BILL NUMBER: AB 2509	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 27, 2004
	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
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.  
   This bill would state the intent of the Legislature that the
commission recognize the legal, administrative, and operational costs
that an electric microutility, as defined, faces if it is named as a
respondent in a hearing generally applicable to electrical
corporations.  The bill would further state the intent of the
Legislature to urge the commission to consider those costs before
naming an electric microutility as a respondent in a hearing
generally applicable to electrical corporations. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  
yes   no . 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 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.  
   2780.1.  (a) It is the intent of the Legislature that the
commission recognize the legal, administrative, and operational costs
that an electric microutility faces if it is named as a respondent
in a hearing generally applicable to electrical corporations.  The
limited resources of a microutility are disproportionately strained
by the cost of response.
   (b) Further, it is the intent of the Legislature to urge the
commission to consider the costs described in subdivision (a) before
naming an electric microutility as a respondent in a hearing
generally applicable to electrical corporations.