BILL NUMBER: SB 282 CHAPTERED
BILL TEXT
CHAPTER 322
FILED WITH SECRETARY OF STATE SEPTEMBER 3, 1999
APPROVED BY GOVERNOR SEPTEMBER 3, 1999
PASSED THE SENATE AUGUST 19, 1999
PASSED THE ASSEMBLY JULY 15, 1999
AMENDED IN ASSEMBLY JUNE 29, 1999
AMENDED IN ASSEMBLY JUNE 2, 1999
AMENDED IN SENATE MAY 11, 1999
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, Frusetta, Gallegos,
House, Kuehl, Lempert, Longville, Lowenthal, Maddox, Margett,
Mazzoni, Papan, Pescetti, Reyes, Romero, Soto, Steinberg,
Strom-Martin, Thompson, Thomson, Torlakson, Vincent, Washington,
Wesson, Wildman, and Wright)
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, Kelley. 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 proceedings for the preceding fiscal year. Existing
law requires the 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 Public Utilities Commission to include
in the annual work plan access guide a statement that specifies
activities that the 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 Public
Utilities Commission to include in the annual report submitted to the
Governor a statement that specifies the activities and achievements
of the 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 State Energy Resources Conservation and
Development Commission to study the causes of high rates for
electrical service to agriculture and to compare agricultural
electric rates with certain other rates, as prescribed. The bill
would authorize the State Energy Resources Conservation and
Development Commission to recommend strategies for reduction of
service costs, and identify factors affecting agricultural rates, as
prescribed. The bill would require the State Energy Resources
Conservation and Development Commission, on or before September 1,
2000, to prepare and submit to the Legislature a report that details
its findings and conclusions pursuant to these provisions.
The bill would make related legislative findings and declarations.
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) 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 some
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 some 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) To the extent that energy costs for agriculture are
inequitable, it is in the public interest to correct the inequities.
SEC. 2. (a) The Energy Resources Conservation and Development
Commission shall study the causes of high rates for electrical
service to agriculture. The Commission shall include in its study a
comparison of rates for agriculture with rates for other customer
classes and a comparison of the agricultural electric rates in
California with the electric rates for agriculture in other states.
The commission may recommend strategies by which agriculture can
reduce its electric service costs and identify factors that may
affect the rate structure for agricultural electric customers
following termination of the rate levels provided for in subdivision
(a) of Section 368 of the Public Utilities Code.
(b) Notwithstanding Section 7550.5 of the Government Code, the
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 on or before
September 1, 2000.
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.