BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 282| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 282 Author: Kelley (R), et al Amended: 6/29/99 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 SENATE FLOOR : 37-0, 5/13/99 AYES: Alarcon, Alpert, Baca, Bowen, Brulte, Burton, Chesbro, Costa, Dunn, Escutia, Figueroa, Hayden, Haynes, Hughes, Johannessen, Johnson, Johnston, Karnette, Kelley, Knight, Leslie, Lewis, McPherson, Monteith, Morrow, Mountjoy, Murray, O'Connell, Peace, Polanco, Poochigian, Rainey, Schiff, Sher, Solis, Vasconcellos, Wright NOT VOTING: Ortiz, Perata, Speier ASSEMBLY FLOOR : 75-0, 7/15/99 (Passed on Consent) - See last page for vote 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 CONTINUED SB 282 Page 2 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. Assembly Amendments further clarify and define the matters to be studied by the California Energy Commission, and add co-authors. 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. 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, on the following: 1.Study the causes of high rates for electrical service to agriculture. 2.Compare agricultural electric rates with rates for other customer classes. 3.Compare agricultural electric rates in California with the electric rates for agriculture in other states. 4.Recommend strategies for reduction of service costs, and identify factors affecting agricultural rates. The bill further requires the California Public Utilities Commission to include a statement of activities it proposes to reduce energy costs and improve competitive SB 282 Page 3 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 Costs of about $100,000 for the CEC to complete the required study and report. Minor absorbable costs for the PUC to report on activities related to electrical costs for agriculture energy users. SUPPORT : (Verified 7/15/99) California Electric Users Cooperative (source) Agricultural Council of California Agricultural Energy Consumers Association Allied Grape Growers Blue Anchor, Inc. Calavo Growers of California California Canning Peach Association Agricultural Council of California Allied Grape Growers Blue Anchor, Inc. Calavo Growers of California California Canning Peach Association ASSEMBLY FLOOR : 75-0, 7/15/99 AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn, Baldwin, Bates, Battin, Baugh, Bock, Brewer, Briggs, Calderon, Cardenas, Cardoza, Cedillo, Corbett, Correa, Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra, Firebaugh, Floyd, Frusetta, Gallegos, Granlund, Havice, Hertzberg, Honda, House, Jackson, Kaloogian, Keeley, Knox, Kuehl, Leach, Leonard, Longville, Lowenthal, Machado, Maddox, Maldonado, Margett, Mazzoni, McClintock, Migden, Nakano, Olberg, Oller, Robert Pacheco, Rod Pacheco, Pescetti, Reyes, Romero, Runner, Scott, Shelley, SB 282 Page 4 Soto, Steinberg, Strickland, Strom-Martin, Thomson, Torlakson, Vincent, Washington, Wayne, Wesson, Wiggins, Wildman, Wright, Zettel, Villaraigosa NOT VOTING: Campbell, Florez, Lempert, Papan, Thompson NC:jk 8/9/99 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****