BILL NUMBER: SB 418	ENROLLED
	BILL TEXT

	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 8, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   AUGUST 30, 1999
	AMENDED IN ASSEMBLY   AUGUST 19, 1999
	AMENDED IN ASSEMBLY   JULY 15, 1999
	AMENDED IN SENATE   APRIL 26, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY   Senator Polanco

                        FEBRUARY 12, 1999

   An act to add Section 846.2 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 418, Polanco.  Public utilities:  transition property.
   Existing law authorizes the issuance of rate reduction bonds by a
financing order of the Public Utilities Commission if the commission
determines that the issuance of those bonds in relationship to
transition costs, would reduce rates that certain customers would
have paid if the financing order had not been adopted.  Existing law
also makes financing orders in relation to rate reduction bonds
binding on the commission.
   This bill would authorize the commission to order a fair and
reasonable credit to ratepayers of any excess rate reduction bond
proceeds, as defined.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 846.2 is added to the Public Utilities Code, to
read:
   846.2.  (a) Notwithstanding subdivision (c) of Section 841, for
any electrical corporation that ended its rate freeze period
described in subdivision (a) of Section 368 prior to July 15, 1999,
the commission may order a fair and reasonable credit to ratepayers
of any excess rate reduction bond proceeds.
   (b) "Excess rate reduction bond proceeds," as used in this
section, means proceeds from the sale of rate reduction bonds
authorized by commission financing orders issued pursuant to this
article that are subsequently determined by the commission to be in
excess of the amounts necessary to provide the 10-percent rate
reduction during the period when the rates were frozen pursuant to
subdivision (a) of Section 368.