BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 1414
          Author:   Wolk (D), et al.
          Amended:  8/20/14
          Vote:     21

           
           SENATE ENERGY, UTIL. & COMMUNIC. COMM.  :  10-0, 4/29/14
          AYES:  Padilla, Fuller, Block, Cannella, Corbett, DeSaulnier,  
            Hill, Knight, Pavley, Wolk
          NO VOTE RECORDED:  De León

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SENATE FLOOR  :  31-0, 5/23/14
          AYES:  Anderson, Beall, Block, Cannella, Corbett, Correa, De  
            León, DeSaulnier, Gaines, Galgiani, Hernandez, Hill, Huff,  
            Jackson, Knight, Lara, Leno, Lieu, Liu, Mitchell, Monning,  
            Morrell, Nielsen, Padilla, Pavley, Roth, Steinberg, Torres,  
            Vidak, Walters, Wolk
          NO VOTE RECORDED:  Berryhill, Calderon, Evans, Fuller, Hancock,  
            Hueso, Wright, Wyland, Yee

           ASSEMBLY FLOOR  :  79-0, 8/25/14 - See last page for vote


           SUBJECT  :    Electricity: resources adequacy requirements

           SOURCE  :     Environmental Defense Fund


           DIGEST  :    This bill requires utilities and regulators to  
          include demand response (DR) in resource adequacy plans, as  
          specified.
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           Assembly Amendments  delete any changes to the Long Term  
          Procurement Planning proceeding at the Public Utilities  
          Commission (PUC); and now require the PUC to adopt consumer  
          protections for ratepayers that choose to participate in DR  
          programs.

           ANALYSIS  :    

          Existing law: 

          1.Requires PUC, in consultation with the Independent System  
            Operators, to establish resource adequacy requirements for all  
            load-serving entities in accordance with specified objectives.  


          2.Requires each load-serving entity to maintain physical  
            generating capacity adequate to meet its load requirements to  
            provide reliable electric service and requires the PUC to  
            determine the most efficient and equitable means for achieving  
            prescribed objectives.

          3.Requires each electrical corporation (IOU) to file with the  
            PUC a proposed procurement plan with specified information,  
            including, among other things, a procurement process under  
            which the electric corporation may request bids for  
            procurement-related services, a showing that the procurement  
            plan will achieve, among other objectives, the creation or  
            maintenance of a diversified procurement portfolio, and the  
            IOU's risk management policy, strategy, and practices.

          This bill:

          1.Requires each load-serving entity to maintain either  
            electrical demand reductions or physical generating capacity  
            adequate to meet its load requirements. 

          2.Requires PUC to determine the most efficient and equitable  
            means to sure the inclusion of DR that is reliable and cost  
            effective in achieving environmental or demand reduction goals  
            or grid reliability. 

          3.Requires PUC to establish a mechanism to value load modifying  
            DR resources that can reduce a load serving entity's resource  

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            adequacy obligation. 

          4.Requires PUC to ensure that changes in demand caused by load  
            modifying DR are expeditiously and comprehensively reflected  
            in relevant forecasting and planning proceedings and  
            associated analyses and encourage reflection of these changes  
            in demand in the operation of the grid. 

          5.Ensures PUC, in establishing a DR program, to take certain  
            actions. 

          6.Makes findings and declarations about the benefits of DR  
            programs.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/25/14)

          Environmental Defense Fund (source)
          Alarm.com
          Breathe California
          California Environmental Justice Alliance
          California League of Conservation Voters
          Clean Coalition
          Clean Power Campaign
          Comverge, Inc.
          Energyhub
          EnerNoc
          Environment California
          Natural Resources Defense Council
          Office of Ratepayer Advocates
          Sierra Club California
          Union of Concerned Scientists

           OPPOSITION  :    (Verified  8/25/14)

          Pacific Gas & Electric Company

           ARGUMENTS IN SUPPORT  :    According to the author:

            SB 1414 will help ensure that regulators and utilities utilize  
            cost-effective Demand Response (DR) programs to change their  
            demand for electricity during key times.  With DR, in exchange  

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            for changing their electricity use, participating customers  
            receive incentives for providing a clean resource to the  
            system.  Their reductions in demand (consumption) mean there  
            can be less supply (generation), providing clean energy,  
            reducing the need for 'peaker' power plants and helping to  
            integrate renewables.  California currently lags behind other  
            parts of the nation in utilizing DR.

           ARGUMENTS IN OPPOSITION  :    Pacific Gas and Electric Company is  
          concerned with this bill by stating that the recent amendments  
          delay current DR initiatives underway at the PUC in the  
          following ways:  (1) the amendments prejudge the outcome of an  
          open proceeding at the PUC pertaining to use of back up  
          generation to support; (2) duplicate and overlap with a recently  
          announced settlement at the PUC pertaining to integration costs,  
          valuation methods and metering and monitoring policies for DR  
          programs; and (3) may prohibit the use of DR in times of  
          over-generation.


           ASSEMBLY FLOOR  :  79-0, 8/25/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,  
            Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A.  
            Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED:  Vacancy


          JG:k  8/26/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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