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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                    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





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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

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