BILL ANALYSIS
SB 185
Page 1
Date of Hearing: June 16, 2003
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Sarah Reyes, Chair
SB 185 (Sher) - As Amended: April 22, 2003
SENATE VOTE : 35-2
SUBJECT : Electricity: source of disclosure.
SUMMARY : Updates existing requirements that retail sellers of
electricity disclose to end use customers and to the California
Energy Commission (CEC) the sources by fuel type of their
electricity portfolio. Specifically, this bill :
1)Requires retail providers of electricity to disclose in all
promotional material distributed to consumers and at least
quarterly to all end use customers the percentage of retail
electricity sales derived from:
a) Coal,
b) Large hydroelectric (greater that 30 megawatts),
c) Natural Gas,
d) Nuclear,
e) Renewable energy resources as defined under SB 1078
(Sher), Chapter 516, Statutes of 2002; and
f) Other fuel types.
2)Requires retail suppliers of electricity to annually report to
CEC detailed information regarding fuel types and electricity
generated.
3)Repeals provisions that allow retail sellers of electricity
that do not make specific claims about the source of their
electricity to report statewide averages instead of actual
sources.
EXISTING LAW :
1)Requires retail sellers of electricity to disclose their
SB 185
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sources of electricity by specified fuel type, but allows
sellers who do not make any claims about their sources to only
report statewide averages, rather than their actual sources.
2)Requires retail suppliers of electricity to annually report to
the CEC detailed information regarding fuel types and
electricity generated
FISCAL EFFECT : Unknown.
COMMENTS: SB 1305 (Sher), Chapter 796, Statues of 1997,
requires retail sellers of electricity to provide customers and
potential customers with information on the sources of the
electricity they provide. SB 1305 resulted in the periodic
insertion of the "Power Content Label" into the consumer's
utility bills which indicates the percentages of various types
of renewable, coal, large hydroelectric, and natural gas
resources in the retail seller's portfolio. However, SB 1305
allowed retail sellers making no specific product claims to
report only system averages, rather than their actual portfolio.
According to the author, this measure is intended to update and
revise the provisions of SB 1305 to reflect recent changes in
the electricity market. Recent changes include the passage of
the Renewable Portfolio Standard (RPS) under SB 1078, Chapter
516, Statutes of 2002. SB 1078 added new categorical
definitions of renewable power. This bill conforms the
definition of renewable electricity resources required to be
reported to customers to those established by SB 1078.
Additionally, at the time SB 1305 was passed, retail providers
purchased electricity on the spot the market. When most power
was purchased on the spot market, it was difficult for
electricity providers to report on the sources of their power,
as the sources were unknown or unpredictable. Today more
electricity is purchased through long term contracts thus it
becomes easier for all retail providers of electricity to report
on their fuel sources and, according to supporters of this bill,
the option to only report statewide averages is no longer
justified.
Is this bill necessary if there is no Direct Access?
In 2001, the Legislature enacted AB X1 1 (Keeley) Chapter 4,
Statutes of 2001, which required the California Public Utilities
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Commission (PUC) to suspend the right of customers to acquire
electricity directly from suppliers other than the investor
owned utilities (IOU). In September 2001, PUC issued an order
suspending the right to acquire direct access electricity.
Currently there are ongoing proceedings at PUC to consider
reinstating direct access and the Legislature is considering
three separate pieces of Legislation which could all impact the
ability of customers to receive power from suppliers other than
their IOU (AB 816 (Reyes), AB 428 (Richman), and SB 888 (Dunn)).
If some customers are in fact not permitted to choose their
electricity provider the information required by this bill will
be irrelevant to them since these customers will not be allowed
to choose another provider if they are unhappy with the IOUs
procurement plan.
REGISTERED SUPPORT / OPPOSITION :
Support
Southern California Edison
Opposition
None on file.
Analysis Prepared by : Edward Randolph / U. & C. / (916)
319-2083