to add Section 366.7 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 18, as introduced, Escutia.  Public utilities.
   Existing law imposes various duties and responsibilities on the
Public Utilities Commission with respect to electrical corporations.

   This bill would require the commission to direct, after it has
determined that the rate freeze for an electrical corporation has
ended, the electrical corporation to establish a portfolio of
electric supplies to serve the needs of the electrical corporation's
bundled core customers, as defined.  The bill would also require the
core supply portfolio to include the output of the generation assets
retained by the electrical corporation under commission regulation,
along with supplies purchased by the electrical corporation under
contracts to serve the needs of core customers, and any spot market
supplies required to match core load.
   The bill would authorize the commission to establish guidelines
for the appropriate composition of the core portfolio, as specified.

   The bill would prohibit, beginning 90 days after the end of a
corporation's rate freeze, as determined by the commission, or 90
days after the effective date of this bill, whichever is later,
customers with a maximum peak demand of 500 kilowatts or greater from
being served from the core portfolio.  The bill would require those
customers to be designated as noncore.  The bill would require that
any noncore customer that does not obtain service through a direct
transaction be provided with energy purchased by the electrical
corporation exclusively from the spot market, and would require the
customer to be charged the cost incurred by the electrical
corporation in providing such service.
   Because, under existing law, a violation of the above provisions
would be a crime, the bill would impose a state-mandated local
program by creating a new crime.
  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 366.7 is added to the Public Utilities Code, to
read:
   366.7.  (a) Once the commission has determined that the rate
freeze established pursuant to Section 368 for an electrical
corporation has ended, the commission shall direct the electrical
corporation to establish a portfolio of electric supplies to serve
the needs of the electrical corporation's bundled core customers.
   (b) For the purposes of this section, "bundled core customers" are
all customers with a maximum peak demand of less than 500 kilowatts
who are not being served via direct transactions.
   (c) The core supply portfolio shall include the output of the
generation assets retained by the electrical corporation under
commission regulation, along with supplies purchased by the
electrical corporation under contracts to serve the needs of its core
customers, and any spot market supplies required to match core load.

   (d) The commission may establish guidelines for the appropriate
composition of the core portfolio, including a minimum renewable
energy component, and may also establish appropriate financial
incentives for the electrical corporation to achieve the lowest
stable price for the core portfolio.
   (e) Beginning 90 days after the end of the corporation's rate
freeze, as determined by the commission, or 90 days after the
effective date of this section, whichever is later, customers with a
maximum peak demand of 500 kilowatts or greater will no longer be
served from the core portfolio.  These customers shall be designated
as noncore.  Any noncore customer that does not obtain service
through a direct transaction shall be provided with energy purchased
by the electrical corporation exclusively from the spot market, and
shall be charged the cost incurred by the corporation in providing
the service.
  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.