BILL ANALYSIS
AB 2573
Page 1
ASSEMBLY THIRD READING
AB 2573 (Leno)
As Amended May 22, 2006
Majority Vote
UTILITIES & COMMERCE 10-1 NATURAL
RESOURCES 10-0
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|Ayes:|Levine, Blakeslee, Baca, |Ayes:|Hancock, La Malfa, |
| |Cohn, | |Harman, Keene, Ruskin, |
| |De La Torre, Jones, | |Laird, Lieu, Nava, |
| |Keene, Montanez, | |Saldana, Wolk |
| |Ridley-Thomas, Wyland | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bogh | | |
| | | | |
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APPROPRIATIONS 16-1
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|Ayes:|Chu, Sharon Runner, Bass, | | |
| |Berg, Calderon, De La | | |
| |Torre, Emmerson, | | |
| |Karnette, Klehs, Leno, | | |
| |Nakanishi, Nation, | | |
| |Oropeza, Ridley-Thomas, | | |
| |Saldana, Yee | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Haynes | | |
| | | | |
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SUMMARY : Increases the amount of solar generation permissible
for the City and County of San Francisco's (City) net-metering
facilities, and requires Pacific Gas & Electric Company (PG&E)
to accept City-generated photovoltaic (solar) power at one
location and provide electricity to a City-designated remote
location up to the amount of electricity contemporaneously being
used by the remote location.
FISCAL EFFECT : Unknown
AB 2573
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COMMENTS : This bill will not shift any costs to PG&E's other
ratepayers or customers. The author provided assurance to the
Assembly Utilities and Commerce Committee that all costs
incurred by PG&E to accept City-generated solar energy at one or
more locations and contemporaneously deliver electricity to
remote City-designated locations would be borne by the City. In
addition, the City and the author confirmed that any upgrades to
the PG&E distribution system needed as a result of this
remote-generation/remote-load arrangement would be exclusively
borne by the City. The California Public Utilities Commission
(PUC) regulates PG&E's rates. The Federal Energy Regulatory
Commission (FERC) regulates other aspects of PG&E's operations.
To ensure PG&E's other customers (i.e., non-City) are not
adversely affected by this arrangement, The Assembly Utilities
and Commerce Committee amended this bill to require the
appropriate regulatory agency ensure that this arrangement does
not result in a shifting of costs to other customers, either
immediately or over time. As such, PG&E shall be compensated
for any system impact costs resulting from this arrangement.
The City is in a unique position. The City owns Hetch Hetchy
Water and Power, which provides water from the Tuolumne River to
the City and its residents. In addition, the City generates
electricity from the Hetch Hetchy facility to provide power to
the City's municipal government agencies. PG&E provides power
to all other non-governmental entities, such as residential,
commercial, and industrial customers within the City's
boundaries.
Two years ago the City's voters approved local Propositions B
and H, which could potentially provide over $100 million in
revenue bond financing for municipal and private solar projects.
The main problem is that the locations where the sun position
would maximize the output of solar generation do not coincide
with the municipal locations where the electricity would be
used.
Current solar generation provisions require the generation
facility to be on or adjacent to the building that would use the
electricity and generate not more than 1 megawatt (MW). The
intent of the current provisions was to decrease dependence on
remote generators and the transmission grid by small users.
This bill would delete the 1 MW cap on an at-site individual
facility, and would increase the cap on the City's total amount
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of at-site solar generation to 15 MWs.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0014556