BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1407
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

            AB 1407 (Utilities and Commerce) - As Amended:  April 16, 2013

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            15-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC) to  
          consult with the Energy Commission (CEC) in determining resource  
          adequacy requirements for load-serving entities. 

           FISCAL EFFECT  

          1)Increased potential costs of up to $125,000 for the CEC to  
            participate in the determination.

          2)Minor, absorbable costs to the PUC. 

           COMMENTS  

           Purpose and Background.  The purpose of this bill is to increase  
          coordination among state energy policy makers and agencies in  
          order to ensure safe, reliable, and affordable supplies of  
          electricity.

          The Resource Adequacy program annually establishes the minimum  
          capacity obligation for load-serving entities under the PUC's  
          jurisdiction.  

          Capacity refers to the resources available to produce  
          electricity.  A capacity shortfall occurs when electricity  
          demand exceeds available capacity.   The CEC currently forecasts  
          the amount of electricity demand that is expected in a year.   
          This bill formally requires the CEC to participate in the  
          resource adequacy determination with the PUC and the California  
          Independent System Operator. 
           








                                                                 AB 1407
                                                                  Page  2


           
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081