BILL NUMBER: AB 1284	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 8, 2003
	AMENDED IN ASSEMBLY  MAY 5, 2003
	AMENDED IN ASSEMBLY  APRIL 24, 2003
	AMENDED IN ASSEMBLY  APRIL 10, 2003

INTRODUCED BY   Assembly Member Leslie

                        FEBRUARY 21, 2003

   An act to add and repeal Section 80110.2 of the Water Code,
relating to energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1284, as amended, Leslie.   Direct transactions:  cost
responsibility surcharges.
   Under existing law, the Public Utilities Commission regulates
electrical corporations.  The Public Utilities Act requires the
commission to authorize direct transactions between electricity
suppliers and retail end-use customers.  However, other existing law
suspends the right of retail end-use customers to acquire service
from certain electricity suppliers after a period of time to be
determined by the commission until the Department of Water Resources
no longer supplies electricity under that law.  Under existing law,
the commission has imposed a cost recovery surcharge on retail
end-use customers that continue to receive service in a direct
transaction.
   This bill, until January 1, 2009, would exempt a qualifying exempt
direct transaction customer, as defined, from certain components of
the direct access cost recovery surcharge  and would subject the
remaining charges to a cap of $0.01 per kilowatthour  .
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  Section 80110.2 is added to the Water Code, to read:
   80110.2.  (a)  (1)  Notwithstanding Section 80110, a
qualifying exempt direct transaction customer shall be exempt from
paying a direct access cost recovery surcharge, except for the
following surcharge components  , subject to paragraph (2) 
:  
   (1)  
   (A)  Any charge imposed to enable the department to recover
its bond-related costs under this division.  
   (2) A tail competition transition charge, not to exceed $0.01 per
 
   (B) A tail competition transition charge.
   (2) Notwithstanding paragraph (1), the charges paid by a
qualifying exempt direct transaction customer may not exceed $0.01
per  kilowatthour on the actual kilowatthours used.
   (b) For purposes of this section, a "qualifying exempt direct
transaction customer" means any corporation that meets each of the
following requirements:
   (1) The corporation entered into a direct transaction with an
electric service provider for electric service for a plant or
facility in California, by executing a contract prior to January 1,
2000, that extended service through at least February 1, 2001.
   (2) The plant or facility was, after February 1, 2001,
involuntarily returned to the electrical corporation for electrical
service, as a result of the electric service provider terminating
electrical service under the direct transaction contract.
   (3) The plant or facility returned to receiving electric service
from an electric service provider pursuant to a direct transaction
within 90 days.
   (4) The plant or facility continuously participated in an
interruptible or curtailable service program.
   (5) The corporation had an average total cost for all aspects of
electric service, as a percentage of sales, in excess of 8 percent,
for the five years beginning January 1, 1996, and continuing to
December 31, 2000.
   (6) The corporation had an average net profit margin as a
percentage of sales of greater than 2 percent, for the five years
beginning January 1, 1996, and continuing to December 31, 2000.
   (7) The average total electric service cost as a percentage of
sales, exceeded the average net profit margin for the corporation,
for the five years beginning January 1, 1996, and continuing to
December 31, 2000.
   (8) The corporation submits a declaration from an officer,
director, or owner stating that unless relieved of the expense of the
direct access cost recovery surcharge, the plant or facility of the
corporation that purchases electric service under the direct
transaction contract, faces certain and imminent closure.
   (c) It is the intent of the Legislature that bundled customer
indifference be achieved and that no costs be shifted between
customer classes as a result of this section.
  (d) This section shall remain in effect only until January 1, 2009,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2009, deletes or extends that date.