BILL ANALYSIS Ó SB 793 Page 1 Date of Hearing: July 15, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 793 (Wolk) - As Amended June 30, 2015 ----------------------------------------------------------------- |Policy |Utilities and Commerce |Vote:|14 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill requires an investor-owned utility (IOU) participating in a Green Tariff Shared Renewables Program (GTSR) to permit a participating customer to subscribe to the program. This bill SB 793 Page 2 also requires the Public Utilities Commission (PUC) to provide the customer with a nonbinding estimate of reasonably anticipated bill credits and charges for a period up to 20 years. FISCAL EFFECT: Ongoing annual costs of approximately $130,000 (Public Utilities Reimbursement Account) for the PUC to estimate costs and credits over 20 years. COMMENTS: 1)Purpose. The GTSR program provides an option for approximately 75% of households and 70% of businesses who cannot participate in rooftop solar programs because they rent their homes or places of business, do not have strong enough credit, or own a roof that is too small or does not receive enough sunlight. According to the author, the PUC rules currently prevent customers from subscribing to their utility's GTSR program for a term of more than one year, a limitation that was not required nor contemplated in the enabling legislation. Because utility bill credits and charges can fluctuate year to year, this one-year maximum limitation prevents a customer from reasonably predicting their rate associated with subscribing to GTSR beyond the current year. This limitation is likely to significantly reduce program uptake, especially for customers who are considering making a long-term agreement with a specific renewable energy developer within the Enhanced Community Renewables portion of the GTSR programs. This bill provides customers with information necessary to make long-term decisions. SB 793 Page 3 2)Background. In 2013, the Legislature passed SB 43 (Wolk) Chapter 413, Statutes of 2013, which created the GTSR Pilot Program, to allow electrical customers of investor-owned utilities (IOUs) to purchase electricity from local renewable energy facilities up to a statewide limit of 600 megawatts (MV) proportionately distributed among the IOUs. The goal of the GTSR program is to allow customers to access renewable energy resources even if they are unable to have the benefits of onsite generation. The PUC issued this decision on January 29, 2015 that allows customers to subscribe to the GTSR one year at a time. 3)Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081