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Article 9.5. Ratepayer Relief Fund of California Government Code >> Division 4. >> Title 2. >> Part 2. >> Chapter 2. >> Article 9.5.
The Legislature finds and declares all of the following:
(a) Ratepayers and the state's economy have been harmed by improper and unfair energy market manipulation that has resulted in overcharging for electricity and natural gas.
(b) The purpose of the act adding this section is to ensure that any funds paid to the state as a result of energy litigation are used for the following purposes:
(1) To reimburse state funds for, or to finance, litigation and investigation expenses.
(2) To reduce ratepayer costs of those utility ratepayers harmed by the actions of the defendants.
(3) To reduce or pay debt service on the bonds issued pursuant to Division 27 (commencing with Section 80000) of the Water Code.
(a) Ratepayers and the state's economy have been harmed by improper and unfair energy market manipulation that has resulted in overcharging for electricity and natural gas.
(b) The purpose of the act adding this section is to ensure that any funds paid to the state as a result of energy litigation are used for the following purposes:
(1) To reimburse state funds for, or to finance, litigation and investigation expenses.
(2) To reduce ratepayer costs of those utility ratepayers harmed by the actions of the defendants.
(3) To reduce or pay debt service on the bonds issued pursuant to Division 27 (commencing with Section 80000) of the Water Code.
(a) The Ratepayer Relief Fund is hereby established in
the State Treasury. The purpose of the fund is to benefit electricity
and natural gas ratepayers and to fund investigation and litigation
costs of the state in pursuing allegations of overcharges and unfair
business practices against generators, suppliers, or marketers of
electricity or natural gas.
(b) Notwithstanding any other law, the Controller may use the moneys in the Ratepayer Relief Fund for loans to the General Fund as provided in Sections 16310 and 16381. However, interest shall be paid on all moneys loaned to the General Fund from the Ratepayer Relief Fund. Interest payable shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which loaned. This subdivision does not authorize any transfer that will interfere with the carrying out of the object for which the Ratepayer Relief Fund was created.
(b) Notwithstanding any other law, the Controller may use the moneys in the Ratepayer Relief Fund for loans to the General Fund as provided in Sections 16310 and 16381. However, interest shall be paid on all moneys loaned to the General Fund from the Ratepayer Relief Fund. Interest payable shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which loaned. This subdivision does not authorize any transfer that will interfere with the carrying out of the object for which the Ratepayer Relief Fund was created.
As used in this article, the following terms have the
following meanings:
(a) "Fund" means the Ratepayer Relief Fund established in Section 16428.1.
(b) "Energy settlement agreement" means any agreement arising from the energy crisis of 2000-02, where the State of California or a division of the State of California, is a party in a complaint or any action relating to the operation and management of any generation facilities, any sale or purchase or transmission of natural gas, any sale or purchase or transmission of electricity or other utility or energy goods and services, or a violation of the Federal Power Act (16 U.S.C. Sec. 791a et seq.), state law, or Public Utilities Commission orders or regulations relating to electricity generation, transmission, or distribution, electrical corporations, gas generation, storage, transmission, or distribution, gas corporations, energy generation facilities, or publicly owned utilities.
(a) "Fund" means the Ratepayer Relief Fund established in Section 16428.1.
(b) "Energy settlement agreement" means any agreement arising from the energy crisis of 2000-02, where the State of California or a division of the State of California, is a party in a complaint or any action relating to the operation and management of any generation facilities, any sale or purchase or transmission of natural gas, any sale or purchase or transmission of electricity or other utility or energy goods and services, or a violation of the Federal Power Act (16 U.S.C. Sec. 791a et seq.), state law, or Public Utilities Commission orders or regulations relating to electricity generation, transmission, or distribution, electrical corporations, gas generation, storage, transmission, or distribution, gas corporations, energy generation facilities, or publicly owned utilities.
(a) Any energy settlement agreement entered into by the
Attorney General, after reimbursing the Attorney General's litigation
and investigation expenses, to the maximum extent possible, shall
direct settlement funds to the following purposes in priority order:
(1) To reduce ratepayer costs of those utility ratepayers harmed by the actions of the settling parties. To the extent the ratepayers of the investor-owned utilities were harmed, the settlement funds shall be directed to reduce their 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.
(2) For deposit in the fund.
(b) Nothing in this article shall preclude nonmonetary compensation to the state through an energy settlement agreement, provided that the allocation of benefits from any nonmonetary compensation is consistent with paragraph (1) of subdivision (a).
(1) To reduce ratepayer costs of those utility ratepayers harmed by the actions of the settling parties. To the extent the ratepayers of the investor-owned utilities were harmed, the settlement funds shall be directed to reduce their 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.
(2) For deposit in the fund.
(b) Nothing in this article shall preclude nonmonetary compensation to the state through an energy settlement agreement, provided that the allocation of benefits from any nonmonetary compensation is consistent with paragraph (1) of subdivision (a).
All funds recovered on behalf of the Department of Water
Resources, after deduction of litigation and investigation expenses,
shall be deposited in the Department of Water Resources Electric
Power Fund and applied pursuant to Division 27 (commencing with
Section 80000) of the Water Code.
Moneys in the fund shall be expended upon appropriation by
the Legislature, for the benefit of ratepayers. Moneys in the fund
may be appropriated for the following purposes:
(a) To finance energy litigation and investigation expenses of state entities.
(b) To reduce rates for customers in the affected service areas of electrical utilities and gas utilities.
(c) To reduce the debt service on bonds issued pursuant to Division 27 (commencing with Section 80000) of the Water Code.
(a) To finance energy litigation and investigation expenses of state entities.
(b) To reduce rates for customers in the affected service areas of electrical utilities and gas utilities.
(c) To reduce the debt service on bonds issued pursuant to Division 27 (commencing with Section 80000) of the Water Code.
The Attorney General shall promptly notify the Director of
Finance, Senate President pro Tempore, and the Speaker of the
Assembly upon agreeing on behalf of the state to an energy settlement
agreement. Notification shall include a description of how the terms
of the settlement agreement, as they pertain to the state, are
consistent with the purposes of this article.
Nothing in this article affects the allocation of funds
from settlements entered into before the effective date of this
article.
