BILL NUMBER: SBX2 85	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 14, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 13, 2001
	AMENDED IN ASSEMBLY  AUGUST 28, 2001

INTRODUCED BY   Senator Burton

                        JUNE 11, 2001

   An act to add Section 368.5 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 85, Burton.  Electrical restructuring:  rates.
   Provisions of the Public Utilities Act restructuring the
electrical industry establish a process for the recovery by specified
electrical corporations of certain uneconomic costs during a
transition period that began on January 1, 1998, and ends for an
electrical corporation on the earlier of March 31, 2002, or the date
that the electrical corporation fully recovers its uneconomic costs.
Existing law imposes during the transition period a rate freeze and
a 10% rate reduction to remain in effect until March 31, 2002, unless
the electrical corporation fully recovers its uneconomic costs at an
earlier date.  Existing law provides for fixed transition amounts to
enable electric utility corporations to recover uneconomic costs
associated with electrical deregulation through a nonbypassable
charge on classes of customers until December 31, 2001, with
specified exceptions.
   This bill would prohibit the Public Utilities Commission from
raising rates for residential and small commercial customers upon the
termination of the 10% rate reduction for residential and small
commercial customers, as described above, solely as a result of the
termination of the 10% rate reduction.  The bill would provide that
its provisions do not affect the authority of the commission to raise
rates for other reasons .  The bill would provide that its
provisions do not further extend the authority to impose fixed
transition amounts on customers or further authorize or extend rate
reduction bonds.  The bill would provide that to the extent its
provisions conflict with any other provision of the Public Utilities
Code, the provisions of this bill shall prevail.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  It is the intent of the Legislature, in enacting the
act adding this section, to not usurp the authority of the Public
Utilities Commission to set rates for electrical corporations.
  SEC. 2.  Section 368.5 is added to the Public Utilities Code, to
read:
   368.5.  (a) Notwithstanding any other provision of law, upon the
termination of the 10-percent rate reduction for residential and
small commercial customers set forth in subdivision (a) of Section
368, the commission may not subject those residential and small
commercial customers to any rate increases or future rate obligations
solely as a result of the termination of the 10-percent rate
reduction.
   (b) The provisions of subdivision (a) do not affect the authority
of the commission to raise rates for reasons other than the
termination of the 10-percent rate reduction set forth in subdivision
(a) of Section 368.
   (c) Nothing in this section shall further extend the authority to
impose fixed transition amounts, as defined in subdivision (d) of
Section 840, or further authorize or extend rate reduction bonds, as
defined in subdivision (e) of Section 840.
  SEC. 3.  To the extent the provisions of this act conflict with any
other provision of the Public Utilities Code, the provisions of this
act shall prevail.