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 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: August 1, 2016 |Policy Vote: E., U., & C. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- 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 ? 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 ? 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. -- END -