BILL ANALYSIS Ó
AB 2861
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CONCURRENCE IN SENATE AMENDMENTS
AB
2861 (Ting)
As Amended August 1, 2016
Majority vote
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|ASSEMBLY: |80-0 |(May 31, 2016) |SENATE: |39-0 |(August 24, |
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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
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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:
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