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Enron Mail |
Jim:
During the CA call today, you requested a copy of this bill and asked about its language concerning rates after March 02. * This is the link to the bill: <http://info.sen.ca.gov/cgi-bin/postquery?bill_number=sbx2_78&sess=CUR&house=B&site=sen< * The mechanism for setting rates is a little unclear, however, at the end of this message I have attached part of a Senate analysis of this bill that may provide you with the information you need. Please let me know if you require additional information. * FYI - Scott and I are finalizing a matrix of relevant CA legislation and will circulate it shortly for feedback. I will keep it updated and distribute updated versions to the group on a regular basis. I will also update the binders in the CA meeting room with the most recent versions for our reference. Jennifer ********************* "Existing provisions of the Public Utilities Act restructuring the electrical industry establish a process for the recovery by electrical corporations regulated by the Public Utilities Commission of uneconomic transition costs for a certain period of time, and requires the commission to establish a mechanism for recovery of these costs. This bill would also provide for recovery by a specified electrical corporation of qualified costs, as defined, subject to verification and approval by the commission, if the corporation and its holding company enter into a specified binding and enforceable agreement with the state for performance of various requirements including, the sale to retail end-use customers of and the application of cost-based rates to all electricity produced by generation assets owned by the corporation, dedication of certain generation output to the state, conveyance of certain lands to the state, termination of actual or potential litigation, agreement to resume procurement of full electricity requirements for its service area as soon as it is deemed creditworthy or January 1, 2003, whichever is sooner, providing an irrevocable option to purchase transmission facilities, and application of a specified tax refund to reduction or elimination of debt. The bill would require the commission, until December 15, 2006, to approve an irrevocable financing order for the recovery by the electrical corporation of an electrical corporation debt repayment set-aside, in an amount not to exceed $2,500,000,000 of qualified costs. The bill would require the electrical corporation repayment set-aside established pursuant to these provisions to be paid exclusively by customers with electric loads exceeding 125 kilowatt billing demand. The bill would enact various other related provisions in that regard, including authorizing the issuance of electricity market stabilization bonds by the electrical corporation secured by the set-aside and requiring the approval of the commission of those bonds. The bill would require the electrical corporation to apply the net proceeds from the sale of electricity market stabilization bonds to certain of the corporation's debts. Existing law requires the commission to identify certain generation-related costs of electrical corporations that are uneconomic under the restructuring of the electrical industry, and provides for recovery of those uneconomic costs by the corporations from customers in a specified manner. This bill would provide that these and certain related provisions are repealed on January 1, 2002. The Public Utilities Act provides for the continued regulation by the commission of the facilities for the generation of electricity owned by any public utility prior to January 1, 1997, but pursuant to Chapter 2 of the 2001-02 First Extraordinary Session, also prohibits any disposal of a facility of this nature prior to January 1, 2006. This bill would enact new provisions authorizing the commission to require an electrical corporation to make direct investments in generation facilities, and providing for the commission to approve rates sufficient to support that investment. The bill would prohibit the commission, on or before January 1, 2006, from reducing a specified electrical corporation's authorized rate of return on generation assets below a certain level, if the electrical corporation has entered into the specified binding and enforceable agreement with the state described above." Existing provisions of the Public Utilities Act restructuring the electrical industry establish a process for the recovery by electrical corporations regulated by the Public Utilities Commission of uneconomic transition costs for a certain period of time, and requires the commission to establish a mechanism for recovery of these costs.
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