Subject:
Utilities: Public Utilities Commission: energy: renewable energy resources: rates.
An act to add Section 705 to the Fish and Game Code, to amend Sections 25740, 25741, 25746, 25747, and 25751 of , and to add Section 25524 to, the Public Resources Code, to amend Sections 306, 307, 308, 327, 382, 399.11, 399.12, 399.15, 399.17, 454.5, and 739.1 of, and to amend and renumber Sections 399.13, 399.14, and 399.16 of, to add Sections 399.14, 399.16, 399.22, 399.26, 399.27, 399.30, 399.31, 739.9, 745, and 1005.1 to, and to repeal Section 387 of, the Public Utilities Code, and to amend Section 80110 of the Water Code, relating to utilities.
Digest: (1) Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations and gas corporations. The California Constitution grants the PUC certain general powers over all public utilities, subject to control by the Legislature, and authorizes the Legislature, unlimited by the other provisions of the Constitution, to confer additional authority and jurisdiction upon the PUC, that is cognate and germane to the regulation of public utilities. Existing law requires the office of the PUC to be in the City and County of San Francisco and that, with certain exceptions, the office always be open. Existing law requires the PUC to hold its sessions at least once in each calendar month in that city and county, and authorizes the PUC to also meet at such other times and in such other places as may beexpedient and necessary for the proper performance of its duties. This bill would additionally require the PUC to hold at least one session in each calendar month in the City of Sacramento. (2 ) Existing law authorizes the attorney for the PUC, if directed to do so by the president, except as otherwise directed by vote of the PUC, to intervene, if possible, in any action or proceeding involving any question arising pursuant to the Public Utilities Act. Existing law requires the attorney for the PUC to commence, prosecute, and expedite the final determination of all actions and proceedings, and to generally perform all duties and services as attorney to the PUC, as directed or authorized by the president, except as otherwise directed or authorized by vote of the PUC. This bill would authorize the attorney for the PUC, if directed to do so by the PUC, to intervene, if possible, in any action or proceeding involving any question arising pursuant to the Public Utilities Act. This bill would require the attorney for the PUC to commence, prosecute, and expedite the final determination of all actions and proceedings, and to generally perform allduties and services as attorney to the PUC, as directed or authorized by the PUC. (3) Existing law requires the executive director for the PUC to keep a full and true record of all proceedings of the PUC, issue all necessary process, writs, warrants, and notices, and perform such other duties as the president, or vote of the PUC, prescribes. Existing law provides that the president may authorize the executive director to dismiss complaints or applications when all parties are in agreement thereto, in accordance with rules that the PUC may prescribe. This bill would require the executive director to keep a full and true record ofall proceedings of the PUC, issue all necessary process, writs, warrants, and notices, and perform the other duties the PUC prescribes. The bill would provide that the PUC may authorize the executive director to dismiss complaints or applications when all parties are in agreement thereto, in accordance with rules that the PUC may prescribe. (4) Existing law authorizes the PUC to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. This bill would prohibit the PUC from requiring or permitting an electrical corporation to employ dynamic pricing for residentialcustomers, but would authorize the PUC to authorize an electrical corporation to offer residential customers the option of receiving service pursuant to dynamic pricing. The bill would, beginning January 1, 2016, authorize the PUC to authorize an electrical corporation to employ default dynamic pricing for residential customers, if the customer has the option of receiving service pursuant to a rate schedule that is not based upon dynamic pricing and if residential customers that exercise the option to not receive service pursuant to the dynamic pricing incur no additional costs as a result of the exercise of that option. (5) Existing law requires the PUC to establish aprogram of assistance to low-income electric and gas customers, referred to as the California Alternate Rates for Energy or CARE program, and prohibits the cost to be borne solely by any single class of customer. This bill would require the PUC to establish the CARE program to provide assistance to low-income electric and gas customers with annual household incomes at or below 200% of the federal poverty guideline levels, and require that the cost of the program be recovered on an equal cents-per-kilowatthour or cents-per therm basis from all classes of customers that were subject to the surcharge that funded the CARE program on January 1, 2008. (6) Existing law relative to electrical restructuring requires that the electrical corporations and gas corporations that participate in the CARE program administer low-income energy efficiency and rate assistance programs described in specified statutes, and undertake certain actions in administering specified energy efficiency and weatherization programs. This bill would require that electrical corporations, in administering the specified energy efficiency and weatherization programs, to target energy efficiency and solar programs to upper-tier and multifamily customers in a manner that will result in long-term permanent reductions in electricity usage and develop programs that specifically target new construction by, and new and retrofit appliances for, nonprofit affordable housing providers. The bill would require the PUC to require electrical corporations to deploy enhanced low-income energy efficiency programs, as defined, designed to reach asmany eligible customers as practicable by December 31, 2014, particularly targeting those customers occupying apartment houses or similar multiunit residential structures, and would require the PUC and electrical corporations and gas corporations to expend all reasonable efforts to coordinate ratepayer-funded programs with other energy conservation and efficiency programs and to obtain additional federal funding to support actions undertaken pursuant to this requirement. (7) Existing law relative to electrical restructuring requires the PUC to authorize and facilitate direct transactions between electricity suppliers and retail end-use customers. Existing law requires the PUC to designate a baseline quantity of electricity and gas necessary for a significant portion of the reasonable energy needs of the average residential customer, and requires that electrical and gas corporations file rates and charges, to be approved by the PUC, providing baseline rates and requires the PUC, in establishing baseline rates, to avoid excessive rate increases for residential customers. Existing law enacted during the energy crisis of 200001, authorized the Department of Water Resources, until January 1, 2003, to enter into contracts for the purchase of electricity, and to sell electricity to retail end use customers and, with specified exceptions, local publicly owned electric utilities, at not more than the departments acquisition costs and to recover those costs through the issuance of bonds to be repaid by ratepayers. That law provides that the department is entitled to recovercertain expenses resulting from its purchases and sales of electricity and authorizes the PUC to enter into an agreement with the department relative to cost recovery. That law prohibits the PUC from increasing the electricity charges in effect on February 1, 2001, for residential customers for existing baseline quantities or usage by those customers of up to 130% of then existing baseline quantities, until the department has recovered the costs of electricity it procured for electrical corporation retail end use customers. That law also suspends the right of retail end-use customers, other than community choice aggregators and a qualifying direct transaction customer, to acquire service through a direct transaction until the Department of Water Resources no longer supplies electricity under that law. This bill would delete the prohibition that the PUC not increase the electricity charges in effect on February 1, 2001, for residential customers for existing baselinequantities or usage by those customers of up to 130% of then existing baseline quantities. The bill would authorize the PUC, until January 1, 2019, to increase the rates charged residential customers for electricity usage up to 130% of the baseline quantities by the annual percentage change in the Consumer Price Index from the prior year plus 1%, but not less than 3% and not more than 5% per year. This authorization would be subject to the limitation that rates charged residential customers for electricity usage up to the baseline quantities, including any customer charge revenues, not exceed 90% of the system average rate, as defined. The bill would authorize the PUC to increase the rates for participants in the CARE program, subject to certain limitations. The bill would authorize the PUC to allow individual retail end-use customers currently taking service from an electric service provider, or eligible to take service from an electric service provider under rules adopted by the PUC in existence on January1, 2008, to acquire service for new accounts, as defined, from an electric service provider. The bill would suspend the right of retail end-use customers to acquire service through a direct transaction until the Legislature, by statute, lifts the suspension or otherwise authorizes direct transactions. (8) Existing law requires the PUC to require the states 3 largest electrical corporations, Pacific Gas and Electric Company, San Diego Gas and Electric, and Southern California Edison, to identify a separate electrical rate component to fund programs that enhance system reliability and provide in-state benefits. This rate component is a nonbypassable element of localdistribution and collected on the basis of usage. Existing PUC resolutions refer to the nonbypassable rate component as a public goods charge. The public goods charge moneys are collected to support cost-effective energy efficiency and conservation activities, public interest research and development not adequately provided by competitive and regulated markets, and renewable energy resources. The existing Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission (Energy Commission). Existing law establishes the Renewable Resource Trust Fund as a continuously appropriated fund in the State Treasury and requires that certain moneys collected to support renewable energy resources through the public goods charge are deposited into the fund and authorizes the Energy Commission to expend the moneys pursuant to the Renewable Energy Resources Program. The program states the intentof the Legislature to increase the amount of electricity generated from eligible renewable energy resources per year so that amount equals at least 20% of total retail sales of electricity in California per year by December 31, 2010. This bill would revise the Renewable Energy Resources Program to state the intent of the Legislature to increase the amount of electricity generated from eligible renewable energy resources per year, so that amount equals at least 20% of total retail sales of electricity in California per year by December 31, 2010, and 33% by December 31, 2020. The bill would limit eligible in-state renewable electricity generation facilities to facilities that commence initial operation after January 1, 2005. This limitation would also apply to the California Renewables Portfolio Standard (RPS) Program discussed below. (9) Existing law expresses the intent of the Legislature, in establishing the RPS program, to increase the amount of electricity generated per year from eligible renewable energy resources, as defined, to an amount that equals at least 20% of the total electricity sold to retail customers in California per year by December 31, 2010. This bill would express the additional intent that the amount of electricity generated per year from eligible renewable energy resources is increased to an amount that equals at least 33% of the total electricity sold to retail customers in California per year by December 31, 2020. (10) The Public Utilities Act imposes various duties and responsibilities on the PUC with respect to the purchase of electricity and requires the PUC to review and adopt a procurement plan and a renewable energy procurement plan for each electrical corporation, as defined, pursuant to the RPS program. The RPS program requires that a retail seller of electricity, including electrical corporations, community choice aggregators, and electric service providers, but not including local publicly owned electric utilities, purchase a specified minimum percentage of electricity generated by eligible renewable energy resources in any given year as a specified percentage of total kilowatthours sold to retail end-use customers each calendar year. The RPS program requires each retail seller to increase its total procurement of electricity generated byeligible renewable energy resources by at least an additional 1% of retail sales per year so that 20% of its retail sales of electricity are procured from eligible renewable energy resources no later than December 31, 2010. This bill would additionally require that each retail seller increase its total procurement of electricity generated by eligible renewable energy resources by at least an additional 1% of retail sales per year so that 33% of its retail sales are procured from eligible renewable energy resources no later than December 31, 2020 , if the commission determines that achieving these targets will result in just and reasonable rates . Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because the provisions of this bill are within the act and require action by the PUC to implement its requirements, a violation of these provisions would impose a state-mandated local program by expanding the definition of a crime. (11) Under existing law, the governing board of a local publicly owned electric utility is responsible for implementing and enforcing a renewables portfolio standard for the utility that recognizes the intent of the Legislature to encourage renewable resources, while taking into consideration the effect of the standard on rates, reliability, and financial resources and the goal of environmental improvement. This bill would repeal this provision and instead make certain of the requirements of the RPS program, as discussed below, applicable to local publicly owned electric utilities. By placing additional requirements upon local publicly owned electric utilities, the bill would impose a state-mandated local program. (12) Existing law requires the Energy Commission to certify eligible renewable energy resources, to design and implement an accounting system to verify compliance with the RPS requirements by retail sellers, and to develop tracking, accounting, verification, and enforcement mechanisms for renewable energy credits, as defined. This bill would require the Energy Commission to design and implement an accounting system to verify compliance with the RPS requirements by retail sellers and local publicly owned electric utilities. The bill would require the Energy Commission, among other things, to adopt regulations for the enforcement of the RPS program with respect to a local publicly owned electric utility, would require, by October 30, 2009, at a noticed public meeting and in consultation with the StateAir Resources Board, to establish an RPS requiring each local publicly owned electric utility to procure a minimum quantity of electricity generated by eligible renewable energy resources as a specified percentage of total kilowatthours sold to the utilitys retail end-use customers each calendar year. The bill would require that the RPS established for a local publicly owned electric utility be consistent with certain targets and purposes that are applicable to retail sellers. The bill would require the utility to adopt and implement a renewable energy resources procurement plan that , at a minimum, complies with the RPS adopted for the utility by the Energy Commission, would provide that the utility retains discretion with respect to certain matter in complying with the RPS, would require that certain notices be given by the utility when adopting and periodically revising its procurement plan, andwould require the utility to report certain information relative to RPS compliance to the Energy Commission and its customers. The bill would require the Energy Commission, in order to meet the requirements of the RPS program, undertake certain measures in order to substantially increase the amounts of electricity generated by eligible renewable energy resources integrated with and interconnected to specified transmission grids. (13) Existing law requires that an electrical corporations proposed procurement plan include certain elements, including a showing that the electrical corporation will, in order to fulfill its unmet resource needs, until a 20% renewableresources portfolio is achieved, procure renewable energy resources with the goal of ensuring that at least an additional 1% per year of the electricity sold by the electrical corporation is generated from eligible renewable energy resources, provided sufficient funds are made available to cover the above-market costs for new renewable energy resources pursuant to certain provisions of the Renewable Energy Resources Program. Existing law requires the PUC to make a determination of the existing market cost for electricity (market price referent). This bill would require that the PUC enforce these requirements until the retail seller procures 20% of its retail sales from eligible renewable energy resources. Once the 20% requirement is met, the bill would require that an electrical corporations proposed procurement plan include a showing that the electricalcorporation will, in order to fulfill its unmet resource needs, until a 33% renewable resources portfolio is achieved, procure renewable energy resources with the goal of ensuring that at least an additional 1% per year of the electricity sold by the electrical corporation is generated from eligible renewable energy resources. The bill would , once the electrical corporation meets the 20% procurement requirement, delete the requirement that the PUC determine the market price referent and delete the limitation on a retail sellers procurement requirements that sufficient funds be made available to cover the above-market costs of electricity. (14) The Public Utilities Act prohibits any electrical corporation from beginning the construction of, among other things, a line, plant, or system, or of any extension thereof, without having first obtained from the PUC a certificate that the present or future public convenience and necessity require or will require that construction, termed a certificate of public convenience and necessity. Existing law requires the PUC, in acting upon an application by an electrical corporation for a certificate of public convenience and necessity, to deem new transmission facilities necessary to the provision of electric service if the PUC finds that new transmission facilities are necessary to facilitate achievement of the renewable power goals established under the RPS program. Existing law requires the PUC, upon finding that new transmission facilities are necessary to facilitate achievement of the renewable power goals established under the RPS, to take all feasible actions to ensure that the transmissionrates established by the Federal Energy Regulatory Commission (FERC) are fully reflected in any retail rates established by the PUC. This bill would require the PUC to approve an application for a certificate of public convenience and necessity within one year of the filing of a completed application under specified circumstances and would authorize the PUC, if it finds the costs are justified pursuant to the statutory requirements for approving a rate increase, to allow recovery of certain transmission costs incurred by an electrical corporation. (15) The existing restructuring of the electrical industry within the PublicUtilities Act provides for the establishment of an Independent System Operator (ISO). Existing law requires the ISO to ensure efficient use and reliable operation of the transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the American Electric Reliability Council. Pursuant to existing law, the ISOs tariffs are required to be approved by the FERC. This bill would require the ISO to undertake all feasible efforts to do certain things and seek the approval of the FERC, if necessary, including adjusting its market structure to achieve, in the most cost-effective manner possible, the increased amount of electricity to be generated by eligible renewable energy resources. The bill would require the PUC to approve reasonable and cost-effective transmission and power line investments that are not under the ratemaking authority of the FERC that arenecessary to enable electricity generated by eligible renewable energy resources to be delivered to retail sellers and local publicly owned electric utilities. (16) This bill would require the PUC, Energy Commission, and ISO to consider the recommendations of the Renewable Energy Transmission Initiative in their respective responsibilities relative to the siting of transmission and eligible renewable energy resources that are necessary to achieve the renewables portfolio standard. (17) Existing law establishes the Department of Fish and Game in the Resources Agency, and generally charges the department with the administration and enforcement of the Fish and Game Code. This bill would require the department to establish an internal division with the primary purpose of performing comprehensive planning and streamlined environmental compliance services with priority given to projects involving the building of eligible renewable energy resources. (18) Existing law grants the Energy Commission the exclusive authority to certify any stationary or floating electrical generating facility using any source of thermal energy, with a generating capacity of 50 megawatts or more, and any facilities appurtenant thereto. Existing law prohibits the construction of any thermal powerplant or facilities appurtenant thereto or modification of any existing thermal powerplant and appurtenant facility without first obtaining certification from the Energy Commission. Each person proposing to construct a thermal powerplant or electric transmission line on a site is required to submit anapplication to the Energy Commission. The Energy Commission is required to prescribe the form and content of applications for facilities and to formally act to approve or disapprove applications, including specifying conditions under which approval and continuing operation of any facility is permitted. This bill would require the Energy Commission to develop a concurrent application review process with the Department of Fish and Game for eligible renewable energy resources that will reduce by 50%, the time required to complete certification and compliance with the California Environmental Quality Act for eligible renewable energy resources that are within a competitive renewable energy zone. (19) This bill would state the intent of the Legislature to appropriate $3,700,000 from the Public Interest Research, Development, and Demonstration Fund to the Energy Commission for contracts and for interagency agreements with the Department of Fish and Game or other wildlife agencies for the preparation of one or more natural communities conservation plans in the Mojave and Colorado Desert regions for the purposes of facilitating the development of solar energy in those regions . (20) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for specified reasons. »
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Version: Enrolled
Bill language:
