SB 1277,
as amended, begin deletePadillaend delete begin insertSteinbergend insert. begin deleteEnergy efficiency. end deletebegin insertElectricity: electrical restructuring: Independent System Operator.end insert
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. The Public Utilities Act imposes various duties and responsibilities on the Public Utilities Commission with respect to the purchase of electricity and requires the commission to review and adopt a procurement plan and a renewable energy procurement plan for each electrical corporation pursuant to the California Renewables Portfolio Standard Program.
end insertbegin insertThe existing restructuring of the electrical industry within the Public Utilities Act provides for the establishment of an Independent System Operator as a nonprofit public benefit corporation. Existing law requires the Independent System Operator to make certain filings with the Federal Energy Regulatory Commission and to seek authority from the Federal Energy Regulatory Commission as needed to give the Independent System Operator the ability to secure generating and transmission resources necessary to guarantee achievement of planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council.
end insertbegin insertThis bill would prohibit the Independent System Operator from submitting any proposal to the Federal Energy Regulatory Commission that seeks approval of a new auction or market-based mechanism for forward procurement of electricity or capacity products in California unless it first obtains the formal concurrence of the Public Utilities Commission. If the Federal Energy Regulatory Commission approves the mechanism, the bill would prohibit the Independent System Operator from proposing or endorsing any modification to the approved mechanism, unless it first obtains the formal concurrence of the Public Utilities Commission. The bill would prohibit the Public Utilities Commission from formally concurring in these proposals unless it concludes that there is a de minimus risk that the proposal could preempt or otherwise frustrate state laws and policies relating to specified topics.
end insertUnder existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. The Public Utilities Act requires the Public Utilities Commission to review and adopt a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives. The act requires that an electrical corporation’s proposed procurement plan include certain elements, including a showing that the electrical corporation will first meet its unmet needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, to identify all potentially achievable cost-effective electricity efficiency savings, and to establish efficiency targets for electrical corporations to achieve pursuant to their procurement plan.
end deleteThis bill would make technical, nonsubstantive revisions to this provision.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 346.5 is added to the end insertbegin insertPublic Utilities
2Codeend insertbegin insert, to read:end insert
(a) The Independent System Operator shall not submit
2any proposal to the Federal Energy Regulatory Commission that
3seeks approval of a new auction or market-based mechanism for
4forward procurement of electricity or capacity products in
5California unless it first obtains the formal concurrence of the
6commission. If the Federal Energy Regulatory Commission
7approves the mechanism, the Independent System Operator shall
8not propose or endorse any modifications to the approved
9mechanism unless it first obtains the formal concurrence of the
10commission.
11(b) In considering any proposal described in subdivision (a),
12the commission shall issue a decision pursuant to a proceeding
13initiated pursuant to Section 1701.1. The commission shall not
14formally
concur unless it concludes that there is a de minimus risk
15that the proposal could preempt or otherwise frustrate any of the
16following:
17(1) Any state law or policy relating to the promotion of
18environmentally preferred resources, demand response, energy
19efficiency, eligible renewable resources, or electric storage.
20(2) Any state law or policy relating to reducing emissions of
21greenhouse gases.
22(3) State efforts to ensure the timely development of new
23generating sources needed to ensure local reliability.
24(4) The ability of the commission to establish procurement
25requirements or practices for electrical corporations.
26(5) The ability of the commission to ensure just and reasonable
27retail
electric rates.
Section 454.55 of the Public Utilities Code is
29amended to read:
The commission, in consultation with the Energy
31Commission, shall identify all potentially achievable cost-effective
32electricity efficiency savings and establish efficiency targets for
33an electrical corporation to achieve pursuant to Section 454.5.
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