BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 282
                                                          Page  1

Date of Hearing:   July 7, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

          SB 282 (Kelley) - As Amended: June 29, 1999 

Policy Committee:                              Utilities and  
Commerce     Vote:                             11-0

Urgency:     No                   State Mandated Local  
Program:NoReimbursable:            

  SUMMARY  :

This bill:

1)Requires the state Energy Conservation and Development  
  Commission to undertake a study and report to the Legislature  
  regarding electrical rates for agriculture users.

2)Requires the Public Utilities Commission to report on  
  activities of the commission related to reducing electrical  
  costs for agriculture and other rural energy consumers. 

  FISCAL EFFECT  :

1)Costs of about $100,000 for the Energy Commission to complete  
  the required study and report.

2)Minor absorbable costs for the PUC to report on activities  
  related to electrical costs for agriculture energy users.

  COMMENTS  :

  Purpose  .  According to the sponsor, the California Electric  
Users Cooperative, the cost of agricultural production in  
California is 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.

  Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081