BILL NUMBER: SB 282 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 6, 1999
INTRODUCED BY Senator Kelley
(Principal coauthor: Assembly Member Machado)
(Coauthors: Senators Alpert, Baca, Brulte, Burton, Chesbro,
Hayden, Haynes, Johannessen, Johnson, Karnette, Knight, Leslie,
Lewis, McPherson, Monteith, Morrow, Murray, O'Connell, Ortiz, Peace,
Polanco, Poochigian, Rainey, Schiff, Sher, and Solis)
(Coauthors: Assembly Members Alquist, Ashburn, Briggs, Calderon,
Cardoza, Dickerson, Dutra, Firebaugh, Florez, Gallegos, House, Kuehl,
Lempert, Longville, Lowenthal, Margett, Papan, Reyes, Romero, Soto,
Steinberg, Strom-Martin, Thompson, Thomson, Torlakson, Vincent,
Washington, and Wildman)
FEBRUARY 2, 1999
An act to add Section 321.7 to the Public Utilities Code, relating
to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 282, as amended, Kelley. Public Utilities Commission: rates:
rural areas.
Existing law requires the Public Utilities Commission to submit to
the Governor an annual report containing a complete account of its
transactions and proceeding for the preceding fiscal year. Existing
law requires the commission to develop, publish, and annually update
an annual work plan access guide that describes the scheduled
ratemaking proceedings and other decisions that may be considered by
the commission during the calendar year, as prescribed.
The bill would require the commission to include in the annual
work plan access guide a statement that specifies activities that the
commission proposes to reduce the costs of, and rates for, energy,
including electricity, and for improving the competitive
opportunities for state agriculture and other rural energy consumers.
The bill would require the commission to include in the annual
report submitted to the Governor a statement that specifies the
activities and achievements of the commission in reducing the costs
of, and rates for, energy, including electricity, for state
agriculture and other rural energy consumers.
The bill would require the commission to study the causes of high
rates for electrical service to agriculture and to identify options
for reducing rates through competition for the components of
electrical service, as specified . The bill would require
the commission, on or before March 1, 2000, to prepare and submit to
the Legislature a report that details its findings and conclusions
with regard to that study.
The bill would make related legislative findings and declarations.
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. The Legislature finds and declares all of the
following:
(a) Agriculture is among the most important economic activities in
this state.
(b) Agriculture in this state uses significant amounts of energy
in production on farms and ranches. The high cost of energy for
agriculture in this state, relative to the cost of energy in other
parts of the country, undermines the competitive position of state
agriculture in national and international markets.
(c) The rates for electricity for agriculture appear to be
inequitable for all of the following reasons:
(1) Small farms and ranches often pay substantially more per
kilowatt hour for utility stranded costs than other energy customers.
(2) The costs of providing electric distribution service in rural
areas are less than the costs for providing that service in other
parts of the state, while rates are often higher.
(3) The rates for electric distribution service in rural areas of
the state are higher than in rural areas in other parts of the United
States, although the terrain and weather in this state is often less
severe.
(d) The primary goal of electrical restructuring was to reduce the
cost of electricity for consumers in this state.
(e) Reducing energy costs for agriculture is in the public
interest.
SEC. 2. (a) The Public Utilities Commission shall study the causes
of high rates for electrical service to agriculture, including the
contribution that rural customers make to the costs of providing
electricity, and shall identify options for reducing rates
through competition for the components of electrical service,
including energy generation and distribution.
(b) The Public Utilities Commission shall undertake those
proceedings, and shall issue those orders, that it determines to be
necessary to effectuate this section.
(c) On .
(b) Notwithstanding Section 7550.5 of the Government Code, on
or before March 1, 2000, the Public Utilities Commission shall
prepare and submit to the Legislature a report that details its
findings and conclusions pursuant to this section.
SEC. 3. Section 321.7 is added to the Public Utilities Code, to
read:
321.7. (a) The commission shall include in the annual work plan
access guide prepared by the commission pursuant to Section 321.6 a
statement that specifies activities that the commission proposes to
reduce the costs of, and rates for, energy, including electricity,
and for improving the competitive opportunities for state agriculture
and other rural energy consumers.
(b) The commission shall include in the annual report submitted by
the commission to the Governor pursuant to Section 316 a statement
that specifies the activities and achievements of the commission in
reducing the costs of, and rates for, energy, including electricity,
for state agriculture and other rural energy consumers.