BILL ANALYSIS
SB 185
Page 1
SENATE THIRD READING
SB 185 (Sher)
As Amended July 6, 2003
Majority vote
SENATE VOTE :35-2
UTILITIES AND COMMERCE 12-0 APPROPRIATIONS 23-0
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|Ayes:|Reyes, Richman, Calderon, |Ayes:|Steinberg, Bates, Berg, |
| |Campbell, Diaz, | |Calderon, Corbett, |
| |Longville, La Suer, | |Correa, Daucher, Diaz, |
| |Levine, Maddox, Nunez, | |Goldberg, Haynes, Leno, |
| |Ridley-Thomas, Wolk | |Maldonado, Nation, |
| | | |Negrete McLeod, Nunez, |
| | | |Pacheco, Pavley, |
| | | |Ridley-Thomas, Runner, |
| | | |Samuelian, Simitian, |
| | | |Wiggins, Yee |
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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 and at least twice annually
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.
SB 185
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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 requires:
1)Retail sellers of electricity to disclose their 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)Retail suppliers of electricity to annually report to CEC
detailed information regarding fuel types and electricity
generated
FISCAL EFFECT : Unknown
COMMENTS: SB 1305 (Sher), Chapter 796, Statutes 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 bill 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 (Sher),
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
SB 185
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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? AB X1 1
(Keeley) Chapter 4, Statutes of the 2001-02 First Extraordinary
Session, requires the California Public Utilities 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] pending in the Senate, AB 428
[Richman] pending in the Senate, and SB 888 [Dunn] pending in
the Assembly.). 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.
Analysis Prepared by : Edward Randolph / U. & C. / (916)
319-2083
FN: 0002187