BILL NUMBER: AB 1284 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 14, 2003
AMENDED IN SENATE JUNE 17, 2003
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 An act to add and repeal Section 367.3
of the Public Utilities Code, relating to energy resources, and
declaring the urgency thereof, to take effect immediately.
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
responsibility 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 authorize the commission, if it finds it
is in the public interest and there is no feasible alternative, to
defer or waive the collection of a portion of the cost responsibility
surcharge otherwise applicable to a qualifying direct transaction
customer, as defined, to the extent necessary to mitigate certain
conditions described in an application and declaration submitted by
the customer to the commission. The bill would require the
commission to issue a decision on such an application on or before
September 4, 2003 .
The bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. 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):
(A) Any charge imposed to enable the department to recover its
bond-related costs under this division.
(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
SECTION 1. 367.3 is added to the Public Utilities Code, to read:
367.3. (a) For purposes of this section, a "qualifying direct
transaction customer" means any company
customer that meets each of the following requirements:
(1) The company customer 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 entered into a new direct transaction
with an electric service provider for the plant or facility's
electric service and a direct access service request (DASR) was
submitted within 90 days from the date the plant or facility's most
recent direct transaction contract was involuntarily terminated.
(4) The plant or facility continuously participated in an
interruptible or curtailable service program.
(5) The plant or facility 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 plant or facility 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 as a percentage of
sales for the plant or facility, for the five years beginning January
1, 1996, and continuing to December 31, 2000.
(8) The company submits customer submits
an application to the commission pursuant to this section within
seven days of the operative date of the act adding this section,
accompanied by a declaration from an officer, director, or
owner stating that unless relieved of the expense of the direct
access cost recovery responsibility
surcharge, the plant or facility 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)
(b) If the commission finds it is in the public interest and there
is no feasible alternative, the commission may defer or waive the
collection of a portion of the cost responsibility surcharge
otherwise applicable to a qualifying direct transaction customer, to
the extent necessary to mitigate the conditions described in
paragraph (8) of subdivision (a). That deferral or waiver may not
result in any shifting of costs to bundled service customers, either
immediately or over time, or delay the full and timely recovery of
costs from direct access customers as a group.
(c) The commission shall issue a decision on an application
submitted pursuant to this section on or before September 4, 2003.
(d) The commission shall require an electrical corporation to
defer collection of a portion of the cost responsibility surcharge
otherwise applicable to a qualifying direct transaction customer
while an application submitted pursuant to this section is pending
before the commission and, if the application is granted, until the
deferral or waiver is operative.
(e) 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.
SEC. 2. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to ensure that the public's best interest is served, and
to preserve numerous jobs at facilities that face certain and
imminent closure due to the high cost of electricity as a result of
being involuntarily returned to bundled electric service during the
energy crisis, it is necessary that this act take effect immediately.