BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 1414
Author: Wolk (D), et al.
Amended: 8/20/14
Vote: 21
SENATE ENERGY, UTIL. & COMMUNIC. COMM. : 10-0, 4/29/14
AYES: Padilla, Fuller, Block, Cannella, Corbett, DeSaulnier,
Hill, Knight, Pavley, Wolk
NO VOTE RECORDED: De Le�n
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 31-0, 5/23/14
AYES: Anderson, Beall, Block, Cannella, Corbett, Correa, De
Le�n, DeSaulnier, Gaines, Galgiani, Hernandez, Hill, Huff,
Jackson, Knight, Lara, Leno, Lieu, Liu, Mitchell, Monning,
Morrell, Nielsen, Padilla, Pavley, Roth, Steinberg, Torres,
Vidak, Walters, Wolk
NO VOTE RECORDED: Berryhill, Calderon, Evans, Fuller, Hancock,
Hueso, Wright, Wyland, Yee
ASSEMBLY FLOOR : 79-0, 8/25/14 - See last page for vote
SUBJECT : Electricity: resources adequacy requirements
SOURCE : Environmental Defense Fund
DIGEST : This bill requires utilities and regulators to
include demand response (DR) in resource adequacy plans, as
specified.
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Assembly Amendments delete any changes to the Long Term
Procurement Planning proceeding at the Public Utilities
Commission (PUC); and now require the PUC to adopt consumer
protections for ratepayers that choose to participate in DR
programs.
ANALYSIS :
Existing law:
1.Requires PUC, in consultation with the Independent System
Operators, to establish resource adequacy requirements for all
load-serving entities in accordance with specified objectives.
2.Requires each load-serving entity to maintain physical
generating capacity adequate to meet its load requirements to
provide reliable electric service and requires the PUC to
determine the most efficient and equitable means for achieving
prescribed objectives.
3.Requires each electrical corporation (IOU) to file with the
PUC a proposed procurement plan with specified information,
including, among other things, a procurement process under
which the electric corporation may request bids for
procurement-related services, a showing that the procurement
plan will achieve, among other objectives, the creation or
maintenance of a diversified procurement portfolio, and the
IOU's risk management policy, strategy, and practices.
This bill:
1.Requires each load-serving entity to maintain either
electrical demand reductions or physical generating capacity
adequate to meet its load requirements.
2.Requires PUC to determine the most efficient and equitable
means to sure the inclusion of DR that is reliable and cost
effective in achieving environmental or demand reduction goals
or grid reliability.
3.Requires PUC to establish a mechanism to value load modifying
DR resources that can reduce a load serving entity's resource
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adequacy obligation.
4.Requires PUC to ensure that changes in demand caused by load
modifying DR are expeditiously and comprehensively reflected
in relevant forecasting and planning proceedings and
associated analyses and encourage reflection of these changes
in demand in the operation of the grid.
5.Ensures PUC, in establishing a DR program, to take certain
actions.
6.Makes findings and declarations about the benefits of DR
programs.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/25/14)
Environmental Defense Fund (source)
Alarm.com
Breathe California
California Environmental Justice Alliance
California League of Conservation Voters
Clean Coalition
Clean Power Campaign
Comverge, Inc.
Energyhub
EnerNoc
Environment California
Natural Resources Defense Council
Office of Ratepayer Advocates
Sierra Club California
Union of Concerned Scientists
OPPOSITION : (Verified 8/25/14)
Pacific Gas & Electric Company
ARGUMENTS IN SUPPORT : According to the author:
SB 1414 will help ensure that regulators and utilities utilize
cost-effective Demand Response (DR) programs to change their
demand for electricity during key times. With DR, in exchange
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for changing their electricity use, participating customers
receive incentives for providing a clean resource to the
system. Their reductions in demand (consumption) mean there
can be less supply (generation), providing clean energy,
reducing the need for 'peaker' power plants and helping to
integrate renewables. California currently lags behind other
parts of the nation in utilizing DR.
ARGUMENTS IN OPPOSITION : Pacific Gas and Electric Company is
concerned with this bill by stating that the recent amendments
delay current DR initiatives underway at the PUC in the
following ways: (1) the amendments prejudge the outcome of an
open proceeding at the PUC pertaining to use of back up
generation to support; (2) duplicate and overlap with a recently
announced settlement at the PUC pertaining to integration costs,
valuation methods and metering and monitoring policies for DR
programs; and (3) may prohibit the use of DR in times of
over-generation.
ASSEMBLY FLOOR : 79-0, 8/25/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,
Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A.
P�rez, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Vacancy
JG:k 8/26/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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