BILL NUMBER: AB 1733	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2004

INTRODUCED BY    Committee on Utilities and Commerce (Reyes
(Chair), Calderon, Canciamilla, Diaz, Jerome Horton, Levine, Nunez,
and Ridley-Thomas)   Assembly Members Reyes, Campbell,
Correa, and Levine 
    (Coauthors:  Assembly Members Berg, Chu, Diaz, Firebaugh,
Frommer, Goldberg, Hancock, Laird, Leno, Lieber, Lowenthal, Montanez,
Nakano, Ridley-Thomas, and Steinberg) 

                        MARCH 5, 2003

   An act to amend  and repeal Section 454.5  
Section 2891.1  of the Public  Utilities Code, relating to
 electricity   telecommunications  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1733, as amended,  Committee on Utilities and Commerce
  Reyes  .    Electricity:  procurement
plans   Telecommunications:  selling or licensing lists
of subscribers  . 
   Under existing law, the Federal Communications Commission licenses
and partially regulates providers of commercial mobile radio
service, including providers of cellular radiotelephone service,
broadband Personal Communications Services (PCS), and digital
Specialized Mobile Radio (SMR) services (collectively, mobile
telephony service providers).  Under existing law, no state or local
government may regulate the entry of, or the rates charged by, any
commercial mobile radio service, but is generally not prohibited from
regulating the other terms and conditions of commercial mobile radio
service.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including telephone corporations.
Existing law authorizes the commission to regulate telecommunications
services and rates of telephone corporations, except to the extent
regulation of commercial mobile radio service is preempted by federal
regulation.  Existing law prohibits a telephone corporation selling
or licensing lists of residential subscribers, from including the
telephone number of any subscriber assigned an unpublished or
unlisted access number, as defined, without his or her written waiver
of this protection.
   This bill would prohibit a provider of mobile telephony services,
as defined, selling or licensing lists of subscribers or otherwise
providing the name and dialing number of a subscriber for inclusion
in a directory, from including the dialing number of any subscriber
without first obtaining the express consent of that subscriber.  The
bill would establish certain requirements for the provider's form for
obtaining the subcriber's express consent.  
   The Public Utilities Act imposes various duties and
responsibilities on the Public Utilities Commission with respect to
the purchase of electricity and requires the commission to establish
a renewables portfolio standard and to review and adopt a procurement
plan and a renewable energy procurement plan for each electrical
corporation.  Existing law requires the commission, until it
completes an electric generation procurement methodology that values
the environmental and diversity costs and benefits associated with
various generation technologies, to direct that a specified portion
of electrical generating capacity needed for the future, is reserved
or set aside for renewable resources.  Existing law requires a
proposed procurement plan to show that it is in furtherance of this
reserve or set-aside requirement.
   This bill would instead require that the proposed procurement plan
show that it is in furtherance of the electrical corporation's
obligation under the renewables portfolio standard. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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

  
  SECTION 1.  Section 454.5 of the Public Utilities Code, as
 
  SECTION 1.  Section 2891.1 of the Public Utilities Code is amended
to read: 
   2891.1.  (a) Notwithstanding Section 2891, a telephone corporation
selling or licensing lists of residential subscribers shall not
include the telephone number of any subscriber assigned an unlisted
or unpublished access number.
   (b)  Notwithstanding Section 2891, a provider of mobile
telephony services selling or licensing lists of subscribers or
otherwise providing the name and dialing number of a subscriber for
inclusion in any directory, shall not include the dialing number of
any subscriber without first obtaining the express consent of that
subscriber.  The provider's form for obtaining the subscriber's
express consent shall meet all of the following requirements:
   (1) It shall be a separate document that is not attached to any
other document.
   (2) It shall be signed and dated by the subscriber.
   (3) It shall be unambiguous, legible, and in a minimum 10-point
type, and conspicuously disclose that, by signing, the subscriber is
consenting to have the subscriber's dialing number sold or licensed
as part of a list of subscribers and the subscriber's dialing number
may be included in a publicly available directory.  
   (c)  A subscriber may waive all or part of the protection
provided by this section through written notice to the telephone
corporation.  
   (c)  
   (d)  This section does not apply to the provision of
telephone numbers to the following parties for the purposes
indicated:
   (1) To a collection agency, to the extent disclosures made by the
agency are supervised by the commission, exclusively for the
collection of unpaid debts.
   (2) (A) To any law enforcement agency, fire protection agency,
public health agency, public environmental health agency, city or
county emergency services planning agency, or private for-profit
agency operating under contract with, and at the direction of, one or
more of these agencies, for the exclusive purpose of responding to a
911 call or communicating an imminent threat to life or property.
   (B) Any information or records provided to a private for-profit
agency pursuant to this subdivision shall be held in confidence by
that agency and by any individual employed by or associated with that
agency.  This information or these records shall not be open to
examination for any purpose not directly connected with the
administration of the services specified in subdivision (e) of
Section 2872 or this paragraph.
   (3) To a lawful process issued under state or federal law.
   (4) To a telephone corporation providing service between service
areas for the provision to the subscriber of telephone service
between service areas, or to third parties for the limited purpose of
providing billing services.
   (5) To the commission pursuant to its jurisdiction and control
over telephone and telegraph corporations.  
   (d)  
   (e)  Every deliberate violation of this section is grounds
for a civil suit by the aggrieved subscriber against the organization
or corporation and its employees responsible for the violation.

   (e)  
   (f)  For purposes of this section, "unpublished or unlisted
access number" means a telephone, telex, teletex, facsimile, computer
modem, or any other code number that is assigned to a subscriber by
a telephone or telegraph corporation for the receipt of
communications initiated by other telephone or telegraph customers
and that the subscriber has requested that the telephone or telegraph
corporation keep in confidence.  
   (f)  
   (g)  No telephone corporation, nor any official or employee
thereof, shall be subject to criminal or civil liability for the
release of customer information as authorized by this section.  
   (h) For purposes of this section, "mobile telephony services"
means commercially available interconnected mobile phone services
that provide access to the public switched telephone network (PSTN)
via mobile communication devices employing radio wave technology to
transmit calls, including cellular radiotelephone, broadband Personal
Communications Services (PCS), and digital Specialized Mobile Radio
(SMR).  "Mobile telephony services" does not include mobile satellite
services or mobile data services used exclusively for the delivery
of nonvoice information to a mobile device.    added by
Section 2 of Chapter 835 of the Statutes of 2002, is repealed.
  SEC. 2.  Section 454.5 of the Public Utilities Code, as added by
Section 3 of Chapter 850 of the Statutes of 2002, is amended to read:

   454.5.  (a) The commission shall specify the allocation of
electricity, including quantity, characteristics, and duration of
electricity delivery, that the Department of Water Resources shall
provide under its power purchase agreements to the customers of each
electrical corporation, which shall be reflected in the electrical
corporation's proposed procurement plan.  Each electrical corporation
shall file a proposed procurement plan with the commission not later
than 60 days after the commission specifies the allocation of
electricity.  The proposed procurement plan shall specify the date
that the electrical corporation intends to resume procurement of
electricity for its retail customers, consistent with its obligation
to serve.  After the commission's adoption of a procurement plan, the
commission shall allow not less than 60 days before the electrical
corporation resumes procurement pursuant to this section.
   (b) An electrical corporation's proposed procurement plan shall
include, but not be limited to, all of the following:
   (1) An assessment of the price risk associated with the electrical
corporation's portfolio, including any utility-retained generation,
existing power purchase and exchange contracts, and proposed
contracts or purchases under which an electrical corporation will
procure electricity, electricity demand reductions, and
electricity-related products and the remaining open position to be
served by spot market transactions.
   (2) A definition of each electricity product, electricity-related
product, and procurement-related financial product, including support
and justification for the product type and amount to be procured
under the plan.
   (3) The duration of the plan.
   (4) The duration, timing, and range of quantities of each product
to be procured.
   (5) A competitive procurement process under which the electrical
corporation may request bids for procurement-related services,
including the format and criteria of that procurement process.
   (6) An incentive mechanism, if any incentive mechanism is
proposed, including the type of transactions to be covered by that
mechanism, their respective procurement benchmarks, and other
parameters needed to determine the sharing of risks and benefits.
   (7) The upfront standards and criteria by which the acceptability
and eligibility for rate recovery of a proposed procurement
transaction will be known by the electrical corporation prior to
execution of the transaction.  This shall include an expedited
approval process for the commission's review of proposed contracts
and subsequent approval or rejection thereof.  The electrical
corporation shall propose alternative procurement choices in the
event a contract is rejected.
   (8) Procedures for updating the procurement plan.
   (9) A showing that the procurement plan will achieve the
following:
   (A) The electrical corporation will, in order to fulfill its unmet
resource needs and in furtherance of Section 399.14, until a 20
percent renewable resources portfolio is achieved, procure renewable
energy resources with the goal of ensuring that at least an
additional 1 percent per year of the electricity sold by the
electrical corporation is generated from renewable energy resources,
provided sufficient funds are made available pursuant to Section
399.6, to cover the above-market costs for new renewable energy
resources.
   (B) The electrical corporation will create or maintain a
diversified procurement portfolio consisting of both short-term and
long-term electricity and electricity-related and demand reductions
products.
   (10) The electrical corporation's risk management policy,
strategy, and practices, including specific measures of price
stability.
   (11) A plan to achieve appropriate increases in diversity of
ownership and diversity of fuel supply of nonutility electrical
generation.
   (12) A mechanism for recovery of reasonable administrative costs
related to procurement in the generation component of rates.
   (c) The commission shall review and accept, modify, or reject each
electrical corporation's procurement plan.  The commission's review
shall consider each electrical corporation's individual procurement
situation, and shall give strong consideration to that situation in
determining which one or more of the features set forth in this
subdivision shall apply to that electrical corporation.  A
procurement plan approved by the commission shall contain one or more
of the following features, provided that the commission may not
approve a feature or mechanism for an electrical corporation if it
finds that the feature or mechanism would impair the restoration of
an electrical corporation's creditworthiness or would lead to a
deterioration of an electrical corporation's creditworthiness:
   (1) A competitive procurement process under which the electrical
corporation may request bids for procurement-related services.  The
commission shall specify the format of that procurement process, as
well as criteria to ensure that the auction process is open and
adequately subscribed.  Any purchases made in compliance with the
commission-authorized process shall be recovered in the generation
component of rates.
   (2) An incentive mechanism that establishes a procurement
benchmark or benchmarks and authorizes the electrical corporation to
procure from the market, subject to comparing the electrical
corporation's performance to the commission-authorized benchmark or
benchmarks.  The incentive mechanism shall be clear, achievable, and
contain quantifiable objectives and standards.  The incentive
mechanism shall contain balanced risk and reward incentives that
limit the risk and reward of an electrical corporation.
   (3) Upfront achievable standards and criteria by which the
acceptability and eligibility for rate recovery of a proposed
procurement transaction will be known by the electrical corporation
prior to the execution of the bilateral contract for the transaction.
  The commission shall provide for expedited review and either
approve or reject the individual contracts submitted by the
electrical corporation to ensure compliance with its procurement
plan.  To the extent the commission rejects a proposed contract
pursuant to this criteria, the commission shall designate alternative
procurement choices obtained in the procurement plan that will be
recoverable for ratemaking purposes.
   (d) A procurement plan approved by the commission shall accomplish
each of the following objectives:
   (1) Enable the electrical corporation to fulfill its obligation to
serve its customers at just and reasonable rates.
   (2) Eliminate the need for after-the-fact reasonableness reviews
of an electrical corporation's actions in compliance with an approved
procurement plan, including resulting electricity procurement
contracts, practices, and related expenses.  However, the commission
may establish a regulatory process to verify and assure that each
contract was administered in accordance with the terms of the
contract, and contract disputes which may arise are reasonably
resolved.
   (3) Ensure timely recovery of prospective procurement costs
incurred pursuant to an approved procurement plan.  The commission
shall establish rates based on forecasts of procurement costs adopted
by the commission, actual procurement costs incurred, or combination
thereof, as determined by the commission.  The commission shall
establish power procurement balancing accounts to track the
differences between recorded revenues and costs incurred pursuant to
an approved procurement plan.  The commission shall review the power
procurement balancing accounts, not less than semiannually, and shall
adjust rates or order refunds, as necessary, to promptly amortize a
balancing account, according to a schedule determined by the
commission.  Until January 1, 2006, the commission shall ensure that
any overcollection or undercollection in the power procurement
balancing account does not exceed 5 percent of the electrical
corporation's actual recorded generation revenues for the prior
calendar year excluding revenues collected for the Department of
Water Resources.  The commission shall determine the schedule for
amortizing the overcollection or undercollection in the balancing
account to ensure that the 5 percent threshold is not exceeded.
After January 1, 2006, this adjustment shall occur when deemed
appropriate by the commission consistent with the objectives of this
section.
   (4) Moderate the price risk associated with serving its retail
customers, including the price risk embedded in its long-term supply
contracts, by authorizing an electrical corporation to enter into
financial and other electricity-related product contracts.
   (5) Provide for just and reasonable rates, with an appropriate
balancing of price stability and price level in the electrical
corporation's procurement plan.
   (e) The commission shall provide for the periodic review and
prospective modification of an electrical corporation's procurement
plan.
   (f) The commission may engage an independent consultant or
advisory service to evaluate risk management and strategy.  The
reasonable costs of any consultant or advisory service is a
reimbursable expense and eligible for funding pursuant to Section
631.
   (g) The commission shall adopt appropriate procedures to ensure
the confidentiality of any market sensitive information submitted in
an electrical corporation's proposed procurement plan or resulting
from or related to its approved procurement plan, including, but not
limited to, proposed or executed power purchase agreements, data
request responses, or consultant reports, or any combination,
provided that the Office of Ratepayer Advocates and other consumer
groups that are nonmarket participants shall be provided access to
this information under confidentiality procedures authorized by the
commission.
   (h) Nothing in this section alters, modifies, or amends the
commission's oversight of affiliate transactions under its rules and
decisions or the commission's existing authority to investigate and
penalize an electrical corporation's alleged fraudulent activities,
or to disallow costs incurred as a result of gross incompetence,
fraud, abuse, or similar grounds.  Nothing in this section expands,
modifies, or limits the State Energy Resources Conservation and
Development Commission's existing authority and responsibilities as
set forth in Sections 25216, 25216.5, and 25323 of the Public
Resources Code.
   (i) An electrical corporation that serves less than 500,000
electric retail customers within the state may file with the
commission a request for exemption from this section, which the
commission shall grant upon a showing of good cause.
   (j) (1) Prior to its approval pursuant to Section 851 of any
divestiture of generation assets owned by an electrical corporation
on or after the date of enactment of the act adding this section, the
commission shall determine the impact of the proposed divestiture on
the electrical corporation's procurement rates and shall approve a
divestiture only to the extent it finds, taking into account the
effect of the divestiture on procurement rates, that the divestiture
is in the public interest and will result in net ratepayer benefits.

   (2) Any electrical corporation's procurement necessitated as a
result of the divestiture of generation assets on or after the
effective date of the act adding this subdivision shall be subject to
the mechanisms and procedures set forth in this section only if its
actual cost is less than the recent historical cost of the divested
generation assets.
   (3) Notwithstanding paragraph (2), the commission may deem
proposed procurement eligible to use the procedures in this section
upon its approval of asset divestiture pursuant to Section 851.