BILL NUMBER: SB 441	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 22, 2005
	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 
    (1)     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 the commission first
evaluates certain factors, as specified. 
   Under 
    (2)     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 
   (3)     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 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 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  feasibility and  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.