BILL NUMBER: SB 632	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Dutton

                        FEBRUARY 22, 2005

   An act to amend Section 743.1 of the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 632, as introduced, Dutton.   Electrical corporations: rates.
   (1) The Public Utilities Act authorizes the Public Utilities
Commission to establish rates for public utilities regulated by the
commission, including electrical corporations. The act authorizes the
commission to approve contracts between an electrical corporation
and its heavy industrial customers as determined by the electrical
corporation, of not more than 10 years' duration, in which the
electrical corporation buys from the heavy industrial customer the
right to interrupt the customer's service on short notice, as
determined by the commission, through a payment mechanism providing
for a discounted rate for service. Under those provisions, the
commission has adopted, by decision, electrical corporation programs
for the interruption of power in exchange for reduced rates.
   The act requires electrical corporations to continue the
availability to qualified heavy industrial customers of optional
interruptible or curtailable service, and requires the effective rate
for interruptible or curtailable service to qualifying customers to
reflect a pricing incentive for electing to operate under the
interruptible or curtailable service option. The act further requires
the commission to continue the availability of optional
interruptible or curtailable service at least until March 31, 2002,
and prohibits, until March 31, 2002, the alteration of the level of
the pricing incentive for interruptible or curtailable service from
the levels in effect on June 10, 1996.
   This bill would require the commission to continue the
availability of optional interruptible or curtailable service at
least through December 31, 2009, and would prohibit, until after that
date, the reduction of the level of the pricing incentive for
interruptible or curtailable service below the levels in effect on
December 31, 2004. Because a violation of an order or decision of the
commission is a crime, this bill, by requiring the commission to
impose new requirements on electrical corporations, would create a
new crime, thereby imposing a state-mandated local program.
   (2)
  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.  Section 743.1 of the  Public Utilities Code  is amended
to read:
   743.1.  (a) Electrical corporations shall continue the
availability to qualified heavy industrial customers of optional
interruptible or curtailable service. The effective rate for
interruptible or curtailable service to qualifying customers shall
reflect a pricing incentive for electing to operate under the
interruptible or curtailable service option. (b) The commission shall
direct each public utility electrical corporation to continue its
efforts to reduce the rates charged heavy industrial customers to a
level competitive with other states, and to do so without shifting
recovery of costs to other customer classes. The commission shall
continue the availability of optional interruptible or curtailable
service at least  until March 31, 2002   through
December   31, 2009 .  In no event shall the
  The  level of the pricing incentive for
interruptible or curtailable service  shall not  be 
altered from   reduced below  the levels in effect
on  June 10, 1996   December 31, 2004  ,
until  March 31, 2002   after  
December 31, 2009  .
  SEC. 2.
  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.