BILL ANALYSIS Ó
AB 2861
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ASSEMBLY THIRD READING
AB
2861 (Ting)
As Amended April 27, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Utilities |14-0 |Gatto, Patterson, | |
| | |Burke, Chávez, Dahle, | |
| | |Eggman, Cristina | |
| | |Garcia, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Hadley, | |
| | | | |
| | | | |
| | |Roger Hernández, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |20-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
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| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Jones, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Wagner, Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Authorizes the California Public Utilities Commission
(CPUC) to establish an expedited distribution grid
interconnection dispute resolution process to resolve disputes
within 60 days, unless it determines more time is needed.
Specifies the elements to be included in in the dispute
resolution process and requires the CPUC to establish a
technical advisory panel, a review panel, and a public process
for each dispute.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, if the CPUC opted to establish the expedited dispute
process, it would likely require an additional $550,000, seven
staff positions and $300,000 in contracts. (CPUC Utilities Fund)
COMMENTS:
1)Purpose: According to the author, this bill expedites the
process of connecting more energy storage to a utility's
electric grid, which in turn means more renewable energy can
be obtained.
2)Distribution Grid Interconnection Disputes: Investor-owned
utilities (IOUs) own the distribution grid, that is, the
utility lines that serve local areas. The interconnection is
the physical connection between a generator and the grid.
Disputes arise when the utility who owns, manages and
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maintains the grid won't connect generation projects. A
typical dispute occurs when the utility requires system
improvements for safety purposes and the generator may object
to some or all of the costs of the improvements.
The CPUC currently has an Alternative Dispute Resolution (ADR)
process in its interconnection rules. The process first
provides a structure for bilateral negotiations then directs
unresolved disputes to the ADR process, which includes an
administrative law judge, and provides a dispute resolution
process for all utility service provisions within the CPUC's
jurisdiction. According to the CPUC, the ADR process has
rarely if ever been used for distribution grid interconnection
disputes. Instead, generators complain to CPUC Energy
division staff who lack the engineering expertise and
authority to intervene. The CPUC reports that in the last
year, the Energy Division has received 20 to 30 informal
requests for assistance with interconnection disputes.
This bill provides an expedited dispute process through
technical advisory and review panels.
Analysis Prepared by:
Sue Kateley / U. & C. / (916) 319-2083 FN:
0003108
AB 2861
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