BILL NUMBER: AB 1284 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 16, 2003
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 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 responsibility surcharge on retail
end-use customers that continue to receive service in a direct
transaction.
This bill, until January 1, 2009, would 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. 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 customer that meets each of the
following requirements:
(1) The 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 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 responsibility surcharge, the plant or facility
that purchases electric service under the direct transaction
contract, faces certain and imminent closure.
(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.
Notwithstanding subdivisions (d) and (g) of Section 311, the
commission may issue its decision in less than 30 days following
filing and service of the proposed decision.
(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.