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