BILL NUMBER: AB 994	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   JANUARY 5, 2000

INTRODUCED BY   Assembly Member Wright

                        FEBRUARY 25, 1999

    An act to add Section 9601.5 to the Public Utilities
Code,   An act  relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 994, as amended, R. Wright.   Electrical restructuring:
  local publicly owned electric utilities   Rural
telephone cooperatives  . 
   Under existing law, the Public Utilities Commission regulates
public utilities.
   This bill would require the commission to prepare and submit to
the Governor and the Legislature a report on the feasibility of
establishing rural telephone cooperatives in the state, as
prescribed.  
   Existing law governing electrical restructuring imposes certain
obligations and restrictions on local publicly owned electrical
utilities, as defined.
   This bill would prohibit a local publicly owned electric utility
from providing electric service to a retail customer of an electrical
corporation, unless the governing body of the local publicly owned
electric utility finds that any cost benefits derived through public
financing or other public subsidies, including, but not limited to,
those cost benefits derived in accordance with specified federal law,
will be directly passed on to those retail customers that receive
electrical service from the local publicly owned electric utility.
The bill would also prohibit the cost benefits from being transferred
to any private entity. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  
no   yes  . State-mandated local program:  no.


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

  
  SECTION 1.  Section 9601.5 is added to the Public  
  SECTION 1.  On or before January 1, 2002, the Public Utilities
Commission shall prepare and submit to the Governor and the
Legislature a report on the feasibility of establishing rural
telephone cooperatives in the state.  The commission shall include in
the report recommendations concerning appropriate legislation. 
 Utilities Code, to read:
   9601.5.  A local publicly owned electric utility may not provide
electric service to a retail customer of an electrical corporation,
unless the governing body of the local publicly owned electric
utility finds that any cost benefits derived through public financing
or other public subsidies, including, but not limited to, those cost
benefits derived in accordance with Section 141 of Title 26 of the
United States Code, will be directly passed on to those retail
customers that receive electrical service from the local publicly
owned electric utility.  The cost benefits may not, in whole or in
part, be transferred to any private entity.