BILL NUMBER: SB 2000	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Dunn

                        FEBRUARY 22, 2002

   An act to add Title 3.6 (commencing with Section 1883) to Part 4
of Division 3 of the Civil Code, relating to energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2000, as introduced, Dunn.  Electric power and natural gas:
unlawful practices.
   Existing law sets forth obligations that arise from particular
transactions.
   This bill would prohibit any person engaged in the business of
generating, selling, distributing, transferring, or marketing
electricity or natural gas from engaging in specified unlawful acts
or practices.  This bill would provide that a person found in
violation of these provisions would be required to disgorge the
revenue from the unlawful acts, and would be liable for, among other
things, 3 times the amount of the disgorgement and attorney fees.
The bill would require that actions for relief under these provisions
be brought in a court of competent jurisdiction by the Attorney
General or by another person, as specified.
   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.  Title 3.6 (commencing with Section 1883) is added to
Part 4 of Division 3 of the Civil Code, to read:

      TITLE 3.6.  UNLAWFUL ELECTRIC POWER AND NATURAL GAS PRACTICES

   1883.  For purposes of this chapter:
   (a) "Competitive benchmark" for assessing market power is
determined as the short-run marginal costs of the highest cost unit
needed to meet demand.
   (b) "Exercise of market power" means charging prices above the
competitive benchmark.
   (c) "Market power" means the ability to profitably maintain prices
above competitive levels for a period of time.  A person may also
possess market power with respect to significant competitive
dimensions other than price such as quality, service, or innovation.

   (d) "Person" means and includes a natural person, corporation,
firm, partnership, joint stock company, association, and other
organization or entity of persons.
   1833.1.  (a) A person engaged in the business of generating,
selling, distributing, transferring, or marketing electricity or
natural gas may not possess and exercise market power.
   (b) There shall be a rebuttable presumption that market power was
exercised in any case in which prices above the competitive benchmark
were charged.
   1883.2.  A person who violates Section 1883.1 shall, in addition
to other damages, be required to disgorge the revenue that is equal
to the difference between the actual price charged and the
competitive benchmark price as a result of that unlawful conduct.  As
used in this section, "disgorgement" shall be measured by the
difference in the actual price charged and the competitive benchmark
price as a result of that unlawful conduct.  In addition, a person
found to be in violation of Section 1883.1 shall be liable for three
times the amount of damages sustained, as measured by the amount of
disgorgement, because of the act or acts of that person.  A person
found to be in violation of Section 1883.1 shall also be liable for
the costs of a civil action brought to recover those damages and
attorney fees.
   1883.3.  (a) Specific or preventive relief may be granted to
enforce a penalty, forfeiture, or penal law in any case of a
violation of Section 1883.1.
   (i) (b) A person who engages, has engaged, or proposes to engage
in any of the conduct set forth in Section 1883.1, may be enjoined in
any court of competent jurisdiction.  The court may make these
orders or judgments, including the appointment of a receiver, as may
be necessary to prevent the use or employment by a person of a
practice or conduct set forth in Section 1883.1, or as may be
necessary to restore to a person in interest money or property.  The
court shall order the disgorgement of the revenue from the use or
employment of any act or practice prohibited by Section 1883.1, and
shall establish a fluid recovery fund for the return of the funds.
   1883.4.  Actions for relief pursuant to this chapter shall be
prosecuted exclusively in a court of competent jurisdiction by the
Attorney General, or by a person acting for the interests of itself,
its members, or the general public.
   1883.5.  Unless otherwise expressly provided, the remedies or
penalties provided by this section are cumulative to each other and
to the remedies or penalties available under all other laws of this
state.