Nunez to Author Major Energy Bill in 05

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

Capitol Update, Oct. 22, 2004 Share this on FacebookTweet thisEmail this to a friend

Undeterred by the Governor's veto of AB 2006, Assembly Speaker Fabian Nunez (D-Los Angeles) says he will introduce similar legislation in the next legislative session.

AB 2006, the most controversial energy-related bill of the 2003-2004 session, dealt with an array of issues, including utility procurement and cost recovery. Provisions relating to direct access were stripped out of the bill in the Senate.

The bill would have duplicated and added a new layer of requirements to the procurement planning process currently underway at the California Public Utilities Commission. The requirement for a new and additional planning process would have impeded and delayed resolution of critical resource adequacy proceedings and would have undermined the goal of bringing new resources on line as soon as possible. Additionally, AB 2006 would have given investor-owned utilities the ability to build power plants outside a competitive process, thereby putting upward pressure on rates if utilities are not required to buy only the lowest cost power.

The bill had the support of Southern California Edison and utility labor groups but was opposed by a long list of business organizations, including CMTA.

The Speaker's office has not yet released any specifics regarding what will be included in the new legislative proposal. It will likely to be a few months before any bill language is available. The new legislative session begins December 6th.
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