SB 1x passes the Senate

SB 1x passed the State Senate late this afternoon by a vote of 25-12.
Senator Soto spoke in support arguing that the money should be returned to
taxpayers.? The flate rate of the refundable tax credit will be determined
by the FTB.? Senator Scott said that FERC has failed to act.? This bill will
regulate the price of electricity in CA.? He said that the PUC will be
allowed to review and adjust the base price for the tax, and that the PUC
could allow additional exemptions (is this an unconstitutional delegation of
authority?).? Also, a long-term contract arrangements are exempt from the
bill.
Senator Morrow spoke in opposition.? He said that the bill is not about
relief.? Rather, it redistributes wealth and should be changed to refund the
money to consumers.
Senator Battin spoke in opposition.? He cited the planned Intergent plant in
North Palm Springs.? THis bill does not solve the crisis.? It just
discourages generators from building in this state.
Senator Dunn said that emergency steps must be taken and that he supports
this bill.? Otherwise, CA's wealth will go out of the state, primarily to
Texas.
Senator Polanco spoke in support and said that ratepayers are being gouged.?
Billions in profits have been reaped by generators.
Senator McClintock spoke in opposition and said that power plants are not
being built here and that this bill will stop the construction of plants in
CA.
Senator Peace spoke in support and said that FERC has failed to enforce the
law.
Senator Perata spoke in support and said that generators have gotten caught
red-handed and now need to pay a penalty.
Senator Haynes spoke in opposition and said that the constitution will be
violated by this bill and that companies will sell to other states, rather
than California.

Senator Bowen spoke in support of the bill.? She asked why we should have
the welcome mat our to CA when these companies are charging 300% more in
their prices then just a year or two ago.? She also indicated that the
Legislative Counsel has given them an opinion that this bill is
constitutional because it only applies to the electrons flowing into the
state.? Whatever that means?
No Republicans voted for the bill.? No Democrats voted against it.? FInal
vote was 25-12.
However, if the Assembly or Senate adjourns the Special Session without
passing this bill and/or AB 128x, then both measures will die.

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