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

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

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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-Amended.html

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Amended  IN  Assembly  March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1584

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Introduced by Assembly Member Quirk

February 22, 2019

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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 amended, 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. electrical system integration resource procurement obligations, and any associated costs resulting from a failure to satisfy an allocated procurement obligation, to each load-serving entities based on the contribution of that entity’s resource portfolio to the electric system conditions that created the need for the system integration resource procurement.

Digest Key

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

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Bill Text

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.

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 integration resource procurement obligations that are subject to the commission’s jurisdiction, and any associated costs resulting from a failure to satisfy the allocated procurement obligation, to each load-serving entity, as defined in Section 380, based on the entity’s portfolio’s contribution of the entity’s resource portfolio to the electric system conditions that created those costs. the need for the system integration resource procurement.

(2) The electrical system integration resource procurement and costs shall include, but are not limited to, the costs of those relating to 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.

(A) Resource adequacy requirements associated with system flexibility, as described in subdivision (c) of Section 380.

(B) Integration resources identified as needed, or proposed in response to system operational needs identified, through the process described in subdivision (a) of Section 454.51.

(b) The commission shall use the methodologies developed pursuant to subdivision (a) in allocating costs imposed on the electrical system by system integration resource procurement obligations and any associated costs resulting from a failure to satisfy an allocated procurement obligation to each load-serving entity.