BILL ANALYSIS                                                                                                                                                                                                    



                                                             


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|SENATE RULES COMMITTEE            |                   SB 282|
|Office of Senate Floor Analyses   |                         |
|1020 N Street, Suite 524          |                         |
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                       THIRD READING
                              

Bill No:  SB 282
Author:   Kelley (R), et al
Amended:  5/11/99
Vote:     21

  
  SENATE ENERGY, U. & C. COMMITTEE  :  9-0, 4/13/99
AYES:  Bowen, Baca, Brulte, Kelley, Mountjoy, Peace, Solis,  
  Speier, Vasconcellos
NOT VOTING:  Alarcon, Hughes

  SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
 

  SUBJECT  :    Utility:  service rates:  rural areas

  SOURCE  :     California Electric Users Cooperative

 
  DIGEST  :    This bill requires the California Energy  
Commission to report on various activities related to  
reducing energy costs and improving competitive  
opportunities for California agriculture and other rural  
energy customers.  The bill also requires the California  
Public Utilities Commission to include specified related  
information in its annual work plan.

  ANALYSIS  :    Energy is a significant portion of the costs  
of production in all sectors of the agricultural economy.   
According to the sponsor of this bill, the California  
Electric Users Cooperative, these costs are exacerbated by  
disproportionately and unfairly high electric rates,  
particularly in Pacific Gas and Electric Company's (PG&E)  
service area.
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Customers in PG&E's service area are billed according to  
agricultural rates if 70% or more of their energy use is  
for agricultural uses, including growing crops, raising  
livestock, pumping water for irrigation and other uses  
involving production of agricultural products for sale.   
Rates for agricultural customers are higher than rates for  
commercial customers with comparable energy consumption.

This bill requires the California Energy Commission (CEC)  
to study, and report to the Legislature, on or before  
September 1, 2000, the causes of high electric rates for  
agricultural and other rural customers and to identify  
options for reducing rates that the CEC determines to be  
inequitable.  The bill further requires the California  
Public Utilities Commission to include a statement of  
activities it proposes to reduce energy costs and improve  
competitive opportunities for California agriculture and  
other rural energy customers in its annual work plan and  
its annual report to the Governor.

This bill makes related findings and declarations about the  
unfairly high relative energy costs borne by agricultural  
customers.

  FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
Local:  No


  SUPPORT  :   (Verified  5/11/99)

California Electric Users Cooperative (source)
Agricultural Council of California
Allied Grape Growers
Blue Anchor, Inc.
Calavo Growers of California
California Canning Peach Association
California Electric Users Cooperative (source)
Agricultural Council of California
Allied Grape Growers
Blue Anchor, Inc.
Calavo Growers of California
California Canning Peach Association








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NC:cm  5/11/99   Senate Floor Analyses 

               SUPPORT/OPPOSITION:  SEE ABOVE

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