BILL NUMBER: SB 173	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Dunn

                        FEBRUARY 12, 2003

   An act to add Section 17206.7 to the Business and Professions
Code, and to add Section 391.1 to the Public Utilities Code, relating
to energy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 173, as introduced, Dunn.  Energy.
   (1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations, and authorizes the commission to fix just and
reasonable rates and charges. Existing law provides for a short-run
avoided cost methodology for the price paid by a public utility
electrical corporation for electricity generated by a nonutility,
qualifying small power production or qualifying cogeneration facility
(QF), as defined.  This methodology includes adjustments to prices
based upon gas index prices.
   This bill would require the commission to use only gas price
indexes determined by the commission to be reliable and verified and
to establish standards for reliability and verification for gas price
indexes used to establish or adjust prices paid to QFs by a public
utility electrical corporation.  The bill would further provide that
if the commission determines that no reliable and verifiable gas
price index exists meeting the standards adopted by the commission,
the commission is required to establish and adjust the prices paid to
QFs by a public utility electrical corporation in an equitable
manner, consistent with the requirements of the federal Public
Utility Regulatory Policies Act of 1978.
   (2) Existing law prohibits unfair competition, including any
unlawful, unfair, or fraudulent business act or practices.  In an
action brought in the name of the people by the Attorney General or
any district attorney, and in specified instances by a county
counsel, city prosecutor, or city attorney, existing law provides
that any person who engages, has engaged, or proposes to engage in
unfair competition, is liable for a civil penalty not to exceed
$2,500 for each violation.
   This bill would provide that any person engaging in an act of
unfair competition of making or proposing to make a false statement
or report for use in a gas index price, is liable for a civil penalty
not to exceed $25,000 for each violation.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 391.1 is added to the Public Utilities Code, to
read:
   391.1.  (a) The commission shall use only gas price indexes
determined by the commission to be reliable and verified, for
establishing or adjusting prices paid to nonutility power generators
by a public utility electrical corporation pursuant to Section 390.
   (b) The commission shall establish standards for reliability and
verification for gas price indexes used to establish or adjust prices
paid to nonutility power generators by a public utility electrical
corporation pursuant to Section 390.
   (c) If the commission determines that no reliable and verifiable
gas price index exists meeting the standards adopted pursuant to this
section, the commission shall establish and adjust the prices paid
to nonutility power generators by a public utility electrical
corporation in an equitable manner, consistent with the Public
Utility Regulatory Policies Act of 1978 (federal Public Law 95-617),
including any amendments to that act and the regulations adopted
under that act by the Federal Energy Regulatory Commission.
  SEC. 2.  Section 17206.7 is added to the Business and Professions
Code, to read:
   17206.7.  (a) Making a false statement or report for use in an
energy price index is unfair competition.
   (b) Notwithstanding the maximum civil penalty in Section 17206,
any person who makes, has made, or proposes to make a false statement
or report for use in a gas price index pursuant to Section 390 of
the Public Utilities Code, shall be liable for a civil penalty not to
exceed twenty-five thousand dollars ($25,000) for each violation.
  SEC. 3.  (a) Subdivision (a) of Section 17206.7 of the Business and
Professions Code does not constitute a change in, but is declaratory
of, existing law.
   (b) It is the intention of the Legislature in adding subdivision
(b) of Section 17206.7 of the Business and Professions Code, to
change existing law by providing for civil penalties in an amount
higher than would be available pursuant to Section 17206.