BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1392| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ CONSENT Bill No: AB 1392 Author: Assembly Utilities and Commerce Committee Amended: As introduced Vote: 21 SENATE ENERGY, UTIL. & COMMUNIC. COMM. : 10-0, 6/21/11 AYES: Padilla, Fuller, Berryhill, Corbett, De León, DeSaulnier, Rubio, Simitian, Strickland, Wright NO VOTE RECORDED: Pavley ASSEMBLY FLOOR : 74-0, 4/11/11 (Consent) - See last page for vote SUBJECT : Energy: California Solar Initiative SOURCE : Author DIGEST : This bill deletes the authority of the Public Utilities Commission to modify the rates of customers frozen during the energy crisis to facilitate the time-of-use tariff. ANALYSIS : Current law establishes the California Solar Initiative, a $3.3 billion program which provides incentives for the installation of solar photovoltaic systems for customers of the state's investor-owned utilities and publicly owned utilities. Under this program, the Public Utilities Commission (PUC) is authorized to use time-of-use (TOU) rates that create the maximum incentive for ratepayers to install solar energy CONTINUED AB 1392 Page 2 systems so that the system's peak electricity production coincides with peak electricity demands. The PUC is also authorized to modify rates for participating California Solar Initiative customers which had their rates were frozen as a result of the energy crisis. This bill deletes obsolete authority allowing the PUC to make adjustments to a TOU rate intended to create the maximum incentive for ratepayers to install solar electric energy systems in a manner that their system's peak electricity production coincides with California's peak electricity demand. The adjustment allowed the PUC to exclude customers whose usage was at baseline quantities or up to 130 percent of baseline quantities. This provision was made due to an electricity rate freeze that was enacted as a result of the 2000-02 electricity crisis. That rate freeze has since been modified ÝSB 695 (Kehoe), Chapter 337, Statutes of 2010] and TOU rates are not used for residential customers in the California Solar Initiative program. This bill is intended to maintain the codes. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No ASSEMBLY FLOOR : 74-0, 4/11/11 (Consent) AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Butler, Donnelly, Fletcher, Gorell, Halderman, Vacancy AB 1392 Page 3 RM:mw 6/22/11 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****