BILL NUMBER: SB 1172	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 20, 2001
	AMENDED IN SENATE  MAY 24, 2001
	AMENDED IN SENATE  APRIL 5, 2001

INTRODUCED BY   Senator Kuehl

                        FEBRUARY 23, 2001

   An act to add Section 9601.6 to the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1172, as amended, Kuehl.  Municipally owned electric utilities.

   (1) Under existing law, a municipality or municipal corporation
may operate as a public utility to supply its own electric service.
Existing law also authorizes a municipality to sell, lease, or
distribute surplus power outside of its corporate limits.
   This bill, on or before July 1, 2002, would authorize any retail
customer or local agency that owns or occupies a contiguous property
located within more than one service area, one of which includes the
service area of the Los Angeles Department of Water and Power, that
takes electrical service from that department and another electrical
service provider, to take electrical service for the entire property
from a single electrical service provider, as authorized by 
the   that  department.
   The bill would authorize the Public Utilities Commission to limit
the right of a retail customer or local agency that purchases power
from an electrical corporation to purchase power from the Los Angeles
Department of Water and Power to ensure satisfaction of any power
purchase obligation or bond obligation incurred by the Department of
Water Resources to procure power to serve that customer, except that
the bill would authorize that customer to elect service from the Los
Angeles Department of Water and Power at any time upon payment to the
Department of Water Resources of any uncollected amounts equivalent
to that department's net unavoidable cost of power procurement.
   (2) The bill would declare that, due to unique circumstances
surrounding the provision of power by the Los Angeles Department of
Water and Power, a general statute cannot be made applicable within
the meaning of Section 16 of Article  IV of the California
Constitution, and the enactment of a special statute is therefore
necessary.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:
 yes   no  . State-mandated local program:
no.


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


  SECTION 1.  Section 9601.6 is added to the Public Utilities Code,
to read:
   9601.6.  (a) On or before July 1, 2002, any retail customer or
local agency that owns or occupies a contiguous property located
within more than one service area, one of which includes the service
area of the Los Angeles Department of Water and Power, that takes
electrical service from that department and another electrical
service provider, may take electrical service for the entire property
from a single electrical service provider, as authorized by the Los
Angeles Department of Water and Power.  The right of the retail
customer or local agency to take electrical service from such an
electrical service provider is not subject to Section 9601 or 9602.
This section modifies or abrogates Section 9602 only to the extent
that the retail customer or local agency elects to obtain electrical
service from a local publicly owned electric utility or an electrical
corporation.
   (b) This section does not authorize the Los Angeles Department of
Water and Power to  enter into a direct transaction contract
with   provide additional electrical service to 
the customers described in subdivision (a), if the total amount of
 electricity contracts   additional electrical
service  exceeds 50 megawatts per day.
   (c) The commission may limit the right of a retail customer or
local agency described in subdivision (a) that purchases power from
an electrical corporation to purchase power from the Los Angeles
Department of Water and Power pursuant to this section, but only to
the extent the commission determines is necessary to ensure
satisfaction of any power purchase obligation or bond obligation
incurred by the Department of Water Resources pursuant to Division 27
(commencing with Section 80000) of the Water Code to procure power
to serve that retail customer or local agency.
   (d) Notwithstanding subdivision (c), a retail customer or local
agency described in subdivision (a) may elect service from the Los
Angeles Department of Water and Power at any time pursuant to this
section, upon payment to the Department of Water Resources of any
uncollected amounts equivalent to that department's net unavoidable
cost of power procurement, including any financing costs,
attributable to that customer or local agency, as determined by that
department.  The Department of Water Resources' net unavoidable cost
shall be calculated as the difference, if any, between that
department's total actual procurement costs and the rates collected
by that department from the customer or local agency during the term
of service.  Any amounts due pursuant to this section for the
purchase of power may be payable in installments over a term
coincident with the term of bonds issued to finance the purchase of
that power.
   (e) As used in this section, "electrical corporation" means an
electrical corporation, as defined in Section 218, serving the
customers for which the Department of Water Resources is procuring
power pursuant to Division 27 (commencing with Section 80000) of the
Water Code.
  SEC. 2.  The Legislature finds and declares that, due to unique
circumstances surrounding the provision of power by the Los Angeles
Department of Water and Power, a general statute cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution, and the enactment of a special statute is
therefore necessary.