In order to provide guidance in carrying out this chapter, the Legislature finds and declares all of the following: (a) It is the intent of the Legislature that a cumulative rate reduction of at least 20 percent be achieved not later than April 1, 2002, for residential and small commercial customers, from the rates in effect on June 10, 1996. In determining that the April 1, 2002, rate reduction has been met, the commission shall exclude the costs of the competitively procured electricity and the costs associated with the rate reduction bonds, as defined in Section 840. (b) The people, businesses, and institutions of California spend nearly twenty-three billion dollars ($23,000,000,000) annually on electricity, so that reductions in the price of electricity would significantly benefit the economy of the state and its residents. (c) The Public Utilities Commission has opened rulemaking and investigation proceedings with regard to restructuring Californiaâs electric power industry and reforming utility regulation. (d) The commission has found, after an extensive public review process, that the interests of ratepayers and the state as a whole will be best served by moving from the regulatory framework existing on January 1, 1997, in which retail electricity service is provided principally by electrical corporations subject to an obligation to provide ultimate consumers in exclusive service territories with reliable electric service at regulated rates, to a framework under which competition would be allowed in the supply of electric power and customers would be allowed to have the right to choose their supplier of electric power. (e) Competition in the electric generation market will encourage innovation, efficiency, and better service from all market participants, and will permit the reduction of costly regulatory oversight. (f) The delivery of electricity over transmission and distribution systems is currently regulated, and will continue to be regulated to ensure system safety, reliability, environmental protection, and fair access for all market participants. (g) Reliable electric service is of utmost importance to the safety, health, and welfare of the stateâs citizenry and economy. It is the intent of the Legislature that electric industry restructuring should enhance the reliability of the interconnected regional transmission systems, and provide strong coordination and enforceable protocols for all users of the power grid. (h) It is important that sufficient supplies of electric generation will be available to maintain the reliable service to the citizens and businesses of the state. (i) Reliable electric service depends on conscientious inspection and maintenance of transmission and distribution systems. To continue and enhance the reliability of the delivery of electricity, the Independent System Operator and the commission, respectively, should set inspection, maintenance, repair, and replacement standards. (j) It is the intent of the Legislature that California enter into a compact with western region states. That compact should require the publicly and investor-owned utilities located in those states, that sell energy to California retail customers, to adhere to enforceable standards and protocols to protect the reliability of the interconnected regional transmission and distribution systems. (k) In order to achieve meaningful wholesale and retail competition in the electric generation market, it is essential to do all of the following: (1) Separate monopoly utility transmission functions from competitive generation functions, through development of independent, third-party control of transmission access and pricing. (2) Permit all customers to choose from among competing suppliers of electric power. (3) Provide customers and suppliers with open, nondiscriminatory, and comparable access to transmission and distribution services. ( l ) The commission has properly concluded that: (1) This competition will best be in
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