BILL NUMBER: SB 699 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 8, 2013
AMENDED IN SENATE APRIL 4, 2013
INTRODUCED BY Senator Hill
FEBRUARY 22, 2013
An act to add Section 769 586 to the
Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
SB 699, as amended, Hill. Electricity: electrical corporations:
distribution system costs report. reporting.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. The Public Utilities Act 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. 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 authorizes
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.
This bill would require 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.
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.
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:
SECTION 1. The Legislature finds and declares all
of the following:
(a) Distributed energy resources, including distributed
generation, can reduce emissions of greenhouse gases, reduce criteria
air pollution, reduce water consumption, increase grid reliability,
localize power generation, and decrease reliance on large, polluting
generation facilities.
(b) The Legislature has established programs and policies to
support the commercialization and growth of distributed generation
technologies, including the California Solar Initiative, combined
heat and power feed-in tariffs pursuant to the Waste Heat and Carbon
Emissions Reduction Act, the self-generation incentive program, and
the renewable market adjusting tariff.
(c) A central impediment to increased proliferation of distributed
energy resources is a lack of transparency in current utility
infrastructure investments in the distribution grid and in the costs
and process associated with interconnection to the utility grid,
costs that are ultimately born by ratepayers.
(d) Transparency on what distribution grid investments have been
made will allow policymakers and stakeholders to better understand
and evaluate what types of distributed energy resources may be more
cost effective and better serve the grid and ratepayers for future
investments.
SEC. 2. Section 586 is added to the
Public Utilities Code , to read:
586. (a) For capital expenditures included in the distribution
category of the electrical corporation's ratebase, the electrical
corporation shall annually report expenditures for each project,
including all of the following:
(1) The total dollar amount.
(2) The type of equipment installed.
(3) The purpose of the expenditure.
(4) Whether or not the installations affect the interconnection
and management of distributed energy resources.
(b) For each interconnection agreement executed with customers
that interconnect distributed energy resources, the electrical
corporation shall report all interconnection costs charged to the
customer.
SECTION 1. Section 769 is added to the Public
Utilities Code, to read:
769. The commission, as part of an existing proceeding and using
existing resources, shall require each electrical corporation to
annually file with the commission an electrical distribution report
on the utility's electrical distribution grid infrastructure costs
incurred during the prior year. In consultation with the Energy
Commission, the Independent System Operator, and other key
stakeholders, as determined by the commission, the commission shall
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 the
following policy objectives:
(a) Electrical distribution investments should be made in a manner
that maximizes the benefits and minimizes the long-term costs to
ratepayers in the achievement of state goals for the deployment and
integration of cost-effective distributed resources and generation.
(b) Electrical distribution planning should reflect the presence
and benefits of distributed resources and generation.
(c) Electrical distribution investments should be made in
locations that best support the optimal deployment of cost-effective
distributed resources and generation.
(d) The full costs of installation and interconnection of
distributed resources and generation, including construction, fees,
tax liabilities, and maintenance charges, should be minimized.
(e) Investments in one-way voltage regulating devices, or in other
grid control or quality devices, that are intended to only regulate
voltage in one direction should be minimized or avoided.
(f) Electrical corporations should examine the potential use of
distributed resources and generation as part of each utility's plans
to upgrade and or improve the stability and reliability of its
distribution system.
SEC. 2. SEC. 3. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.