Bill Text: CA AB1584 | 2019-2020 | Regular Session | Introduced

California Assembly Bill 1584 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Electricity: cost allocation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2019-10-02 - Chaptered by Secretary of State - Chapter 397, Statutes of 2019. [AB1584 Detail]

Download: California-2019-AB1584-Introduced.html

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1584

Introduced by Assembly Member Quirk

February 22, 2019

An act to add Article 13 (commencing with Section 397) to, and to repeal the heading of Article 13 (commencing with Section 397) of, Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL'S DIGEST

AB 1584, as introduced, Quirk. Electricity: cost allocation.

Existing law requires the Public Utilities Commission, in consultation with the Independent System Operator, to establish resource adequacy requirements for electrical corporations, electric service providers, and community choice aggregators, known collectively as load-serving entities, to ensure the reliability of electric service in the state while advancing, to the extent possible, the state’s goals for clean energy, reducing air pollution, and reducing emissions of greenhouse gases.

This bill would require the commission to develop and use methodologies for allocating costs imposed on the electrical system by each load-serving entity based on the entity’s portfolio’s contribution to the electric system conditions that created those costs.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

The heading of Article 13 (commencing with Section 397) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code is repealed.

~~13.Fuel Price Volatility~~

SEC. 2.

Article 13 (commencing with Section 397) is added to Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, to read:

Article 13. Allocation of Electrical System Costs

397.

(a) (1) The commission shall, in an existing or a new proceeding, develop methodologies for allocating costs imposed on the electrical system by each load-serving entity, as defined in Section 380, based on the entity’s portfolio’s contribution to the electric system conditions that created those costs.

(2) The costs shall include, but are not limited to, the costs of the following:

(A) System integration resources deployed by the Independent System Operator.

(B) Energy storage procurement requirements made or implemented by the commission to address system operational needs.

(b) The commission shall use the methodologies developed pursuant to subdivision (a) in allocating costs imposed on the electrical system by each load-serving entity.