BILL ANALYSIS
AB 2573
Page 1
Date of Hearing: May 17, 2006
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
AB 2573 (Leno) - As Amended: May 10, 2006
Policy Committee:
UtilitiesVote:10-1
Natural Resources 10-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill:
1)Authorizes the City and County of San Francisco-when
photovoltaic (solar) power generated at a municipal facility
is in excess of the electricity needs of that facility-to use
the excess power to provide electricity for another City-owned
facility, but only for new load at that facility.
2)Requires the above, when all associated costs to the City are
included, to result in no net shifting of electricity costs to
Pacific Gas and Electric Companies bundled service customers,
i.e. those receiving generation, transmission, and
distribution services.
3)Increases, from 5 megawatts (MW) to 15 MW, the amount of solar
generation permissible at the City's municipal facilities.
4)Deletes a provision that states that if the City engages in
retail sales to PG&E customers as a result of becoming a
community choice aggregator or through municipalization of
electricity service, the section that defines the City's
on-site solar production become inoperative.
FISCAL EFFECT
Minor absorbable costs for the California Public Utilities
Commission (CPUC) any agreement between the City and PG&E
related to the bill's provisions.
AB 2573
Page 2
COMMENTS
1)Purpose . According to information provided by the author's
office, San Francisco's municipal utility, the San Francisco
Public Utilities Commission (SFPUC), is seeking to develop
large-scale solar facilities to serve new City load resulting
from redevelopment projects. However, the City seeks to site
the solar facilities in the most favorable locations,
including locations that are separate and remote from the new
redevelopment projects. This bill is needed to authorize a
power exchange between municipal solar sites with excess solar
generation capacity above their own load needs, and new
municipal development sites which can use this excess solar
capacity. Under this process, PG&E would accept power at the
site with excess solar capacity and provide power to the
remote municipal development site. Pursuant to current law, a
System Impact Study of new projects is required by the CPUC,
and the commission requires that PG&E be compensated for any
system impact costs.
2)Opposition . PG&E is opposed to the bill for numerous policy
reasons and believes that the objectives of the bill can be
achieved without legislation.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081