BILL NUMBER: SB 1755	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 30, 2002

INTRODUCED BY   Senator Soto
   (Principal coauthor: Assembly Member Negrete McLeod)
   (Coauthors: Senators Costa and Vincent)
   (Coauthors: Assembly Members Calderon, Correa, Frommer, and
Oropeza)

                        FEBRUARY 21, 2002

   An act to add Sections 31149.7 and 71663.5 to the Water Code,
relating to electric power.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1755, as amended, Soto.  County water districts and municipal
water districts:  electric power.
   The County Water District Law and the Municipal Water District Law
of 1911 grant to county water districts and municipal water
districts, respectively, prescribed powers relating to water and
other services.
   This bill would authorize those districts to provide, generate,
and deliver electric power, and to construct, operate, and maintain
works, facilities, improvements, and property for that generation and
delivery.  The bill would prohibit those districts from acquiring
property employed in the generation or delivery of electric power,
except by mutual agreement between the district and the property
owner.
   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 31149.7 is added to the Water Code, to read:
   31149.7.  (a) A district may provide, generate, and deliver
electric power, and may construct, operate, and maintain any and all
works, facilities, improvements, and property, or portion thereof,
necessary or convenient for that generation and delivery.
   (b) The electric powerplant or plants and transmission lines
constructed pursuant to this section may be leased for operation, or
the power generated may be used, by the district for its own purposes
or be sold to any public or private entity that is engaged in the
distribution or sale of electricity.
   (c) Nothing in this section grants to a district the authority to
provide, sell, or deliver electric power at retail.
   (d) A district may not acquire property employed in the generation
or delivery of electric power for public or private utility
purposes, except by mutual agreement between the district and the
owner of that property.  
   (e) The electricity load that departs from an electrical
corporation pursuant to subdivision (b), shall be subject to a
surcharge, exit fees or other charges related to energy procurement,
if a surcharge, exit fees or other charges are established by the
Public Utilities Commission for self-generation customers. 
  SEC. 2.  Section 71663.5 is added to the Water Code, to read:
   71663.5.  (a) A district may provide, generate, and deliver
electric power, and may construct, operate, and maintain any and all
works, facilities, improvements, and property, or portion thereof,
necessary or convenient for that generation and delivery.
   (b) The electric powerplant or plants and transmission lines
constructed pursuant to this section may be leased for operation, or
the power generated may be used, by the district for its own purposes
or be sold to any public or private entity that is engaged in the
distribution or sale of electricity.
   (c) Nothing in this section grants to a district the authority to
provide, sell, or deliver electric power at retail.
   (d) A district may not acquire property employed in the generation
or delivery of electric power for public or private utility
purposes, except by mutual agreement between the district and the
owner of that property.  
   (e) The electricity load that departs from an electrical
corporation pursuant to subdivision (b), shall be subject to a
surcharge, exit fees or other charges related to energy procurement,
if a surcharge, exit fees or other charges are established by the
Public Utilities Commission for self-generation customers.