BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SCR 30| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SCR 30 Page 2 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. SCR 30 Page 3 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 **** END ****