BILL NUMBER: SB 1976	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 19, 2002
	AMENDED IN SENATE  APRIL 30, 2002

INTRODUCED BY   Senator Torlakson

                        FEBRUARY 22, 2002

   An act relating to energy resources, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1976, as amended, Torlakson.  State Energy Resources
Conservation and Development Commission: report: real-time pricing.
   Existing law requires the State Energy Resources Conservation and
Development Commission to conduct an ongoing assessment of the
opportunities and constraints presented by all forms of energy.
   This bill would require the commission, in consultation with the
Public Utilities Commission, to report to the Legislature and the
Governor, by March 31, 2003, regarding the feasibility of
implementing real-time pricing tariffs for electricity in California.

   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote:  2/3.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Californians can significantly increase the reliability of the
electricity system and reduce the level of wholesale electricity
prices by reducing electricity usage at peak times  through a
variety of measures designed to reduce electricity consumption during
those periods  .
   (b) Real-time pricing provides incentives to reduce electricity
consumption in precisely those hours when supplies are tight and
provides lower prices when wholesale prices are low.
   (c) The State of California, through Assembly Bill 29 of the
2001-02 First Extraordinary Session, has already invested thirty-five
million dollars ($35,000,000) in real-time meters for customers who
consume greater than 200 kilowatts.
   (d) Real-time pricing integrates information technology into the
energy business, and creates new markets for communications,
microelectronic controls, and information.
   (e)  Electricity consumption for air conditioning purposes
during peak demand periods significantly contributes to California's
electricity shortage vulnerability during summer periods.
   (f)  It is the intent of the Legislature to promote energy
conservation and demand reduction in the State of California.
  SEC. 2.  (a) On or before March 31, 2003, the State Energy
Resources Conservation and Development Commission, in consultation
with the Public Utilities Commission, shall report to the Legislature
and the Governor regarding the feasibility of implementing real-time
pricing tariffs for electricity in California.
   (b) The report shall consider all of the following:
   (1) How wholesale real-time prices would be calculated and made
available to customers.
   (2) Options for day-ahead and hour-ahead retail prices.
   (3) Options for facilitating customer response to real-time prices
and managing total customer costs, including, but not limited to,
real-time metering and communication systems, consumer-side of the
meter notification, and automatic response equipment.
   (4) Estimates of potential peak load reductions  , including
the shifting of peak load demand to off-peak periods  .
   (5) Options for incorporating demand responsiveness into the
wholesale competitive market and operations of the California
Independent System Operator.
   (6) Options for ensuring customer protection under a real-time
pricing scenario, including identifying potentially disadvantaged
groups who may be disproportionately vulnerable to the impact of
volatile prices and suggestions for effective safeguards for those
customers.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to determine the feasibility of real-time pricing as soon
as possible, it is necessary that this act take effect immediately.