BILL NUMBER: AB 425	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 29, 2003
	AMENDED IN ASSEMBLY  APRIL 30, 2003

INTRODUCED BY   Assembly Member Richman

                        FEBRUARY 14, 2003

   An act to amend Section 743.1 of the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 425, as amended, Richman.  Electric service:  rates:
interruptible programs.
   (1) The Public Utilities Act authorizes the Public Utilities
Commission to establish rates for public utilities regulated by the
commission, including electrical corporations.  The act requires
electrical corporations to continue the availability to qualified
heavy industrial customers, until March 31, 2002, of optional
interruptible or curtailable service wherein the heavy industrial
customer is charged a rate that reflects a pricing incentive for
electing to operate under the optional or curtailable service.
   This bill would instead require an electrical corporation to
continue the availability to qualified customers, as defined, of
optional interruptible or curtailable service, and would require the
effective rate for that service to reflect a cost-based pricing
incentive.  The bill would require the commission to set the
incentive level and to authorize the continued availability of
optional interruptible or curtailable service at that level
 until December 31, 2008.  The bill would impose a penalty
on a customer receiving interruptible or curtailable service who does
not comply with the commitment to shed load in excess of the
customer's firm service level within the time period provided for in
the tariff, if called upon to do so by the electrical corporation.
The bill would require an electrical corporation to remove from the
rate option any customer who, upon 2 consecutive requests from the
electrical corporation, voluntarily elects not to comply
substantially with its commitment to shed load.  The bill would
require an electrical corporation to eliminate by a certain date any
incentive not described above that is included in an optional
interruptible or curtailable service of that electrical corporation
as of January 1, 2004.
   Because a violation of the act is a crime, this bill, by
continuing to require electrical corporations to offer optional
interruptible or curtailable service and by imposing new
requirements, would change the definition of a crime, thereby
imposing a state-mandated local program.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


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


  SECTION 1.  Section 743.1 of the Public Utilities Code is amended
to read:
   743.1.  (a) Electrical corporations shall continue the
availability to qualified customers of optional interruptible or
curtailable service.  For purposes of this section, the term
"qualified customers" includes all customers with demand at, or in
excess of, 500 kilowatts.  The effective rate for interruptible or
curtailable service to qualified customers shall reflect a cost-based
pricing incentive for electing to operate under the interruptible or
curtailable service option.  The commission shall  initially
 set the cost-based pricing incentive for the optional
interruptible or curtailable service at a level equal to the level of
incentive authorized in the base interruptible program rate option
as of May 1, 2003.   The commission may subsequently adopt a
different cost-based pricing incentive level.   The commission
shall authorize the continued availability of optional interruptible
or curtailable service  at this cost-based pricing incentive
level  until December 31, 2008.
   (b) A customer receiving interruptible or curtailable service who
does not comply with the commitment to shed load in excess of the
customer's firm service level within the time period provided for in
the tariff, if called upon to do so by the electrical corporation,
shall pay a noncompliance penalty  of  
initially set at  nine dollars and thirty cents ($9.30) per
kilowatthour for excess power taken.   The commission may
subsequently adopt a different noncompliance penalty.   In
addition to the noncompliance penalty, the electrical corporation
shall remove from the rate option any customer who, upon two
consecutive requests from the electrical corporation, voluntarily
elects not to comply substantially with its commitment to shed load.

   (c) The commission shall require an electrical corporation to
eliminate any incentive not authorized pursuant to subdivision (a)
that is included in an optional interruptible or curtailable service
rate of that electrical corporation as of January 1, 2004, before the
earlier of the following dates:
   (1) January 1, 2005.
   (2) The date of the next final commission decision in the
allocation of revenue requirement and rate design phase of the
electrical corporation's general rate case proceeding.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.