SB 427, as introduced, Fuller. Renewable energy resources.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined, while local publicly owned electric utilities, as defined, are under the direction of their governing board. The existing Renewables Portfolio Standard Program (RPS program) requires a retail seller of electricity, as defined, and local publicly owned electric utilities to purchase specified minimum quantities of electricity products from eligible renewable energy resources, as defined, for specified compliance periods. The specified minimum quantities of electricity products are based upon a percentage of the utility’s total retail sales of electricity in California. The RPS program authorizes an electrical corporation to apply to the commission for approval to construct, own, and operate an eligible renewable energy resource, and requires the commission to approve the application if certain conditions are met.
This bill would make technical, nonsubstantive changes to the RPS program authorization for electrical corporations to apply to the commission for approval to construct, own, and operate an eligible renewable energy resource.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 399.14 of the Public Utilities Code is
2amended to read:
(a) (1) An electrical corporation, pursuant to Chapter
45 (commencing with Section 1001), and in order to meet its unmet
5renewables portfolio standard procurement requirements, may
6apply to the commission for approval to construct, own, and operate
7an eligible renewable energy resource.
8(2) If the proposed eligible renewable energy resource complies
9with the requirements of subdivision (b), the commission shall
10approve an application filed pursuant to paragraph (1), until the
11commission has approved applications for eligible renewable
12energy resources for the electrical corporation that, when
13constructed and operating, will provide 8.25 percent of the
14electrical corporation’s anticipated retail sales by December 31,
152020, and thereafter.
16(3) The commission may approve additional applications for
17eligible renewable energy resources once the commission has
18approved sufficient applications for eligible renewable energy
19resources for the electrical corporation that, when constructed and
20operating, will provide 8.25 percent of the electrical corporation’s
21anticipated retail sales by December 31, 2020, and thereafter.
22(b) The commission shall not approve any application by an
23electrical corporation pursuant to subdivision (a) unless both of
24the following conditions are met:
25(1) The eligible renewable energy resource utilizes a viable
26technology at a reasonable cost.
27(2) The eligible renewable energy resource provides comparable
28or superior value to ratepayers when compared to then recent
29
contracts for generation provided by eligible renewable energy
30resources.
31(c) In approving any application by an electrical corporation
32for approval to construct, own, and operate an eligible renewable
33energy resource, the commission shall apply traditional
34cost-of-service ratemaking. When applying traditional
35cost-of-service ratemaking, the commission, in the certificate
36authorizing the new construction, shall specify the maximum cost
37determined to be reasonable and prudent for the construction of
38the facility and the cost of initial operation of the facility. Upon a
P3 1filing by the electrical corporation, the commission may authorize
2an increase in the maximum cost of construction if it determines
3that the cost has in fact increased,begin delete thatend delete the cost increase is
4determined to be reasonable and prudent, andbegin delete thatend delete
the present or
5future public convenience or necessity require construction of the
6project at the increased cost.
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