BILL NUMBER: SB 703 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 30, 2003
INTRODUCED BY Senators Florez, Denham, and Poochigian
FEBRUARY 21, 2003
An act to amend Section 744 of add Section
745 to the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 703, as amended, Florez. Electrical corporations:
agricultural tariffs Electricity rates: agricultural
irrigation pumps .
The California Constitution authorizes the Public Utilities
Commission to set rates for all public utilities subject to its
jurisdiction.
This bill would require the commission to consider the significant
air quality benefits of electricity, compared to diesel, in
establishing agricultural and water pumping electricity rate
schedules. The bill would also require the commission to consider
reducing or eliminating demand and other fixed charges, establishing
competitive long-term electricity rate contracts for existing diesel
users, and establishing rate schedules that are competitive with
diesel rates, to prevent future conversions, in setting those rates.
(1) The Public Utilities Act requires every electrical corporation
furnishing electricity to an agricultural producer, in addition to
its regular service, to prepare and file tariffs providing for
optional alternative interruptible service and optional off-peak
demand service to any agricultural producer at discounted rates.
This bill would prohibit such a tariff from including any demand
charge, connected load charge, facilities related charge, or any
similar fixed charge. Because a violation of the act is a crime, this
bill, by establishing a new restriction on tariffs and thereby
changing the definition of a crime, would impose a state-mandated
local program.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to reduce
SECTION 1. The Legislature hereby finds and declares all the
following:
(a) Over the past 15 years, a significant number of agricultural
irrigation pumps have been converted from electrical motors to
diesel-driven engines, due to rising electricity rates, particularly
fixed demand charges.
(b) Diesel-driven irrigation pumps represent a source of oxides of
nitrogen (NOx) and particulate matter that exacerbates the existing
air quality problems facing these areas.
(c) It should be the policy of the State of California and the
California Public Utilities Commission to encourage the use of
electric motors for agricultural irrigation pumps, through the
development of long-term rate structures that are competitive with
diesel pumping engines.
(d) It is the intent of the Legislature, in enacting this statute,
to establish agricultural and water pumping electricity rate
schedules that are competitive with diesel rates to prevent
additional conversions of agricultural irrigation pumps, and to
provide an incentive to convert diesel-driven irrigation pumps back
to electrical motors.
SEC. 2. Section 745 is added to the Public Utilities Code, to
read:
745. (a) In establishing agricultural and water pumping
electricity rate schedules, the commission shall consider all of the
following:
(1) The significant air quality benefits of electricity, compared
to diesel.
(2) Reducing or eliminating demand and other fixed charges.
(3) Establishing competitive long-term electricity rate contracts
for existing diesel users.
(4) Establishing rate schedules that are competitive with diesel
rates, to prevent future conversions.
(b) In setting rates pursuant to this section, the commission may
include the costs of appropriate rate incentives, allocated equitably
among customer classes that benefit from any resulting improvements
in air quality. agricultural dependence on stationary
diesel engines by establishing an incentive for agricultural and
water pumping customers to return to electrical service by excluding
certain charges from electrical corporation agricultural tariffs.
SEC. 2. Section 744 of the Public Utilities Code is amended to
read:
744. (a) As used in this section, "agricultural producer" means
any person or corporation whose principal purpose is the agrarian
production of food or fiber.
(b) Every electrical corporation furnishing electricity to an
agricultural producer shall, in addition to its regular service,
prepare and file tariffs providing, where economically and
technologically feasible, for optional alternative interruptible
service to any agricultural producer upon reasonable notice to the
agricultural producer consistent with safety of operations by the
agricultural producer and providing for limits upon the frequency and
duration of interruption of service which the commission finds are
reasonable in relation to the needs of the electrical corporation for
reductions in load to meet system peak requirements and the burdens
imposed upon the agricultural producer of reducing its operations
during periods of interruption of electrical service. The commission
shall establish the rate for this service at an appropriate discount
from the system average rate, which shall be not less than the cost
of furnishing this service.
(c) Every electrical corporation furnishing electricity to an
agricultural producer shall, in addition to its regular service,
prepare and file tariffs providing for an optional off-peak demand
service, including the availability of time-differentiating meters or
other measurement devices, to any agricultural producer providing
for furnishing electricity to the agricultural producer during
periods of off-peak demand and which the commission finds are
reasonable in relation to the needs of the electrical corporation for
reduction in demand to meet system peak requirements and the burdens
imposed upon the agricultural producer of scheduling its operations
to coincide with the periods of off-peak demand. The off-peak demand
service tariff shall be composed of a two-part time differentiated
schedule consisting of on- and off-peak rates. The commission shall
establish the rate for this service at an appropriate discount from
the system average rate, which shall be not less than the cost of
furnishing this service.
(d) A tariff filed pursuant to this section may not include any
demand charge, connected load charge, facilities related charge, or
any similar fixed charge.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.