BILL NUMBER: AB 1169 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 1, 2003
AMENDED IN ASSEMBLY MAY 1, 2003
INTRODUCED BY Assembly Member Bermudez
FEBRUARY 21, 2003
An act to amend Section 366.1 of the Public Utilities Code,
relating to electric power.
LEGISLATIVE COUNSEL'S DIGEST
AB 1169, as amended, Bermudez. 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 , as defined .
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 . The bill would
modify the definition of the term "existing project participant" to
mean the Magnolia Power Project B participant, as defined in lease
revenue bonds issued for the project. The bill would specifically
authorize an existing project participant to serve as a community
aggregator on behalf of all electric service accounts of the ABC
Unified School District .
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. 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.
the Magnolia Power Project B participant, as defined
in the Magnolia Power Project B lease revenue bonds, issued on March
15, 2003.
(3) "Magnolia Power Project" means a natural gas-fired electric
generating facility being constructed at an existing site in Burbank
and for which an application for certification has been approved by
the State Energy Resources Conservation and Development Commission
and for which a certificate to construct and operate has been
granted.
(b) Notwithstanding Section 80110 of the Water Code or any
commission decision ordering the suspension of direct access, if
the Magnolia Power Project has been constructed and is otherwise
capable of beginning deliveries of electricity to the existing
project participants, an existing project participant may serve
as a community aggregator on behalf of all retail end-use customers
within its jurisdiction , including all electric service
accounts of the ABC Unified School District . 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. Nothing is this section
may be construed to restrict the existing project participant to
reliance solely on output from the Magnolia Power Project in its
right to serve all retail end-use customers within its jurisdiction.
(c) Subdivision (b) 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 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 this subdivision is
consistent with the requirements of Section 360.5 and Division 27
(commencing with Section 80000) of the Water Code, and 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 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 pursuant to Section 80110 of the Water Code. That charge
shall be payable until all obligations of the 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. 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 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.