BILL ANALYSIS Ó SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS Senator Ben Hueso, Chair 2015 - 2016 Regular Bill No: AB 1525 Hearing Date: 6/16/2015 ----------------------------------------------------------------- |Author: |Committee on Utilities and Commerce | |-----------+-----------------------------------------------------| |Version: |3/16/2015 As Introduced | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Jay Dickenson | | | | ----------------------------------------------------------------- SUBJECT: Electrical restructuring DIGEST: This bill deletes obsolete section of statute concerning establishment of the Fuel Price Index Mechanism to enable the transition to a competitive energy market. ANALYSIS: Existing law requires the California Public Utilities Commission (CPUC) to authorize an electrical corporation to implement a rate cap mechanism that includes a fuel price index mechanism, provided certain conditions are met. This requirement became inoperative on December 31, 2001. This bill deletes the inoperative statutory language, described above, in its entirety. Background Existing law, enacted as part of electrical restructuring, required the CPUC to authorize an electrical corporation meeting specified conditions to implement a rate cap mechanism that included a fuel price index mechanism to ensure the continued safe and reliable provision of electric service during the transition to competition and to limit the effect of fuel price volatility in electric rates paid by consumers. This requirement became inoperative on December 31, 2001. This bill deletes the obsolete language in its entirety. This bill is committee sponsored and is intended as code cleanup. AB 1525 (Committee on Utilities and Commerce) Page 2 of ? FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No ASSEMBLY VOTES: Assembly Floor (77-0) Assembly Utilities and Commerce Committee(15-0) SUPPORT: None received OPPOSITION: None received ARGUMENTS IN SUPPORT: Obsolete code provisions should be removed from statute. -- END --