HomeMy WebLinkAboutI- 6 Staff Report Letter of Supprot for SB 888 CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
VIA: RICK COLE, CITY MANAGER
DATE: MAY 5, 2003
SUBJECT: LETTER OF SUPPORT FOR SB 888
RECOMMENDATION
It is recommended that the Azusa City Council pass a motion to support SB 888 with clarifying
amendments and authorize the Mayor to sign the letter of support.
BACKGROUND
State Senator Joseph Dunn recently introduced a bill, SB 888, which is intended to return California
to a regulated, cost based, electric utility industry. It would repeal most of AB 1890 of 1996 which
restructured the electric industry in California.
The highlights of the Bill are:
• Declares the legislative intent to restore the Investor Owned Utilities (IOU) obligation to
serve, stop power plant divestiture, reinstated comprehensive planning, provide
reasonable rates, and assure universal service.
• Requires CPUC to set transmission maintenance standards.
• Repeal direct access provision of AB 1890.
• Provides that current direct access customers return to IOU service after their contracts
expire.
• Requires cost based regulation of IOUs.
• Restores the obligation to build generation to meet loads of IOUs.
This Bill deals almost entirely with Investor Owned Utilities in California. However, by moving the
California electric utility industry towards regulated, obligation to serve, and cost based
Page 2: Letter of Support for SB 888
market, it will restore market stability, supply reliability and cost predictability. Indirectly, public
owned utilities can benefit from those market attributes. Therefore, California Municipal Utilities
Association and Southern California Public Power Association have expressed support to this Bill.
A sample Letter of Support is attached for your reference.
Prepared by: J. Hsu
Attachment