BILL ANALYSIS
SENATE RULES COMMITTEE AB 1890
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IN CONFERENCE
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Bill No: AB 1890
Author: Brulte (R), et al
Amended: 6/19/96 in Senate
Vote: 21
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SENATE ENERGY, U. & C. COMMITTEE: 7-0, 6/11/96
AYES: Alquist, Hughes, Kelley, Leonard, Mountjoy,
Rosenthal, Russell, Peace
NOT VOTING: Hayden
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 40-0, 6/24/96
AYES: Alquist, Ayala, Beverly, Boatwright, Calderon,
Costa, Craven, Dills, Greene, Hayden, Haynes, Hughes,
Hurtt, Johannessen, Johnson, Johnston, Kelley, Killea,
Kopp, Leonard, Leslie, Lewis, Lockyer, Maddy, Marks,
Mello, Monteith, Mountjoy, O'Connell, Peace, Petris,
Polanco, Rogers, Rosenthal, Russell, Sher, Solis,
Thompson, Watson, Wright
ASSEMBLY FLOOR: 73-0, 7/24/95 (Passed on Consent) (May
not be relevant -- See NOTE in Digest)
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SUBJECT: Public utilities: restructuring of the
electric industry
SOURCE: Author
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AB 1890
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DIGEST: This bill states legislative intent with respect
to restructuring the electric industry.
NOTE: Senate amendments delete the prior version; however,
the subject matter and intent remain the same. As it left
the Assembly, this bill was authored by Assemblymember
Conroy and addressed the issues related to electric
industry restructuring.
ANALYSIS: Under existing law, the Legislature authorizes
the California Public Utilities Commission (PUC) to
supervise and regulate every public utility in the state
and to do all things necessary and convenient in the
exercise of its power and jurisdiction including the
approval of utility expenses and the establishment of
rates.
In an effort to move the electric services industry to a
more competitive environment, on December 20, 1995, the
PUC ordered the implementation of the deregulation of the
electrical services industry in California.
This bill articulates the issues which must be addressed by
the Legislature, the PUC and the industry in the
restructuring debate if the principles set forth in SB 1139
(Mountjoy -- see Comments) are to be accomplished. The
issues set forth in this bill include:
1. Design of the newly-restructured industry.
2. Market power and antitrust problems.
3. Deregulation of the industry as a whole.
4. Transition costs, valuation of stranded assets,
amortization periods.
5. Transmission and distribution access, independent grid
operators.
6. Public policy issues, including cost, payment, and
maintenance of such programs.
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AB 1890
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This bill is double-joined with AB 3153 (Martinez).
Comment
This bill is intended to go to conference committee along
with other measures relative to restructuring of the
electric industry. The Senate has chosen two vehicles for
this purpose: SB 1139 by Senator Mountjoy and SB 1141 by
Senator Costa. The Assembly has chosen AB 1890 by
Assemblymember Brulte and AB 3153 by Assemblymember
Martinez.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No
Local: No
NC:ctl 6/21/96 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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