'Core-Noncore' Bills Derailed

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, July 14, 2003 Share this on FacebookTweet thisEmail this to a friend

Two bills establishing a core-noncore retail electricity market got off track recently.

AB 428 (Keith Richman, R-Northridge) failed passage in the Senate Energy, Utilities and Communications Committee on July 8. The bill would have lifted the suspension of DA effective January 1, 2006 and allowed switching between DA and bundled service.

The measure fell well short of passage, with only two votes, and with committee chair Debra Bowen (D-Marina Del Rey) voting against it.

Under AB 428, utilities would have had an obligation to provide bundled commodity procurement service to bundled core customers (defined as customers below 500 kW) and also to noncore customers who make at least a three-year commitment to bundled utility service. Bundled noncore customers who do not make a minimum three year commitment to bundled service would have received "default service" and paid the "higher of" the spot price or bundled portfolio price (until and unless they make the three year commitment, at which point they would have paid the bundled portfolio price).

CMTA had a "support if amended" position, and would have supported the bill if it were amended to require noncore customers to pay the spot price (rather than the "higher of") for default service and if the provisions requiring a non-bypassable charge for “planning reserves” were deleted from the bill.

The other core-noncore bill, AB 816 (Reyes), was pulled from the Senate Energy Committee's July 8 hearing agenda and made into a two-year bill, meaning the Legislature will take up the bill again in the 2004 legislative session.
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