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 --