BILL NUMBER: AB 2509	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2004
	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   electrical corporations
 .
   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:  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   electrical
corporation that is regulated by the commission and  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.  (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.