BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1195|
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THIRD READING
Bill No: SB 1195
Author: Padilla (D)
Amended: As introduced
Vote: 21
SENATE ENERGY, UTIL. & COMMUNIC. COMM .: 9-0, 4/29/14
AYES: Padilla, Fuller, Block, Cannella, Corbett, DeSaulnier,
Hill, Knight, Wolk
NO VOTE RECORDED: De León, Pavley
SUBJECT : Electrical restructuring
SOURCE : Author
DIGEST : This bill repeals or modifies several sections of the
Public Utilities Code which were added in 1996 as part of the
deregulation of electricity in AB 1890 (Peace, Chapter
854).
ANALYSIS : Existing law states that the existing restructuring
of the electrical industry within the Public Utilities Act
provides for the establishment of an Independent System Operator
and a Power Exchange as nonprofit public benefit corporations.
Existing law requires the Independent System Operator, within
six months after receiving approval for its operation by the
Federal Energy Regulatory Commission, to provide a report to the
Legislature and the Electricity Oversight Board containing
specified matter.
This bill repeals this reporting requirement.
CONTINUED
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Electrical restructuring states the intent of the Legislature is
that individual customers not experience rate increases as a
result of the allocation of transition costs, as specified, and
requires the Public Utilities Commission (PUC) to
implement a methodology for calculating certain Power Exchange
energy credits.
This bill repeals this provision.
Electrical restructuring requires each electrical corporation to
propose a cost recovery plan to the PUC for the recovery of the
uneconomic costs of an electrical corporation's
generation-related assets and obligations, requires that the
plan contain specified matter, and requires that the plan set
rates for each customer class, rate schedule, contract, or
tariff option, at levels equal to the level as shown on electric
rate schedules as of June 10, 1996, provided that rates for
residential and small commercial customers be reduced so that
these customers receive rate reductions of no less than 10% for
1998 continuing through 2002. Electrical restructuring
prohibits the PUC, upon the termination of the 10% rate
reduction for residential and small commercial customers, from
subjecting those residential and small commercial customers to
any rate increase or future rate obligations solely as a result
of the termination of the 10% rate reduction.
This bill repeals these provisions.
Electrical restructuring requires any electrical corporation
serving agricultural customers with multiple meters to conduct
research based on a statistically valid sample of those
customers and meters to determine the typical simultaneous peak
load of those customers and to report the results to those
customers and the PUC by July 1, 2001. Electrical restructuring
requires the PUC to consider the research results in setting
future electrical distribution rates for those customers.
This bill repeals this provision.
Electrical restructuring requires the PUC to allow recovery of
reasonable employee related transition costs incurred and
projected for severance, retraining, early retirement,
outplacement, and related expenses for the employees in order to
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mitigate potential negative impacts on utility personnel
directly affected by restructuring.
This bill repeals this provision.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
JG:e 4/29/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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