AB 527

PSC notices, orders, and determinations.

Under current law, the Public

Service Commission (PSC) is allowed to initiate, investigate, and order a hearing at

its discretion upon such notice as the PSC deems proper. This bill allows the PSC

to provide the notice by personal delivery, mail, electronic mail, or any other

reasonable method. The bill also allows the PSC to provide notice in such manner

in contested cases, which are administrative proceedings involving parties whose

interests are determined or adversely affected by the PSC. Current law generally

requires notice for a contested case to be provided by mail.

Also under current law, unless the PSC specifies a different effective date, the

PSC's orders and determinations take effect 20 days after the PSC files and serves

an order or determination on the parties to the proceeding in which the PSC made

the order or determination or on the parties' attorneys. This bill provides that an

order or determination takes effect on the day after the order or determination is filed

and served, unless the PSC specifies a different effective date. Current law also

specifies that service must be done by personal delivery or mail. This bill allows

service to be done by personal delivery, mail, electronic mail, or any other method

that the PSC determines is likely to reach the parties or attorneys.

Firm sales of electricity to affiliates.

Current law generally prohibits an

affiliated interest from making a firm sale of electricity of three years or more to a

public utility with which the affiliated interest is affiliated. Under current law, an

affiliated interest is considered to be affiliated with a public utility if the affiliated

interest has specified ownership or control interests in common with the public

utility. Current law defines "firm sale" as a sale in which electricity is intended to

be available to a purchaser at all times during a specified period on an

uninterruptible basis. This bill creates an exception to the prohibition for a firm sale

from an affiliated interest's wholesale merchant plant located in Adams or Juneau

county to an affiliated public utility, but only if the affiliated public utility owned,

operated, or controlled the affiliated interest before January 1, 2012. Under current

law, which the bill does not affect, a "wholesale merchant plant" is defined, in part,

as an electric generating plant that does not provide retail electric service.

Contracts or arrangements with affiliates.

Current law generally requires

the PSC to approve contracts or arrangements between public utilities and their

affiliated interests. An exception to the requirement applies if the amount of

consideration involved in the contract or arrangement does not exceed $25,000 or 5

percent of the equity of the public utility, whichever is smaller. This bill revises the

exception so that PSC approval is not required if the amount of consideration does

not exceed $250,000 or 5 percent of the equity, whichever is smaller. In addition,