BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2861 (Ting) - Electricity: distribution grid interconnection
dispute resolution process
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|Version: August 1, 2016 |Policy Vote: E., U., & C. 9 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Narisha Bonakdar |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 2861 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. The
bill specifies the elements to be included 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
Impact:
Approximately $731,000 (Utilities Reimbursement Account) to
the CPUC for staff necessary to develop and implement the
expedited distribution grid interconnection dispute resolution
process.
Background:
AB 2861 (Ting) Page 1 of
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Distribution Grid Interconnection Disputes. Investor-owned
utilities (IOUs) own the utility lines that serve local areas,
also known as the distribution grid. The interconnection is
the physical connection between a generator and the grid.
Disputes arise when the utility who owns, manages, and 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.
CPUC's Rule 21 and the Alternative Dispute Resolution Process.
Electric Rule 21 is a tariff that describes the interconnection,
operating and metering requirements for generation facilities to
be connected to an IOU's distribution system, over which the
CPUC has jurisdiction. Section K of Rule 21 establishes a
dispute resolution process that first provides a structure for
bilateral negotiations between representatives of a generation
facility and the IOU, and then directs unresolved disputes to
the CPUC's Alternative Dispute Resolution (ADR) process, which
is administered by the CPUC's Administrative Law Judge Division.
The CPUC does not have data on how many interconnection disputes
have gone through the ADR process. However, the CPUC describes
the process as rarely, if ever, having been used by
interconnection applicants. The CPUC attributes this to the
time and cost of the ADR process, and reports that developers
instead often raise complaints with CPUC's Energy Division
staff. The CPUC reports that in the last year, the Energy
Division has received 20-30 informal requests for assistance
with interconnection disputes.
An expedited dispute resolution process. This bill seeks to
create a forum by which interconnection disputes between a
generator and an IOU can be resolved quickly and fairly. To
that end, this bill authorizes the CPUC to establish an
expedited distribution grid interconnection dispute resolution
process with the goal of resolving disputes over interconnection
applications that are within the jurisdiction of the CPUC in no
more than 60 days from the time the dispute is formally brought
to the commission. The idea was proposed as part of last year's
budget act but did not appear in the final version.
AB 2861 (Ting) Page 2 of
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Proposed Law:
This bill:
1)Authorizes the CPUC to establish an expedited distribution
grid interconnection dispute resolution process to resolve
disputes within 60 days, unless it determines more time is
needed.
2)Specifies the elements to be included in the dispute
resolution process.
3)Requires the CPUC to establish a technical advisory panel, a
review panel, and a public process for each dispute.
4)Requires the CPUC to appoint a qualified electrical engineer
with substantial expertise to advise the Director of Energy
Division and provide adequate staff to assist in resolving
interconnection disputes.
Staff
Comments: 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.
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