BILL NUMBER: AB 162	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Ruskin

                        JANUARY 27, 2009

   An act to amend Sections 398.2, 398.4, and 398.5 of the Public
Utilities Code, relating to electrical suppliers.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 162, as introduced, Ruskin. Electric service providers:
reporting requirements
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
   Existing law establishes a program under which entities offering
electric services in California disclose accurate, reliable, and
simple to understand information on the sources of energy that are
used to provide electric services.
    This bill would define the term "unspecified sources of power"
for purposes of the above-described disclosure requirements to mean
electricity generated that cannot be matched to a particular
generating facility. Further this bill would change reporting
requirements from quarterly to annually and amend other details
regarding disclosures and eliminate certain reporting requirements.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 398.2 of the Public Utilities Code is amended
to read:
   398.2.  The definitions set forth in this section shall govern the
construction of this article.
   (a) "System operator" means the Independent System Operator with
responsibility for the efficient use and reliable operation of the
transmission grid, as provided by Section 345, or a local publicly
owned electric utility that does not utilize the Independent System
Operator.
   (b) "Specific purchases" means electricity transactions which are
traceable to specific generation sources by any auditable contract
trail or equivalent, such as a tradable commodity system, that
provides commercial verification that the electricity source claimed
has been sold once and only once to a retail consumer. Retail
suppliers may rely on annual data to meet this requirement, rather
than hour-by-hour matching of loads and resources.
   (c) "Net system power" means the mix of electricity fuel source
types established by the  California Energy Resources
Conservation and Development Commission   Energy
Commission  representing the sources of electricity consumed in
California that are not disclosed as specific purchases pursuant to
Section 398.4. 
   (d) "Unspecified sources of electricity" means electricity that
cannot be matched to a particular generating facility. 
  SEC. 2.  Section 398.4 of the Public Utilities Code is amended to
read:
   398.4.  (a) Every retail  supplier   seller,
as defined in Section 399.12,  that makes an offering to sell
electricity that is consumed in California shall disclose its
electricity sources  for the previous calendar year  . A
retail supplier that does not make any claims that identify its
electricity sources as different than net system power may disclose
net system power. Every retail supplier that makes an offering to
sell electricity that is consumed in California and makes any claims
that identify any of its electricity sources as different than net
system power shall disclose these sources as specific purchases.
   (b) The disclosures required by this section shall be made to
potential end-use consumers in all product-specific written
promotional materials that are distributed to consumers by either
printed or electronic means, except that advertisements and notices
in general circulation media shall not be subject to this
requirement.
   (c) The disclosures required by this section shall be made
 at least quarterly   annually  to end-use
consumers of the offered electricity.  The annual disclosure
shall be made by the   end of the first complete billing
cycle for the third quarter of the year, and shall be consistent with
information provided to the Energy Commission pursuant to Section
398.5. 
   (d) The disclosures required by this section shall be made
separately for each offering made by the retail supplier.
   (e) On or before January 1, 1998, the  California Energy
Resources Conservation and Development   Energy 
Commission shall specify guidelines for the format and means for
disclosure required by Section 398.3 and this section, based on the
requirements of this article and subject to public hearing.
   (f) The costs of making the disclosures required by this section
shall be considered to be  generation-related  
generation related  .
   (g) The disclosures required by this section shall  be
expressed as a percentage of annual sales derived from each of the
following categories, unless no specific purchases are disclosed, in
which case only the first category shall be disclosed  
comply with the following  :
   (1)  Net system power.   A retail seller's
disclosure of its electricity sources shall be expressed as a
percentage of annual sales derived from each of the following
categories, unless no specific purchases are disclosed, in which only
the first category shall be disclosed.  
   (A) Net system electricity or unspecified sources of electricity.
 
   (B) Specific purchases. 
   (2)  Specific purchases.   A retail seller's
disclosure of its electricity sources shall also separately identify
total California system electricity, which is the sum of all in-state
generation and net electricity imports by fuel type. 
   (h)  (1)    Each of the
categories specified in subdivision (g) shall be additionally
identified as a percentage of annual sales that is derived from each
fuel type of the categories specified as follows: 
   (A) 
    (1)  Coal. 
   (B) 
    (2)  Large hydroelectric (greater than 30 megawatts).

   (C) 
    (3)  Natural gas. 
   (D) 
    (4)  Nuclear. 
   (E) 
    (5)  Other  categories as determined by the Energy
Commission  . 
   (F) 
    (6)  Eligible  renewables, which means 
renewable  energy  resource technologies  as 
defined  as electricity produced from other than a
conventional power source within the meaning of Section 2805,
provided that a power source utilizing more than 25 percent fossil
fuel may not be included, shall be additionally identified as a
percentage of annual sales that is derived from each fuel type of the
subcategories specified as follows:   in Section
399.12.  
   (i) Biomass and waste.  
   (ii) Geothermal.  
   (iii) Small hydroelectric (less than or equal to 30 megawatts).
 
   (iv) Solar.  
   (v) Wind. 
   (2) The category "Other" shall be used for fuel types other than
those listed above that represent less than 2 percent of net system
power. The California Energy Resources Conservation and Development
Commission may specify additional categories or change these
categories, consistent with the requirements of this article and
subject to public hearing, if it determines that the changes will
facilitate the disclosure objectives of this section. 
   (i) All electricity sources disclosed as specific purchases shall
meet the requirements of subdivision (b) of Section 398.2.
   (j) Specific purchases identified pursuant to this section shall
be from sources connected to the Western Electricity Coordinating
Council interconnected grid.
   (k)  Net system power   Unspecified sources
of electricity and total California system electricity  shall be
disclosed for the most recent calendar year available. 
Disclosure of net system power shall be accompanied by this
qualifying note: "The State of California determines this net system
power mix annually; your actual electricity purchases may vary." The
California Energy Resources Conservation and Development Commission
may modify this note, consistent with the requirements of this
article and subject to public hearing, if it determines that the
changes will facilitate the disclosure objectives of this section.

   ()  For each offering made by a retail supplier for which
specific purchases are disclosed, the retail supplier shall disclose
projected specific purchases for the current calendar year. Projected
specific purchases need not be disclosed by numerical percentage at
the subcategory level identified in subparagraph (F) of paragraph (1)
of subdivision (h). On or before April 15, 1999, and annually
thereafter, every retail supplier that discloses specific purchases
shall also disclose to its customers, separately for each offering
made by the retail supplier, its actual specific purchases for the
previous calendar year consistent with information provided to the
California Energy Resources Conservation and Development Commission
pursuant to Section 398.5. Disclosure of projected specific purchases
and actual specific purchases shall each be accompanied by
statements identifying whether the data are projected or actual, as
developed by the California Energy Resources Conservation and
Development Commission, subject to public hearing.  
Compliance with this section by a local publicly owned electric
utility shall constitute compliance with paragraph (2) of  
subdivision (b) of Section 387. 
   (m) The provisions of this section shall not apply to generators
providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.
  SEC. 3.  Section 398.5 of the Public Utilities Code is amended to
read:
   398.5.  (a) Retail  suppliers   sellers, as
defined in Section 399.12,  that disclose specific purchases
pursuant to Section 398.4 shall report on  March 1, 1999
  June 1, 2009  , and annually thereafter, to the
 California Energy Resources Conservation and Development
  Energy  Commission, for each electricity
offering, for the previous calendar year each of the following:
   (1) The kilowatthours purchased, by generator and fuel type during
the previous calendar year, consistent with the meter data,
including losses, reported to the system operator.
   (2) For each electricity offering the kilowatthours sold at
retail.
   (3) For each electricity offering the disclosures made to
consumers pursuant to Section 398.4.
   (b) Information submitted to the  California Energy
Resources Conservation and Development   Energy 
Commission pursuant to this section that is a trade secret as defined
in subdivision (d) of Section 3426.1 of the Civil Code shall not be
released except in an aggregated form such that trade secrets cannot
be discerned.
   (c) On or before January 1, 1998, the  California Energy
Resources Conservation and Development   Energy 
Commission shall specify guidelines and standard formats, based on
the requirements of this article and subject to public hearing, for
the submittal of information pursuant to this article.
   (d) In developing the rules and procedures specified in this
section, the  California Energy Resources Conservation and
Development   Energy  Commission shall seek to
minimize the reporting burden and cost of reporting that it imposes
on retail  suppliers   sellers  . 
   (e) On or before October 15, 1999, and annually thereafter, the
California Energy Resources Conservation and Development Commission
shall issue a report comparing information available pursuant to
Section 398.3 with information submitted by retail suppliers pursuant
to this section, and with information disclosed to consumers
pursuant to Section 398.4. This report shall be forwarded to the
California Public Utilities Commission.  
   (f) Beginning April 15, 1999, and annually thereafter, California
Energy Resources Conservation and Development Commission 
    (e)     The Energy Commission  shall
issue  an annual  report  by July 31 of each year 
calculating net system  power   electricity
 . The  California Energy Resources Conservation and
Development   Energy  Commission will establish the
generation mix for net generation imports delivered at interface
points and metered by the system operators.  The California
Energy Resources Conservation and Development Commission shall issue
an initial report calculating preliminary net system power for
calendar year 1997 on or before January 1, 1998. This report shall be
updated on or before October 15, 1998.  
   (g) 
    (f)  The provisions of this section shall not apply to
generators providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372. 
   (h) 
    (g)  The  California Energy Resources
Conservation and Development   Energy  Commission
may verify the veracity of environmental claims made by retail
 suppliers   sellers  .