BILL ANALYSIS
SB 1755
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Date of Hearing: June 24, 2002
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick D. Wright, Chair
SB 1755 (Soto) - As Amended: June 24, 2002
SENATE VOTE : 39-0
SUBJECT : County water districts and municipal water districts:
electric power.
SUMMARY : Allows municipal and county water districts to own and
operate electric power plants, whether hydroelectric or
otherwise. Power generated from these plants may be used for
the district's own purposes, and the surplus power sold to a
public or private entity that sells electricity. Specifically,
this bill :
1)Authorizes municipal and county water districts to provide,
generate, and deliver electric power, and to construct,
operate, and maintain works, facilities, improvements, and
property for that generation and delivery.
2)Specifies that electricity produced by a district must first
be used by the water district for its own purposes, including
pumping operations, water treatment operations, barrier
intrusion operations and desalination operations.
3)Authorizes municipal and county water districts to sell any
surplus energy generated that is not used for the district's
own purposes.
4)Prohibits those districts from acquiring property employed in
the generation or delivery of electric power unless mutually
agreed between the district and property owner.
5)Outlines a formula for reimbursement to the Department of
Water Resources and the electrical corporation that previously
serviced the district.
EXISTING LAW :
1)Authorizes municipal water districts to operate hydroelectric
plants and use the power for their own purposes or sell the
power to federal agencies, the state water project, local
SB 1755
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governments, and private corporations which sell power at
retail.
2)Authorizes county water districts to operate hydroelectric
plants and use the power for their own purposes or sell the
power to public utilities or public agencies.
FISCAL EFFECT : Unknown
COMMENTS :
Municipal water districts can acquire, build, and run plants
that generate hydroelectric power. Municipal water districts
can sell their hydroelectric power to federal agencies, to the
State Water Project, to local governments, and to private
corporations which sell electricity at retail, or they can use
the power for their own purposes.
Currently, five municipal water districts generate hydroelectric
power. This bill expands municipal water district authority by
allowing them to own and operate electric generation projects of
any type.
County water districts can build transmission lines and run
plants that generate hydroelectric power. County water
districts can use the power for their own purposes, but the
power cannot be sold to customers except for public utilities or
public agencies. County water districts cannot use their
eminent domain power to acquire the existing hydroelectric power
plants of public utilities unless the owner agrees. None of the
county water districts generate hydroelectric power. This bill
expands county water districts' authority by allowing them to
own and operate electric generation projects of any type.
This bill expressly prohibits a water district from selling
electricity to retail end users -- all surplus electricity sold
would be at wholesale.
This bill was amended in the Senate Energy Committee to
conclusively establish that exit fees are owing for
self-generation customers. The Committee may wish to consider
modifying this language to provide for exit fee payment if PUC
establishes these costs for self generation customers in the
exit fee rulemaking now underway.
SB 1755
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REGISTERED SUPPORT / OPPOSITION :
Sponsors
Central Basin Municipal Water District
Cucamonga County Water District
Inland Empire Utilities District
West Basin Municipal Water District
Support
Association of California Water Agencies
Chino Basin Watermaster
Municipal Water District of Orange County
Southern California Water Company
Opposition
None on file
Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083