BILL NUMBER: AB 1169	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 1, 2003

INTRODUCED BY   Assembly Member Bermudez

                        FEBRUARY 21, 2003

   An act  relating to energy resources   to
amend Section 366.1 of the Public Utilities Code, relating to
electric power  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1169, as amended, Bermudez.   Energy  
Aggregation:  Magnolia Power Project  . 
   Under existing law, a city with rights and obligations to the
Magnolia Power Project, as defined, may serve as a community
aggregator on behalf of all retail end-use customers within its
jurisdiction, if the project has been constructed and is otherwise
capable of beginning deliveries of electricity to the existing
project participants.
   This bill would make changes to reflect that the project is being
constructed, and would define the term "retail end-use customers
within its jurisdiction" to include any electric service account of
any local public agency that has its principal place of business
either within, or immediately contiguous to, the existing project
participant's jurisdiction.  
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities and certain duties regarding other
entities that produce energy.
   This bill would state the intent of the Legislature in subsequent
amendments to develop legislation relating to energy produced in this
state. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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

  
  SECTION 1.  It is the intent of the Legislature in subsequent
amendments to develop legislation relating to energy produced in this
state.  
  SECTION 1.  Section 366.1 of the Public Utilities Code is amended
to read: 
   366.1.  (a) As used in this section, the following terms have the
following meanings:
   (1) "Department" means the Department of Water Resources with
respect to its power program described in Chapter 2 (commencing with
Section 80100) of Division 27 of the Water Code.
   (2) "Existing project participant" means a city with rights and
obligations to the Magnolia Power Project under the Magnolia Power
Project Planning Agreement, dated May 1, 2001.
   (3) "Magnolia Power Project" means a  proposed 
natural gas-fired electric generating facility  to be located
  being constructed  at an existing site in
Burbank and for which an application for certification has been
 filed with  approved by  the State Energy
Resources Conservation and Development  Act (Docket No.
00-SIT-1) and deemed data adequate pursuant to the expedited
six-month licensing process established under Section 25550 of the
Public Resources Code   Commission and for which a
certificate to construct and operate has been granted  .
   (b) Notwithstanding Section 80110 of the Water Code or 
Commission Decision 01-09-060, if the Magnolia Power Project has been
constructed and is otherwise capable of beginning deliveries of
electricity to the existing project participants,   any
commission decision ordering the suspension of direct access, 
an existing project participant may serve as a community aggregator
on behalf of all retail end-use customers within its jurisdiction.
 For the purpose of this subdivision, the term "retail end-use
customers within its jurisdiction" includes any electric service
account of any local public agency that has its principal place of
business either within, or immediately contiguous to, the existing
project participant's jurisdiction. 
   (c) Subdivision (b)  shall   may  not
become operative until both of the following occur:
   (1) The commission implements a cost-recovery mechanism,
consistent with subdivision (d), that is applicable to customers that
elected to purchase electricity from an alternate provider between
February 1, 2001, and  the effective date of the act adding
this section   January 1, 2003  .
   (2) The commission submits a report certifying its satisfaction of
paragraph (1) to the Senate Energy, Utilities and Communications
Committee, or its successor, and the Assembly Committee on Utilities
and Commerce, or its successor.
   (d) (1) It is the intent of the Legislature that each retail
end-use customer that has purchased power from an electrical
corporation  on or after February 1, 2001, should bear a fair share
of the department's power purchase costs, as well as power purchase
contract obligations incurred as of January 1, 2003, that are
recoverable from electrical corporation customers in
commission-approved rates. It is the further intent of the
Legislature to prevent any shifting of recoverable costs between
customers.
   (2) The Legislature finds and declares that  the
provisions in  this subdivision  are  
is  consistent with the requirements of Section 360.5 and
Division 27 (commencing with Section 80000) of the Water Code, and
 are   is  therefore declaratory of
existing law.
   (e) A retail end-use customer purchasing power from a community
aggregator pursuant to subdivision (b) shall reimburse the department
for all of the following:
   (1) A charge equivalent to the charge  which 
 that  would otherwise be imposed on the customer by the
commission to recover bond related costs pursuant to an agreement
between the commission and the  Department of Water Resources
  department  pursuant to Section 80110 of the
Water Code  , that     .  That 
charge shall be payable until all obligations of the 
Department of Water Resources   department 
pursuant to Division 27  (commencing with Section 80000)  of
the Water Code are fully paid or otherwise discharged.
   (2) The costs of the department, equal to the share of the
department's estimated net unavoidable power purchase contract costs
attributable to the customer, as determined by the commission, for
the period commencing with the customer's purchases of electricity
from a community aggregator, through the expiration of all then
existing power purchase contracts entered into by the department.
   (f) A retail end-use customer purchasing power from a community
aggregator pursuant to subdivision (b) shall reimburse the electrical
corporation that previously served the customer for all of the
following:
   (1) The electrical corporation's unrecovered past
undercollections, including all financing costs attributable to that
customer, that the commission lawfully determines may be recovered in
rates.
   (2) The costs of the electrical corporation recoverable in
commission-approved rates, equal to the share of the electrical
corporation's estimated net unavoidable power purchase contract costs
attributable to the customer, as determined by the commission, for
the period commencing with the customer's purchases of electricity
from the community aggregator, through the expiration of all then
existing power purchase contracts entered into by the electrical
corporation.
   (g) (1) A charge or cost imposed pursuant to subdivision (e), and
all revenues received to pay the charge or cost, shall be the
property of the  Department of Water Resources  
department  .  A charge or cost imposed pursuant to subdivision
(f), and all revenues received to pay the charge or cost, shall be
the property of the particular electrical corporation.  The
commission shall establish mechanisms, including agreements with, or
orders with respect to, electrical corporations necessary to 
assure   ensure  that the revenues received to pay
a charge or cost payable pursuant to this section are promptly
remitted to the party entitled to those revenues.
   (2) A charge or cost imposed pursuant to this section shall be
nonbypassable.