BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 2145 (Bradford) - Electricity: community choice aggregation.
Amended: July 1, 2014 Policy Vote: EU&C 6-3
Urgency: No Mandate: Yes (see staff comment)
Hearing Date: August 4, 2014 Consultant:
Marie Liu
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2145 would place new requirements and
restrictions on the establishment of, and activities by,
community choice aggregators (CCAs).
Fiscal Impact: Annual costs of $200,000 from the Public
Utilities Commission Utilities Reimbursement Account (special)
for new CPUC responsibilities regarding CCAs.
Background: Existing law allows cities and/or counties to
implement a CCA program under which the municipality purchases
electricity for constituents within their political boundaries.
A municipality may also join any other existing CCA by adoption
of a resolution, without regard to geography. Two or more
municipalities may also form a joint powers agency to act as a
CCA with the adoption of an ordinance by each participating
municipality. (PUC ��331.1, 366.2)
Existing law also requires an investor-owned utility (IOU) to
cooperate fully with a CCA in its pursuit and implementation of
operation, and to provide billing and data services, metering,
collection, and customer service to all CCA retail customers.
CCAs may file complaints with the CPUC against an IOU in an
expedited complaint procedure if the IOU is allegedly violating
its obligations to a CCA.
Existing law does not direct the CPUC to regulate CCA's program
except to the extent that its program elements may affect
utility operations and the rate and services for IOU customers.
Proposed Law: This bill would restrict the expansion of a CCA to
a geographic area of three contiguous counties, unless the CCA
had already exceeded three counties prior to January 1, 2015.
AB 2145 (Bradford)
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Also, this bill would require CCA customer solicitations and
consumer communications to include the electric supply rates for
that customer if he or she remains with the IOU and joins the
CCA. This disclosure must continue for five years.
This bill would also allow complaints under an expedited
complaint procedure to be submitted to the CPUC regarding a
CCA's alleged violations of its statutory obligations.
Staff Comments: This bill would increase the CPUC's workload
with respect to CCAs, particularly in regards to processing
complains regarding a CCA's alleged violation of its statutory
obligations and allowing the CPUC to order a CCA to take
corrective actions. Currently the CPUC is only required to
address complaints against an IOU under an expedited complaint
procedure. By extending this expedited complaint procedure to
CCAs, the CPUC anticipates incurring workload to process and
respond to additional complaints. As the CPUC will be able to
require corrective actions of a CCA, this bill inherently is
expanding the CPUC's jurisdiction over CCAs, adding additional
workload. The CPUC will also incur costs to oversee the
disclosure of IOU and CCA electric supply rates in customer
communications and solicitations for five years. Collectively
this increased workload to the CPUC is anticipated to be
approximately $200,000 annually.
By creating a new crime, this bill creates a state-mandated
local program. However, under the state constitution, such a
mandate is not reimbursable.