BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1169
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1169 (Bermudez)
          As Amended May 1, 2003
          Majority vote

           UTILITIES AND COMMERCE     11-0                                 
           
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          |Ayes:|Reyes, Richman, Calderon, |     |                          |
          |     |Diaz, Jerome Horton, La   |     |                          |
          |     |Malfa, La Suer, Levine,   |     |                          |
          |     |Nunez, Ridley-Thomas,     |     |                          |
          |     |Wolk                      |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Allows municipal entities involved in the Magnolia  
          Power Plant (MPP) project to provide electric power to local  
          public agencies located within or contiguous to a project city.

           EXISTING LAW  permits cities participating in MPP to serve as a  
          community aggregator on behalf of all retail end-use customers  
          within its jurisdiction once the project has been constructed  
          and is capable of delivering electricity to the project  
          participants.

           FISCAL EFFECT  :  Unknown
           
           COMMENTS :  The MPP is sponsored by the Southern California  
          Public Power Authority (SCPPA), a consortium of municipalities  
          and an irrigation district established by a Joint Powers  
          Agreement to develop, construct, and operate electric generation  
          projects.  The facility is a 250-megawatt (MW) natural gas-fired  
          power plant with a peaking capacity of 328 MW.  The California  
          Energy Commission (CEC) approved the project on March 5, 2003.

          The participating member cities in MPP (i.e., Anaheim, Burbank,  
          Cerritos, Colton, Glendale, and Pasadena) are developing the  
          project to meet new demand in their respective service  
          territories.  The project will be located in the City of Burbank  
          at the existing site of the Magnolia Power Station, which is  
          owned and operated by the Burbank Water and Power Department.   
          The City of Burbank is the project manager and operator.  SCPPA  
          will lease the site from Burbank and in turn, Burbank will  
          provide utility services related to construction, operation, and  
          maintenance of the project.








                                                                  AB 1169
                                                                  Page  2


          AB 80 (Havice), Chapter 837, Statutes of 2002 authorizes the  
          cities participating in MPP to act as community aggregators and  
          provide direct access service to their residents.

          This bill would expand the ability of a city participating in  
          MPP to provide direct access electric service to local public  
          agencies that either have their principal place of business  
          within a project city or in a location immediately contiguous to  
          the city.  The City of Cerritos seeks authorization to provide  
          electric service to ABC Unified School District, as well as some  
          local lighted park facilities that serve the local Cerritos  
          area.   
           

          Analysis Prepared by  :    Paul Donahue / U. & C. / (916) 319-2083  



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