BILL NUMBER: AB 2061 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 6, 2010
INTRODUCED BY Assembly Member Carter
FEBRUARY 18, 2010
An act to amend Section 399 of the Public Utilities Code,
relating to energy. An act to add Chapter 5
(commencing with Section 8380) to Division 4.1 of the Public
Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 2061, as amended, Carter. Electric service:
investments. Electric distribution: efficiency.
Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities including electrical
corporations, as defined. Under existing law, the governing board of
a local publicly owned electric utility, as defined, generally has
authority over the activities of the utility. Under existing law,
various provisions are applicable to both privately owned and
publicly owned utilities.
Existing law requires the State Energy Resources Conservation and
Development Commission (Energy Commission) to conduct various
assessments and forecasts on energy industry supply, production,
transportation, delivery and distribution, demand, and prices.
This bill would require the PUC, using existing resources and in
consultation with the Energy Commission, the Independent System
Operator, electrical transmission and distribution owners, users, and
consumers, to the extent feasible, to develop electric transmission
and distribution efficiency measures applicable to electrical
corporations. The bill would require a local publicly owned electric
utility with more than 100,000 customers, to the extent feasible, to
develop electric distribution efficiency measures. The bill would
require the PUC, by January 1, 2012, to develop a prescribed plan to
improve electric distribution efficiency within the service territory
of an electrical corporation with more than 100,000 customers, and
would impose a similar requirement on each local publicly owned
electric utility. By placing requirements upon local publicly owned
electric utilities, the bill would impose a state-mandated local
program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
The Reliable Electric Service Investments Act declares the intent
of the Legislature to reaffirm, without requiring revision,
California's doctrine, as reflected in regulatory and judicial
decisions, regarding electrical corporations' reasonable opportunity
to recover costs and investments associated with their electric
distribution grid and the reasonable opportunity to attract capital
for investment on reasonable terms. The act makes related legislative
declarations.
This bill would make a technical, nonsubstantive change to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) It is the intent of the Legislature
to improve the efficiency of electric transmission and distribution
in a cost-effective manner and reduce consumer electricity bills
throughout California.
(b) It is the further intent of the Legislature that new feeder
lines or those undergoing major renovation should incorporate
cost-effective efficiency measures to the extent possible.
SEC. 2. Chapter 5 (commencing with Section 8380)
is added to Division 4.1 of the Public Utilities Code
, to read:
CHAPTER 5. ELECTRIC TRANSMISSION AND DISTRIBUTION EFFICIENCY
8380. (a) The commission, using existing resources and in
consultation with the Energy Commission, the Independent System
Operator, electrical transmission and distribution owners, users, and
consumers, to the extent feasible, shall develop electric
transmission and distribution efficiency measures, including voltage
optimization, applicable to electrical corporations.
(b) A local publicly owned electric utility with more than 100,000
customers, to the extent feasible, shall develop electric
distribution efficiency measures.
(c) The commission may develop and impose a statewide target for
distribution efficiency, on an energy (megawatthour) or power
(megawatt) basis.
(d) The commission, by January 1, 2012, shall develop a plan to
improve electric distribution efficiency within the service territory
of an electrical corporation with more than 100,000 customers. Each
local publicly owned electric utility with more than 100,000
customers, by January 1, 2012, shall develop a plan to improve
electric distribution efficiency within its service territory. The
efficiency measures and criteria included in those plans shall do all
of the following:
(1) Reduce consumer payments.
(2) Lead to discernable improvements in the efficiency of
electrical distribution beyond gains from ongoing construction and
maintenance.
(3) Represent the most cost-effective distribution efficiency
projects in the electrical corporation's service area,
(4) Limit maximum voltage drop on the system and maintain or
improve power factor, power quality, and reliability of electricity
supply.
(5) Ensure that power is delivered in the lower half of the
voltage range of the American National Standards Institute.
(6) Not replace, reduce, or infringe upon existing end-use energy
efficiency incentives, programs, resources, or requirements.
SEC. 3. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.
SECTION 1. Section 399 of the Public Utilities
Code is amended to read:
399. (a) This article shall be known, and may be cited, as the
Reliable Electric Service Investments Act.
(b) The Legislature finds and declares that safe, reliable
electric service is of utmost importance to the citizens of this
state, and its economy.
(c) The Legislature further finds and declares that in order to
ensure that the citizens of this state continue to receive safe,
reliable, affordable, and environmentally sustainable electric
service, it is essential that prudent investments continue to be made
in all of the following areas:
(1) To protect the integrity of the electric distribution grid.
(2) To ensure an adequately sized and trained utility workforce.
(3) To ensure cost-effective energy efficiency improvements.
(4) To achieve a sustainable supply of renewable energy.
(5) To advance public interest research, development and
demonstration programs not adequately provided by competitive and
regulated markets.
(d) It is the intent of the Legislature to affirm, without
requiring revision, California's doctrine, as reflected in regulatory
and judicial decisions, regarding electrical corporations'
reasonable opportunity to recover costs and investments associated
with their electric distribution grid and the reasonable opportunity
to attract capital for investment on reasonable terms.
(e) The Legislature further finds and declares all of the
following:
(1) Acting under applicable constitutional and statutory
authorities, the Public Utilities Commission and the boards of local
publicly owned electric utilities have included in regulated
electricity prices investments that are essential to maintaining
system reliability, reducing California electricity users' bills, and
mitigating environmental costs of California users' electricity
consumption.
(2) Among the most important of these "system benefits"
investments categories are energy efficiency, renewable energy, and
public interest research, development and demonstration (RD&D).
(3) Energy efficiency investments funded from California's
usage-based charges on electricity distribution help improve
systemwide reliability by reducing demand in times and areas of
system congestion, and at the same time reduce all California
electricity users' costs. These investments also significantly reduce
environmental costs associated with California's electricity
consumption, including, but not limited to, degradation of the state'
s air, water, and land resources.
(4) California's in-state renewable energy resources help
alleviate supply deficits that could threaten electric system
reliability, reduce environmental costs associated with California's
electricity consumption, and increase the diversity of the
electricity system's fuel mix, reducing electricity users' exposure
to fossil-fuel price volatility.
(5) California's public interest RD&D investments enhance private
and regulated sector investment in electricity system technologies,
and are designed specifically to help ensure sustained improvement in
the economic and environmental performance of the distribution,
transmission, and generation and end-use systems that serve
California electricity users.
(6) California has established a long tradition of recovering
system benefits investments through usage-based electricity charges,
which is reflected in at least two decades of electricity price
regulation by the commission, the boards of local publicly owned
electric utilities, and the mandate of the Legislature in Chapter 854
of the Statutes of 1996 (Assembly Bill 1890 of the 1995-96 Regular
Session of the Legislature) and Chapter 905 of the Statutes of 1997
(Senate Bill 90 of the 1997-98 Regular Session of the Legislature).
(7) Unless the Legislature acts to extend the mandate of this
article for minimum levels of usage based system benefits charges,
California electricity users are at substantial risk of higher
economic and environmental costs and degraded reliability.