SB 699,
as amended, Hill. Electricity: electrical corporations:begin delete distribution system costs report.end deletebegin insert reporting.end insert
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. The Public Utilities Actbegin delete authorizes the commission to ascertain and fix just and reasonable standards, classifications, regulations, practices, measurements, or services to be furnished, imposed, observed, and followed by specified public utilities, including electrical corporations.end deletebegin insert requires each public utility to furnish such reports to the commission at such time and in such form as the commission may require and in those reports the utility is required to specifically answer all questions propounded by the commission. The act end insertbegin insertauthorizes
the commission to require any public utility to file periodic reports concerning any matter about which the commission is authorized by any law to inquire or to keep itself informed, or which it is required to enforce.end insert
This bill would requirebegin delete the Public Utilities Commission to require each electrical corporation to annually file with the Public Utilities Commission an electrical distribution report on the utility’s electrical distribution grid
infrastructure costs incurred during the prior year. The bill would require the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, the Independent System Operator, and other key stakeholders, as determined by the Public Utilities Commission, to determine the specifications of the electrical distribution report to ensure that the report provides sufficient detail for stakeholders to evaluate the degree to which the incurred costs achieve specified policy objectives.end deletebegin insert an electrical corporation to annually report to the commission capital expenditures included in the distribution category of the electrical corporation’s ratebase for each project. The bill would require an electrical corporation to report all interconnection costs charged to the customer for each interconnection agreement to interconnect distributed energy resources.end insert
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the Public Utilities Commission is a crime.
Because the provisions of this bill are within the act and require action by the Public Utilities Commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
begin insertThe Legislature finds and declares all of the
2following:end insert
3(a) Distributed energy resources, including distributed
4generation, can reduce emissions of greenhouse gases, reduce
5criteria air pollution, reduce water consumption, increase grid
6reliability, localize power generation, and decrease reliance on
7large, polluting generation facilities.
8(b) The Legislature has established programs and policies to
9support the commercialization and growth of distributed generation
10technologies, including the California Solar Initiative, combined
P3 1heat and power feed-in tariffs pursuant to the Waste Heat and
2Carbon Emissions Reduction Act, the self-generation incentive
3program, and the renewable market adjusting tariff.
4(c) A central impediment to increased proliferation of distributed
5energy resources is a lack of transparency in current utility
6infrastructure investments in the distribution grid and in the costs
7and process associated with interconnection to the utility grid,
8costs that are ultimately born by ratepayers.
9(d) Transparency on what distribution grid investments have
10been made will allow policymakers and stakeholders to better
11understand and evaluate what types of distributed energy resources
12may be more cost effective and better serve the grid and ratepayers
13for future investments.
begin insertSection 586 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
15read:end insert
(a) For capital expenditures included in the distribution
17category of the electrical corporation’s ratebase, the electrical
18corporation shall annually report expenditures for each project,
19including all of the following:
20(1) The total dollar amount.
21(2) The type of equipment installed.
22(3) The purpose of the expenditure.
23(4) Whether or not the installations affect the interconnection
24and management of distributed energy resources.
25(b) For each interconnection agreement executed with
customers
26that interconnect distributed energy resources, the electrical
27corporation shall report all interconnection costs charged to the
28customer.
Section 769 is added to the Public Utilities Code,
30to read:
The commission, as part of an existing proceeding and
32using existing resources, shall require each electrical corporation
33to annually file with the commission an electrical distribution
34report on the utility’s electrical distribution grid infrastructure costs
35incurred during the prior year. In consultation with the Energy
36Commission, the Independent System Operator, and other key
37stakeholders, as determined by the commission, the commission
38shall determine the specifications of the electrical distribution
39report to ensure that the report provides sufficient detail for
P4 1stakeholders to evaluate the degree to which the incurred costs
2achieve the following policy objectives:
3(a) Electrical distribution investments should be made in a
4manner that maximizes the benefits
and minimizes the long-term
5costs to ratepayers in the achievement of state goals for the
6deployment and integration of cost-effective distributed resources
7and generation.
8(b) Electrical distribution planning should reflect the presence
9and benefits of distributed resources and generation.
10(c) Electrical distribution investments should be made in
11locations that best support the optimal deployment of cost-effective
12distributed resources and generation.
13(d) The full costs of installation and interconnection of
14distributed resources and generation, including construction, fees,
15tax liabilities, and maintenance charges, should be minimized.
16(e) Investments in one-way voltage regulating devices, or in
17other grid control or quality devices, that are intended
to only
18regulate voltage in one direction should be minimized or avoided.
19(f) Electrical corporations should examine the potential use of
20distributed resources and generation as part of each utility’s plans
21to upgrade and or improve the stability and reliability of its
22distribution system.
No reimbursement is required by this act pursuant to
25Section 6 of Article XIII B of the California Constitution because
26the only costs that may be incurred by a local agency or school
27district will be incurred because this act creates a new crime or
28infraction, eliminates a crime or infraction, or changes the penalty
29for a crime or infraction, within the meaning of Section 17556 of
30the Government Code, or changes the definition of a crime within
31the meaning of Section 6 of Article XIII B of the California
32Constitution.
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