BILL ANALYSIS AB 1169 Page 1 ASSEMBLY THIRD READING AB 1169 (Bermudez) As Amended May 1, 2003 Majority vote UTILITIES AND COMMERCE 11-0 ----------------------------------------------------------------- |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 FN: 0000926