California 2013-2014 Regular Session Status: To Executive 1 D cosponsors

SB 38 — Electrical restructuring.

Last action — Consideration of Governors veto died on file.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2013-2014 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

The existing restructuring of the electrical industry within the Public Utilities Act provides for the establishment of an Independent System Operator and a Power Exchange as nonprofit public benefit corporations. Existing law requires the Independent System Operator, within 6 months after receiving approval for its operation by the Federal Energy Regulatory Commission, to provide a report to the Legislature and the Electricity Oversight Board containing specified matter. This bill would repeal this reporting requirement, and would abolish the Power Exchange. Electrical restructuring makes legislative findings and declarations in order to provide guidance to the Public Utilities Commission in carrying out restructuring. This bill repeals those legislative findings and declarations. Electrical restructuring states the intent of the Legislature that individual customers not experience rate increases as a result of the allocation of transition costs, as specified, and requires the Public Utilities Commission to implement a methodology for calculating certain Power Exchange energy credits. This bill would repeal this provision. Electrical restructuring required the commission to identify and determine those costs and categories of costs for generation-related assets and obligations that were being collected in commission-approved rates on December 20, 1995, that might become uneconomic as a result of a competitive generation market. Electrical restructuring requires each electrical corporation to propose a cost recovery plan to the commission for the recovery of the uneconomic costs of an electrical corporation's generation-related assets and obligations, requires that the plan contain specified matter, and requires that the plan set rates for each customer class, rate schedule, contract, or tariff option, at levels equal to the level as shown on electric rate schedules as of June 10, 1996, provided that rates for residential and small commercial customers be reduced so that these customers receive rate reductions of no less than 10% for 1998 continuing through 2002. Electrical restructuring prohibits the commission, upon the termination of the 10% rate reduction for residential and small commercial customers, from subjecting those residential and small commercial customers to any rate increase or future rate obligations solely as a result of the termination of the 10% rate reduction. Electrical restructuring authorizes an electrical corporation to apply to the commission for a determination that certain transition costs, as defined, may be recovered through fixed transition amounts, which constitute transition property, as defined, and provides, until December 31, 2015, for the issuance of financing orders by the commission, and provides for the issuance of rate reduction bonds utilizing the California Infrastructure and Economic Development Bank, to be repaid out of rates. This bill would repeal these provisions. Electrical restructuring requires the commission to establish an effective mechanism that ensures recovery of specified transition costs from all existing and future consumers in the service territory in which the utility provided electricity services as of December 20, 1995, except that the costs shall not be recoverable for new customer load or incremental load of an existing customer where the load is being met through a direct transaction and the transaction does not otherwise require the use of transmission or distribution facilities owned by the utility. This bill would provide that competition transition charges that are authorized by the commission prior to January 1, 2015, continue to apply to all existing and future consumers in the service territory in which the utility provided electricity services as of December 20, 1995, subject to the exception described above. Electrical restructuring directed the commission to authorize direct transactions between electricity suppliers and end-use customers, subject to implementation of nonbypassable charges, as specified. Other provisions reference these charges as a nonbypassable charge, while other provisions reference these charges as an obligation to pay uneconomic costs, as specified. This bill would replace the various references to the specified statutory charges with "competition transition charges." Electrical restructuring requires any electrical corporation serving agricultural customers with multiple meters to conduct research based on a statistically valid sample of those customers and meters to determine the typical simultaneous peak load of those customers and to report the results to those customers and the commission by July 1, 2001. Electrical restructuring requires the commission to consider the research results in setting future electrical distribution rates for those customers. This bill would repeal this provision. Electrical restructuring requires the commission to allow recovery of reasonable employee related transition costs incurred and projected for severance, retraining, early retirement, outplacement, and related expenses for the employees in order to mitigate potential negative impacts on utility personnel directly affected by restructuring. This bill would repeal this provision. Existing law requires, for an electric generating facility sold by an electrical corporation in a transaction initiated prior to December 31, 2001, and approved by the commission by December 31, 2002, that the selling utility contract with the purchaser for the selling utility, an affiliate, or a successor corporation to operate and maintain the facility for at least 2 years, and authorizes the commission to require these conditions for transactions initiated on or after January 1, 2002. This bill would repeal this provision. Existing law, enacted as part of restructuring, prescribes how energy prices paid to nonutility electrical generators, known as qualifying facilities under federal law, by an electrical corporation based on the commission's "short run avoided cost energy methodology" are to be determined, subject to applicable contractual terms. Existing law authorizes a nonutility electrical generator using renewable fuels that entered into a contract with an electrical corporation prior to December 31, 2001, specifying fixed energy prices for 5 years of electrical output to negotiate a contract of an additional 5 years of fixed energy payments upon expiration of the initial 5-year term, at a price to be determined by the commission. This bill would repeal this provision. This bill would repeal a provision authorizing an electrical corporation that was also a gas corporation that served fewer than 4,000,000 customers as of December 20, 1995, to file a rate cap mechanism that includes a Fuel Price Index Mechanism, as specified, which authorization became inoperative on December 31, 2001. This bill would strike references to these repealed statutes.

Bill Text

Action History

  1. Consideration of Governors veto died on file.

  2. In Senate. Consideration of Governor's veto pending.

  3. Vetoed by the Governor.

  4. Enrolled and presented to the Governor at 2 p.m.

  5. Assembly amendments concurred in. (Ayes 34. Noes 0. Page 4941.) Ordered to engrossing and enrolling.

  6. In Senate. Concurrence in Assembly amendments pending.

  7. Read third time. Passed. (Ayes 78. Noes 0. Page 6552.) Ordered to the Senate.

  8. Read second time. Ordered to third reading.

  9. Read second time and amended. Ordered to second reading.

  10. From committee: Do pass as amended. (Ayes 12. Noes 0.) (August 14).

  11. Joint Rule 62(a) file notice suspended. (Page 5962.)

  12. Set, second hearing. Held in committee and under submission.

  13. Set, first hearing. Referred to APPR. suspense file.

  14. Read second time and amended. Re-referred to Com. on APPR.

  15. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 2).

  16. From committee with author's amendments. Read second time and amended. Re-referred to Com. on PUB. S.

  17. Referred to Com. on PUB. S.

  18. In Assembly. Read first time. Held at Desk.

  19. Read third time. Passed. (Ayes 39. Noes 0. Page 1110.) Ordered to the Assembly.

  20. Read second time and amended. Ordered to third reading.

  21. From committee: Do pass as amended. (Ayes 7. Noes 0. Page 1005.) (May 23).

  22. Set for hearing May 23.

  23. Placed on APPR. suspense file.

  24. Set for hearing May 13.

  25. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0. Page 755.) (April 30). Re-referred to Com. on APPR.

  26. Set for hearing April 30.

  27. Re-referred to Com. on PUB. S.

  28. From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  29. Referred to Com. on RLS.

  30. Read first time.

  31. From printer. May be acted upon on or after January 5.

  32. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Unfinished Business SB38 Padilla Concurrence

Passed 34 Yea · 0 Nay · 6 Other
Party YeaNayPresentNot Voting
Unaffiliated 32005
Democratic 2001
Total 34006
% of votes cast 85%0%0%15%
How each member voted (40)
Member Party Vote
Anderson — Yea
Block — Yea
Hill — Yea
Hueso — Yea
Leno — Yea
Nielsen — Yea
Roth — Yea
Steinberg — Yea
Wright — Not Voting
Correa — Yea
Evans — Not Voting
DeSaulnier — Yea
Hernandez — Yea
Huff — Yea
Liu — Yea
Beall — Yea
Galgiani — Yea
Mitchell — Yea
Hancock — Yea
Lara — Yea
Lieu — Yea
Torres — Yea
Walters — Yea
Cannella — Yea
Wyland — Yea
De León — Not Voting
Corbett — Yea
Knight — Yea
Monning — Yea
Morrell — Yea
Pavley — Yea
Vidak — Yea
Wolk — Yea
Fuller — Yea
Yee — Not Voting
Beth Gaines — Not Voting
Bill Berryhill — Yea
Calderon, Lisa Democratic Not Voting
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

SB 38 Padilla Senate Third Reading By BRADFORD

Passed 78 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 71001
Democratic 4000
Republican 3000
Total 78001
% of votes cast 99%0%0%1%
How each member voted (79)
Member Party Vote
Achadjian — Yea
Bloom — Yea
Bradford — Yea
Brown — Yea
Buchanan — Yea
Harkey — Not Voting
Holden — Yea
Maienschein — Yea
Mansoor — Yea
Ridley-Thomas — Yea
Wagner — Yea
Weber — Yea
Williams — Yea
Daly — Yea
Frazier — Yea
Campos — Yea
Gomez — Yea
Gordon — Yea
Chau — Yea
Gorell — Yea
Hagman — Yea
Hall — Yea
Chesbro — Yea
Allen — Yea
Bonilla — Yea
Linder — Yea
Logue — Yea
Medina — Yea
Mullin — Yea
Nazarian — Yea
Gray — Yea
Olsen — Yea
Pan — Yea
Bocanegra — Yea
John A. Pérez — Yea
Salas — Yea
Quirk — Yea
Lowenthal — Yea
Rendon — Yea
Garcia — Yea
Rodriguez — Yea
Atkins — Yea
Alejo — Yea
Ammiano — Yea
Bigelow — Yea
Chávez — Yea
Conway — Yea
Cooley — Yea
Dababneh — Yea
Donnelly — Yea
Eggman — Yea
Skinner — Yea
Ting — Yea
Waldron — Yea
Wieckowski — Yea
Wilk — Yea
Fong — Yea
Gatto — Yea
Jones-Sawyer — Yea
Levine — Yea
Melendez — Yea
Nestande — Yea
Perea — Yea
Dickinson — Yea
Fox — Yea
Yamada — Yea
Beth Gaines — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass as amended.

Passed 12 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 11004
Democratic 1000
Republican 0001
Total 12005
% of votes cast 71%0%0%29%
How each member voted (17)
Member Party Vote
Bradford — Yea
Linder — Not Voting
Gomez — Yea
Campos — Yea
Bocanegra — Yea
Holden — Yea
Bigelow — Not Voting
Donnelly — Not Voting
Eggman — Yea
Pan — Yea
Quirk — Yea
Ridley-Thomas — Yea
Wagner — Not Voting
Weber — Yea
Gatto — Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Not Voting

Official roll call →

3rd Reading SB38 De León

Passed 39 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 36000
Democratic 3000
Total 39000
% of votes cast 100%0%0%0%
How each member voted (39)
Member Party Vote
Beall — Yea
Hernandez — Yea
Liu — Yea
Monning — Yea
Torres — Yea
Wright — Yea
Corbett — Yea
Emmerson — Yea
Correa — Yea
Evans — Yea
Wyland — Yea
De León — Yea
Cannella — Yea
Galgiani — Yea
Hancock — Yea
Anderson — Yea
Block — Yea
Hill — Yea
Hueso — Yea
Huff — Yea
Knight — Yea
Lara — Yea
Leno — Yea
Lieu — Yea
Nielsen — Yea
Pavley — Yea
Price — Yea
Roth — Yea
Steinberg — Yea
Walters — Yea
Wolk — Yea
DeSaulnier — Yea
Fuller — Yea
Yee — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Calderon, Lisa Democratic Yea
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

Do pass as amended.

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Hill — Yea
Lara — Yea
Steinberg — Yea
Walters — Yea
De León — Yea
Beth Gaines — Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

Subjects

technology energy
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Frequently asked questions

What does SB 38 do?
The existing restructuring of the electrical industry within the Public Utilities Act provides for the establishment of an Independent System Operator and a Power Exchange as nonprofit public benefit corporations. Existing law requires the Independent System Operator, within 6 months after receiving approval for its operation by the Federal Energy Regulatory Commission, to provide a report to the Legislature and the Electricity Oversight Board containing specified matter. This bill would repeal this reporting requirement, and would abolish the Power Exchange. Electrical restructuring makes legislative findings and declarations in order to provide guidance to the Public Utilities Commission in carrying out restructuring. This bill repeals those legislative findings and declarations. Electrical restructuring states the intent of the Legislature that individual customers not experience rate increases as a result of the allocation of transition costs, as specified, and requires the Public Utilities Commission to implement a methodology for calculating certain Power Exchange energy credits. This bill would repeal this provision. Electrical restructuring required the commission to identify and determine those costs and categories of costs for generation-related assets and obligations that were being collected in commission-approved rates on December 20, 1995, that might become uneconomic as a result of a competitive generation market. Electrical restructuring requires each electrical corporation to propose a cost recovery plan to the commission for the recovery of the uneconomic costs of an electrical corporation's generation-related assets and obligations, requires that the plan contain specified matter, and requires that the plan set rates for each customer class, rate schedule, contract, or tariff option, at levels equal to the level as shown on electric rate schedules as of June 10, 1996, provided that rates for residential and small commercial customers be reduced so that these customers receive rate reductions of no less than 10% for 1998 continuing through 2002. Electrical restructuring prohibits the commission, upon the termination of the 10% rate reduction for residential and small commercial customers, from subjecting those residential and small commercial customers to any rate increase or future rate obligations solely as a result of the termination of the 10% rate reduction. Electrical restructuring authorizes an electrical corporation to apply to the commission for a determination that certain transition costs, as defined, may be recovered through fixed transition amounts, which constitute transition property, as defined, and provides, until December 31, 2015, for the issuance of financing orders by the commission, and provides for the issuance of rate reduction bonds utilizing the California Infrastructure and Economic Development Bank, to be repaid out of rates. This bill would repeal these provisions. Electrical restructuring requires the commission to establish an effective mechanism that ensures recovery of specified transition costs from all existing and future consumers in the service territory in which the utility provided electricity services as of December 20, 1995, except that the costs shall not be recoverable for new customer load or incremental load of an existing customer where the load is being met through a direct transaction and the transaction does not otherwise require the use of transmission or distribution facilities owned by the utility. This bill would provide that competition transition charges that are authorized by the commission prior to January 1, 2015, continue to apply to all existing and future consumers in the service territory in which the utility provided electricity services as of December 20, 1995, subject to the exception described above. Electrical restructuring directed the commission to authorize direct transactions between electricity suppliers and end-use customers, subject to implementation of nonbypassable charges, as specified. Other provisions reference these charges as a nonbypassable charge, while other provisions reference these charges as an obligation to pay uneconomic costs, as specified. This bill would replace the various references to the specified statutory charges with "competition transition charges." Electrical restructuring requires any electrical corporation serving agricultural customers with multiple meters to conduct research based on a statistically valid sample of those customers and meters to determine the typical simultaneous peak load of those customers and to report the results to those customers and the commission by July 1, 2001. Electrical restructuring requires the commission to consider the research results in setting future electrical distribution rates for those customers. This bill would repeal this provision. Electrical restructuring requires the commission to allow recovery of reasonable employee related transition costs incurred and projected for severance, retraining, early retirement, outplacement, and related expenses for the employees in order to mitigate potential negative impacts on utility personnel directly affected by restructuring. This bill would repeal this provision. Existing law requires, for an electric generating facility sold by an electrical corporation in a transaction initiated prior to December 31, 2001, and approved by the commission by December 31, 2002, that the selling utility contract with the purchaser for the selling utility, an affiliate, or a successor corporation to operate and maintain the facility for at least 2 years, and authorizes the commission to require these conditions for transactions initiated on or after January 1, 2002. This bill would repeal this provision. Existing law, enacted as part of restructuring, prescribes how energy prices paid to nonutility electrical generators, known as qualifying facilities under federal law, by an electrical corporation based on the commission's "short run avoided cost energy methodology" are to be determined, subject to applicable contractual terms. Existing law authorizes a nonutility electrical generator using renewable fuels that entered into a contract with an electrical corporation prior to December 31, 2001, specifying fixed energy prices for 5 years of electrical output to negotiate a contract of an additional 5 years of fixed energy payments upon expiration of the initial 5-year term, at a price to be determined by the commission. This bill would repeal this provision. This bill would repeal a provision authorizing an electrical corporation that was also a gas corporation that served fewer than 4,000,000 customers as of December 20, 1995, to file a rate cap mechanism that includes a Fuel Price Index Mechanism, as specified, which authorization became inoperative on December 31, 2001. This bill would strike references to these repealed statutes.
Who sponsors SB 38?
SB 38 is sponsored by Padilla, Stephen C. (Democratic).
What is the current status of SB 38?
This bill died with 2013-2014 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 38?
Track SB 38 free on One Click Politics — get push/email alerts when it moves.

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