BILL ANALYSIS Ó AB 2861 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2861 (Ting) As Amended August 1, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |80-0 |(May 31, 2016) |SENATE: |39-0 |(August 24, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: U. & C. 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 the dispute resolution process and requires the CPUC to establish a technical panel, a review panel, and a public process for each dispute. The Senate amendments require the CPUC to appoint a qualified electrical systems engineer with substantial interconnection expertise to advise the director of the energy division; require the CPUC provide adequate commission staff to assist in resolving interconnection disputes; and remove the word "advisory" from the name of the technical panel to be established pursuant to this bill. AB 2861 Page 2 FISCAL EFFECT: According to Senate Appropriations, approximately $731,000 (Utilities Reimbursement Account) to the CPUC for staff necessary to develop and implement the expedited distribution grid interconnection dispute resolution process. COMMENTS: 1)Background: 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. 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. Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083 FN: AB 2861 Page 3 0004339