BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 282
                                                          Page  1

Date of Hearing:   June 21, 1999

          ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE 
                     Roderick Wright, Chair
           SB 282 (Kelley) - As Amended:  June 2, 1999

  SENATE VOTE  :   37-0
  
SUBJECT  :   Utility service rates:  rural areas.

  SUMMARY  :   Requires the Energy Conservation and Development  
Commission (Energy Commission) to study the causes of high  
electric rates for agricultural and other rural customers and to  
identify options for reducing rates.  Requires the California  
Public Utilities Commission (CPUC) to report on various  
activities related to reducing energy costs and improving  
competitive opportunities for agricultural and other rural  
customers.  Specifically,  this bill  :  

1)Requires the Energy Commission to:

   a)   Study the causes of high rates for electrical service to  
     agriculture;

   b)   Compare agricultural electric rates with rates for other  
     customer classes;

   c)   Compare agricultural electric rates in California with  
     the electric rates for agriculture in other states;

   d)   Recommend strategies for reduction of service costs, and  
     identify factors affecting agricultural rates.

   e)   Prepare and submit to the Legislature, on or before  
     September 1, 2000 a report that details its findings and  
     conclusions pursuant to these provisions.

2)Requires CPUC to include in its annual work plan a statement  
  that specifies activities it proposes to reduce energy costs  
  and improve the competitive opportunities for agricultural and  
  other rural customers.

3)Requires CPUC to include in its annual report to the Governor  
  a statement that specifies the activities and achievements of  
  CPUC in reducing energy costs for agricultural and other rural  








                                                          SB 282
                                                          Page  2

  customers.

4)Makes related findings and declarations about energy costs for  
  agriculture.

  EXISTING LAW  :

1)Establishes the Energy Commission, with powers and  
  responsibilities, as prescribed.

2)Requires CPUC to develop, publish, and annually update an  
  annual work plan that describes the scheduled ratemaking  
  proceedings and other decisions that may be considered by CPUC  
  during the calendar year.

3)Requires CPUC to submit to the Governor an annual report  
  containing a complete account of its transactions and  
  proceedings for the preceding fiscal year.

  FISCAL EFFECT  :   Unknown

  COMMENTS  :   Energy costs are a significant factor in the cost of  
agricultural production in California.  According to the sponsor  
of this bill, the California Electric Users Cooperative, these  
costs are exacerbated by disproportionately high electric rates,  
particularly in Pacific Gas and Electric Company's (PG&E)  
service territory.  The rates charged to agricultural customers  
are higher than rates for commercial customers with comparable  
energy usage.

This bill requires the Energy Commission to study the causes of  
high electric rates for agricultural and other rural customers  
and to identify options for reducing rates.  Additionally, this  
bill requires CPUC, in its annual work plan and annual report to  
the Governor, to report on various activities related to  
reducing energy costs and improving competitive opportunities  
for agricultural and other rural customers.

 REGISTERED SUPPORT / OPPOSITION  :

  Support  

California Electric Users Cooperative (Sponsor)
Agricultural Energy Consumers Association
  








                                                         SB 282
                                                          Page  3

Opposition  

None on file

  Analysis Prepared by  :    Joseph Lyons / U. & C. / (916) 319-2083