BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 282|
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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
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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,
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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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