BILL NUMBER: SB 282 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 20, 1999
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
Utility : service 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 proceedings
for the preceding fiscal year. Existing law requires the
commission Public Utilities 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. Existing law establishes the
State Energy Resources Conservation and Development Commission, with
powers and responsibilities as prescribed.
The bill would require the commission
Public Utilities Commission to include in the annual work plan
access guide a statement that specifies activities that the
commission Public Utilities 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 Public Utilities Commission
to include in the annual report submitted to the Governor a
statement that specifies the activities and achievements of the
commission Public Utilities 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
Energy Resources Conservation and Development Commission to
study the causes of high rates for electrical service to agriculture
and to identify options for reducing rates that the Energy
Resources Conservation and Development Commission determines to be
inequitable . The bill would require the commission
Energy Resources Conservation and Development
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:
(c) There is a need to determine if the following circumstances
cause inequitable rates for electricity for agriculture in this
state:
(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.
(e) To the extent that energy costs for agriculture are
inequitable, it is in the public interest to correct the inequities.
SEC. 2. (a) The Public Utilities Energy
Resources Conservation and Development 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
that the commission determines to be inequitable .
(b) Notwithstanding Section 7550.5 of the Government Code, on or
before March 1, 2000, the Public Utilities
Energy Resources Conservation and Development 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.