BILL NUMBER: SB 1755 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 30, 2002
AMENDED IN ASSEMBLY JUNE 24, 2002
AMENDED IN SENATE MAY 20, 2002
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. If a district elects to provide for its own power, this bill
would set forth the formula for reimbursement to the Department of
Water Resources and the electrical corporation that previously
serviced the district.
Vote: majority. Appropriation: no. Fiscal committee: yes.
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.
The power generated shall be used by a district for its own purposes.
A district may sell surplus power to a public or private entity
that is engaged in the distribution or sale of electricity. For
purposes of this section, "for its own purposes" means a district
performing only functions in its capacity as a water district,
including, but not be limited to, any of the following:
(1) Pumping operations.
(2) Water treatment operations.
(3) Barrier intrusion operations.
(4) Desalination operations.
(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) A district that elects to provide for its own power pursuant
to this section shall reimburse the department for all costs
incurred by the department as a result of the provision of this
power, if these costs are established by the Public Utilities
Commission for self-generation customers. In determining what costs,
if any, are reimbursable, the commission may take into consideration
any or all of the following:
(1) The department's unrecovered actual cost of power procurement,
including any financing and administrative costs, attributable to
the district, as determined by the Public Utilities Commission. The
department's actual cost shall be calculated as the difference, if
any, between the department's total actual procurement costs
attributable to the district and the revenues collected by the
department from the district during the district's term of service
with the department. The Public Utilities Commission shall publish,
and update as necessary, a formula for calculation of unrecovered
costs that are due pursuant to this subdivision.
(2) Any additional costs of the department, equal to the district'
s proportionate share of the department's estimated net unavoidable
power purchase contract costs, for the period commencing with the
district's self-provision of electricity, through the expiration of
all power purchase contracts entered into by the department existing
at the time the district elects to provide for its own power. The
proportionate share and unavoidable costs shall be determined by the
Public Utilities Commission.
(f) A district that elects to provide for its own power pursuant
to this section shall reimburse the electrical corporation that
previously served the district for any costs incurred by the
electrical corporation as a result of the provision of this power, if
these costs are established by the Public Utilities Commission for
self-generation customers. In determining what costs, if any, are
reimbursable, the commission may take into consideration any or
all of the following:
(1) The electrical corporation's unrecovered actual cost of power
procurement, including any financing and administrative costs,
attributable to the district, as determined by the Public Utilities
Commission. The electrical corporation's actual cost shall be
calculated as the difference, if any, between its total actual
procurement costs attributable to the district and the revenues
collected by the electrical corporation from the district during the
district's term of service with the electrical corporation.
(2) Any additional costs of the electrical corporation, equal to
the district's proportionate share of the electrical corporation's
estimated net unavoidable power purchase contract costs, for the
period commencing with the district's self-provision of electricity,
through the expiration of all power purchase contracts entered into
by the electrical corporation existing at the time the district
elects to provide for its own power. The proportionate share and
unavoidable costs shall be determined by the Public Utilities
Commission.
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.
The power generated shall be used by a district for its own purposes.
A district may sell surplus power to a public or private entity
that is engaged in the distribution or sale of electricity. For
purposes of this section, "for its own purposes" means a district
performing only functions in its capacity as a water district,
including, but not be limited to, any of the following:
(1) Pumping operations.
(2) Water treatment operations.
(3) Barrier intrusion operations.
(4) Desalination operations.
(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) A district that elects to provide for its own power pursuant
to this section shall reimburse the department for all costs
incurred by the department as a result of the provision of this
power, if these costs are established by the Public Utilities
Commission for self-generation customers. In determining what costs,
if any, are reimbursable, the commission may take into consideration
any or all of the following:
(1) The department's unrecovered actual cost of power procurement,
including any financing and administrative costs, attributable to
the district, as determined by the Public Utilities Commission. The
department's actual cost shall be calculated as the difference, if
any, between the department's total actual procurement costs
attributable to the district and the revenues collected by the
department from the district during the district's term of service
with the department. The Public Utilities Commission shall publish,
and update as necessary, a formula for calculation of unrecovered
costs that are due pursuant to this subdivision.
(2) Any additional costs of the department, equal to the district'
s proportionate share of the department's estimated net unavoidable
power purchase contract costs, for the period commencing with the
district's self-provision of electricity, through the expiration of
all power purchase contracts entered into by the department existing
at the time the district elects to provide for its own power. The
proportionate share and unavoidable costs shall be determined by the
Public Utilities Commission.
(f) A district that elects to provide for its own power pursuant
to this section shall reimburse the electrical corporation that
previously served the district for any costs incurred by the
electrical corporation as a result of the provision of this power, if
these costs are established by the Public Utilities Commission for
self-generation customers. In determining what costs, if any, are
reimbursable, the commission may take into consideration any or
all of the following:
(1) The electrical corporation's unrecovered actual cost of power
procurement, including any financing and administrative costs,
attributable to the district, as determined by the Public Utilities
Commission. The electrical corporation's actual cost shall be
calculated as the difference, if any, between its total actual
procurement costs attributable to the district and the revenues
collected by the electrical corporation from the district during the
district's term of service with the electrical corporation.
(2) Any additional costs of the electrical corporation, equal to
the district's proportionate share of the electrical corporation's
estimated net unavoidable power purchase contract costs, for the
period commencing with the district's self-provision of electricity,
through the expiration of all power purchase contracts entered into
by the electrical corporation existing at the time the district
elects to provide for its own power. The proportionate share and
unavoidable costs shall be determined by the Public Utilities
Commission.