BILL ANALYSIS
AB 1333
Page 1
Date of Hearing: April 27, 2009
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Felipe Fuentes, Chair
AB 1333 (Hagman) - As Amended: April 14, 2009
SUBJECT : Electrical transmission lines.
SUMMARY : Prohibits an electrical corporation from
reconstructing an electrical transmission line that runs through
a residential community unless it undertakes several
requirements, such as compensating residential landowners near
the transmission line for any reduction in property values.
EXISTING LAW :
1)Requires the California Energy Commission (CEC) to designate
transmission corridor zones.
2)Prohibits an electrical corporation from constructing a
transmission line without having first obtained from the
California Public Utilities Commission (PUC) a certificate
that the present or future public convenience and necessity
requires the construction.
THIS BILL :
1)Prohibits an electrical corporation from reconstructing an
electrical transmission line that runs through a residential
community so that the towers are increased in height by more
than 33 % of the height of the existing towers, unless all of
the following:
a) There is no reasonable alternative.
b) The electrical corporation has undertaken and will
continue to undertake all reasonable means to eliminate or
mitigate risks to the public safety.
c) The electrical corporation has agreed to provide just
compensation to all residential landowners near the
transmission line to compensate them for any reduction in
the value of their property resulting from the
reconstruction.
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FISCAL EFFECT : Unknown.
COMMENTS :
1) Background: Current law creates a renewables portfolio
standard (RPS) that requires utilities to procure at least 20%
of their electricity generation from renewable energy
generators. Two bills are gaining momentum through the
legislative process that will increase the RPS to 33% by 2020
(AB 64, Krekorian, and SB 14, Simitian).
Thirty-three percent of the combined utilities' portfolios
equates to about 28,000 megawatts (MW). This goal can't be
attained by roof-top solar alone, which requires about 13-20
homes to generate just 1 MW. (Most rooftop solar is close to
50-75 kW, where 1,000 kW equals 1 MW.) As such, the utilities
are reaching to remote areas of the state that possess ample
wind, solar, and geothermal potential to contribute to the
majority of its RPS.
The utilities and policy makers have identified the Tehachapi
Mountains as possessing some of the most wind-rich areas in the
state. To access that wind, developers have proposed the
Tehachapi Renewable Transmission Project; a 500-kilovolt (kV)
transmission line that would allow access to 4,500 MW of wind
generation planned for the Tehachapi Mountains. The
transmission line is also expected to help relieve a
transmission bottleneck between Northern and Southern
California.
The Tehachapi project would include new and upgraded electric
transmission lines and substations between eastern Kern County
and the city of Ontario in San Bernardino County. The project
will interconnect renewable wind power generated in the
Tehachapi area to the existing electric transmission system to
meet the increasing demand of electricity in Southern
California.
The Tehachapi transmission line will use existing rights of way
when it can. One existing right of way runs through the City of
Chino Hills. This existing right-of-way includes about 3 miles
of inactive 220 kV transmission lines on 98-foot towers, and
have been largely inactive for the past 30 years. According to
information provided by Chino Hills, the 3-mile portion of the
current line is located within 500 feet of more than 1,000
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homes, directly affecting approximately 3,500 people in Chino
Hills. The increased line would use the same right-of-way.
2) Why a high-voltage line : The California Independent System
Operator (CAISO, operates about 75% of the state's transmission
grid) and the PUC have determined that a high-voltage
transmission line is necessary to access the renewable
generation in the Tehachapi region. As such, the existing 220
kV lines will need to be upgraded to 500 kV lines to accommodate
the generation.
High-voltage lines are like the interstate highways we use to
travel long distances more efficiently. They carry large
amounts of power from generators that may be sited far away to
load centers where the power is consumed. It is more efficient
to move electricity over long distances at high voltage because
of minimal "line loss." Using low voltage lines to carry
electricity over long distances is inefficient and expensive and
ratepayers end up paying for electricity it never receives. At
every system component through which the power flows, electrical
resistance occurs which creates power losses. Generally, power
losses increase proportionally with the current, for example,
twice the current produces four times the electricity losses. As
such, losses can be significant when energy is transmitted over
lengthy lower-voltage transmission lines.
The high-voltage transmission grid includes the power lines, the
towers that hold them up and the switches, transformers, and
other equipment in substations where the power lines come
together. At those substations, the power can be "stepped down"
to lower voltage for deliver over the local distribution system
that connects to homes and businesses.
3) The approval process: The CAISO develops the statewide
transmission plan with input from the investor-owned utilities.
The PUC is the primary agency that assesses transmission
proposals made by the utilities for their environmental impact
and routing. The PUC conducts lengthy environmental review
processes that allow for extensive public input. Other public
agencies may also be involved if the proposed route crosses
publicly owned land.
4) The alternative-a State Park : The city of Chino Hills has
proposed an alternative route through the Chino Hills State
Park. The city states that a number of active transmission
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lines already traverse Chino Hills State Park and this new line
would be consistent. They propose to remove the inactive 220 kV
lines from the park, the neighborhoods, and the environmentally
sensitive Water Canyon Natural Preserve. They also propose
relocating many of the existing 500 kV transmission lines away
from ridgelines and other prominent areas to protect and improve
the view shed within the park. Recently, San Diego Gas and
Electric company proposed a high-voltage transmission project
through Anzo Borrego State Park to access remote renewable
energy generation resources. Due to significant opposition, the
PUC re-routed the transmission line around the park to
accommodate the State Park proponents' concerns.
5) Just compensation : This bill would require the electrical
corporation to provide "just compensation" to residential
landowners for any reduction in the value of their property
resulting from the reconstruction. Because there currently
exists a 220 kV line, it would be difficult to assess any
decrease in property values exclusively due to the increase in
height of the tower. In addition, so many other factors affect
property values such as interest rates, unemployment rates, the
price of gas, and the overall state of the economy. As such, it
would be difficult to isolate all other factors to calculate,
with any level of certainty, a quantified effect on property
values directly and solely attributable to the reconstruction.
The electrical corporation that is financing the Tehachapi
transmission line is Southern California Edison (SCE). SCE
requests rate recovery from the Federal Energy Regulatory
Commission (FERC) for all transmission-related costs. If FERC
does not allow the costs of "just compensation" through its
revenue requirement (allowing just compensation for
reconstruction would be precedent), all ratepayers would
continue to pay for the project because it's currently actually
being paid for through the CAISO transmission revenue charge.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
AB 1333
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Pacific Gas and Electric Company (PG&E)
Southern California Edison (SCE)
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083