Amended in Senate August 16, 2016

Amended in Senate August 2, 2016

Amended in Assembly May 31, 2016

Amended in Assembly May 4, 2016

Amended in Assembly April 26, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2454


Introduced by Assembly Member Williams

February 19, 2016


An act to amend Section 454.5 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 2454, as amended, Williams. Energy: procurement plans.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. The Public Utilities Act requires the commission to review and accept, modify, or reject a procurement plan for each electrical corporation in accordance with specified requirements and objectives. The act requires that an electrical corporation’s proposed procurement plan include certain elements, including a showing that the electrical corporation will first meet its unmet needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible.

This bill would require the electrical corporation, in determining the availability of cost-effective, reliable, and feasible demand reduction resources, to consider the findings of the Demand Response Potential Study required by a specific order of the commission, as specified. The bill would require the commission, prior to approving a contract for any newbegin delete or repoweredend delete gas-firedbegin delete generation resources,end deletebegin insert generating unit,end insert to require the electrical corporation to demonstrate compliance withbegin delete above requirement regarding meeting its unmet needs.end deletebegin insert its approved procurement plan.end insert

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

begin insert

This bill would incorporate changes to Section 454.5 of the Public Utilities Code proposed by both this bill and AB 1937, which would become operative only if both bills are enacted and become effective on or before January 1, 2017, and this bill is chaptered last.

end insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 454.5 of the Public Utilities Code is
2amended to read:

3

454.5.  

(a) The commission shall specify the allocation of
4electricity, including quantity, characteristics, and duration of
5electricity delivery, that the Department of Water Resources shall
6provide under its power purchase agreements to the customers of
7each electrical corporation, which shall be reflected in the electrical
8corporation’s proposed procurement plan. Each electrical
9corporation shall file a proposed procurement plan with the
10commission not later than 60 days after the commission specifies
P3    1the allocation of electricity. The proposed procurement plan shall
2specify the date that the electrical corporation intends to resume
3procurement of electricity for its retail customers, consistent with
4its obligation to serve. After the commission’s adoption of a
5procurement plan, the commission shall allow not less than 60
6days before the electrical corporation resumes procurement
7pursuant to this section.

8(b) An electrical corporation’s proposed procurement plan shall
9include, but not be limited to, all of the following:

10(1) An assessment of the price risk associated with the electrical
11corporation’s portfolio, including any utility-retained generation,
12existing power purchase and exchange contracts, and proposed
13contracts or purchases under which an electrical corporation will
14procure electricity, electricity demand reductions, and
15electricity-related products and the remaining open position to be
16served by spot market transactions.

17(2) A definition of each electricity product, electricity-related
18product, and procurement related financial product, including
19support and justification for the product type and amount to be
20procured under the plan.

21(3) The duration of the plan.

22(4) The duration, timing, and range of quantities of each product
23to be procured.

24(5) A competitive procurement process under which the
25electrical corporation may request bids for procurement-related
26services, including the format and criteria of that procurement
27process.

28(6) An incentive mechanism, if any incentive mechanism is
29proposed, including the type of transactions to be covered by that
30mechanism, their respective procurement benchmarks, and other
31parameters needed to determine the sharing of risks and benefits.

32(7) The upfront standards and criteria by which the acceptability
33and eligibility for rate recovery of a proposed procurement
34transaction will be known by the electrical corporation prior to
35execution of the transaction. This shall include an expedited
36approval process for the commission’s review of proposed contracts
37and subsequent approval or rejection thereof. The electrical
38corporation shall propose alternative procurement choices in the
39event a contract is rejected.

40(8) Procedures for updating the procurement plan.

P4    1(9) A showing that the procurement plan will achieve the
2following:

3(A) The electrical corporation, in order to fulfill its unmet
4resource needs, shall procure resources from eligible renewable
5energy resources in an amount sufficient to meet its procurement
6requirements pursuant to the California Renewables Portfolio
7Standard Program (Article 16 (commencing with Section 399.11)
8of Chapter 2.3).

9(B) The electrical corporation shall create or maintain a
10diversified procurement portfolio consisting of both short-term
11and long-term electricity and electricity-related and demand
12reduction products.

13(C) (i) The electrical corporation shall first meet its unmet
14resource needs through all available energy efficiency and demand
15reduction resources that are cost effective, reliable, and feasible.

16(ii) In determining the availability of cost-effective, reliable,
17and feasible demand reduction resources, the commission shall
18consider the findings regarding technically and economically
19achievable demand reduction in the Demand Response Potential
20Study required pursuant to Commission Order D.14-12-024, to
21the extent those findings are not superseded by other demand
22reduction studies conducted by academic institutions or government
23 agencies, and to the extent that any demand reduction is consistent
24with commission policy.

begin delete

25(iii) Prior to approving a contract for any new or repowered
26gas-fired generation resource, the commission shall require the
27electrical corporation to demonstrate compliance with clause (i).

end delete

28(10) The electrical corporation’s risk management policy,
29strategy, and practices, including specific measures of price
30stability.

31(11) A plan to achieve appropriate increases in diversity of
32ownership and diversity of fuel supply of nonutility electrical
33generation.

34(12) A mechanism for recovery of reasonable administrative
35costs related to procurement in the generation component of rates.

36(c) The commission shall review and accept, modify, or reject
37each electrical corporation’s procurement plan and any amendments
38or updates to the plan. The commission shall ensure that the plan
39contains the elements required pursuant to this section, including
40the elements described in subparagraphbegin delete (D)end deletebegin insert (C)end insert of paragraph (9)
P5    1of subdivision (b). The commission’s review shall consider each
2electrical corporation’s individual procurement situation, and shall
3give strong consideration to that situation in determining which
4one or more of the features set forth in this subdivision shall apply
5to that electrical corporation. A procurement plan approved by the
6commission shall contain one or more of the following features,
7provided that the commission may not approve a feature or
8mechanism for an electrical corporation if it finds that the feature
9or mechanism would impair the restoration of an electrical
10corporation’s creditworthiness or would lead to a deterioration of
11an electrical corporation’s creditworthiness:

12(1) A competitive procurement process under which the
13electrical corporation may request bids for procurement-related
14services. The commission shall specify the format of that
15procurement process, as well as criteria to ensure that the auction
16process is open and adequately subscribed. Any purchases made
17in compliance with the commission-authorized process shall be
18recovered in the generation component of rates.

19(2) An incentive mechanism that establishes a procurement
20benchmark or benchmarks and authorizes the electrical corporation
21to procure from the market, subject to comparing the electrical
22corporation’s performance to the commission-authorized
23benchmark or benchmarks. The incentive mechanism shall be
24clear, achievable, and contain quantifiable objectives and standards.
25The incentive mechanism shall contain balanced risk and reward
26incentives that limit the risk and reward of an electrical corporation.

27(3) Upfront achievable standards and criteria by which the
28acceptability and eligibility for rate recovery of a proposed
29procurement transaction will be known by the electrical corporation
30prior to the execution of the bilateral contract for the transaction.
31The commission shall provide for expedited review and either
32approve or reject the individual contracts submitted by the electrical
33corporation to ensure compliance with its procurement plan. To
34the extent the commission rejects a proposed contract pursuant to
35this criteria, the commission shall designate alternative procurement
36choices obtained in the procurement plan that will be recoverable
37for ratemaking purposes.

38(d) A procurement plan approved by the commission shall
39accomplish each of the following objectives:

P6    1(1) Enable the electrical corporation to fulfill its obligation to
2serve its customers at just and reasonable rates.

3(2) Eliminate the need for after-the-fact reasonableness reviews
4of an electrical corporation’s actions in compliance with an
5approved procurement plan, including resulting electricity
6procurement contracts, practices, and related expenses. However,
7the commission may establish a regulatory process to verify and
8ensure that each contract was administered in accordance with the
9terms of the contract, and contract disputes that may arise are
10reasonably resolved.

11(3) Ensure timely recovery of prospective procurement costs
12incurred pursuant to an approved procurement plan. The
13commission shall establish rates based on forecasts of procurement
14costs adopted by the commission, actual procurement costs
15incurred, or combination thereof, as determined by the commission.
16The commission shall establish power procurement balancing
17accounts to track the differences between recorded revenues and
18costs incurred pursuant to an approved procurement plan. The
19commission shall review the power procurement balancing
20accounts, not less than semiannually, and shall adjust rates or order
21refunds, as necessary, to promptly amortize a balancing account,
22according to a schedule determined by the commission. Until
23January 1, 2006, the commission shall ensure that any
24overcollection or undercollection in the power procurement
25balancing account does not exceed 5 percent of the electrical
26corporation’s actual recorded generation revenues for the prior
27 calendar year excluding revenues collected for the Department of
28Water Resources. The commission shall determine the schedule
29for amortizing the overcollection or undercollection in the
30balancing account to ensure that thebegin delete 5 percentend deletebegin insert 5-percentend insert threshold
31is not exceeded. After January 1, 2006, this adjustment shall occur
32when deemed appropriate by the commission consistent with the
33objectives of this section.

34(4) Moderate the price risk associated with serving its retail
35customers, including the price risk embedded in its long-term
36supply contracts, by authorizing an electrical corporation to enter
37into financial and other electricity-related product contracts.

38(5) Provide for just and reasonable rates, with an appropriate
39balancing of price stability and price level in the electrical
40corporation’s procurement plan.

P7    1(e) The commission shall provide for the periodic review and
2prospective modification of an electrical corporation’s procurement
3plan.

4(f) The commission may engage an independent consultant or
5advisory service to evaluate risk management and strategy. The
6reasonable costs of any consultant or advisory service is a
7reimbursable expense and eligible for funding pursuant to Section
8631.

9(g) The commission shall adopt appropriate procedures to ensure
10the confidentiality of any market sensitive information submitted
11in an electrical corporation’s proposed procurement plan or
12resulting from or related to its approved procurement plan,
13including, but not limited to, proposed or executed power purchase
14agreements, data request responses, or consultant reports, or any
15combination of these, provided that the Office of Ratepayer
16Advocates and other consumer groups that are nonmarket
17participants shall be provided access to this information under
18confidentiality procedures authorized by the commission.

19(h) Nothing in this section alters, modifies, or amends the
20commission’s oversight of affiliate transactions under its rules and
21decisions or the commission’s existing authority to investigate and
22penalize an electrical corporation’s alleged fraudulent activities,
23or to disallow costs incurred as a result of gross incompetence,
24fraud, abuse, or similar grounds. Nothing in this section expands,
25modifies, or limits the Energy Commission’s existing authority
26and responsibilities as set forth in Sections 25216, 25216.5, and
2725323 of the Public Resources Code.

28(i) An electrical corporation that serves less than 500,000 electric
29retail customers within the state may file with the commission a
30request for exemption from this section, which the commission
31shall grant upon a showing of good cause.

32(j) (1) Prior to its approval pursuant to Section 851 of any
33divestiture of generation assets owned by an electrical corporation
34on or after the date of enactment of the act adding this section, the
35commission shall determine the impact of the proposed divestiture
36on the electrical corporation’s procurement rates and shall approve
37a divestiture only to the extent it finds, taking into account the
38effect of the divestiture on procurement rates, that the divestiture
39is in the public interest and will result in net ratepayer benefits.

P8    1(2) Any electrical corporation’s procurement necessitated as a
2result of the divestiture of generation assets on or after the effective
3date of the act adding this subdivision shall be subject to the
4mechanisms and procedures set forth in this section only if its
5actual cost is less than the recent historical cost of the divested
6generation assets.

7(3) Notwithstanding paragraph (2), the commission may deem
8proposed procurement eligible to use the procedures in this section
9upon its approval of asset divestiture pursuant to Section 851.

10(k) The commission shall direct electrical corporations to include
11in their proposed procurement plans the integration costs described
12and determined pursuant to clause (v) of subparagraph (A) of
13paragraph (4) of subdivision (a) of Section 399.13.

begin insert

14
(l) Prior to approving an electrical corporation’s contract for
15any new gas-fired generating unit, the commission shall require
16the electrical corporation to demonstrate compliance with its
17approved procurement plan.

end insert
18begin insert

begin insertSEC. 1.5.end insert  

end insert

begin insertSection 454.5 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
19to read:end insert

20

454.5.  

(a) The commission shall specify the allocation of
21electricity, including quantity, characteristics, and duration of
22electricity delivery, that the Department of Water Resources shall
23provide under its power purchase agreements to the customers of
24each electrical corporation, which shall be reflected in the electrical
25corporation’s proposed procurement plan. Each electrical
26corporation shall file a proposed procurement plan with the
27commission not later than 60 days after the commission specifies
28the allocation of electricity. The proposed procurement plan shall
29specify the date that the electrical corporation intends to resume
30procurement of electricity for its retail customers, consistent with
31its obligation to serve. After the commission’s adoption of a
32procurement plan, the commission shall allow not less than 60
33days before the electrical corporation resumes procurement
34pursuant to this section.

35(b) An electrical corporation’s proposed procurement plan shall
36include, but not be limited to, all of the following:

37(1) An assessment of the price risk associated with the electrical
38corporation’s portfolio, including any utility-retained generation,
39existing power purchase and exchange contracts, and proposed
40contracts or purchases under which an electrical corporation will
P9    1procure electricity, electricity demand reductions, and
2electricity-related products and the remaining open position to be
3served by spot market transactions.

4(2) A definition of each electricity product, electricity-related
5product, and procurement related financial product, including
6support and justification for the product type and amount to be
7procured under the plan.

8(3) The duration of the plan.

9(4) The duration, timing, and range of quantities of each product
10to be procured.

11(5) A competitive procurement process under which the
12electrical corporation may request bids for procurement-related
13services, including the format and criteria of that procurement
14process.

15(6) An incentive mechanism, if any incentive mechanism is
16proposed, including the type of transactions to be covered by that
17mechanism, their respective procurement benchmarks, and other
18parameters needed to determine the sharing of risks and benefits.

19(7) The upfront standards and criteria by which the acceptability
20and eligibility for rate recovery of a proposed procurement
21 transaction will be known by the electrical corporation prior to
22execution of the transaction. This shall include an expedited
23approval process for the commission’s review of proposed contracts
24and subsequent approval or rejection thereof. The electrical
25corporation shall propose alternative procurement choices in the
26event a contract is rejected.

27(8) Procedures for updating the procurement plan.

28(9) A showing that the procurement plan will achieve the
29following:

30(A) The electrical corporation, in order to fulfill its unmet
31resource needs, shall procure resources from eligible renewable
32energy resources in an amount sufficient to meet its procurement
33requirements pursuant to the California Renewables Portfolio
34Standard Program (Article 16 (commencing with Section 399.11)
35of Chapter 2.3).

36(B) The electrical corporation shall create or maintain a
37diversified procurement portfolio consisting of both short-term
38and long-term electricity and electricity-related and demand
39reduction products.

P10   1(C) begin insert(i)end insertbegin insertend insert The electrical corporation shall first meet its unmet
2resource needs through all available energy efficiency and demand
3reduction resources that are cost effective, reliable, and feasible.

begin insert

4
(ii) In determining the availability of cost-effective, reliable,
5and feasible demand reduction resources, the commission shall
6consider the findings regarding technically and economically
7achievable demand reduction in the Demand Response Potential
8Study required pursuant to Commission Order D.14-12-024, to
9the extent those findings are not superseded by other demand
10reduction studies conducted by academic institutions or
11government agencies, and to the extent that any demand reduction
12is consistent with commission policy.

end insert
begin insert

13
(D) (i)   The electrical corporation, in soliciting bids for new
14gas-fired generating units, shall actively seek bids for resources
15that are not gas-fired generating units located in communities that
16suffer from cumulative pollution burdens, including, but not limited
17to, high emission levels of toxic air contaminants, criteria air
18pollutants, and greenhouse gases.

end insert
begin insert

19
(ii) In considering bids for, or negotiating contracts for, new
20gas-fired generating units, the electrical corporation shall provide
21greater preference to resources that are not gas-fired generating
22units located in communities that suffer from cumulative pollution
23burdens, including, but not limited to, high emission levels of toxic
24air contaminants, criteria air pollutants, and greenhouse gases.

end insert
begin insert

25
(iii) This subparagraph does not apply to contracts signed by
26an electrical corporation and approved by the commission prior
27to January 1, 2017.

end insert

28(10) The electrical corporation’s risk management policy,
29strategy, and practices, including specific measures of price
30stability.

31(11) A plan to achieve appropriate increases in diversity of
32ownership and diversity of fuel supply of nonutility electrical
33generation.

34(12) A mechanism for recovery of reasonable administrative
35costs related to procurement in the generation component of rates.

36(c) The commission shall review and accept, modify, or reject
37each electrical corporation’s procurementbegin delete plan.end deletebegin insert plan and any
38amendments or updates to the plan. The commission shall ensure
39that the plan contains the elements required by this section,
40including the elements described in subparagraphs (C) and (D)
P11   1of paragraph (9) of subdivision (b).end insert
The commission’s review shall
2consider each electrical corporation’s individual procurement
3situation, and shall give strong consideration to that situation in
4determining which one or more of the features set forth in this
5subdivision shall apply to that electrical corporation. A
6procurement plan approved by the commission shall contain one
7or more of the following features, provided that the commission
8may not approve a feature or mechanism for an electrical
9corporation if it finds that the feature or mechanism would impair
10the restoration of an electrical corporation’s creditworthiness or
11would lead to a deterioration of an electrical corporation’s
12creditworthiness:

13(1) A competitive procurement process under which the
14electrical corporation may request bids for procurement-related
15services. The commission shall specify the format of that
16procurement process, as well as criteria to ensure that the auction
17process is open and adequately subscribed. Any purchases made
18in compliance with the commission-authorized process shall be
19recovered in the generation component of rates.

20(2) An incentive mechanism that establishes a procurement
21benchmark or benchmarks and authorizes the electrical corporation
22to procure from the market, subject to comparing the electrical
23corporation’s performance to the commission-authorized
24benchmark or benchmarks. The incentive mechanism shall be
25clear, achievable, and contain quantifiable objectives and standards.
26The incentive mechanism shall contain balanced risk and reward
27incentives that limit the risk and reward of an electrical corporation.

28(3) Upfront achievable standards and criteria by which the
29acceptability and eligibility for rate recovery of a proposed
30procurement transaction will be known by the electrical corporation
31prior to the execution of the bilateral contract for the transaction.
32The commission shall provide for expedited review and either
33approve or reject the individual contracts submitted by the electrical
34corporation to ensure compliance with its procurement plan. To
35the extent the commission rejects a proposed contract pursuant to
36this criteria, the commission shall designate alternative procurement
37choices obtained in the procurement plan that will be recoverable
38for ratemaking purposes.

39(d) A procurement plan approved by the commission shall
40accomplish each of the following objectives:

P12   1(1) Enable the electrical corporation to fulfill its obligation to
2serve its customers at just and reasonable rates.

3(2) Eliminate the need for after-the-fact reasonableness reviews
4of an electrical corporation’s actions in compliance with an
5approved procurement plan, including resulting electricity
6procurement contracts, practices, and related expenses. However,
7the commission may establish a regulatory process to verify and
8ensure that each contract was administered in accordance with the
9terms of the contract, and contract disputes that may arise are
10reasonably resolved.

11(3) Ensure timely recovery of prospective procurement costs
12incurred pursuant to an approved procurement plan. The
13commission shall establish rates based on forecasts of procurement
14costs adopted by the commission, actual procurement costs
15incurred, or combination thereof, as determined by the commission.
16The commission shall establish power procurement balancing
17accounts to track the differences between recorded revenues and
18costs incurred pursuant to an approved procurement plan. The
19commission shall review the power procurement balancing
20accounts, not less than semiannually, and shall adjust rates or order
21refunds, as necessary, to promptly amortize a balancing account,
22according to a schedule determined by the commission. Until
23 January 1, 2006, the commission shall ensure that any
24overcollection or undercollection in the power procurement
25balancing account does not exceed 5 percent of the electrical
26corporation’s actual recorded generation revenues for the prior
27calendar year excluding revenues collected for the Department of
28Water Resources. The commission shall determine the schedule
29for amortizing the overcollection or undercollection in the
30balancing account to ensure that thebegin delete 5 percentend deletebegin insert 5-percentend insert threshold
31is not exceeded. After January 1, 2006, this adjustment shall occur
32when deemed appropriate by the commission consistent with the
33objectives of this section.

34(4) Moderate the price risk associated with serving its retail
35customers, including the price risk embedded in its long-term
36supply contracts, by authorizing an electrical corporation to enter
37into financial and other electricity-related product contracts.

38(5) Provide for just and reasonable rates, with an appropriate
39balancing of price stability and price level in the electrical
40corporation’s procurement plan.

P13   1(e) The commission shall provide for the periodic review and
2prospective modification of an electrical corporation’s procurement
3plan.

4(f) The commission may engage an independent consultant or
5advisory service to evaluate risk management and strategy. The
6reasonable costs of any consultant or advisory service is a
7reimbursable expense and eligible for funding pursuant to Section
8631.

9(g) The commission shall adopt appropriate procedures to ensure
10the confidentiality of any market sensitive information submitted
11in an electrical corporation’s proposed procurement plan or
12resulting from or related to its approved procurement plan,
13including, but not limited to, proposed or executed power purchase
14agreements, data request responses, or consultant reports, or any
15begin delete combination,end deletebegin insert combinend insertbegin insertation of these,end insert provided that the Office of
16Ratepayer Advocates and other consumer groups that are
17nonmarket participants shall be provided access to this information
18under confidentiality procedures authorized by the commission.

19(h) Nothing in this section alters, modifies, or amends the
20commission’s oversight of affiliate transactions under its rules and
21decisions or the commission’s existing authority to investigate and
22penalize an electrical corporation’s alleged fraudulent activities,
23or to disallow costs incurred as a result of gross incompetence,
24fraud, abuse, or similar grounds. Nothing in this section expands,
25modifies, or limits thebegin delete State Energy Resources Conservation and
26Developmentend delete
begin insert Energyend insert Commission’s existing authority and
27responsibilities as set forth in Sections 25216, 25216.5, and 25323
28of the Public Resources Code.

29(i) An electrical corporation that serves less than 500,000 electric
30retail customers within the state may file with the commission a
31request for exemption from this section, which the commission
32shall grant upon a showing of good cause.

33(j) (1) Prior to its approval pursuant to Section 851 of any
34divestiture of generation assets owned by an electrical corporation
35on or after the date of enactment of the act adding this section, the
36commission shall determine the impact of the proposed divestiture
37on the electrical corporation’s procurement rates and shall approve
38a divestiture only to the extent it finds, taking into account the
39effect of the divestiture on procurement rates, that the divestiture
40is in the public interest and will result in net ratepayer benefits.

P14   1(2) Any electrical corporation’s procurement necessitated as a
2result of the divestiture of generation assets on or after the effective
3date of the act adding this subdivision shall be subject to the
4mechanisms and procedures set forth in this section only if its
5actual cost is less than the recent historical cost of the divested
6generation assets.

7(3) Notwithstanding paragraph (2), the commission may deem
8proposed procurement eligible to use the procedures in this section
9upon its approval of asset divestiture pursuant to Section 851.

10(k) The commission shall direct electrical corporations to include
11in their proposed procurement plans the integration costs described
12and determined pursuant to clause (v) of subparagraph (A) of
13 paragraph (4) of subdivision (a) of Section 399.13.

begin insert

14
(l) Prior to approving an electrical corporation’s contract for
15any new gas-fired generating unit, the commission shall require
16the electrical corporation to demonstrate compliance with its
17approved procurement plan.

end insert
18begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

Section 1.5 of this bill incorporates amendments to
19Section 454.5 of the Public Utilities Code proposed by both this
20bill and Assembly Bill 1937. It shall only become operative if (1)
21both bills are enacted and become effective on or before January
221, 2017, (2) each bill amends Section 454.5 of the Public Utilities
23Code, and (3) this bill is enacted after Assembly Bill 1937, in which
24case Section 1 of this bill shall not become operative.

end insert
25

begin deleteSEC. 2.end delete
26
begin insertSEC. 3.end insert  

No reimbursement is required by this act pursuant to
27Section 6 of Article XIII B of the California Constitution because
28the only costs that may be incurred by a local agency or school
29district will be incurred because this act creates a new crime or
30infraction, eliminates a crime or infraction, or changes the penalty
31for a crime or infraction, within the meaning of Section 17556 of
32the Government Code, or changes the definition of a crime within
33the meaning of Section 6 of Article XIII B of the California
34Constitution.



O

    93