BILL ANALYSIS AB 1890 Date of Hearing: July 10, 1995 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Joe Baca, Chair AB 1890 (Conroy) - As Proposed to be Amended SUBJECT Public Utilities: electric services: electrical restructuring. DIGEST Urgency statute. 2/3 vote required. Existing law grants the California Public Utilities Commission (CPUC) the regulatory authority over public utilities. This bill: 1) States legislative intent addressing the primary purpose of restructuring the electric industry, which includes reducing electric rates to all consumers, fostering a competitive electric service industry through reduced regulation, preserving the safety and reliability of the electric system, ensuring all existing contracts will be honored, and consumers eventually have the ability to choose an electric service provider. 2) Adds to the Public Utilities Code, Legislative intent to address policy concerns by which electric restructuring should comply, including establishing a transition period beginning no later than January 1, 1997, identifying and paying off stranded costs, declaring electric rates shall not increase throughout the transition period as a result of restructuring, transition costs shall not exceed savings generated by the restructuring, unbundling of electric bills, and evaluation of public benefit programs. - continued - AB 1890 Page 1 AB 1890 FISCAL EFFECT Unknown COMMENTS According to the author, this bill is a vehicle for restructuring the electric service industry. The bill is not in its final form and should be considered a "work in progress." The goals of AB 1890 are to lower electric rates through reducing the existing regulatory structure. The bill outlines policy goals that attempt to ensure a smooth transition into a restructured industry. SUPPORT California Public Utilities Commission California Municipal Utilities Association OPPOSITION None reported to Committee - continued - AB 1890 Page 2