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