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SPONSOR: |
Sanchez, M. |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Public Utility Transition Cost Recovery |
SB |
718 |
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ANALYST: |
Valenzuela |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Office
of the Attorney General
Public
Regulation Commission
Energy,
Minerals and Natural Resources Department
SUMMARY
Synopsis
of Bill
Senate Bill 718 repeals the Electric Utility
Industry Restructuring Act of 1999, as amended and makes several revisions to
other statutes as detailed below:
·
Allows
a public utility to recover transition costs incurred due to its compliance
with the Restructuring Act.
·
Authorizes
a public utility to have an interest in a generating plant that is not intended
to provide service to retail customers and the cost of which is not included in
retail rates and which business activities shall not be subject to regulation
by the Public Regulation Commission.
·
Specifies
that a public utility shall not be required to functionally separate its
electric and gas operations from each other.
·
Allows
a distribution cooperative utility organized in another state to apply for approval
to be governed by the restructuring laws in that state.
·
Removes
the Public Utility Act from the delayed repeal of
Significant
Issues
SB 718 repeals deregulation of the electric
utility industry, which is not slated to take effect until
By repealing the Restructuring Act, the bill repeals the system benefits charge and fund, which would assess all retail consumers a $0.0003/kW hour usage fee to be deposited into the fund. Estimates were that the fee would generate $6 million per year for renewable energy/energy efficiency projects to be installed at public facilities and for low-income households.
FISCAL IMPLICATIONS
SB 718 does not
contain an appropriation. Repeal of deregulation is not expected to have an additional
administrative or fiscal impact on any state agency.
MFV/ls