Amended in Senate August 11, 2016

Amended in Senate June 27, 2016

Amended in Senate June 14, 2016

Amended in Assembly April 25, 2016

Amended in Assembly April 4, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1937


Introduced by Assembly Members Gomez and Williams

(Coauthor: Senator Pavley)

February 12, 2016


An act to amend Sections 399.13 and 454.5 of the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

AB 1937, as amended, Gomez. Electricity: procurement.

The Public Utilities Act requires the Public Utilities Commission to review and accept, modify, or reject a procurement plan for each electrical corporation in accordance with specified procedures, considerations, and objectives. The act requires that electrical corporations’ proposed procurement plans include certain elements, including a showing that the electrical corporations will first meet their unmet needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible.

This bill would require electrical corporations’ proposed procurement plans to also include a showing that the electrical corporations (1), in soliciting bids forbegin insert newend insert gas-firedbegin delete generation resources from new facilities,end deletebegin insert generating units,end insert actively seek bids for resources that are not gas-firedbegin delete generation resourcesend deletebegin insert generating unitsend insert located in communities that suffer from cumulative pollution burdens and (2), in considering bids for, or negotiating bilateral contracts for, new gas-firedbegin delete generation resources,end deletebegin insert generating units,end insert give preference tobegin delete generationend delete resources that are not gas-firedbegin delete generation resourcesend deletebegin insert generating unitsend insert located in those communities. The bill would require the commission, before approving a contract for any new gas-firedbegin delete generation resource,end deletebegin insert generating unit,end insert to require the electrical corporation to demonstrate that it has complied with its approved procurement plan. Because this requirement would be a part of the Public Utilities Act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

Existing law requires electrical corporations, in soliciting and procuring of eligible renewable energy resources for California-based projects, to give preference to renewable energy projects that provide environmental and economic benefits to communities afflicted with poverty or high unemployment or those suffering from high emission levels of toxic air contaminants, criteria air pollutants, and greenhouse gases.

This bill would specify that the above requirements apply to all procurement of eligible renewable energy resources for California-based projects whether the procurement occurs through all-source requests for offers, eligible renewable energy resources only requests for offers, or other procurement mechanisms.

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:

P2    1

SECTION 1.  

Section 399.13 of the Public Utilities Code is
2amended to read:

3

399.13.  

(a) (1) The commission shall direct each electrical
4corporation to annually prepare a renewable energy procurement
P3    1plan that includes the matter in paragraph (5), to satisfy its
2obligations under the renewables portfolio standard. To the extent
3feasible, this procurement plan shall be proposed, reviewed, and
4adopted by the commission as part of, and pursuant to, a general
5procurement plan process. The commission shall require each
6electrical corporation to review and update its renewable energy
7procurement plan as it determines to be necessary. The commission
8shall require all other retail sellers to prepare and submit renewable
9energy procurement plans that address the requirements identified
10in paragraph (5).

11(2) Every electrical corporation that owns electrical transmission
12facilities shall annually prepare, as part of the Federal Energy
13Regulatory Commission Order 890 process, and submit to the
14commission, a report identifying any electrical transmission
15facility, upgrade, or enhancement that is reasonably necessary to
16achieve the renewables portfolio standard procurement
17requirements of this article. Each report shall look forward at least
18five years and, to ensure that adequate investments are made in a
19timely manner, shall include a preliminary schedule when an
20application for a certificate of public convenience and necessity
21will be made, pursuant to Chapter 5 (commencing with Section
221001), for any electrical transmission facility identified as being
23reasonably necessary to achieve the renewable energy resources
24procurement requirements of this article. Each electrical
25corporation that owns electrical transmission facilities shall ensure
26that project-specific interconnection studies are completed in a
27timely manner.

28(3) The commission shall direct each retail seller to prepare and
29submit an annual compliance report that includes all of the
30following:

31(A) The current status and progress made during the prior year
32toward procurement of eligible renewable energy resources as a
33percentage of retail sales, including, if applicable, the status of any
34necessary siting and permitting approvals from federal, state, and
35local agencies for those eligible renewable energy resources
36procured by the retail seller, and the current status of compliance
37with the portfolio content requirements of subdivision (c) of
38Section 399.16, including procurement of eligible renewable energy
39resources located outside the state and within the WECC and
40unbundled renewable energy credits.

P4    1(B) If the retail seller is an electrical corporation, the current
2status and progress made during the prior year toward construction
3of, and upgrades to, transmission and distribution facilities and
4other electrical system components it owns to interconnect eligible
5renewable energy resources and to supply the electricity generated
6by those resources to load, including the status of planning, siting,
7and permitting transmission facilities by federal, state, and local
8agencies.

9(C) Recommendations to remove impediments to making
10progress toward achieving the renewable energy resources
11procurement requirements established pursuant to this article.

12(4) The commission shall adopt, by rulemaking, all of the
13following:

14(A) A process that provides criteria for the rank ordering and
15selection of least-cost and best-fit eligible renewable energy
16resources to comply with the California Renewables Portfolio
17Standard Program obligations on a total cost and best-fit basis.
18This process shall take into account all of the following:

19(i) Estimates of indirect costs associated with needed
20transmission investments.

21(ii) The cost impact of procuring the eligible renewable energy
22resources on the electrical corporation’s electricity portfolio.

23(iii) The viability of the project to construct and reliably operate
24the eligible renewable energy resource, including the developer’s
25experience, the feasibility of the technology used to generate
26electricity, and the risk that the facility will not be built, or that
27construction will be delayed, with the result that electricity will
28not be supplied as required by the contract.

29(iv) Workforce recruitment, training, and retention efforts,
30including the employment growth associated with the construction
31and operation of eligible renewable energy resources and goals
32for recruitment and training of women, minorities, and disabled
33veterans.

34(v) (I) Estimates of electrical corporation expenses resulting
35from integrating and operating eligible renewable energy resources,
36including, but not limited to, any additional wholesale energy and
37capacity costs associated with integrating each eligible renewable
38resource.

P5    1(II) No later than December 31, 2015, the commission shall
2approve a methodology for determining the integration costs
3described in subclause (I).

4(vi) Consideration of any statewide greenhouse gas emissions
5limit established pursuant to the California Global Warming
6Solutions Act of 2006 (Division 25.5 (commencing with Section
738500) of the Health and Safety Code).

8(vii) Consideration of capacity and system reliability of the
9eligible renewable energy resource to ensure grid reliability.

10(B) Rules permitting retail sellers to accumulate, beginning
11January 1, 2011, excess procurement in one compliance period to
12be applied to any subsequent compliance period. The rules shall
13apply equally to all retail sellers. In determining the quantity of
14excess procurement for the applicable compliance period, the
15commission shall retain the rules adopted by the commission and
16in effect as of January 1, 2015, for the compliance period specified
17in subparagraphs (A) to (C), inclusive, of paragraph (1) of
18subdivision (b) of Section 399.15. For any subsequent compliance
19period, the rules shall allow the following:

20(i) For electricity products meeting the portfolio content
21requirements of paragraph (1) of subdivision (b) of Section 399.16,
22contracts of any duration may count as excess procurement.

23(ii) Electricity products meeting the portfolio content
24requirements of paragraph (2) or (3) of subdivision (b) of Section
25399.16 shall not be counted as excess procurement. Contracts of
26any duration for electricity products meeting the portfolio content
27requirements of paragraph (2) or (3) of subdivision (b) of Section
28399.16 that are credited towards a compliance period shall not be
29deducted from a retail seller’s procurement for purposes of
30calculating excess procurement.

31(iii) If a retail seller notifies the commission that it will comply
32with the provisions of subdivision (b) for the compliance period
33beginning January 1, 2017, the provisions of clauses (i) and (ii)
34shall take effect for that retail seller for that compliance period.

35(C) Standard terms and conditions to be used by all electrical
36corporations in contracting for eligible renewable energy resources,
37including performance requirements for renewable generators. A
38contract for the purchase of electricity generated by an eligible
39renewable energy resource, at a minimum, shall include the
40renewable energy credits associated with all electricity generation
P6    1specified under the contract. The standard terms and conditions
2shall include the requirement that, no later than six months after
3the commission’s approval of an electricity purchase agreement
4entered into pursuant to this article, the following information
5about the agreement shall be disclosed by the commission: party
6names, resource type, project location, and project capacity.

7(D) An appropriate minimum margin of procurement above the
8minimum procurement level necessary to comply with the
9renewables portfolio standard to mitigate the risk that renewable
10projects planned or under contract are delayed or canceled. This
11paragraph does not preclude an electrical corporation from
12voluntarily proposing a margin of procurement above the
13appropriate minimum margin established by the commission.

14(5) Consistent with the goal of increasing California’s reliance
15on eligible renewable energy resources, the renewable energy
16procurement plan shall include all of the following:

17(A) An assessment of annual or multiyear portfolio supplies
18and demand to determine the optimal mix of eligible renewable
19energy resources with deliverability characteristics that may include
20peaking, dispatchable, baseload, firm, and as-available capacity.

21(B) Potential compliance delays related to the conditions
22 described in paragraph (5) of subdivision (b) of Section 399.15.

23(C) A bid solicitation setting forth the need for eligible
24renewable energy resources of each deliverability characteristic,
25required online dates, and locational preferences, if any.

26(D) A status update on the development schedule of all eligible
27renewable energy resources currently under contract.

28(E) Consideration of mechanisms for price adjustments
29associated with the costs of key components for eligible renewable
30energy resource projects with online dates more than 24 months
31after the date of contract execution.

32(F) An assessment of the risk that an eligible renewable energy
33resource will not be built, or that construction will be delayed,
34with the result that electricity will not be delivered as required by
35the contract.

36(6) In soliciting and procuring eligible renewable energy
37resources, each electrical corporation shall offer contracts of no
38less than 10 years duration, unless the commission approves of a
39contract of shorter duration.

P7    1(7) (A) In soliciting and procuring eligible renewable energy
2resources for California-based projects, each electrical corporation
3shall give preference to renewable energy projects that provide
4environmental and economic benefits to communities afflicted
5with poverty or high unemployment, or that suffer from high
6emission levels of toxic air contaminants, criteria air pollutants,
7and greenhouse gases.

8(B) Subparagraph (A) applies to all procurement of eligible
9renewable energy resources for California-based projects, whether
10the procurement occur through all-source requests for offers,
11eligible renewable resources only requests for offers, or other
12procurement mechanisms. This subparagraph is declaratory of
13existing law.

14(8) In soliciting and procuring eligible renewable energy
15resources, each retail seller shall consider the best-fit attributes of
16resource types that ensure a balanced resource mix to maintain the
17reliability of the electrical grid.

18(b) A retail seller may enter into a combination of long- and
19short-term contracts for electricity and associated renewable energy
20credits. Beginning January 1, 2021, at least 65 percent of the
21procurement a retail seller counts toward the renewables portfolio
22standard requirement of each compliance period shall be from its
23contracts of 10 years or more in duration or in its ownership or
24ownership agreements for eligible renewable energy resources.

25(c) The commission shall review and accept, modify, or reject
26each electrical corporation’s renewable energy resource
27procurement plan prior to the commencement of renewable energy
28procurement pursuant to this article by an electrical corporation.
29The commission shall assess adherence to the approved renewable
30energy resource procurement plans in determining compliance
31with the obligations of this article.

32(d) Unless previously preapproved by the commission, an
33electrical corporation shall submit a contract for the generation of
34an eligible renewable energy resource to the commission for review
35and approval consistent with an approved renewable energy
36resource procurement plan. If the commission determines that the
37bid prices are elevated due to a lack of effective competition among
38the bidders, the commission shall direct the electrical corporation
39to renegotiate the contracts or conduct a new solicitation.

P8    1(e) If an electrical corporation fails to comply with a commission
2order adopting a renewable energy resource procurement plan, the
3commission shall exercise its authority to require compliance.

4(f) (1) The commission may authorize a procurement entity to
5enter into contracts on behalf of customers of a retail seller for
6electricity products from eligible renewable energy resources to
7satisfy the retail seller’s renewables portfolio standard procurement
8requirements. The commission shall not require any person or
9 corporation to act as a procurement entity or require any party to
10purchase eligible renewable energy resources from a procurement
11entity.

12(2) Subject to review and approval by the commission, the
13procurement entity shall be permitted to recover reasonable
14administrative and procurement costs through the retail rates of
15end-use customers that are served by the procurement entity and
16are directly benefiting from the procurement of eligible renewable
17energy resources.

18(g) Procurement and administrative costs associated with
19contracts entered into by an electrical corporation for eligible
20renewable energy resources pursuant to this article and approved
21by the commission are reasonable and prudent and shall be
22recoverable in rates.

23(h) Construction, alteration, demolition, installation, and repair
24work on an eligible renewable energy resource that receives
25production incentives pursuant to Section 25742 of the Public
26Resources Code, including work performed to qualify, receive, or
27maintain production incentives, are “public works” for the purposes
28of Chapter 1 (commencing with Section 1720) of Part 7 of Division
292 of the Labor Code.

30

SEC. 2.  

Section 454.5 of the Public Utilities Code is amended
31to read:

32

454.5.  

(a) The commission shall specify the allocation of
33electricity, including quantity, characteristics, and duration of
34electricity delivery, that the Department of Water Resources shall
35provide under its power purchase agreements to the customers of
36each electrical corporation, which shall be reflected in the electrical
37corporation’s proposed procurement plan. Each electrical
38corporation shall file a proposed procurement plan with the
39commission not later than 60 days after the commission specifies
40the allocation of electricity. The proposed procurement plan shall
P9    1specify the date that the electrical corporation intends to resume
2procurement of electricity for its retail customers, consistent with
3its obligation to serve. After the commission’s adoption of a
4procurement plan, the commission shall allow not less than 60
5days before the electrical corporation resumes procurement
6pursuant to this section.

7(b) An electrical corporation’s proposed procurement plan shall
8include, but not be limited to, all of the following:

9(1) An assessment of the price risk associated with the electrical
10corporation’s portfolio, including any utility-retained generation,
11existing power purchase and exchange contracts, and proposed
12contracts or purchases under which an electrical corporation will
13procure electricity, electricity demand reductions, and
14electricity-related products and the remaining open position to be
15served by spot market transactions.

16(2) A definition of each electricity product, electricity-related
17product, and procurement related financial product, including
18support and justification for the product type and amount to be
19procured under the plan.

20(3) The duration of the plan.

21(4) The duration, timing, and range of quantities of each product
22to be procured.

23(5) A competitive procurement process under which the
24electrical corporation may request bids for procurement-related
25services, including the format and criteria of that procurement
26process.

27(6) An incentive mechanism, if any incentive mechanism is
28proposed, including the type of transactions to be covered by that
29mechanism, their respective procurement benchmarks, and other
30parameters needed to determine the sharing of risks and benefits.

31(7) The upfront standards and criteria by which the acceptability
32and eligibility for rate recovery of a proposed procurement
33 transaction will be known by the electrical corporation prior to
34execution of the transaction. This shall include an expedited
35approval process for the commission’s review of proposed contracts
36and subsequent approval or rejection thereof. The electrical
37corporation shall propose alternative procurement choices in the
38event a contract is rejected.

39(8) Procedures for updating the procurement plan.

P10   1(9) A showing that the procurement plan will achieve the
2following:

3(A) The electrical corporation, in order to fulfill its unmet
4resource needs, shall procure resources from eligible renewable
5energy resources in an amount sufficient to meet its procurement
6requirements pursuant to the California Renewables Portfolio
7Standard Program (Article 16 (commencing with Section 399.11)
8of Chapter 2.3).

9(B) The electrical corporation shall create or maintain a
10diversified procurement portfolio consisting of both short-term
11and long-term electricity and electricity-related and demand
12reduction products.

13(C) The electrical corporation shall first meet its unmet resource
14needs through all available energy efficiency and demand reduction
15resources that are cost effective, reliable, and feasible.

16(D) (i) The electrical corporation, in soliciting bids forbegin insert newend insert
17 gas-firedbegin delete generation resources from new facilities,end deletebegin insert generating
18units,end insert
shall actively seek bids for resources that are not gas-fired
19begin delete generation resourcesend deletebegin insert generating unitsend insert located in communities that
20suffer from cumulative pollution burdens, including, but not limited
21to, high emission levels of toxic air contaminants, criteria air
22pollutants, and greenhouse gases.

23(ii) In considering bids for, or negotiating contracts for, new
24gas-firedbegin delete generation resources,end deletebegin insert generating units,end insert the electrical
25corporation shall provide greater preference to resources that are
26not gas-firedbegin delete generation resourcesend deletebegin insert generating unitsend insert located in
27communities that suffer from cumulative pollution burdens,
28including, but not limited to, high emission levels of toxic air
29contaminants, criteria air pollutants, and greenhouse gases.

30(iii) This subparagraph does not apply to contracts signed by
31an electrical corporation and approved by the commission prior
32to January 1, 2017.

begin delete

33(E) The electrical corporation shall undertake all feasible efforts
34to meet any identified resource need through available renewable
35energy, energy storage, energy efficiency, and demand reduction
36resources that are cost effective, reliable, and feasible.

end delete

37(10) The electrical corporation’s risk management policy,
38strategy, and practices, including specific measures of price
39stability.

P11   1(11) A plan to achieve appropriate increases in diversity of
2ownership and diversity of fuel supply of nonutility electrical
3generation.

4(12) A mechanism for recovery of reasonable administrative
5costs related to procurement in the generation component of rates.

6(c) The commission shall review and accept, modify, or reject
7each electrical corporation’s procurement plan and any amendments
8or updates to the plan. The commission shall ensure that the plan
9contains the elements required pursuant to this section, including
10thebegin delete elementsend deletebegin insert showingsend insert described inbegin delete subparagraphsend deletebegin insert subparagraphend insert
11 (D)begin delete and (E)end delete of paragraph (9) of subdivision (b). The commission’s
12review shall consider each electrical corporation’s individual
13procurement situation, and shall give strong consideration to that
14situation in determining which one or more of the features set forth
15in this subdivision shall apply to that electrical corporation. A
16procurement plan approved by the commission shall contain one
17or more of the following features, provided that the commission
18may not approve a feature or mechanism for an electrical
19corporation if it finds that the feature or mechanism would impair
20the restoration of an electrical corporation’s creditworthiness or
21would lead to a deterioration of an electrical corporation’s
22creditworthiness:

23(1) A competitive procurement process under which the
24electrical corporation may request bids for procurement-related
25services. The commission shall specify the format of that
26procurement process, as well as criteria to ensure that the auction
27process is open and adequately subscribed. Any purchases made
28in compliance with the commission-authorized process shall be
29recovered in the generation component of rates.

30(2) An incentive mechanism that establishes a procurement
31benchmark or benchmarks and authorizes the electrical corporation
32to procure from the market, subject to comparing the electrical
33corporation’s performance to the commission-authorized
34benchmark or benchmarks. The incentive mechanism shall be
35clear, achievable, and contain quantifiable objectives and standards.
36The incentive mechanism shall contain balanced risk and reward
37incentives that limit the risk and reward of an electrical corporation.

38(3) Upfront achievable standards and criteria by which the
39acceptability and eligibility for rate recovery of a proposed
40procurement transaction will be known by the electrical corporation
P12   1prior to the execution of the bilateral contract for the transaction.
2The commission shall provide for expedited review and either
3approve or reject the individual contracts submitted by the electrical
4corporation to ensure compliance with its procurement plan. To
5the extent the commission rejects a proposed contract pursuant to
6this criteria, the commission shall designate alternative procurement
7choices obtained in the procurement plan that will be recoverable
8for ratemaking purposes.

9(d) A procurement plan approved by the commission shall
10accomplish each of the following objectives:

11(1) Enable the electrical corporation to fulfill its obligation to
12serve its customers at just and reasonable rates.

13(2) Eliminate the need for after-the-fact reasonableness reviews
14of an electrical corporation’s actions in compliance with an
15approved procurement plan, including resulting electricity
16procurement contracts, practices, and related expenses. However,
17the commission may establish a regulatory process to verify and
18ensure that each contract was administered in accordance with the
19terms of the contract, and contract disputes that may arise are
20reasonably resolved.

21(3) Ensure timely recovery of prospective procurement costs
22incurred pursuant to an approved procurement plan. The
23commission shall establish rates based on forecasts of procurement
24costs adopted by the commission, actual procurement costs
25incurred, or combination thereof, as determined by the commission.
26The commission shall establish power procurement balancing
27accounts to track the differences between recorded revenues and
28costs incurred pursuant to an approved procurement plan. The
29commission shall review the power procurement balancing
30accounts, not less than semiannually, and shall adjust rates or order
31refunds, as necessary, to promptly amortize a balancing account,
32according to a schedule determined by the commission. Until
33January 1, 2006, the commission shall ensure that any
34overcollection or undercollection in the power procurement
35balancing account does not exceed 5 percent of the electrical
36corporation’s actual recorded generation revenues for the prior
37 calendar year excluding revenues collected for the Department of
38Water Resources. The commission shall determine the schedule
39for amortizing the overcollection or undercollection in the
40balancing account to ensure that the 5-percent threshold is not
P13   1exceeded. After January 1, 2006, this adjustment shall occur when
2deemed appropriate by the commission consistent with the
3objectives of this section.

4(4) Moderate the price risk associated with serving its retail
5customers, including the price risk embedded in its long-term
6supply contracts, by authorizing an electrical corporation to enter
7into financial and other electricity-related product contracts.

8(5) Provide for just and reasonable rates, with an appropriate
9 balancing of price stability and price level in the electrical
10corporation’s procurement plan.

11(e) The commission shall provide for the periodic review and
12prospective modification of an electrical corporation’s procurement
13plan.

14(f) The commission may engage an independent consultant or
15advisory service to evaluate risk management and strategy. The
16reasonable costs of any consultant or advisory service is a
17reimbursable expense and eligible for funding pursuant to Section
18631.

19(g) The commission shall adopt appropriate procedures to ensure
20the confidentiality of any market sensitive information submitted
21in an electrical corporation’s proposed procurement plan or
22resulting from or related to its approved procurement plan,
23including, but not limited to, proposed or executed power purchase
24agreements, data request responses, or consultant reports, or any
25begin delete combination,end deletebegin insert combination of these,end insert provided that the Office of
26Ratepayer Advocates and other consumer groups that are
27nonmarket participants shall be provided access to this information
28under confidentiality procedures authorized by the commission.

29(h) Nothing in this section alters, modifies, or amends the
30commission’s oversight of affiliate transactions under its rules and
31decisions or the commission’s existing authority to investigate and
32penalize an electrical corporation’s alleged fraudulent activities,
33or to disallow costs incurred as a result of gross incompetence,
34 fraud, abuse, or similar grounds. Nothing in this section expands,
35modifies, or limits thebegin delete Stateend delete Energybegin delete Resources Conservation and
36Developmentend delete
Commission’s existing authority and responsibilities
37 as set forth in Sections 25216, 25216.5, and 25323 of the Public
38Resources Code.

39(i) An electrical corporation that serves less than 500,000 electric
40retail customers within the state may file with the commission a
P14   1request for exemption from this section, which the commission
2shall grant upon a showing of good cause.

3(j) (1) Prior to its approval pursuant to Section 851 of any
4divestiture of generation assets owned by an electrical corporation
5on or after the date of enactment of the act adding this section, the
6commission shall determine the impact of the proposed divestiture
7on the electrical corporation’s procurement rates and shall approve
8a divestiture only to the extent it finds, taking into account the
9effect of the divestiture on procurement rates, that the divestiture
10is in the public interest and will result in net ratepayer benefits.

11(2) Any electrical corporation’s procurement necessitated as a
12result of the divestiture of generation assets on or after the effective
13date of the act adding this subdivision shall be subject to the
14mechanisms and procedures set forth in this section only if its
15actual cost is less than the recent historical cost of the divested
16generation assets.

17(3) Notwithstanding paragraph (2), the commission may deem
18proposed procurement eligible to use the procedures in this section
19upon its approval of asset divestiture pursuant to Section 851.

20(k) The commission shall direct electrical corporations to include
21in their proposed procurement plans the integration costs described
22and determined pursuant to clause (v) of subparagraph (A) of
23paragraph (4) of subdivision (a) of Section 399.13.

24(l) Prior to approving a contract for any new gas-firedbegin delete generation
25resource,end delete
begin insert generating unit,end insert the commission shall require the
26electrical corporation to demonstrate it has complied with its
27approved procurement plan.

28

SEC. 3.  

No reimbursement is required by this act pursuant to
29Section 6 of Article XIII B of the California Constitution because
30the only costs that may be incurred by a local agency or school
31district will be incurred because this act creates a new crime or
32infraction, eliminates a crime or infraction, or changes the penalty
33for a crime or infraction, within the meaning of Section 17556 of
34the Government Code, or changes the definition of a crime within
35the meaning of Section 6 of Article XIII B of the California
36Constitution.



O

    94