BILL ANALYSIS �
AB 2761
Page A
ASSEMBLY THIRD READING
AB 2761 (Utilities and Commerce Committee)
As Introduced March 24, 2014
Majority vote
UTILITIES & COMMERCE 12-0
-----------------------------------------------------------------
|Ayes:|Bradford, Patterson, | | |
| |Bonilla, Buchanan, Fong, | | |
| |Beth Gaines, Garcia, | | |
| |Roger Hern�ndez, Jones, | | |
| |Mullin, Quirk, Rendon | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
-----------------------------------------------------------------
SUMMARY : Requires the California Public Utilities Commission
(PUC) to submit its annual report on the fiscal impact of
renewable energy programs on electrical corporations to the
policy and fiscal committees of the Legislature by April 1,
instead of the current February 1 deadline. Specifically, this
bill applies to the submission of the report mandated by Public
Utilities Code Section 910.
FISCAL EFFECT : None
COMMENTS :
1)The Renewable Portfolio Standard (RPS). California's RPS is
one of the most ambitious renewable energy standards in the
nation. The RPS was established in 2002 under SB 1078 (Sher),
Chapter 516, Statutes of 2002, accelerated in 2006 under SB
107 (Simitian), Chapter 464, Statutes of 2006, and expanded in
2011 under SB 2 X1 (Simitian), Chapter 1, Statutes of 2011-12
First Extraordinary Session. Currently, the RPS requires
investor-owned utilities (IOUs), electric service providers,
and community choice aggregators to increase their procurement
of eligible renewable energy resources to 33% of total
procurement by 2020. SB 2 X1 mandated new RPS procurement
requirements within multi-year compliance periods to reach the
33% goal.
-------------------------------------
AB 2761
Page B
| Compliance period | % of Retail |
| |sales target |
|-----------------------+-------------|
|2014-2016 |2014: 21.7% |
| |+ |
| |2015: 23.3% |
| |+ |
| |2016: 25.0% |
| |+ |
|-----------------------+-------------|
|2017-2020 |2017: 27.0% |
| |+ |
| |2018: 29.0% |
| |+ |
| |2019: 31.0% |
| |+ |
| |2020: 33.0% |
|-----------------------+-------------|
|2021, and each year |33.0% |
|thereafter | |
-------------------------------------
California's three large IOUs collectively served 19.6% of their
2012 retail electricity sales with renewable power, spending a
combined total of $2.7 billion on direct RPS procurement.<1>
Numbers for 2013 are forecasted to increase. Table 1 details
these numbers for the large IOUs.
Table 1: RPS procurement and spending, large IOUs
------------------------------------------------------
|IOU |2012 |2012 |2013 |2013 |
| |procurement|procurement|procurement|procurement|
| | (percent) | (dollars) | (percent | (dollars) |
| | | |forecast) | |
|------+-----------+-----------+-----------+-----------|
|PG&E |19.0% |$1.2 |23.7% |$1.7 |
| | |billion | |billion |
|------+-----------+-----------+-----------+-----------|
|SCE |19.9% |$1.3 |23.2% |$1.4 |
| | |billion | |billion |
|------+-----------+-----------+-----------+-----------|
|SDG&E |20.3% |$191 |24.9% |$316 |
---------------------------
<1> PUC Section 910 Report. February 2014.
www.cpuc.ca.gov/NR/rdonlyres/428F0F2F-1275-4441-9FAE-EC690AAF57AC
/0/Section910Report_2014_FINAL.pdf
AB 2761
Page C
| | |million | |million |
------------------------------------------------------
(Pacific Gas and Electric Company, Southern California Edison,
San Diego Gas and Electric)
Smaller IOUs such as Liberty, Bear Valley Electrical Service,
and PacifiCorp spent a combined $13.7 million, with procurement
ranging from 8.3% to 22.5%.
2)The Section 910 RPS report. By February 1 of each year, the
PUC must submit a written report to the policy and fiscal
committees on RPS procurement to the Legislature, including
the following:
a) Direct and indirect costs and costs avoided (savings)
with the RPS and distributed generation programs.
b) All PUC decisions related to recovery in rates of costs.
c) Changes in retail sales.
d) Qualitative and quantitative information on the IOU's
diversity goals in relation to its workforce directly
involved in the RPS implementation.
3)Need for a submission date change for the Section 910 report.
Each year's report must contain the previous year's data,
which are not complete or verifiable until April 18 of the
subsequent year (the end of the first quarter). This is when
electrical corporations file Federal Energy Regulatory
Commission Form 1, containing their annual wholesale
procurement expenditures, retail sales, and additional
information.
By extending the required date of submission, will better
position the PUC to use actual data in the annual report
rather than forecasted data in its Section 910 report to the
Legislature. The ultimate result could conceivably be a more
comprehensive and useful report.
Analysis Prepared by : Brandon Gaytan / U. & C. / (916)
319-2083
AB 2761
Page D
FN: 0003262