BILL ANALYSIS                                                                                                                                                                                                    



                                                                  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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           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 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.









                                                                  AB 67
                                                                  Page  2

          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) 319-2083


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