California Legislature—2015–16 Regular Session

Assembly BillNo. 1334


Introduced by Assembly Member Quirk

February 27, 2015


An act to amend Section 740.1 of the Public Utilities Code, relating to public utilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 1334, as introduced, Quirk. Public utilities: research and development projects.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, gas corporations, heat corporations, and telephone corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law authorizes the commission to allow inclusion of expenses for research and development in rates. Existing law requires the commission to consider specified guidelines in evaluating the research, development, and demonstration programs proposed by electrical and gas corporations.

This bill would require findings supporting a decision to approve the inclusion of expenses incurred for research and development projects or programs in electricity rates be informed by independent expert review.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 740.1 of the Public Utilities Code is
2amended to read:

3

740.1.  

begin insert(a)end insertbegin insertend insert The commission shall consider the following
4guidelines in evaluating the research, development, and
5demonstration programs proposed by electrical and gas
6corporations:

begin delete

7(a)

end delete

8begin insert(1)end insert Projects should offer a reasonable probability of providing
9 benefits to ratepayers.

begin delete

10(b)

end delete

11begin insert(2)end insert Expenditures on projectsbegin delete whichend deletebegin insert thatend insert have a low probability
12for success should be minimized.

begin delete

13(c)

end delete

14begin insert(3)end insert Projects should be consistent with the corporation’s resource
15plan.

begin delete

16(d)

end delete

17begin insert(4)end insert Projects should not unnecessarily duplicate research
18currently, previously, or imminently undertaken by other electrical
19or gas corporations or research organizations.

begin delete

20(e)

end delete

21begin insert(5)end insert Each project should also support one or more of the
22following objectives:

begin delete

23(1)

end delete

24begin insert(A)end insert Environmental improvement.

begin delete

25(2)

end delete

26begin insert(B)end insert Public and employee safety.

begin delete

27(3)

end delete

28begin insert(C)end insert Conservation by efficient resource use or by reducing or
29shifting system load.

begin delete

30(4)

end delete

31begin insert(D)end insert Development of new resources and processes, particularly
32renewable resources and processesbegin delete whichend deletebegin insert thatend insert further supply
33technologies.

begin delete

34(5)

end delete

35begin insert(end insertbegin insertE)end insert Improve operating efficiency and reliability or otherwise
36reduce operating costs.

begin insert

37(b) Findings supporting a decision to approve the inclusion of
38expenses incurred for research and development projects or
P3    1programs in electricity rates pursuant to Section 740 shall be
2informed by independent expert review.

end insert


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