California Assembly panels approves power industry reform bill

San Francisco (Platts)--20May2004

The California Assembly Appropriations Committee on Wednesday in a 16-4 vote
passed a bill to establish a framework for the state's power industry to
encourage investment in new generation and re-instate retail competition.
Introduced by Assembly Speaker Fabian Nunez, the bill (AB 2006) lays out
requirements to restart customer choice through a core/non-core direct-access
model by 2006. Under the plan, core customers would stay with their utilities
and non-core customers, or those with demand over 500 kW, could opt for
alternate suppliers. The bill also requires the state public utilities
commission to approve and maintain rates that ensure utilities get full cost
recovery of their investments in power contracts and generation. The bill,
which passed the Assembly Utilities and Commerce Committee on April 19 in a
9-3 vote, now heads to the Assembly floor.

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