BILL ANALYSIS                                                                                                                                                                                                    



        e.
         AB 67
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 67 (Levine)
        As Amended  September 1, 2005
        Majority vote
         
         
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        |ASSEMBLY: |73-1 |(May 27, 2005)  |SENATE: |29-3 |September 8, 2005    |
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        |COMMITTEE VOTE:  |10-0 |(September 8, 2005) |RECOMMENDATION: |Concur    |
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        Original Committee Reference:    U. & C.  

         SUMMARY  :  Requires the California Public Utilities Commission (PUC)  
        to annually report on the elements embedded in electricity and gas  
        rates.  Extends an existing program that provides partial net  
        metering to customer-owned fuel cell electric generation  
        facilities, which sunsets January 1, 2006 to 2010.

         The Senate amendments  : 

        1)Delete the requirement that PUC provide a 10-year forecast of  
          different aspects and elements of electricity rates, and confine  
          the report to the utilities with the greatest number of  
          ratepayers. 

        2)Extends an existing program that provides partial net metering to  
          customer-owned fuel cell electric generation facilities, which  
          sunsets January 1, 2006 to 2010.

         AS PASSED BY THE ASSEMBLY  , this bill required PUC to report to the  
        Legislature a 10-year forecast for the different aspects and  
        elements of electricity rates for each class of ratepayers.

         FISCAL EFFECT  :  Unknown

         COMMENTS  :  This bill provides transparency in the elements of the  
        electricity rates of the investor-owned utilities (IOUs) and will  
        help the Legislature track when the elements of rates that resulted  
        from deregulation, such as the costs associated with the state  







        e.
         AB 67
                                                                Page  2

        purchases of electricity for IOUs and the Pacific Gas and Electric  
        (PG&E) bankruptcy, will sunset or retire.  This bill is intended to  
        provide the Legislature with a clear understanding of the impacts  
        proposals for new or augmented programs will have on electricity  
        rates.

        The bill also extends a provision creating a net metering program  
        for net metering for customer owned fuel cell power generators.   
        Net metering allows the IOU customers to sell the excess power from  
        the fuel cell generators back to the IOU.  The existing fuel cell  
        net metering program will sunset at the end of this year.  If the  
        program is not extended, net metering won't be available to both  
        existing and planned fuel cell projects after the end of the year.   


        This bill was substantially amended in the Senate.  Provisions  
        added in the Senate were not considered by a policy committee in  
        the Assembly.  


         Analysis Prepared by  :    Gina Mandy / U. & C. / (916) 319-2083FN:  
        0013316