BILL NUMBER: AB 1082 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 13, 2000
AMENDED IN ASSEMBLY MAY 12, 1999
AMENDED IN ASSEMBLY MAY 6, 1999
INTRODUCED BY Assembly Member Calderon
FEBRUARY 25, 1999
An act to amend Section 375 829 of
the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1082, as amended, Calderon. Public Utilities
Commission: electric restructuring utilities: stocks
and security transactions .
The Public Utilities Act generally exempts from certain provisions
of the act governing stocks and security transactions any person or
corporation that transacts no business subject to regulation under
the act, except performing services or delivering commodities for or
to public utilities or municipal or other public corporations
primarily for resale or use in serving the public or any portion
thereof. Notwithstanding that general exemption, those provisions of
the act governing stocks and security transactions apply to any
public utility if the Public Utilities Commission finds that the
application of those provisions is required by the public interest.
The act authorizes the commission to exempt any public utility or
class of public utility from those stock and security transaction
provisions if it finds that their application is not necessary in the
public interest.
This bill would remove the public interest exception from the
general exemption described above. The bill would exempt from those
stock and security transaction provisions a telephone corporation
that is regulated under an incentive-based pricing mechanism, unless
the corporation secures the financing by pledging a plant or assets.
The bill would make related legislative findings and declarations.
The Public Utilities Act requires the Public Utilities Commission
to allow the recovery of certain reasonable employee related
transition costs relating to the restructuring of the electric
industry.
This bill would modify that provision to require the commission to
allow the recovery of employee related transition costs, as
described, if the commission specifically finds that those costs are
reasonable.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 375 of the Public Utilities Code
SECTION 1. The Legislature finds and declares all of the
following:
(a) The requirement for commission approval of a utility's
financing, as specified in Article 5 (commencing with Section 816) of
Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, may
limit the ability of a utility whose rates are price-capped to obtain
favorable financing. Such approval could cause a price-cap
regulated utility to miss favorable financing opportunities,
adversely affecting its ability to compete in California markets with
competitors having no similar regulatory or statutory requirements.
This is costly to the utility, the regulator, the ratepayer, and the
taxpayer.
(b) It is the intent of the Legislature that Article 5 (commencing
with Section 816) of Chapter 4 of Part 1 of Division 1 of the Public
Utilities Code, not hinder the commission's existing authority to
disallow imprudent expenses of the utilities under its jurisdiction.
SEC. 2. Section 829 of the Public Utilities Code is amended to
read:
829. (a) This article shall
does not apply to any a person or
corporation which that transacts no
business subject to regulation under this part, except performing
services or delivering commodities for or to public utilities or
municipal or other public corporations primarily for resale or use in
serving the public or any portion thereof . but
shall nevertheless apply to any public utility if the commission
finds, in a proceeding to which the public utility is or may become a
party, that the application of this article is required by the
public interest. The
(b) (1) The requirements in this article for commission approval
of utility financing for utility purposes do not apply to a telephone
corporation that is regulated under an incentive-based pricing
mechanism and that does not pledge a plant or assets to secure the
financing.
(2) Notwithstanding paragraph (1), these utilities shall remain
subject to Sections 817, 824, and 830.
(c) The commission may from time to time by order or rule,
and subject to such those terms and
conditions as that may be prescribed
therein in the order or rule , exempt
any public utility or class of public utility from the
provisions of this article if it finds that the application
thereof of this article to
such that public utility or class of public
utility is not necessary in the public interest. is
amended to read:
375. (a) In order to mitigate potential negative impacts on
utility personnel directly affected by electric industry
restructuring, as described in Decision 95-12-063, as modified by
Decision 96-01-009, the commission shall allow the recovery of
employee related transition costs incurred and projected for
severance, retraining, early retirement, outplacement and related
expenses for the employees, if it finds those costs to be reasonable.
(b) The costs, including employee related transition costs for
employees performing services in connection with Section 363, shall
be added to the amount of uneconomic costs allowed to be recovered
pursuant to this section and Sections 367, 368, and 376, provided
recovery of these employee related transition costs shall extend
beyond December 31, 2001, provided recovery of the costs shall not
extend beyond December 31, 2006. However, there shall be no recovery
for employee related transition costs associated with officers,
senior supervisory employees, and professional employees performing
predominantly regulatory functions.