Section 743 Of Article 2. Rates From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 2.
743
. (a) As used in this section, "steel producer" means a producer
of steel products in California which in 1981 or any subsequent year
produced at least 75,000 tons of rolled or finished steel and which
has a maximum demand for electricity of 4,000 kilowatts or more at
one plant location. Any steel producer which transfers any
substantial amount of employment from its facilities in this state to
any out-of-state facility or otherwise substantially reduces
employment at its facilities in this state below the June 30, 1985,
level, or fails to maintain and make reasonable and prudent
investments in its facilities, as determined by the commission, is
ineligible for any electric rate established pursuant to this
section.
(b) As used in this section, "frozen food processor" means a
corporation or person engaged in the processing of food in
California, which food is classified according to the Standard
Industrial Classification Manual, 1972, in Industry No. 2037 and
Industry No. 2038 of Group 203, of Food and Kindred Products Major
Group 20, as specified in Section 2900.3 of Title 7 of the Code of
Federal Regulations. "Processing of food" includes the postprocessing
storage of frozen food in a warehouse, or other facility, until the
frozen food leaves the control or responsibility of the frozen food
processor or until the frozen food processor no longer has an
obligation to store the food.
(c) As used in this section, "system average rate" means total
jurisdictional revenues of the electrical corporation divided by
total jurisdictional sales.
(d) Every electrical corporation furnishing electricity to a steel
producer, frozen food processor, or other heavy-industry customer,
as determined and specified by the electrical corporation, shall
prepare and file tariffs providing rates which shall be lower than
the system average rate and take into consideration all of the
following:
(1) Specific service requirements of individual customers,
including, but not limited to, reliability, interruptability,
quantity of use, and requirements of voltage.
(2) Incentives to achieve conservation, improvements in
efficiency, and time-of-day load shifting.
(3) Implementation at the option of the customer.
(4) Cost of service.
(e) The commission shall consider and approve tariffs which shall
be consistent with this section and which shall be in effect on and
after July 1, 1992.
(f) The commission may approve contracts between an electrical
corporation and its heavy industrial customers as determined by the
electrical corporation, of not more than ten years' duration, in
which the electrical corporation buys from the heavy industrial
customer the right to interrupt the customer's service on short
notice, as determined by the commission. The payment mechanism may
include a discounted rate for service. In approving and determining
the reasonableness of these contracts, the commission may consider,
among other things, the price paid by the electrical corporation for
the right to interrupt, the value of that right to the utility system
and its ratepayers, and the benefits to the ratepayers and the
people of the state of retaining heavy industrial customers.
Throughout the term of any of these contracts, the commission shall
have the right to amend the contract. Every contract subject to this
subdivision shall include a provision indicating that the contract is
subject to amendment by the commission as provided in this
subdivision. This subdivision does not supersede the requirement of
subdivision (d) that the commission establish a heavy industrial
tariff.