AB 2700, as introduced, Salas. Electrical corporation: procurement plans.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. The Public Utilities Act requires the commission to review and accept, modify, or reject a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives. The act requires the commission to (1) identify a diverse and balanced portfolio of resources needed to ensure a reliable electricity supply that provides optimal integration of renewable energy resources in a cost-effective manner, (2) direct each electrical corporation to include, as part of its proposed procurement plan, a strategy for procuring best-fit and least-cost resources to satisfy the portfolio needs identified by the commission, (3) ensure that the net costs of any incremental renewable energy integration resources procured by an electrical corporation to satisfy the need identified by the commission are allocated on a fully nonbypassable basis, and (4) permit community choice aggregators to submit proposals for satisfying their portion of the renewable energy resource integration needs identified by the commission.
This bill would make nonsubstantive revisions to the above-described requirements of the commission relative to integration of renewable energy resources to ensure a reliable electricity supply through the procurement plan process.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 454.51 of the Public Utilities Code is
2amended to read:
The commission shall do all of the following:
4(a) Identify a diverse and balanced portfolio of resources needed
5to ensure a reliable electricity supply that provides optimal
6integration of renewable energybegin insert resourcesend insert in a cost-effective
7manner. The portfolio shall rely upon zero carbon-emitting
8resources to the maximum extent reasonable and be designed to
9achieve any statewide greenhouse gas emissions limit established
10pursuant to the California Global Warming Solutions Act of 2006
11(Division 25.5 (commencing with Section 38500) of the Health
12and Safety Code) or any successor legislation.
13(b) Direct each electrical
corporation to include, as part of its
14proposed procurement plan, a strategy for procuring best-fit and
15least-cost resources to satisfy the portfolio needs identified by the
16commission pursuant to subdivision (a).
17(c) Ensure that the net costs of any incremental renewable energy
18integration resources procured by an electrical corporation to satisfy
19the need identified in subdivision (a) are allocated on a fully
20nonbypassable basis consistent with the treatment of costs
21identified in paragraph (2) of subdivision (c) of Section 365.1.
22(d) Permit community choice aggregators to submit proposals
23for satisfying their portion of the renewablebegin insert energy resourceend insert
24
integration need identified in subdivision (a). If the commission
25finds this need is best met through long-term procurement
26commitments for resources, community choice aggregators shall
27also be required to make long-term commitments for resources.
28The commission shall approve proposals pursuant to this
29subdivision if it finds all of the following:
P3 1(1) The resources proposed by a community choice aggregator
2will provide equivalent integration of renewablebegin delete energy.end deletebegin insert energy
3resources.end insert
4(2) The resources proposed by a community choice aggregator
5will promote the efficient achievement of state energy policy
6objectives, including reductions inbegin insert
emissions ofend insert greenhousebegin delete gas begin insert
gases.end insert
7emissions.end delete
8(3) Bundled customers of an electrical corporation will be
9indifferent from the approval of the community choice aggregator
10proposals.
11(4) All costs resulting from nonperformance will be borne by
12the electrical corporation or community choice aggregator
13responsible for them.
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