BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 200|
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                                 THIRD READING


          Bill No:  AB 200
          Author:   Leslie (R)
          Amended:  As introduced
          Vote:     21

           
           SENATE ENER., UTIL. & COM. COMMITTEE  :  9-0, 6/21/05
          AYES:  Escutia, Morrow, Alarcon, Bowen, Campbell, Cox,  
            Dunn, Murray, Simitian
          NO VOTE RECORDED:  Battin, Kehoe

           ASSEMBLY FLOOR  :  78-0, 4/11/05 - See last page for vote


            SUBJECT  :    Renewable energy resources:  California  
                      Renewables Portfolio Standard Program

           SOURCE  :     Pacific Corporation
                      Sierra Pacific Power Company


           DIGEST  :    This bill modifies the manner in which an  
          electrical corporation with fewer than 60,000 customers in  
          California that also served customers in other states must  
          meet California's Renewable Portfolio Standard.

           ANALYSIS  :    Existing law, the "Renewables Portfolio  
          Standard" (RPS), requires each investor-owned utility (IOU)  
          to increase its existing level of renewable energy  
          resources by one percent of sales per year until renewable  
          energy resources account for 20 percent of its portfolio,  
          with a deadline of 2017 for achieving 20 percent.  With  
          certain exceptions, renewable energy resources must be  
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          located within California to count toward RPS compliance.

          This bill permits an IOU serving fewer than 60,000  
          customers in California that also serves customers in  
          another state (i.e. PacifiCorp and Sierra Pacific Power) to  
          count its out-of-state renewable resources toward its RPS  
          compliance.

           Background

           The RPS requires IOUs and certain other retail energy  
          providers, collectively referred to as "retail sellers," to  
          buy renewable electricity to the extent Public Goods Charge  
          funds are available to pay for any costs exceeding a market  
          price set by the California Public Utilities Commission  
          (CPUC).

          Each IOU is required to increase its renewable procurement  
          each year by at least one percent of total sales, so that  
          20 percent of its sales are renewable energy resources by  
          December 31, 2017.  With some exceptions, renewable energy  
          resources must be located in California to be counted  
          toward an IOU's RPS requirements.

          There are two IOUs based in other states, but who have  
          small service areas in California and are subject to CPUC  
          regulation and the RPS law for their California operations.  
           Sierra Pacific Power is an electric utility which serves  
          most of northern Nevada and a small part of California  
          around Lake Tahoe.  PacificCorp is an Oregon-based electric  
          utility which serves Del Norte and Siskiyou Counties in  
          Northern California.

          According to the author's office, PacifiCorp and Sierra  
          Pacific need flexibility in meeting RPS requirements  
          because they procure a pool of resources for all of their  
          customers and do not procure specific resources for their  
          California customers.  This bill allows PacifiCorp and  
          Sierra Pacific to count renewable resources in all of their  
          service territory towards the RPS provided the resources  
          meet other applicable criteria and aren't counted for  
          another state's RPS.  

          FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    

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          Local:  No

           SUPPORT  :   (Verified  6/21/05)

          PacifiCorp (co-source)
          Sierra Pacific Power Company (co-source)


           ASSEMBLY FLOOR  : 
          AYES:  Aghazarian, Arambula, Baca, Bass, Benoit, Berg,  
            Bermudez, Blakeslee, Bogh, Calderon, Canciamilla, Chan,  
            Chavez, Chu, Cogdill, Cohn, Coto, Daucher, De La Torre,  
            DeVore, Dymally, Emmerson, Evans, Frommer, Garcia,  
            Goldberg, Hancock, Harman, Haynes, Shirley Horton,  
            Houston, Huff, Jones, Karnette, Keene, Klehs, Koretz, La  
            Malfa, La Suer, Laird, Leno, Leslie, Levine, Lieber, Liu,  
            Matthews, Maze, McCarthy, Montanez, Mountjoy, Mullin,  
            Nakanishi, Nation, Nava, Negrete McLeod, Niello, Oropeza,  
            Parra, Pavley, Plescia, Richman, Ridley-Thomas, Sharon  
            Runner, Ruskin, Saldana, Salinas, Spitzer, Strickland,  
            Torrico, Tran, Umberg, Vargas, Villines, Walters, Wolk,  
            Wyland, Yee, Nunez
          NO VOTE RECORDED:  Gordon, Jerome Horton


          NC:do  6/23/05   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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