BILL NUMBER: SB 383 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Wolk
FEBRUARY 15, 2011
An act to amend Section 2826.5 of the Public Utilities Code,
relating to private energy producers.
LEGISLATIVE COUNSEL'S DIGEST
SB 383, as introduced, Wolk. Private energy producers: PVUSA solar
facility.
Under existing law, the Public Utilities Commission has regulatory
jurisdiction over public utilities, including electrical
corporations, as defined. Existing law permits a private energy
producer, as defined, to generate electricity not generated from
conventional sources, as defined, solely for its own use or the use
of its tenants, or generating electricity to or for any electrical
corporation, state agency, city, county, district, or an association
thereof, but not the public, without becoming a public utility
subject to the general jurisdiction of the commission.
Existing law authorizes the City of Davis to receive a bill
credit, as defined, to a benefiting account, as defined, for
electricity supplied to the electrical grid by a photovoltaic
facility located within and partially owned by the city (PVUSA solar
facility) and requires the commission adopt a rate tariff for the
benefiting account. Existing law authorizes the peak electricity
generating capacity for the facility to be expanded, not to exceed
one megawatt.
This bill would authorize the peak electricity generating capacity
of the PVUSA solar facility to be expanded, not to exceed 20
megawatts and would eliminate the requirement that the facility be
owned, at least in part, by the City of Davis. The bill would
additionally revise the requirements to be a benefiting account,
would revise how benefiting accounts are billed, would revise how
benefiting accounts are credited with electrical generation from the
PVUSA solar facility, and would authorize a benefiting account that
is a net surplus customer-generator, as defined, to affirmatively
elect to receive net surplus electricity compensation, as defined.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2826.5 of the Public Utilities Code is amended
to read:
2826.5. (a) As used in this section, the following terms have the
following meanings:
(1) "Benefiting account" means an electricity account, or more
than one account, mutually agreed upon by Pacific Gas and
Electric Company and designated by the City of
Davis that is to receive a bill credit for electricity generated
by PVUSA .
(2) "Bill credit" means credits calculated based upon the
electricity generation component of the rate schedule applicable to a
benefiting account, as applied to the net metered quantities of
electricity.
(3) "PVUSA" means the photovoltaic electricity generation facility
selected by the City of Davis, located at 24662 County Road, Davis,
California, with a rated peak electricity generation capacity of 600
kilowatts, and as it may be expanded, not to exceed one
megawatt 20 megawatts of peak generation
capacity.
(4) "Net metered" means the electricity output from the PVUSA.
(5) "Environmental attributes" associated with the PVUSA include,
but are not limited to, the credits, benefits, emissions reductions,
environmental air quality credits, and emissions reduction credits,
offsets, and allowances, however entitled resulting from the
avoidance of the emission of any gas, chemical, or other substance
attributable to the PVUSA.
(b) The City of Davis may elect to designate a benefiting account,
or more than one account, to receive bill credit for the electricity
generated by the PVUSA, if all of the following conditions are met:
(1) A benefiting account receives service under a time-of-use rate
schedule.
(2)
(1) The electricity output of the PVUSA is metered for
time of use to allow allocation of each bill credit to correspond to
the time-of-use period of a benefiting account that is on a
time-of-use rate schedule .
(3)
(2) All costs associated with the metering requirements
of paragraphs (1) and (2) paragraph (1)
are the responsibility of the City of Davis
holder of the benefiting account .
(4)
(3) All electricity delivered to the electrical grid by
the PVUSA is the property of Pacific Gas and Electric Company.
(5)
(4) PVUSA does not sell electricity delivered to the
electrical grid to a third party.
(6)
(5) The right, title, and interest in the environmental
attributes associated with the electricity delivered to the
electrical grid by the PVUSA are the property of Nuon Renewable
Ventures USA, LLC.
(c) Upon designation of a benefiting account, or upon removal of
an account as a designated benefiting account, the City of Davis
shall do both of the following:
(1) Determine the percentage of the PVUSA electricity that shall
be credited to each benefiting account and provide notice to Pacific
Gas and Electric Company of the percentage that is to be credited to
each benefiting account.
(2) Prepare a bill for the holder of the benefiting account that
is credited, pursuant to subdivision (e), for electricity generated
by the PVUSA.
(d) Every other month, Pacific Gas and Electric Company shall
inform the City of Davis regarding the amount each benefiting account
was credited, pursuant to subdivision (e), for electricity generated
by the PVUSA.
(c) A
(e) Every other month, each
benefiting account shall be billed on a monthly basis,
charged as follows:
(1) For all electricity usage, the rate schedule applicable to the
benefiting account, including any surcharge, exit fee, or other cost
recovery mechanism, as determined by the commission, to reimburse
the Department of Water Resources for purchases of electricity,
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
(2) The rate schedule for the benefiting account shall also
provide credit for the generation component of the
time-of-use rates for percentage of the
electricity generated by the PVUSA that is assigned to that
benefiting account and that is delivered to the electrical
grid. For each benefiting account that receives service under
tariffs that use baseline and above-baseline rates, the net
kilowatthours generated shall be valued at the same price per
kilowatthour as Pacific Gas and Electric Company would charge for the
baseline quantity of electricity during that billing period, up to
baseline quantities. If the number of kilowatthours generated exceeds
the baseline quantity, the amount generated above baseline
quantities shall be valued at the same price per kilowatthour as
Pacific Gas and Electric Company would charge for electricity usage
over baseline quantities during the billing period. For each
benefiting account that receives service under tariffs
that use a time-of-use rate schedule, the net kilowatthours generated
shall be valued at the same price per kilowatthour as Pacific Gas
and Electric Company would charge during that same time-of-use
period. The generation component credited to the benefiting
account may not include the surcharge, exit fee, or other cost
recovery mechanism, as determined by the commission, to reimburse the
Department of Water Resources for purchases of electricity, pursuant
to Division 27 (commencing with Section 80000) of the Water Code.
(3) If in any billing cycle, the charge pursuant to paragraph (1)
for electricity usage exceeds the billing credit pursuant to
paragraph (2), the City of Davis benefiting
account shall be charged billed by
Pacific Gas and Electric Company for the difference.
(4) If in any billing cycle, the billing credit pursuant to
paragraph (2), exceeds the charge for electricity usage pursuant to
paragraph (1), the difference shall be carried forward as a credit to
the benefiting account in the next billing cycle.
(5) After the electricity usage charge pursuant to paragraph (1)
and the credit pursuant to paragraph (2) are determined for the last
billing cycle of a calendar year, any remaining credit resulting from
the application of this section shall be reset to zero.
(5) At the end of each 12-month period in which the electricity
generated by the PVUSA that is credited to the benefiting account is
greater than the electricity actually delivered by Pacific Gas and
Electric Company during that period, the benefiting account is a net
surplus customer-generator, as defined in Section 2827, and upon the
affirmative election Pacific Gas and Electric Company shall either
(A) provide net surplus electricity compensation, pursuant to Section
2827, for any net surplus electricity generated during the prior
12-month period, or (B) allow the holder of the benefiting account to
apply the net surplus electricity as a credit for kilowatthours
subsequently supplied by Pacific Gas and Electric Company to the
benefiting account. If the holder of the benefiting account does not
affirmatively elect to receive net surplus electricity compensation,
Pacific Gas and Electric Company shall retain any excess
kilowatthours generated during the prior 12-month period, and the
benefiting account is not owed any compensation for the net surplus
electricity unless it enters into a purchase agreement with Pacific
Gas and Electric Company for those excess kilowatthours.
(d)
(f) Not more frequently that once per year
than once every other month , and upon providing
Pacific Gas and Electric Company with a minimum of 60 days
30 days' notice, the City of Davis may elect to
change , add, or remove a benefiting account. Any credit
resulting from the application of this section earned prior to the
change in a benefiting account that has not been used as of the date
of the change in the benefit account, shall be applied, and may only
be applied, to a benefiting account as changed.
(e)
(g) Pacific Gas and Electric Company shall file an
advice letter with the Public Utilities Commission, that complies
with this section, not later than 10 days after the effective date of
this section, proposing a rate tariff for a benefiting account. The
commission, within 30 days of the date of filing, shall approve the
proposed tariff, or specify conforming changes to be made by Pacific
Gas and Electric Company to be filed in a new advice letter.
(f) The City of Davis may terminate its election pursuant to
subdivision (b), upon providing Pacific Gas and Electric Company with
a minimum of 60 days notice.
(h) Should the City of Davis sell
its interest in the PVUSA, or sell the electricity
generated by the PVUSA , in a manner other than
required by this section, upon the date of either event, and
the earliest date if both events occur, no further bill
credit pursuant to paragraph (2) of subdivision (b) may be earned.
Only credit earned prior to that date shall be made to a benefiting
account.
(g)
(i) The Legislature finds and declares that credit for
a benefiting account for the electricity output from the PVUSA are in
the public interest in order to value the production of this unique,
wholly renewable resource electricity generation facility located in
, and owned in part by, the City of Davis.
Because of the unique circumstances applicable only to the PVUSA a
statute of general applicability cannot be enacted within the meaning
of subdivision (b) of Section 16 of Article IV of the California
Constitution. Therefore, this special statute is necessary.