BILL NUMBER: AB 2509	CHAPTERED  09/21/04

	CHAPTER  639
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 21, 2004
	PASSED THE ASSEMBLY  AUGUST 16, 2004
	PASSED THE SENATE  AUGUST 9, 2004
	AMENDED IN SENATE  JULY 8, 2004
	AMENDED IN SENATE  JUNE 15, 2004
	AMENDED IN ASSEMBLY  APRIL 27, 2004
	AMENDED IN ASSEMBLY  APRIL 12, 2004

INTRODUCED BY   Assembly Member Nakanishi

                        FEBRUARY 20, 2004

   An act to add Chapter 5.5 (commencing with Section 2780) to Part 2
of Division 1 of the Public Utilities Code, relating to public
utilities.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2509, Nakanishi.  Electric microutilities.
   Under existing law, the Public Utilities Commission generally has
regulatory authority over public utilities, including authority over
electrical corporations.
   This bill would state the intent of the Legislature that the
commission consider the legal, administrative, and operational costs
that an electric microutility, as defined, faces if it is named as a
respondent in a hearing generally applicable to electrical
corporations.  The bill would further state the intent of the
Legislature that the commission consider those costs before naming an
electric microutility as a respondent in a hearing generally
applicable to electrical corporations.


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


  SECTION 1.  Chapter 5.5 (commencing with Section 2780) is added to
Part 2 of Division 1 of the Public Utilities Code, to read:

      CHAPTER 5.5.  ELECTRIC MICROUTILITIES

   2780.  As used in this chapter, the term "electric microutility"
means any electrical corporation that is regulated by the commission
and organized for the purpose of providing sole-source generation,
distribution, and sale of electricity exclusively to a customer base
of fewer than 2,000 customers.
   2780.1.  (a) It is the intent of the Legislature that the
commission consider the legal, administrative, and operational costs
that an electric microutility faces if it is named as a respondent in
a hearing generally applicable to electrical corporations.  The
limited resources of a microutility are disproportionately strained
by the cost of response.
   (b) Further, it is the intent of the Legislature that the
commission consider the costs described in subdivision (a) before
naming an electric microutility as a respondent in a hearing
generally applicable to electrical corporations.