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