BILL ANALYSIS
AB 2573
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2573 (Leno)
As Amended August 28, 2006
Majority vote
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|ASSEMBLY: |64-15|(May 30, 2006) |SENATE: |39-1 |(August 30, |
| | | | | |2006) |
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Original Committee Reference: U. & C.
SUMMARY : Increases the amount of solar generation permissible
for the City and County of San Francisco's (San Francisco,
Hetch-Hetchy Water and Power, or HHWP) net-metering facilities,
and requires Pacific Gas & Electric Company (PG&E) to accept
HHWP-generated photovoltaic (solar) power at one location and
provide electricity to a designated remote location up to the
amount of electricity contemporaneously being used by the remote
location.
The Senate amendments :
1) Confine the remote load to within 20 miles of San
Francisco, or within 20 miles of a HHWP remote solar
generation facility.
2) Requires the San Francisco to purchase and install
time-of-use meters for HHWP solar generation facilities.
3) Requires San Francisco to pay applicable distribution
rates and/or transmission rates at rate levels determined by
the Interconnection Agreement, for all energy delivered to
qualifying remote load that comes from a HHWP solar generation
facility.
4) Prescribes the rates that would apply depending on
whether the HHWP solar generation facility is interconnected
at distribution voltage.
EXISTING LAW requires PG&E to identify the appropriate tariff
for energy generated at the City-owned solar sites, and apply a
AB 2573
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monetary credit to offset amounts invoiced by PG&E pursuant to
the Interconnection Agreement between PG&E and San Francisco.
AS PASSED BY THE ASSEMBLY , this bill required the appropriate
regulatory agency to ensure that this arrangement of HHWP
generation providing electricity to qualifying remote sites does
not result in a shifting of costs to bundled service customers.
It did not prescribe rates.
FISCAL EFFECT : Unknown
COMMENTS : This bill was amended in the Senate. The author
provided a strong commitment to the Assembly Committee on
Utilities and Commerce that there would be no cost shifts to
PG&E's other customers. The Senate amendments delete the
language that required a regulatory agency to ensure no cost
shifts, and instead, included ratemaking language that would
prescribe a rate to be used depending upon whether the solar
generating facility is interconnected to a distribution line, or
a transmission line.
PG&E and San Francisco recently concluded a renegotiation of its
Interconnection Agreement, which designates which rates shall
apply in what situations. This bill would codify some of the
terms of the most recently negotiated Agreement.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0017513