BILL NUMBER: AB 816 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 8, 2003
AMENDED IN ASSEMBLY MARCH 25, 2003
INTRODUCED BY Assembly Member Reyes
(Principal coauthors: Assembly Members Canciamilla and Richman)
FEBRUARY 20, 2003
An act to add Section 9607.5 to the Public Utilities Code, and to
amend Section 80110 of the Water Code, relating to electric power.
LEGISLATIVE COUNSEL'S DIGEST
AB 816, as amended, Reyes. Local publicly owned electric
utilities: Public Utilities Commission: direct transactions.
(1) Existing law authorizes the Department of Water Resources to
administer existing contracts for the purchase of electric power, and
to sell power to retail end use customers and, with specified
exceptions, local publicly owned electric utilities, at not more than
the department's acquisition costs. Existing law imposes on retail
end use customers of electrical corporations and community choice
aggregators nonbypassable charges to repay certain costs of the
department and electrical corporations.
This bill would additionally impose on a local publicly owned
electric utility that begins serving electricity after February
1, 2001, to existing or new load in the service territory of an
electrical corporation, as that territory existed on February 1,
2001, responsibility for those repayment costs, as determined by the
Public Utilities Commission. The bill would require the local
publicly owned electric utility to determine the appropriate method
by which to recover the costs imposed from its customers. The bill
would require the cost recovery mechanism to ensure that any charges
payable to the department and to the electrical corporation by a
retail end use customer are promptly remitted to the party entitled
to payment. By imposing new responsibilities on local publicly
owned electric utilities, this bill would impose a state-mandated
local program.
(2) Under existing law, the Public Utilities Commission
commission has regulatory authority over public
utilities, including electrical corporations, and authorizes the
commission to fix just and reasonable rates and charges.
Existing law requires the commission to authorize direct transactions
between electricity suppliers and end use customers. Existing
law suspends, after a period of time to be determined by the
commission, the right of a retail end use customer to acquire
electricity from other electric service providers pursuant to direct
transactions, until the department no longer supplies electricity
under those provisions.
This bill would require the commission to reinstate the right of
retail end use customers to acquire electricity from other electric
service providers subject to specified conditions. Because a
violation of an order of the commission is a crime under existing
law, the bill would impose a state-mandated local program by creating
a new crime.
(3) 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. 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,
including the creation of a State Mandates Claims Fund to pay the
costs of mandates that do not exceed $1,000,000 statewide and other
procedures for claims whose statewide costs exceed $1,000,000.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
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 9607.5 is added to the Public Utilities Code,
to read:
(a) To prevent cost shifting of recoverable costs between
customers, a local publicly owned electric utility that begins
serving electricity after February 1, 2001, to existing or
new load in the service territory of an electrical corporation, as
that territory existed on February 1, 2001, is responsible for the
costs described in subdivisions (d), (e), (f), and (g) of Section
366.2, as determined by the commission.
(b) The local publicly owned electric utility is not responsible
for the costs described in subdivisions (d), (e), (f), and (g) of
Sections 366.2 when it serves new load within its exclusive electric
service territory as that exclusive electric service
territory existed on February 1, 2001.
(c) The local publicly owned electric utility shall determine the
appropriate method by which to recover the costs imposed pursuant to
this section from its customers. The cost recovery mechanism shall
ensure that any charges payable to the Department of Water Resources
and to the electrical corporation by a retail end use customer are
promptly remitted to the party entitled to payment. Charges imposed
pursuant to this section are nonbypassable.
SEC. 2. Section 80110 of the Water Code is amended to read:
80110. (a) The department shall retain title to all power sold by
it to the retail end use customers. The department shall be
entitled to recover, as a revenue requirement, amounts and at the
times necessary to enable it to comply with Section 80134, and shall
advise the commission as the department determines to be appropriate.
Such Those revenue requirements may
also include any advances made to the department hereunder or
hereafter for purposes of this division, or from the Department of
Water Resources Electric Power Fund, and General Fund moneys expended
by the department pursuant to the Governor's State of
Emergency Proclamation , dated January 17, 2001. For
purposes of this division and except as otherwise provided in this
section, the Public Utilities Commission's
commission's authority as set forth in Section 451 of the
Public Utilities Code shall apply, except any just and reasonable
review under Section 451 shall be conducted and determined by the
department. The commission may enter into an agreement with the
department with respect to charges under Section 451 for purposes of
this division, and that agreement shall have the force and effect of
a financing order adopted in accordance with Article 5.5 (commencing
with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public
Utilities Code, as determined by the commission. In no case shall the
commission increase the electricity charges in effect on the
date that the act that adds this section becomes effective
February 1, 2001, for residential customers for existing
baseline quantities or usage by those customers of up to 130 percent
of existing baseline quantities, until such time as
the department has recovered the costs of power it has
procured for the electrical corporation's retail end use customers as
provided in this division.
(b) The right of retail end use customers pursuant to Article 6
(commencing with Section 360) of Chapter 2.3 of Part 1 of Division 1
of the Public Utilities Code to acquire service from other providers
shall be reinstated by the Public Utilities Commission
commission , once each of the following
conditions are met:
(1) The Public Utilities Commission
commission has established a cost responsibility surcharge for
customers that opt for direct transactions. Each retail end use
customer that has purchased power from an electrical corporation on
or after February 1, 2001, shall bear a fair share of the department'
s electricity purchase costs that are recoverable from electrical
corporation customers in commission-approved rates.
(2) The State of California has issued revenue bonds pursuant to
Chapter 2.5 (commencing with Section 80130).
(3) The electrical corporations are procuring electricity under
procurement plans pursuant to Section 454.5 of the Public Utilities
Code.
(c) The department shall have the same rights with respect to the
payment by retail end use customers for power sold by the department
as do providers of power to those customers.
SEC. 3. 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.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because in that regard 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.
However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.