BILL ANALYSIS
AB 2869
Page 1
ASSEMBLY THIRD READING
AB 2869 (Levine)
As Amended April 29, 2004
Majority vote
UTILITIES AND COMMERCE 11-0
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|Ayes:|Reyes, Campbell, Bogh, | | |
| |Calderon, Canciamilla, | | |
| |Diaz, La Malfa, Levine, | | |
| |Maddox, Ridley-Thomas, | | |
| |Correa | | |
| | | | |
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SUMMARY : Exempts customers of a utility from paying specified
charges established by either the board of the local publicly
owned electric utility or the California Public Utilities
Commission (CPUC) as provided in this bill. Specifically, this
bill :
1)Exempts customers affected by a utility completing a mutually
agreeable condemnation process of distribution facilities of
another utility if the following conditions are met:
a) The mutual agreeable condemnation process is related to
a city or county annexation or detachment; and,
b) That the condemnation process was initiated prior to
February 1, 2000.
2)Specifies that the customer exemption applies to payment of
severance fees or charges established by either the board of
the local publicly owned electric utility or CPUC.
FISCAL EFFECT : None
COMMENTS : The sponsors of this bill, Los Angeles Department of
Water and Power (LADWP), state that this bill is needed to
prevent customers who are scheduled to be annexed to their
territory from Southern California Edison's (SCE) service
territory from paying exit fees. The reasons for the exemption
is that LADWP has an arrangement with SCE that goes back to the
1930s to reciprocally serve each other's customers in situations
where the lack of existing infrastructure and facilities make
AB 2869
Page 2
such arrangements more economically feasible. The utilities in
turn bill each other for the combined total electricity
consumption of each others "fringe" customers. The term
"fringe" comes from the fact that these customers are located
along the fringes between LADWP and SCE service territories.
LADWP is scheduled to annex parts of SCE service territory based
on a mutual condemnation agreement that will result in some
"fringe" customers moving from service with SCE to LADWP. Since
these customers were only serviced by SCE as a result of the
reciprocal agreement between the utilities they should be exempt
from paying any exit fees agreed to between both utilities.
Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083
FN: 0005148