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
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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