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SCR-30 Electricity cost refunds.(2003-2004)

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SCR30:v97#DOCUMENT

Amended  IN  Senate  July 16, 2003
Amended  IN  Senate  August 26, 2003

CALIFORNIA LEGISLATURE— 2003–2004 REGULAR SESSION

Senate Concurrent Resolution
No. 30


Introduced  by  Senator Poochigian
(Coauthor(s): Senator Ashburn, Battin, Johnson, Margett, McClintock, McPherson, Morrow)

May 01, 2003


Relative to electricity cost refunds.


LEGISLATIVE COUNSEL'S DIGEST


SCR 30, as amended, Poochigian. Electricity cost refunds.
This measure would urge that energy-related refunds ordered by the Federal Energy Regulatory Commission, or negotiated by the Attorney General, the Governor, or any other agent of the state, should be used to benefit ratepayers who were harmed and that, in order to provide relief, money from energy-related refunds should be dedicated to reduce those ratepayers’ costs, to the maximum extent possible, through reduction of rates or the reduction of ratepayer debt obligations incurred as a result of the energy crisis. The measure would also urge that energy-related refunds should be used to reimburse reasonable litigation expenses incurred by the Attorney General.
Fiscal Committee: YES  

WHEREAS, In 2000–01, this state experienced skyrocketing electricity costs and an unprecedented number of rolling blackouts. California ratepayers will experience the hardship of excessive electricity costs for many years; and
WHEREAS, The Department of Water Resources began to purchase electricity for the customers of the investor-owned utilities in January 2001 to avoid electricity service disruptions and to minimize the adverse effect on California’s economy; and
WHEREAS, California issued approximately $12,000,000,000 in revenue bonds, the largest municipal bond sale in the history of the United States, to finance the Department of Water Resources energy purchases and repay funds borrowed from the state’s General Fund; and
WHEREAS, Ratepayers are now forced to pay an energy surcharge for the debt service of the energy bond bonds over 20 years, totaling approximately $17,400,000,000; and
WHEREAS, The ratepayers of California deserve relief from exorbitant energy prices ; and
WHEREAS, The Federal Energy Regulatory Commission must determine refunds, which may be due to California for unjust and unreasonable wholesale electricity charges; and
WHEREAS, The Attorney General has initiated legal proceedings to recover funds from market participants, and has negotiated settlements on several energy lawsuits; now, therefore, be it
Resolved by the Senate of the State of California, the Assembly thereof concurring, That energy-related refunds ordered by the Federal Energy Regulatory Commission, or negotiated by the Attorney General, the Governor, or any other agent of the state, should be used to benefit the ratepayers who were harmed and to reimburse reasonable litigation expenses incurred by the Attorney General; and be it further
Resolved, That, in order to provide relief, money from energy refunds should be dedicated to reduce those ratepayers’ costs, to the maximum extent possible, through reduction of rates or the reduction of ratepayer debt obligations incurred as a result of the energy crisis; and be it further
Resolved, That the Secretary of the Senate transmit copies of this resolution to each member of the Federal Energy Regulatory Commission, the Governor, the Attorney General, each member of the Public Utilities Commission, and the Director of Water Resources.