BILL ANALYSIS                                                                                                                                                                                                    �          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          AB 1392 -  Utilities & Commerce                        Hearing 
          Date:  June 21, 2011                 A
          As Introduced:  February 23, 2011            Non-FISCAL       B

                                                                        1
                                                                        3
                                                                        9
                                                                        2

                                      DESCRIPTION
           
           Current law  establishes the California Solar Initiative (CSI), a 
          $3.3 billion program which provides incentives for the 
          installation of solar photovoltaic (PV) systems for customers of 
          the state's investor-owned utilities (IOUs) and publicly owned 
          utilities (POUs).  Under this program the California Public 
          Utilities Commission (CPUC) is authorized to use time-of-use 
          (TOU) rates that create the maximum incentive for ratepayers to 
          install solar energy systems so that the system's peak 
          electricity production coincides with peak electricity demands.  
          The CPUC is also authorized to modify rates for participating 
          CSI customers which had their rates were frozen as a result of 
          the energy crisis.

           This bill  deletes the authority of the CPUC to modify the rates 
          of customers frozen during the energy crisis to facilitate the 
          TOU tariff.


                                      BACKGROUND
           
          This bill deletes obsolete authority allowing the CPUC to make 
          adjustments to a TOU rate intended to create the maximum 
          incentive for ratepayers to install solar electric energy 
          systems in a manner that their system's peak electricity 
          production coincides with California's peak electricity demand.  
          The adjustment allowed the CPUC to exclude customers whose usage 
          was at baseline quantities or up to 130 percent of baseline 
          quantities. This provision was made due to an electricity rate 
          freeze that was enacted as a result of the 2000-02 electricity 











          crisis. That rate freeze has since been modified (SB 695, 2010) 
          and TOU rates are not used for residential customers in the CSI 
          program.

          This bill is intended to maintain the codes.  


                                    ASSEMBLY VOTES
           
          Assembly Floor                     (74-0)
          Assembly Utilities & Commerce Committee                        
          (15-0)



                                       POSITIONS
           
           Sponsor:
           
          Author

          Support:
           
          None on file

           Oppose:
           
          None on file

          






































          Kellie Smith 
          AB 1392 Analysis
          Hearing Date:  June 21, 2011