BILL ANALYSIS                                                                                                                                                                                                    Ó          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          SB 58 -  Runner                                   Hearing Date:  
          May 3, 2011                S
          As Amended:         March 31, 2011      FISCAL       B
                                                                        
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                                      DESCRIPTION
           
           Current law  requires the CPUC to approve a special rate for 
          electrical service offered to the Antelope Valley Fairgrounds 
          (AVF) which will result in a ten-year payback for a photovoltaic 
          (PV) solar system when coupled with other incentive payments.  
          This program sunsets on January 1, 2017.

           This bill  extends the sunset of the program to January 1, 2018.

                                      BACKGROUND
           
          As a result of 2005 legislation by this same author, a 
          demonstration project was established to show that actual energy 
          and cost savings may be achieved when investments are made 
          onsite to both reduce overall electric consumption and to offset 
          peak electricity demand through the installation of cost 
          effective energy efficient equipment and fixtures and a PV solar 
          energy system of up to 630 kilowatts.  As a consequence Southern 
          California Edison (Edison) was approved by the CPUC to pay 
          ratepayer funded credits over the course of ten years.  In 
          exchange AVF was to sign a contract with Edison specifying 
          minimum operating criteria for the generating facility.  

                                       COMMENTS
           
              1.   Author's Purpose  .  A dispute has arisen between AVF and 
               Edison as to the payments Edison owes to AVF and also 
               whether AVF is meeting its requirements under the 
               demonstration project.  The author has convened discussions 
               between the parties which are ongoing.  She hopes that 
               those discussions will resolve all outstanding issues and 
               that this bill will not be needed.  However, in the event 











               that the parties are not able to come to agreement, the 
               author may want to use this bill to resolve the issue in 
               law.

              2.   CPUC Role  .  If the parties are not able to come to 
               agreement on their own, the Legislature may not be the 
               place for resolution.  To implement the 2005 legislation, 
               the CPUC approved a tariff which obligates each party to 
               certain terms.  It may be more appropriate to take this 
               issue to the CPUC for resolution.


                                           

                                      POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          50th District Agricultural Association

           Oppose:
           
          None on file

          







































          Kellie Smith 
          SB 58 Analysis
          Hearing Date:  May 3, 2011