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Enron Mail |
Assemblywoman Ellen Corbett took up AB 2xx this morning in the Assembly
Appropriations Committee.? Although it raises revenue and is not subject to the Suspense File rule, Migden sent the bill to Suspense (to be voted upon next Wednesday, May 30). Corbett said that Californians "have suffered long enough from greedy energy sellers."? She explained the bill and the 3-tier structure of the profits tax.? She said that "excessively greedy profits will be returned to the people through the General Fund."? She said that the results of this greed is that budget cuts are being forced to be made.? She argues that California is a good place for the generators to do business.? According to Dept. of Finance, this bill could raise $6 billion. Lenny Goldberg, on behalf of TURN, UCAN, and CTRA, spoke in support of the bill. Speaking in opposition were Fred Main (California Chamber) and Carrie Lee Coke (CMTA). Assemblywoman Goldberg inquired why businesses are opposed to this bill because they are suffering under higher energy prices. Assemblywoman Thom said that "a fair, healthy profit is permitted" under this bill. Assemblywoman Alquist is a supporter of the bill.? She said that the business community should back the Legislature to enact this bill. Assemblyman Ashburn asked about the base price ($60).? He suggested amendments for long-term contracts.? He also argued more generation and supply is needed. Assemblyman Wright said that the bill will result in a reduction in output.? He stated that he would vote no on this bill. Assemblywoman Pavley said that FERC has failed to do its job.? Reasonable profits are being allowed under this bill. Assemblywoman Wiggins said that there is public clamor for this bill.? She asked for an explanation of the rebuttable presumption language. Assemblywoman Daucher asked whether the Governor has a position on this bill.? Dept. of Finance said no.? Corbett said that the Governor has indicated he might support a measure along these lines. Possible amendments to this bill were suggested to the author by Assemblywoman Migden, including: 1.? Exempt new power plants constructed in this state. 2.? Exempt long-term contracts (state only or all???) 3.? Raise the base price from $60 to $100 4.? Exempt QFs from the bill From what I understand, this bill was to go out today (and not to Suspense) if these amendments were made.? However, Corbett has not agreed to them yet. Chris Micheli, Esq. Carpenter Snodgrass & Associates 1201 K Street, Suite 710 Sacramento, CA? 95814 (916) 447-2251 FAX: (916) 445-5624 EMAIL: cmicheli@carpentersnodgrass.com
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