BILL NUMBER: AB 2869	CHAPTERED  09/21/04

	CHAPTER  646
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 21, 2004
	PASSED THE ASSEMBLY  AUGUST 18, 2004
	PASSED THE SENATE  JULY 29, 2004
	AMENDED IN SENATE  JUNE 30, 2004
	AMENDED IN ASSEMBLY  MAY 25, 2004
	AMENDED IN ASSEMBLY  APRIL 29, 2004

INTRODUCED BY   Assembly Member Levine

                        FEBRUARY 20, 2004

   An act to amend Section 9601 of the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2869, Levine.  Local publicly owned electric utilities:
condemnation process:  distribution facilities.
   Existing law relating to electrical restructuring prohibits a
local publicly owned electric utility or an electrical corporation
from selling electric power to the retail customers of another local
publicly owned electric utility or electrical corporation unless the
first utility has agreed to let the second utility make sales of
electric power to the retail customers of the first utility.
   This bill would specify that those provisions do not apply to an
exchange of customers affected by a local publicly owned electric
utility completing a mutually agreeable condemnation process to
resolve a fringe area agreement in which there  exists a balance of
benefits between the customers of the local publicly owned electric
utility and the electrical corporation.


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


  SECTION 1.  Section 9601 of the Public Utilities Code is amended to
read:
   9601.  (a) Except with respect to supply options of the nature
specified in Section 218, with the exception of paragraph (3) of
subdivision (b) of that section, as it existed on December 20, 1995,
no person, corporation, electrical corporation, or local publicly
owned electric utility or other governmental entity other than a
retail customer's existing electric service provider as of December
20, 1995, shall provide partial or full electric service to a retail
customer of a local publicly owned electric utility unless the
customer first confirms in writing an obligation to pay, through
tariff or otherwise, to the utility currently providing electric
service, a nonbypassable generation-related severance fee or
transition charge established by the regulatory body for that
utility.  The severance fee or transition charge shall be paid
directly to the local publicly owned utility providing electricity
service in the service area in which the consumer is located.
   (b) Except as provided in subdivision (a) of Section 374, no local
publicly owned electric utility or other governmental entity shall
provide partial or full electric service to a retail customer of an
electrical corporation unless the customer of that electrical
corporation first confirms in writing an obligation to pay, through
tariff or otherwise, to the electrical corporation currently
providing electric service, a nonbypassable generation-related
transition charge established by the regulatory body for that
electrical corporation.  The charge shall be paid directly to the
electrical corporation providing electricity in the service area in
which the consumer is located.
   (c) No local publicly owned electric utility or electrical
corporation shall sell electric power to the retail customers of
another local publicly owned electric utility or electrical
corporation unless the first utility has agreed to  allow the second
utility to make sales of electric power to the retail customers of
the first utility.
   (d) This section does not apply to an exchange of customers
affected by a local publicly owned electric utility completing a
mutually agreeable condemnation process to resolve a fringe area
agreement in which there exists a balance of benefits between the
customers of the local publicly owned electric utility and the
electrical corporation.