BILL NUMBER: SB 1172 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 6, 2001
AMENDED IN ASSEMBLY AUGUST 20, 2001
AMENDED IN SENATE MAY 24, 2001
AMENDED IN SENATE APRIL 5, 2001
INTRODUCED BY Senator Kuehl
(Principal coauthor: Assembly Member Koretz)
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
enter into a direct transaction contract with that department to
provide service to that portion of the contiguous property not
currently served by that department , as authorized by that
department. The bill would provide that a party to a direct
transaction contract who owns and operates an electric distribution
system within the property served is not subject to specified charges
for the term of the direct transaction contract entered into.
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 specified costs .
(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: 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 Notwithstanding any other
provision of law or decision or rule of the commission, 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. electrical service
provider, may enter into a direct transaction contract with that
department to provide service to that portion of the contiguous
property not currently served by that department, as authorized by
that department. 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
subdivisions (a) and (c) of Section 9601 or Section 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 provide additional electrical service to
the customers enter into direct transaction contracts
with the customers described in subdivision (a), if the total
amount of additional electrical service
megawatts subject to those contracts 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 of an amount
equal to the difference, if any, between the Department of Water
Resources' total actual procurement costs, including financing costs,
and the rates collected by the Department of Water Resources from
that retail customer or local agency during the term of service. In
addition, the retail customer or local agency shall pay an additional
amount equal to the Department of Water Resources' net unavoidable
cost of future power procurement, including any financing costs,
attributable to that retail customer or local agency, as determined
by the Department of Water Resources. 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.
(f) Notwithstanding subdivision (b) of Section 9601, for the term
of a direct transaction contract entered into pursuant to this
section, if a party to the contract owns and operates an electric
distribution system within the property served, that party is not
subject to the payment of a nonbypassable generation-related
transition charge as authorized by paragraph (2) of subdivision (a)
of Section 367.
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.