BILL NUMBER: SCR 30	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Poochigian

                        MAY 1, 2003

   Senate Concurrent Resolution No. 30--Relative to electricity cost
refunds.



	LEGISLATIVE COUNSEL'S DIGEST


   SCR 30, as introduced, Poochigian.    Electricity cost refunds.
   This measure would urge that energy-related refunds ordered by the
Federal Energy Regulatory Commission, or negotiated by the Attorney
General, the Governor, or any other agent of the state, should be
used solely to provide relief to ratepayers and that, in order to
provide relief, money from energy-related refunds should be dedicated
strictly to repay the energy bonds or reduce or eliminate the rate
surcharges dedicated to bond repayment.
   Fiscal committee:  yes.




   WHEREAS, In 2000-01, this state experienced skyrocketing
electricity costs and an unprecedented number of rolling blackouts.
California ratepayers will experience the hardship of excessive
electricity costs for the next 20 years; and
   WHEREAS, Supply shortages, dysfunctional electricity markets, poor
regulatory oversight, and increase in demand led to the insolvency
of investor-owned utilities and the inability to purchase electricity
for customers; and
   WHEREAS, Inaction and lack of leadership exacerbated the economic
impact of the energy crisis on local business, residents, ratepayers,
and taxpayers of the state; and
   WHEREAS, The Department of Water Resources began to purchase
electricity for the customers of the investor-owned utilities in
December 2000 to avoid electricity service disruptions and to
minimize the adverse effect on California's economy; and
   WHEREAS, The Department of Water Resources spent $11,000,000,000
from the state's General Fund on spot-market purchases, and signed
$43,000,000,000 in long-term energy contracts in 2001; and
   WHEREAS, California issued $12,000,000,000 in revenue bonds, the
largest municipal bond sale in the history of the United States, to
repay the state's General Fund; and
   WHEREAS, Ratepayers are now forced to pay an energy surcharge for
the debt service of the energy bond over 20 years, totaling
$17,400,000,000; and
   WHEREAS, In addition to an energy surcharge, over the next 20
years ratepayers will be forced to pay higher electricity rates based
on California's high-priced long-term energy contracts; and
   WHEREAS, The ratepayers of California deserve relief from
exorbitant energy prices caused by California's dysfunctional
electricity markets and bad policy decisions; and
   WHEREAS, The Federal Energy Regulatory Commission is attempting to
determine potential refunds due to California based upon an
intensive and exhaustive investigation; and
   WHEREAS, The Attorney General has initiated legal proceedings to
recover funds from market participants, and has negotiated
settlements on several energy lawsuits; now, therefore, be it
   Resolved by the Senate of the State of California, the Assembly
thereof concurring, That energy-related refunds ordered by the
Federal Energy Regulatory Commission, or negotiated by the Attorney
General, the Governor, or any other agent of the state, should be
used solely to provide relief to ratepayers who bear the high cost of
the energy bonds and the poorly negotiated contracts through rate
surcharges; and be it further
   Resolved, That, in order to provide relief, money from energy
refunds should be dedicated strictly to repay the energy bonds or
reduce or eliminate the rate surcharges dedicated to bond repayment;
and be it further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to each member of the Federal Energy Regulatory
Commission, the Governor, the Attorney General, each member of the
Public Utilities Commission, and the Director of Water Resources.