AB 1408, as introduced, Committee on Utilities and Commerce. Distributed energy resources: tariffs.
Existing law requires the Public Utilities Commission to require each electrical corporation to establish new tariffs on or before January 1, 2003, for customers using distributed energy resources, but, after January 1, 2003, distributed energy resources that meet certain criteria are subject only to those tariffs in existence, until June 1, 2011, subject to a specified exception. Existing law requires those tariffs to ensure that all net distribution costs incurred to serve each customer class are fully recovered only from that class. Existing law requires the commission to prepare and submit to the Legislature, on or before June 1, 2002, a report describing its proposed methodology for determining the new rates and the process by which it will establish those rates.
This bill would delete the reference to the report the commission is required to prepare and submit to the Legislature on or before June 1, 2002, that describes its proposed methodology for determining the new rates and the process by which it will establish those rates.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 353.13 of the Public Utilities Code is
2amended to read:
(a) The commission shall require each electrical
4corporation to establish new tariffs on or before January 1, 2003,
5for customers using distributed energy resources, including, but
6not limited to, those that do not meet all of the criteria described
7in Section 353.1. However, after January 1, 2003, distributed
8energy resources that meet all of the criteria described in Section
9353.1 shall continue to be subject only to those tariffs in existence
10pursuant to Section 353.3, until June 1, 2011, except that
11installations that do not operate in a combined heat and power
12application will be subject to those tariffs in existence pursuant to
13Section 353.3 only until June 1, 2006. Those tariffs required
14pursuant to this section shall ensure that all net distribution costs
15incurred to serve each
customer class, taking into account the actual
16costs and benefits of distributed energy resources, proportional to
17each customer class, as determined by the commission, are fully
18recovered only from that class. The commission shall require each
19electrical corporation, in establishing those rates, to ensure that
20customers with similar load profiles within a customer class will,
21to the extent practicable, be subject to the same utility rates,
22regardless of their use of distributed energy resources to serve
23onsite loads or over-the-fence transactions allowed under Sections
24216 and 218. Customers with dedicated facilities shall remain
25responsible for their obligations regarding payment for those
26facilities.
27(b) The commission shall prepare and submit to the Legislature,
28on or before June 1, 2002, a report describing its proposed
29methodology for determining the new rates and the process by
30which it will establish those rates.
31(c)
end delete
32begin insert(b)end insert In establishing the tariffs, the commission shall consider
33coincident peakload, and the reliability of the onsite generation,
34as determined by the frequency and duration of outages, so that
35customers with more reliable onsite generation and those that
36reduce peak demand pay a lower cost-based rate.
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