BILL NUMBER: AB 2509	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 8, 2004
	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
electrical corporations.
   This bill would state the intent of the Legislature that the
commission  recognize   consider  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
  that  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 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   2,000  customers.
   2780.1.  (a) It is the intent of the Legislature that the
commission  recognize   consider  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
  that  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.