BILL ANALYSIS
Appropriations Committee Fiscal Summary
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| |1519(Bowen) |
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|Hearing Date: 5/13/02 |Amended: 4/18/02 |
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|Consultant: Lisa Matocq |Policy Vote: E, U & C |
| |8-0 |
| | |
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BILL SUMMARY: SB 1519 requires the Public Utilities
Commission (PUC) to establish a mechanism by which
customers of an electrical corporation for whom direct
access has been suspended, to purchase renewable power.
The mechanism must include a provision for the customer to
reimburse the Department of Water Resources (DWR) for
specified costs related to DWR's power purchasing program,
as specified.
Fiscal Impact (in thousands)
Major Provisions 2002-03 2003-04
2004-05 Fund
PUC Probably under $100, offset by fee
Special*
revenues
DWR power purchasing Unknown, any potential costs should be
Special**
program recovered by cost recovery mechanism
DWR publications Probably not substantial costs, which
Special**
should be recovered in rates.
*Public Utilities' Reimbursement Account (PURA)
**Electric Power Fund
STAFF COMMENTS: Prior to the enactment of AB1x (Keeley,
Ch. 4, St. of 2001), customers of investor-owned utilities
had the right to obtain power from alternate providers. AB
1x provided that, after a period of time to be determined
by the PUC, that right would be suspended until DWR no
longer supplies power, so as to ensure a sufficient revenue
stream to recover DWR's costs. Notwithstanding the
suspension of direct access, this bill:
requires the PUC to create a mechanism by which customers
could elect to purchase renewable power from an alternate
provider. Implementation is suspended until the PUC
develops a mechanism for the customer to reimburse DWR's
for its uncollected costs of providing power to that
customer, including financing costs, as specified;
requires DWR to publish a formula for calculating the
uncollected costs;
authorizes the PUC to require an electrical corporation
to offer renewable power, and
makes related changes.
PURA revenues are derived from an annual fee imposed on
electrical, gas, telephone, and water corporations and
every other public utility providing service directly to
customers. Therefore, any increased costs to the PUC
should be offset by fee revenues.
DWR's costs related to the publication should be recovered
through its revenue requirement. DWR's stranded costs, if
any, resulting from customers obtaining renewable energy
from alternate providers, rather than DWR, are intended to
be recovered by the PUC mechanism, rather than being
shifted to remaining ratepayers.
SB 27xx (Bowen) of 2001would have allowed customers of
electrical corporations, also being served by DWR, to
obtain renewable power from an alternate provider. It died
in the Assembly when special session ended.