BILL NUMBER: SCR 30	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 16, 2003

INTRODUCED BY   Senator Poochigian
    (Coauthors:  Senators Ashburn, Battin, Johnson, Margett,
McClintock, McPherson, and Morrow) 

                        MAY 1, 2003

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



	LEGISLATIVE COUNSEL'S DIGEST


   SCR 30, as amended, 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  benefit
 ratepayers  who were harmed  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   to
reduce those ratepayers' costs, to the maximum extent possible,
through reduction of rates or the reduction of ratepayer debt
obligations incurred as a result of the energy crisis  .
   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   many 
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   January 2001  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  approximately 
$12,000,000,000 in revenue bonds, the largest municipal bond sale in
the history of the United States, to  repay 
finance Department of Water Resources energy purchases and repay
funds borrowed from  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 
approximately  $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  
must determine refunds, which may be due to California for unjust and
unreasonable wholesale electricity charges; 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   should be used to benefit the
ratepayers who were harmed  ; 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   refunds should be dedicated to reduce those
ratepayers' costs, to the maximum extent possible, through reduction
of rates or the reduction of ratepayer debt obligations incurred as a
result of the energy crisis  ; 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.