BILL ANALYSIS Ó
AB 895
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ASSEMBLY THIRD READING
AB
895 (Rendon)
As Introduced February 26, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+---------------------|
|Utilities |15-0 |Rendon, Patterson, | |
| | |Achadjian, Bonilla, | |
| | |Burke, Dahle, | |
| | |Eggman, | |
| | | | |
| | | | |
| | |Cristina Garcia, | |
| | |Hadley, Roger | |
| | |Hernández, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Ting, | |
| | |Williams | |
| | | | |
|----------------+------+--------------------+---------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, | |
| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
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| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Directs money collected from litigation claims
associated with the 2000 to 2002 energy crisis away from the
California Public Utilities Commission (CPUC) programs and towards
the Ratepayer Relief Fund, ensuring legislative oversight over the
use of these funds.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, unknown future, likely significant, revenues available
for Legislature to expend on programs to benefit ratepayers. To
date, energy crisis litigation has gleaned over $5 billion for the
state.
COMMENTS:
1)Purpose: The purpose of this bill is to ensure legislative
oversight of the use of ratepayer refunds resulting from
electricity crisis litigation.
2)Energy crisis background: In 1996, the Legislature established
a deregulated electricity market. In 2000, a serious drought
diminished the supply of inexpensive hydropower. The resulting
increased electricity prices, inadequate infrastructure, and the
deteriorating financial stability of the investor-owned
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utilities triggered an electricity crisis. During the crisis,
market manipulation resulted in high retail electricity prices
and power outages throughout the state. Since that time, various
lawsuits have sought billions of dollars in refunds. Litigation
continues to this day, resulting in settlements and judgments in
favor of California electric ratepayers. The Attorney General's
Office has negotiated upwards of $2 billion in settlement
agreements related to the energy crisis.
A recent out-of-court case settlement (Dynegy 2012), negotiated
by the CPUC, resulted in money being spent on developing a
statewide electric vehicle charging program, rather than on
refunding ratepayers. This program is not meeting the
milestones specified in the settlement order, raising questions
about the supposed benefit to ratepayers and the effectiveness
of the current process.
3)Role of the Ratepayer Relief Fund: The Ratepayer Relief Fund
was established primarily to benefit ratepayers, and fund
investigation and litigation costs of the state in pursuing
allegations of overcharges or unfair practices that adversely
affected ratepayers. In directing settlement money into the
Ratepayer Relief Fund, this bill ensures that the money truly
benefits ratepayers and is spent in accordance with the
principles of the Ratepayer Relief Fund and the legislature.
Analysis Prepared by:
Allegra Roth / U. & C. / (916) 319-2083 FN:
0000711
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