BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1201
                                                                  Page  1

          Date of Hearing:  June 14, 2004

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                                 Sarah Reyes, Chair
                   SB 1201 (Torlakson) - As Amended:  June 9, 2004

           SENATE VOTE  :  38-0
           
          SUBJECT  :  Electrical restructuring:  BART.

           SUMMARY  :  Authorizes the Bay Area Rapid Transit District (BART)  
          to receive power from a publicly owned electric utility  
          (municipal utility) without discrimination or delay from any  
          electrical corporation.  Specifically,  this bill  :   

          1)Makes findings that BART provides essential public transit  
            services that are funded by fares and taxes and that it is the  
            intent of the Legislature that BART receive electric service  
            from municipal utilities on the same terms it currently  
            receives power from a federal power marketing agency.

          2)Authorizes BART to purchase electrical power from a municipal  
            utility and requires Pacific Gas & Electric Company (PG&E) to  
            deliver that power over its transmissions and distribution  
            facilities without delay.  PG&E must bill BART as though all  
            power was delivered to a single meter. 

           EXISTING LAW  permits BART to purchase "preference power" from a  
          federal power marketing agency; requires PG&E to deliver that  
          power via its transmission and distribution facilities without  
          discrimination or delay; and requires PG&E to bill BART as  
          though all power is delivered to a single point. 

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :  Until 1994, BART purchased electricity from PG&E.   
          Beginning in 1994, BART received, under a 10-year contract, an  
          allocation of federal reclamation project power from the Central  
          Valley Project (CVP) through the Western Area Power  
          Administration (WAPA).  The contract was permitted under the  
          Federal Reclamation Project Act of 1939 which qualifies BART as  
          a "preference entity" to purchase and receive hydropower from  
          CVP. 

          In 1995, SB 184 (Kopp), Chapter 681, Statutes of 1995, was  








                                                                  SB 1201
                                                                  Page  2

          enacted to enabled BART to receive its allocation of federal  
          preference power at its multiple delivery points in the Bay Area  
          via PG&E's transmission and distribution system, without paying  
          many of the costs associated with retail service. 

          BART is now seeking another preference power contract from WAPA  
          to replace the current contract, which expires in 2006.  Demand  
          for low-cost federal preference power is high, and costs and  
          other terms are not as favorable as they have been in the past.   
          BART must soon give notice to WAPA whether it wants to continue  
          buying power from WAPA under a new contract.  BART is seeking  
          this urgency bill to give it another supply option if  
          contracting with WAPA doesn't work out. 

          Under this bill, a municipal utility could sell excess power to  
          BART in much the same way WAPA currently does.  While the cost  
          may not be as low as the federal preference power, it is likely  
          to be lower than the alternative - bundled retail service from  
          PG&E. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          BART (Sponsor)
           
            Opposition 
           
          None on file.


           Analysis Prepared by  :    Edward Randolph / U. & C. / (916)  
          319-2083