BILL ANALYSIS                                                                                                                                                                                                    �          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          AB 1391 -  Utilities & Commerce                        Hearing 
          Date:  June 21, 2011                 A
          As Introduced: February 23, 2011             Non-FISCAL       B

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                                     DESCRIPTION
           
           Current law  requires the state's investor owned utilities 
          (IOUs), publicly owned utilities (POUs) (except the Los Angeles 
          Department of Water and Power), and other entities offering 
          retail electric service, to credit all electricity generated by 
          a customer-owned solar or wind system against the customer's 
          usage of electricity sold by the utility, on a kilowatt hour 
          basis (kWh), a procedure known as "net energy metering" (NEM).  
          Participation by all utilities is capped at 5 percent of each 
          utility's aggregate peak electricity demand and the size of 
          individual solar and wind systems is limited to those that will 
          offset all or part of the customer's own electrical requirements 
          to a maximum of 1 megawatt (MW).  This program also exempts the 
          customer from paying transmission and distribution costs.  This 
          is commonly referred to as full retail NEM.

           This bill  deletes a report required to be submitted by the 
          California Public Utilities Commission in 2010.

                                           
                                     BACKGROUND
           
          Full retail net metering was expanded when the California Solar 
          Initiative was established by the Legislature in 2006.  At that 
          time the Legislature called for an analysis of the costs and 
          benefits of net-energy metering by 2010.  The required report 
          was submitted and this bill strikes the report from the codes as 
          part of an effort to maintain the codes.
           












                                   ASSEMBLY VOTES
           
          Assembly Floor                     (77-0)
          Assembly Natural Resources Committee                           
          (9-0)
          Assembly Utilities and Commerce Committee                      
          (15-0)





                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          None on file

           Oppose:
           
          None on file


          





































          Kellie Smith 
          AB 1391 Analysis
          Hearing Date:  June 21, 2011