California Assembly Bill AB1552 Introduced / Bill

 BILL NUMBER: AB 1552INTRODUCED BILL TEXT INTRODUCED BY Committee on Utilities and Commerce (Fuentes (Chair), Duvall (Vice Chair), Blakeslee, Buchanan, Carter, Fong, Furutani, Huffman, Krekorian, Smyth, and Torrico) MARCH 10, 2009 An act to amend Sections 395.5, 398.2, 398.3, 398.4, and 398.5 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST AB 1552, as introduced, Committee on Utilities and Commerce. Electricity. (1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law defines an "electric service provider" as an entity that offers electrical service to customers within the service territory of an electrical corporation, excluding electrical corporations, local publicly owned electric utilities, and certain cogenerators. Provisions of the existing Public Utilities Act restructuring the electrical services industry require that electric service providers register with the commission, and provide for the authorization of direct transactions between electric service providers and retail end-use customers. The act requires the commission, pursuant to electrical restructuring, to authorize and facilitate direct transactions between electricity suppliers and retail end-use customers. However, other existing law suspends the right of retail end-use customers other than community choice aggregators, as defined, to acquire service from certain electricity suppliers, after a period of time to be determined by the commission, until the Department of Water Resources no longer supplies electricity under that law. Notwithstanding this suspension, existing law, until January 1, 2010, authorizes a nonprofit charitable organization, to acquire electric commodity service through a direct transaction with an electric service provider if electric commodity service is donated free of charge without compensation. This bill would extend until January 1, 2012, the authorization for a nonprofit charitable organization, to acquire electric commodity service through a direct transaction with an electric service provider if electric commodity service is donated free of charge without compensation. (2) Existing law establishes a program under which retail suppliers disclose accurate, reliable, and simple to understand information on the generation attributes of the electricity they propose to sell, including eligible renewables, as defined. Existing law provides that a retail supplier that does not make any claims that identify its electricity sources as different than net system power, as defined, is authorized to disclose net system electricity sources. This bill would replace the term "retail supplier" with "retail seller" and would replace the term "eligible renewables" with "eligible renewable energy resources" and would incorporate definitions for those terms that are applicable to the California Renewables Portfolio Standard Program. The bill would make other nonsubstantive changes. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 395.5 of the Public Utilities Code is amended to read: 395.5. (a) For purposes of this section, the following terms have the following meanings: (1) "Nonprofit charitable organization" means any charitable organization described in Section 501(c)(3) of the federal Internal Revenue Code that has as its primary purpose serving the needs of the poor or elderly. (2) "Electric commodity" means electricity used by the customer or a supply of electricity available for use by the customer, and does not include services associated with the transmission and distribution of electricity. (b) Notwithstanding Section 80110 of the Water Code, a nonprofit charitable organization may acquire electric commodity service through a direct transaction with an electric service provider if electric commodity service is donated free of charge without compensation. (c) A nonprofit charitable organization that acquires donated electric commodity service through a direct transaction pursuant to this section shall be responsible for paying all of the following: (1) Those charges and surcharges that would be imposed upon a retail end-use customer of a community aggregator pursuant to subdivisions (d), (e), (f), and (g) of Section 366.2. (2) The transmission and distribution charges of an electrical corporation or a local publicly owned electric utility. (3) A nonbypassable charge imposed pursuant to Article 7 (commencing with Section 381), Article 8 (commencing with Section 385), or Article 15 (commencing with Section 399). (4) Costs imposed upon a load-serving entity pursuant to Section 380. (d) Existing direct access rules and all service obligations otherwise applicable to electric service providers shall govern transactions under this section. (e) This section shall remain in effect only until January 1,  2010   2012  , and as of that date is repealed, unless a later enacted statute, that is enacted before January 1,  2010   2012  , deletes or extends that date. SEC. 2. Section 398.2 of the Public Utilities Code is amended to read: 398.2.  The definitions set forth in this section shall govern the construction of this article.   For purposes of this article, the following terms have the following meanings:   (a) "Eligible renewable energy resource" shall have the same meaning as defined in Section 399.12.   (b) "Net system electricity" means the mix of electricity fuel source types established by the Energy Commission representing the sources of electricity consumed in California that are not disclosed as specific purchases pursuant to Section 398.4.   (c) "Retail seller" has the same meaning as defined in Section 399.12, and as further authorized pursuant to Section 399.12.5.   (a)   (d)  "System operator" means the Independent System Operator with responsibility for the efficient use and reliable operation of the transmission grid, as provided by Section 345, or a local publicly owned electric utility that does not utilize the Independent System Operator.  (b)   (e)  "Specific purchases" means electricity transactions which are traceable to specific generation sources by any auditable contract trail or equivalent, such as a tradable commodity system, that provides commercial verification that the electricity source claimed has been sold once and only once to a retail consumer. Retail  suppliers   sellers  may rely on annual data to meet this requirement, rather than hour-by-hour matching of loads and resources.  (c) "Net system power" means the mix of electricity fuel source types established by the California Energy Resources Conservation and Development Commission representing the sources of electricity consumed in California that are not disclosed as specific purchases pursuant to Section 398.4.  SEC. 3. Section 398.3 of the Public Utilities Code is amended to read: 398.3. (a) Beginning January 1, 1998, or as soon as practicable thereafter, each generator that provides meter data to a system operator shall report to the system operator electricity generated in kilowatthours by hour by generator, the fuel type or fuel types and fuel consumption by fuel type by month on an historical recorded quarterly basis. Facilities using only one fuel type may satisfy this requirement by reporting fuel type only. With regard to any facility using more than one fuel type, reports shall reflect the fuel consumed as a percentage of electricity generation. (b) The  California Energy Resources Conservation and Development   Energy  Commission shall have authorization to access the electricity generation data in kilowatthours by hour for each facility that provides meter data to the system operator, and the fuel type or fuel types. (c) With regard to out-of-state generation, the  California Energy Resources Conservation and Development   Energy  Commission shall have authorization to access the electricity generation data in kilowatthours by hour at the point at which out-of-state generation is metered, to the extent the information has been submitted to a system operator. (d) Trade secrets as defined in subdivision (d) of Section 3426.1 of the Civil Code contained in the information provided to the system operators pursuant to this section shall be treated as confidential. These data may be disclosed only by the system operators and only by authorization of the generator except that the  California Energy Resources Conservation and Development   Energy  Commission shall have authorization to access these data, shall consider all these data to be trade secrets, and shall only release these data in an aggregated form such that trade secrets cannot be discerned. SEC. 4. Section 398.4 of the Public Utilities Code is amended to read: 398.4. (a) Every retail  supplier   seller  that makes an offering to sell electricity that is consumed in California shall disclose its electricity sources. A retail  supplier   seller  that does not make any claims that identify its electricity sources as different than net system power may disclose net system  power   electricity  . Every retail  supplier   seller  that makes an offering to sell electricity that is consumed in California and makes any claims that identify any of its electricity sources as different than net system  power   electricity  shall disclose these sources as specific purchases. (b) The disclosures required by this section shall be made to potential end-use consumers in all product-specific written promotional materials that are distributed to consumers by either printed or electronic means, except that advertisements and notices in general circulation media shall not be subject to this requirement. (c) The disclosures required by this section shall be made at least quarterly to end-use consumers of the offered electricity. (d) The disclosures required by this section shall be made separately for each offering made by the retail  supplier   seller  . (e) On or before January 1, 1998, the  California Energy Resources Conservation and Development   Energy  Commission shall specify guidelines for the format and means for disclosure required by Section 398.3 and this section, based on the requirements of this article and subject to public hearing. (f) The costs of making the disclosures required by this section shall be considered to be  generation-related   generation related  . (g) The disclosures required by this section shall be expressed as a percentage of annual sales derived from each of the following categories, unless no specific purchases are disclosed, in which case only the first category shall be disclosed: (1) Net system  power   electricity  . (2) Specific purchases. (h) (1) Each of the categories specified in subdivision (g) shall be additionally identified as a percentage of annual sales that is derived from each fuel type of the categories specified as follows: (A) Coal. (B) Large hydroelectric (greater than 30 megawatts). (C) Natural gas. (D) Nuclear. (E) Other. (F) Eligible  renewables, which means renewable resource technologies defined as electricity produced from other than a conventional power source within the meaning of Section 2805, provided that a power source utilizing more than 25 percent fossil fuel may not be included,   renewable energy resources, which  shall be additionally identified as a percentage of annual sales that is derived from each fuel type of the subcategories specified as follows: (i) Biomass and waste. (ii) Geothermal. (iii) Small hydroelectric (less than or equal to 30 megawatts). (iv) Solar. (v) Wind. (2) The category "Other" shall be used for fuel types other than those listed above that represent less than 2 percent of net system  power   electricity  . The  California Energy Resources Conservation and Development   Energy  Commission may specify additional categories or change these categories, consistent with the requirements of this article  , California Renewables Portfolio   Standard Program (Article 16 (commencing with Section 399.11)),  and subject to public hearing, if it determines that the changes will facilitate the disclosure objectives of this section. (i) All electricity sources disclosed as specific purchases shall meet the requirements of subdivision (b) of Section 398.2. (j) Specific purchases identified pursuant to this section shall be from sources connected to the Western Electricity Coordinating Council interconnected grid. (k) Net system  power   electricity  shall be disclosed for the most recent calendar year available. Disclosure of net system  power   electricity  shall be accompanied by this qualifying note: "The State of California determines this net system  power   electricity  mix annually; your actual electricity purchases may vary." The  California Energy Resources Conservation and Development   Energy  Commission may modify this note, consistent with the requirements of this article and subject to public hearing, if it determines that the changes will facilitate the disclosure objectives of this section. () For each offering made by a retail  supplier   seller  for which specific purchases are disclosed, the retail  supplier   seller  shall disclose projected specific purchases for the current calendar year. Projected specific purchases need not be disclosed by numerical percentage at the subcategory level identified in subparagraph (F) of paragraph (1) of subdivision (h).  On or before April 15, 1999, and annually thereafter, every   Every  retail  supplier   seller  that discloses specific purchases shall also disclose  annually  to its customers, separately for each offering made by the retail supplier   seller  , its actual specific purchases for the previous calendar year consistent with information provided to the  California Energy Resources Conservation and Development   Energy  Commission pursuant to Section 398.5. Disclosure of projected specific purchases and actual specific purchases shall each be accompanied by statements identifying whether the data are projected or actual, as developed by the  California Energy Resources Conservation and Development   Energy  Commission, subject to public hearing. (m) The provisions of this section shall not apply to generators providing electric service onsite, under an over-the-fence transaction as described in Section 218, or to an affiliate or affiliates, as defined in subdivision (a) of Section 372. SEC. 5. Section 398.5 of the Public Utilities Code is amended to read: 398.5. (a) Retail  suppliers   sellers  that disclose specific purchases pursuant to Section 398.4 shall report  on March 1, 1999, and annually thereafter, to the California Energy Resources Conservation and Development   on or before March 1 of each year to the Energy  Commission, for each electricity offering, for the previous calendar year each of the following: (1) The kilowatthours purchased, by generator and fuel type during the previous calendar year, consistent with the meter data, including losses, reported to the system operator. (2) For each electricity offering the kilowatthours sold at retail. (3) For each electricity offering the disclosures made to consumers pursuant to Section 398.4. (b) Information submitted to the  California Energy Resources Conservation and Development   Energy  Commission pursuant to this section that is a trade secret as defined in subdivision (d) of Section 3426.1 of the Civil Code shall not be released except in an aggregated form such that trade secrets cannot be discerned. (c)  On or before January 1, 1998, the California Energy Resources Conservation and Development   The Ener  gy  Commission shall specify guidelines and standard formats, based on the requirements of this article and subject to public hearing, for the submittal of information pursuant to this article. (d) In developing the rules and procedures specified in this section, the  California Energy Resources Conservation and Development   Energy  Commission shall seek to minimize the reporting burden and cost of reporting that it imposes on retail  suppliers   sellers  . (e) On or before October 15  , 1999, and annually thereafter, the California Energy Resources Conservation and Development   of each year, the Energy  Commission shall issue a report comparing information available pursuant to Section 398.3 with information submitted by retail  suppliers   sellers  pursuant to this section, and with information disclosed to consumers pursuant to Section 398.4. This report shall be forwarded to the  California Public Utilities Commission   commission  . (f)  Beginning April 15, 1999, and annually thereafter, the California Energy Resources Conservation and Development   On   or before April 15 of each year, the Energy  Commission shall issue a report calculating net system  power   electricity  . The  California Energy Resources Conservation and Development   Energy  Commission will establish the generation mix for net generation imports delivered at interface points and metered by the system operators.  The California Energy Resources Conservation and Development Commission shall issue an initial report calculating preliminary net system power for calendar year 1997 on or before January 1, 1998. This report shall be updated on or before October 15, 1998.  (g) The provisions of this section shall not apply to generators providing electric service onsite, under an over-the-fence transaction as described in Section 218, or to an affiliate or affiliates, as defined in subdivision (a) of Section 372. (h) The  California Energy Resources Conservation and Development   Energy  Commission may verify the veracity of environmental claims made by retail  suppliers   sellers  .