Proposed AB 128x Amendments

Assemblywoman Corbett will likely propose amendments at Monday's Rev & Tax
Cmte hearing on her AB 128x. Apparently, the amendments will require that
the PUC set a "fair price" for electricity.? Any charges above that fair
price?will be subject to the proposed excess profits tax.
Also of interest is that the excess profits tax would attempt to apply to
out-of-state companies that sell energy into California.? They are going to
try to impute nexus to the out-of-state generators by arguing that they are
deriving economic benefit from selling into California and that creates
nexus.
Finally, it appears that the Suspense File will not be invoked in this case
because that policy only applies to Regular Session bills. Obviously, AB
128x is a Special Session bill.
?

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