BILL ANALYSIS
AB 2869
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2869 (Levine)
As Amended June 30, 2004
Majority vote
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|ASSEMBLY: |80-0 |(May 27, 2004) |SENATE: |39-0 |(July 29, |
| | | | | |2004) |
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Original Committee Reference: U. & C.
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 (PUC).
The Senate amendments
1)Make technical clarifying changes consistent with the
provisions of this bill as passed by the Assembly.
2)Clarifies the scope of customers that would be exempted from
paying exit fees ensuring the exemption only applies to
customers subject to the exchange agreements between the local
public utility and the investor owned utility (IOU).
AS PASSED BY THE ASSEMBLY , this bill:
1)Exempted customers affected by a utility completing a mutually
agreeable condemnation process to resolve a fringe area
agreement in which there exist a balance of benefit between
the customers of the local publicly owned electric utility and
electrical corporation.
2)Specified 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 : Unknown
COMMENTS : The sponsor 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
AB 2869
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is that LADWP has an arrangement with Edison (SCE) that goes
back to the 1930's to reciprocally serve each other's customers
in situations where the lack of existing infrastructure and
facilities make 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: 0006896