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AB-2897 Electrical cooperatives and gas cooperative.(2019-2020)

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Date Published: 02/21/2020 09:00 PM
AB2897:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2897

Introduced by Assembly Member Chiu

February 21, 2020

An act to amend Sections 2776, 2777, and 2778 of the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 2897, as introduced, Chiu. Electrical cooperatives and gas cooperative.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities. Existing law provides that the commission has no authority to establish rates or regulate the borrowing of money, the issuance of evidences of indebtedness, or the sale, lease, assignment, mortgage, or other disposal or encumbrance of the property of any electrical cooperative, as defined, but that electrical cooperatives are otherwise subject to the regulatory authority of the commission pursuant to the Public Utilities Act.
This bill would provide that the commission has no authority to establish rates or regulate the borrowing of money, the issuance of evidences of indebtedness, or the sale, lease, assignment, mortgage, or other disposal or encumbrance of the property of any gas cooperative, as defined, but that gas cooperatives are otherwise subject to the regulatory authority of the commission pursuant to the Public Utilities Act. The bill would revise the definition of an electrical cooperative.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 2776 of the Public Utilities Code is amended to read:

2776.
 (a) As used in this chapter, the term “electrical cooperative” means any private corporation or association organized for the purposes of transmitting or distributing electricity exclusively to to, or generating or storing electricity exclusively for, its stockholders or members at cost.
(b) As used in this chapter, “gas cooperative” means any private corporation or association organized for the purposes of transmitting or distributing gas exclusively to, or acquiring or storing gas exclusively for, its stockholders or members at cost.

SEC. 2.

 Section 2777 of the Public Utilities Code is amended to read:

2777.
 The commission shall have no authority to establish rates or regulate the borrowing of money, the issuance of evidences of indebtedness, or the sale, lease, assignment, mortgage, or other disposal or encumbrance of the property of any electrical or gas cooperative.

SEC. 3.

 Section 2778 of the Public Utilities Code is amended to read:

2778.
 Except as otherwise specified in this chapter, every electrical or gas cooperative is subject to Part 1 (commencing with Section 201).