BILL NUMBER: SB 423	CHAPTERED  09/29/06

	CHAPTER  749
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2006
	PASSED THE SENATE  AUGUST 31, 2006
	PASSED THE ASSEMBLY  AUGUST 28, 2006
	AMENDED IN ASSEMBLY  AUGUST 24, 2006
	AMENDED IN ASSEMBLY  AUGUST 22, 2006
	AMENDED IN ASSEMBLY  AUGUST 7, 2006
	AMENDED IN ASSEMBLY  JUNE 20, 2006
	AMENDED IN ASSEMBLY  MAY 11, 2006
	AMENDED IN ASSEMBLY  JULY 5, 2005
	AMENDED IN SENATE  APRIL 12, 2005

INTRODUCED BY   Senator Simitian
   (Principal coauthor: Assembly Member Levine)
   (Coauthors: Assembly Members Cohn, Lieber, and Pavley)

                        FEBRUARY 17, 2005

   An act to add and repeal Section 395.5 of the Public Utilities
Code, relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 423, Simitian  Electricity: charges: charitable organizations.
    Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations. Existing law defines an "electric service provider" as
an entity that offers electrical service to customers within the
service territory of an electrical corporation, excluding electrical
corporations, local publicly owned electric utilities, and certain
cogenerators. Provisions of the existing Public Utilities Act
restructuring the electrical services industry require that electric
service providers register with the commission, and provide for the
authorization of direct transactions between electric service
providers and retail end-use customers.   The act requires the
commission, pursuant to electrical restructuring, to authorize and
facilitate direct transactions between electricity suppliers and
retail end-use customers. However, other existing law suspends the
right of retail end-use customers other than community aggregators,
as defined, to acquire service from certain electricity suppliers,
after a period of time to be determined by the commission, until the
Department of Water Resources no longer supplies electricity under
that law.
   This bill, until January 1, 2010, notwithstanding that suspension,
would authorize a nonprofit charitable organization, as defined, to
acquire electric commodity service through a direct transaction with
an electric service provider if electric commodity service is donated
free of charge without compensation. The bill would require the
organization to pay for certain related costs.


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


  SECTION 1.  The Legislature finds and declares both of the
following:
   (a) The donation of electric commodity service authorized by
Section 395.5 of the Public Utilities Code is to be strictly limited
to nonprofit charitable organizations serving the needs of the poor
or elderly and shall not authorize or be precedent for any additional
direct transactions.
   (b) Nonprofit charitable organizations that receive free electric
commodity service as a donation shall incur all nonbypassable charges
and all other fees and costs, other than basic electric commodity
costs, that are incurred by the bundled service customers of a
load-serving entity.
  SEC. 2.  Section 395.5 is added to the Public Utilities Code, to
read:
   395.5.  (a) For purposes of this section, the following terms have
the following meanings:
   (1) "Nonprofit charitable organization" means any charitable
organization described in Section 501(c)(3) of the federal Internal
Revenue Code that has as its primary purpose serving the needs of the
poor or elderly.
   (2) "Electric commodity" means electricity used by the customer or
a supply of electricity available for use by the customer, and does
not include services associated with the transmission and
distribution of electricity.
   (b) Notwithstanding Section 80110 of the Water Code, a nonprofit
charitable organization may acquire electric commodity service
through a direct transaction with an electric service provider if
electric commodity service is donated free of charge without
compensation.
   (c) A nonprofit charitable organization that acquires donated
electric commodity service through a direct transaction pursuant to
this section shall be responsible for paying all of the following:
   (1) Those charges and surcharges that would be imposed upon a
retail end-use customer of a community aggregator pursuant to
subdivisions (d), (e), (f), and (g) of Section 366.2.
   (2) The transmission and distribution charges of an electrical
corporation or a local publicly owned electric utility, as defined in
Section 9604.
   (3) A nonbypassable charge imposed pursuant to Article 7
(commencing with Section 381), Article 8 (commencing with Section
385), or Article 15 (commencing with Section 399).
   (4) Costs imposed upon a load-serving entity pursuant to Section
380.
   (d) Existing direct access rules and all service obligations
otherwise applicable to electric service providers shall govern
transactions under this section.
  (e) This section shall remain in effect only until January 1, 2010,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2010, deletes or extends that date.