Amended IN Assembly March 25, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1584Introduced by Assembly Member QuirkFebruary 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 DIGESTAB 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 states 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 entitys portfolios 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 entitys 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 Bill TextThe 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of Article 13 (commencing with Section 397) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code is repealed.SEC. 2.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 Costs397. (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 commissions 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 entitys portfolios contribution of the entitys 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.
Amended IN Assembly March 25, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1584Introduced by Assembly Member QuirkFebruary 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 DIGESTAB 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 states 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 entitys portfolios 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 entitys 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
Amended IN Assembly March 25, 2019
Amended IN Assembly March 25, 2019
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 1584
Introduced by Assembly Member QuirkFebruary 22, 2019
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
## 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 states 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 entitys portfolios 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 entitys resource portfolio to the electric system conditions that created the need for the system integration resource procurement.
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 states 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 entitys portfolios 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 entitys resource portfolio to the electric system conditions that created the need for the system integration resource procurement.
## Digest Key
## 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 Costs397. (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 commissions 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 entitys portfolios contribution of the entitys 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.
The people of the State of California do enact as follows:
## 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.
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.
### SECTION 1.
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 Costs397. (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 commissions 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 entitys portfolios contribution of the entitys 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.
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:
### SEC. 2.
Article 13. Allocation of Electrical System Costs397. (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 commissions 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 entitys portfolios contribution of the entitys 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.
Article 13. Allocation of Electrical System Costs397. (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 commissions 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 entitys portfolios contribution of the entitys 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.
Article 13. Allocation of Electrical System Costs
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 commissions 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 entitys portfolios contribution of the entitys 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.
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 commissions 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 entitys portfolios contribution of the entitys 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.