BILL ANALYSIS
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THIRD READING
Bill No: SCR 30
Author: Poochigian (R), et al
Amended: 8/26/03
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 7-0, 7/8/03
AYES: Bowen, Alarcon, Battin, Dunn, McClintock, Murray,
Vasconcellos
NO VOTE RECORDED: Morrow, Sher
SENATE APPROPRIATIONS COMMITTEE : 9-0, 8/20/03
AYES: Alpert, Battin, Ashburn, Bowen, Karnette, Machado,
Murray, Poochigian, Speier
NO VOTE RECORDED: Aanestad, Burton, Escutia, Johnson
SUBJECT : Electricity cost refunds
SOURCE : Author
DIGEST : This resolution concludes that energy-related
refunds ordered by the Federal Energy Regulatory
Commission, or negotiated by the Attorney General, should
be used to benefit ratepayers who were harmed and to
reimburse reasonable litigation expenses incurred by the
Attorney General. The resolution states that in order to
provide relief, money from the refunds should be dedicated
to reduce ratepayers' costs through reduction of rates or
the reduction of ratepayer debt obligations incurred as a
result of the energy crisis.
ANALYSIS : The Attorney General (AG), on behalf of the
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state, has entered several agreements to settle lawsuits
arising from the energy crisis. These include agreements
with:
1.Calpine - $6 million in cash, consisting of:
A. $1.5 million dedicated to installing solar energy
technology at schools and other public buildings.
B. $4.5 million to reimburse the state for
investigation costs.
2.Constellation - $2.5 million in cash, consisting of:
A. 1.25 million dedicated to installing solar energy
technology at schools and other public buildings.
B. $1.25 million to reimburse the state for
investigation costs.
3.Williams - $417 million total value, consisting of:
A. $147 million in cash through 2010 - $70 million
dedicated to installing solar energy technology at
schools and other public buildings, $20 million for
siting and installing turbines, $12 million divided
between the AG, the California Public Utilities
Commission and the Electricity Oversight Board for
investigation costs, and the balance divided among
participating local governments and other states.
B. $180 million attributed to a reduction in
Williams' energy contract with DWR.
C. $90 million attributed to six electric generating
turbines given to the cities of San Francisco and San
Diego.
4.El Paso - $1.7 billion total value, consisting of:
A. 665 million in cash, $225 million up front and
$440 million over 20 years - $505.6 million to IOU
ratepayers and $159.4 million divided among
participating local governments and other states.
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B. $900 million worth of natural gas over the next 20
years, allocated among the settling parties.
C. $125 million attributed to a reduction in El
Paso's energy contract with DWR.
D. This settlement has not been finalized and the
AG's office indicates the numbers and details are
subject to change.
State lawsuits against other energy companies (e.g., Coral,
Dynegy, Mirant, PG&E, Powerex, Reliant and Sempra) are
pending.
FISCAL EFFECT : Fiscal Com.: Yes
Potentially significant reimbursement loss.
NC:cm 8/26/03 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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