BILL NUMBER: SB 441	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 12, 2005
	AMENDED IN SENATE  MAY 3, 2005
	AMENDED IN SENATE  APRIL 4, 2005

INTRODUCED BY   Senator Soto

                        FEBRUARY 17, 2005

   An act to add Section 739.11 to the Public Utilities Code,
relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 441, as amended, Soto  Electricity: rates: advanced metering
infrastructure.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
Existing law authorizes the commission to fix the rates and charges
for every public utility, and requires that those rates and charges
be just and reasonable. Existing law requires electrical corporations
furnishing electricity to an agricultural producer to prepare and
file tariffs providing for optional off-peak demand service,
including the availability of time-differentiating meters or other
measurement devices.
   This bill would, with certain exceptions, prohibit the commission
from requiring the installation of advanced metering infrastructure,
as defined, for any building constructed prior to January 1, 2006
 ,  and occupied by a customer with average annual
electricity usage of less than 1,000 kilowatthours per month, unless
 certain findings are made by the commission based upon
evidence presented at a public hearing.The bill would, with certain
exceptions, prohibit customers of an electrical corporation with
average monthly usage of less than 1,000 kilowatthours occupying a
building constructed prior to January 1, 2006, from being placed on a
default time-differentiated rate schedule or other rate schedule
using advanced metering infrastructure, without the customer's
affirmative written consent   the commission first
evaluates certain factors, as specified  .
   Under existing law, a violation of the Public Utilities Act or an
order or direction of the commission is a crime.
   Because the provisions of this bill would be a part of the act and
a violation of any of those provisions would be a crime, the bill
would impose a state-mandated local program by creating a new crime.

  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The Public Utilities Commission is currently considering
authorizing or requiring electrical corporations to install advanced
metering infrastructure (AMI) for their customers, including all
existing residential and small commercial customers, regardless of
their size or location.
   (b) Electrical corporations have already requested over one
hundred  and  twenty million dollars ($120,000,000)
to spend in 2005 in order to prepare to install AMI in early 2006.
   (c) The entire statewide cost of AMI installation is estimated at
several billion dollars.
   (d) The commission has not conducted any evidentiary hearings to
determine whether universal installation of AMI for small customers
will be cost effective for those customers.
  SEC. 2.  Section 739.11 is added to the Public Utilities Code, to
read:
   739.11.  (a) For purposes of this section, "advanced metering
infrastructure" means interval data recording meters, along with
two-way communications and any other equipment necessary for the
installation and operation of the meters.
   (b) Except as provided in Sections 353.3 and 393, the commission
shall not require the installation of advanced metering
infrastructure for any building constructed prior to January 1, 2006
 ,  and occupied by a customer with annual average usage of
less than 1,000 kilowatthours per month, unless  it first
finds, after a public hearing, based upon the evidence presented at
the public hearing, that the installation of advanced metering
infrastructure will save each customer class more than it will cost.

    (c)     Except as
provided in Sections 353.3 and 393, no customer of an electrical
corporation with average annual usage of less than 1,000
kilowatthours per month and occupying a building constructed prior to
January 1, 2006, shall be placed on a default time-differentiated
rate schedule or other rate schedule using advanced metering
infrastructure, without the customer's affirmative consent obtained
in writing.   it first evaluates the following:  

   (1) The effect on average annual electricity rates for residential
and small commercial customer classes for every year of repayment
for the AMI investment.  
   (2) The bill impacts of any proposed mandatory time-differentiated
rates on residential customers in hot climate zones.  
   (3) The amount of peak load reduction contrasted with other demand
reduction program alternatives.  
   (4) The cost-effectiveness of partial deployment in selected zones
contrasted with deployment throughout an entire service territory of
an electrical corporation. 
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.