BILL NUMBER: AB 2509	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 12, 2004

INTRODUCED BY   Assembly Member Nakanishi

                        FEBRUARY 20, 2004

   An act to add Chapter 5.5 (commencing with Section 2780) to Part 2
of Division 1 of the Public Utilities Code, relating to public
utilities.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2509, as amended, Nakanishi.  Electric microutilities.
   Under existing law, the Public Utilities Commission generally has
regulatory authority over public utilities, including authority over
ratemaking, certain financial transactions, and the disposal or
encumbrance of property.  Existing law prohibits the commission from
establishing rates or regulating the borrowing of money, the issuance
of evidences of indebtedness, or the disposal or encumbrance of the
property of any electrical cooperative, as defined.
   This bill, except as specified, would prohibit the commission from
naming an electric microutility, as defined, as  a 
respondent in a  commission investigation or a rulemaking
proceeding, from establishing rates, and from regulating the
borrowing of money, the issuance of evidences of indebtedness, or the
disposal or encumbrance of the property of any electric microutility
  quasi-legislative or ratesetting case in which an
electrical corporation that is not an electric microutility is also a
respondent, without first making certain findings of fact and
conclusions of law  .
   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.  Chapter 5.5 (commencing with Section 2780) is added to
Part 2 of Division 1 of the Public Utilities Code, to read:

      CHAPTER 5.5.  ELECTRIC MICROUTILITIES

   2780.  As used in this chapter, the term "electric microutility"
means any private corporation organized for the purpose of providing
sole-source generation, distribution, and sale of electricity
exclusively to a customer base of fewer than 5,000 customers.

   2780.1.  The commission, except upon complaint made  

   2780.1.  The commission may not name an electric microutility as a
respondent in a quasi-legislative or ratesetting case in which an
electrical corporation that is not an electric microutility is also a
respondent, without first making findings of fact and conclusions of
law that the anticipated annual benefits to the ratepayers of the
electric microutility to be derived from participation in the case
will exceed the legal, administrative, and operational participation
costs of the electric microutility.
   2780.3.  (a) This chapter does not limit an electric microutility
from applying for a change in rates.
   (b) This chapter does not limit the commission from initiating a
quasi-legislative case or ratesetting case where each respondent is
an electric microutility.   pursuant to Section 1702,
may not do any of the following with respect to an electric
microutility:
   (a) Name the electric microutility as respondent in an
investigation or a rulemaking proceeding.
   (b) Establish rates.
   (c) Regulate the borrowing of money.
   (d) Regulate the issuance of evidences of indebtedness.
   (e) Regulate the sale, lease, assignment, mortgage, or other
disposal or encumbrance of the property of the electric microutility.

   2780.3.  Except as otherwise specified in this chapter, an
electric microutility is subject to Part 1 (commencing with Section
201).