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