BILL NUMBER: SB 1063	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Bowen

                        FEBRUARY 26, 1999

   An act to amend Section 377 of the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1063, as introduced, Bowen.  Electric restructuring:
hydroelectric generation.
   (1) The Public Utilities Act requires the Public Utilities
Commission to continue to regulate the nonnuclear generation assets
owned by any public utility prior to January 1, 1997, that are
subject to commission regulation until those assets have been subject
to market valuation in accordance with procedures established by the
commission.  The act requires a public utility, if, after market
valuation, the public utility wishes to retain ownership of
nonnuclear generation assets in the same corporation as the
distribution utility, to demonstrate to the satisfaction of the
commission, through a public hearing, that it would be consistent
with the public interest and would not confer undue competitive
advantage on the public utility to retain that ownership in the same
corporation as the distribution utility.
   This bill would amend the act to require that, notwithstanding the
above provisions, or any other provision of law, the ownership of
hydroelectric generation facilities owned and operated by a public
utility regulated by the commission as of January 1, 2000, be
retained, and would require those facilities to continue to be
operated by that public utility, subject to the regulation of the
commission.  Because a violation of the act is a crime, this bill
would impose a state-mandated local program by creating a new crime.
The bill would make a legislative finding and declaration relating
to the ownership and operation of hydroelectric generation resources.

  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


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


  SECTION 1.  Section 377 of the Public Utilities Code is amended to
read:
   377.   The   (a) Except as specified in
subdivision (b), the  commission shall continue to regulate the
nonnuclear generation assets owned by any public utility prior to
January 1, 1997, that are subject to commission regulation until
those assets have been subject to market valuation in accordance with
procedures established by the commission.  If, after market
valuation, the public utility wishes to retain ownership of
nonnuclear generation assets in the same corporation as the
distribution utility, the public utility shall demonstrate to the
satisfaction of the commission, through a public hearing, that it
would be consistent with the public interest and would not confer
undue competitive advantage on the public utility to retain that
ownership in the same corporation as the distribution utility.  
   (b)  (1) The Legislature finds and declares that the ownership and
operation of hydroelectric generation resources by public utilities
regulated by the commission is in the public interest, for reasons
including, but not limited to, environmental, water, and market power
concerns.
   (2) Notwithstanding subdivision (a), or any other provision of
law, the ownership of hydroelectric generation facilities owned and
operated by a public utility regulated by the commission as of
January 1, 2000, shall be retained, and those facilities shall
continue to be operated, by that public utility, subject to the
regulation of the commission. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.