| 1 | 1 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2969Introduced by Assembly Member MayesFebruary 21, 2020 An act to add Section 380.6 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 2969, as introduced, Mayes. Electricity: demand response: base interruptible program.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires each load-serving entity, defined as including electrical corporations, electric service providers, and community choice aggregators, to maintain physical generating capacity and electrical demand response adequate to meet its electrical demand requirements. Existing law requires the commission to establish rules for how and when backup generation may be used within a demand response program and to establish reporting and data collection requirements to verify compliance with those rules. Pursuant to existing law, the commission has authorized the states 3 largest electrical corporations to offer reliability-based demand response programs, including the base interruptible program, which is available to qualifying nonresidential customers of an electrical corporation.This bill would require that the base interruptible program, as administered by the states 3 largest electrical corporations in 2018, be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The bill would require that the minimum incentive levels for program participation be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The bill would authorize the commission to approve increased incentive levels for program participation if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits. Because the bill would require actions by those load-serving entities that are community choice aggregators, the bill would impose a state-mandated local program.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.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 specified reasons.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 380.6 is added to the Public Utilities Code, to read:380.6. (a) For purposes of this section, load-serving entity has the same meaning as defined in Section 380.(b) The base interruptible program, as administered by the states three largest electrical corporations in 2018, shall be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The minimum incentive levels shall be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The commission may approve increased incentive levels if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2969Introduced by Assembly Member MayesFebruary 21, 2020 An act to add Section 380.6 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 2969, as introduced, Mayes. Electricity: demand response: base interruptible program.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires each load-serving entity, defined as including electrical corporations, electric service providers, and community choice aggregators, to maintain physical generating capacity and electrical demand response adequate to meet its electrical demand requirements. Existing law requires the commission to establish rules for how and when backup generation may be used within a demand response program and to establish reporting and data collection requirements to verify compliance with those rules. Pursuant to existing law, the commission has authorized the states 3 largest electrical corporations to offer reliability-based demand response programs, including the base interruptible program, which is available to qualifying nonresidential customers of an electrical corporation.This bill would require that the base interruptible program, as administered by the states 3 largest electrical corporations in 2018, be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The bill would require that the minimum incentive levels for program participation be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The bill would authorize the commission to approve increased incentive levels for program participation if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits. Because the bill would require actions by those load-serving entities that are community choice aggregators, the bill would impose a state-mandated local program.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.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 specified reasons.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 13 | 13 | | No. 2969 |
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| 15 | 15 | | Introduced by Assembly Member MayesFebruary 21, 2020 |
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| 16 | 16 | | |
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| 17 | 17 | | Introduced by Assembly Member Mayes |
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| 18 | 18 | | February 21, 2020 |
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| 20 | 20 | | An act to add Section 380.6 to the Public Utilities Code, relating to electricity. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 23 | 23 | | |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 2969, as introduced, Mayes. Electricity: demand response: base interruptible program. |
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| 27 | 27 | | |
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| 28 | 28 | | Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires each load-serving entity, defined as including electrical corporations, electric service providers, and community choice aggregators, to maintain physical generating capacity and electrical demand response adequate to meet its electrical demand requirements. Existing law requires the commission to establish rules for how and when backup generation may be used within a demand response program and to establish reporting and data collection requirements to verify compliance with those rules. Pursuant to existing law, the commission has authorized the states 3 largest electrical corporations to offer reliability-based demand response programs, including the base interruptible program, which is available to qualifying nonresidential customers of an electrical corporation.This bill would require that the base interruptible program, as administered by the states 3 largest electrical corporations in 2018, be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The bill would require that the minimum incentive levels for program participation be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The bill would authorize the commission to approve increased incentive levels for program participation if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits. Because the bill would require actions by those load-serving entities that are community choice aggregators, the bill would impose a state-mandated local program.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.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 specified reasons. |
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| 30 | 30 | | Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires each load-serving entity, defined as including electrical corporations, electric service providers, and community choice aggregators, to maintain physical generating capacity and electrical demand response adequate to meet its electrical demand requirements. Existing law requires the commission to establish rules for how and when backup generation may be used within a demand response program and to establish reporting and data collection requirements to verify compliance with those rules. Pursuant to existing law, the commission has authorized the states 3 largest electrical corporations to offer reliability-based demand response programs, including the base interruptible program, which is available to qualifying nonresidential customers of an electrical corporation. |
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| 32 | 32 | | This bill would require that the base interruptible program, as administered by the states 3 largest electrical corporations in 2018, be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The bill would require that the minimum incentive levels for program participation be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The bill would authorize the commission to approve increased incentive levels for program participation if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits. Because the bill would require actions by those load-serving entities that are community choice aggregators, the bill would impose a state-mandated local program. |
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| 34 | 34 | | Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. |
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| 35 | 35 | | |
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| 36 | 36 | | Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime. |
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| 37 | 37 | | |
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| 38 | 38 | | 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. |
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| 39 | 39 | | |
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| 40 | 40 | | This bill would provide that no reimbursement is required by this act for specified reasons. |
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| 41 | 41 | | |
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| 42 | 42 | | ## Digest Key |
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| 43 | 43 | | |
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| 44 | 44 | | ## Bill Text |
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| 45 | 45 | | |
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| 46 | 46 | | The people of the State of California do enact as follows:SECTION 1. Section 380.6 is added to the Public Utilities Code, to read:380.6. (a) For purposes of this section, load-serving entity has the same meaning as defined in Section 380.(b) The base interruptible program, as administered by the states three largest electrical corporations in 2018, shall be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The minimum incentive levels shall be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The commission may approve increased incentive levels if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 48 | 48 | | The people of the State of California do enact as follows: |
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| 50 | 50 | | ## The people of the State of California do enact as follows: |
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| 52 | 52 | | SECTION 1. Section 380.6 is added to the Public Utilities Code, to read:380.6. (a) For purposes of this section, load-serving entity has the same meaning as defined in Section 380.(b) The base interruptible program, as administered by the states three largest electrical corporations in 2018, shall be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The minimum incentive levels shall be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The commission may approve increased incentive levels if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits. |
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| 54 | 54 | | SECTION 1. Section 380.6 is added to the Public Utilities Code, to read: |
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| 56 | 56 | | ### SECTION 1. |
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| 58 | 58 | | 380.6. (a) For purposes of this section, load-serving entity has the same meaning as defined in Section 380.(b) The base interruptible program, as administered by the states three largest electrical corporations in 2018, shall be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The minimum incentive levels shall be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The commission may approve increased incentive levels if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits. |
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| 60 | 60 | | 380.6. (a) For purposes of this section, load-serving entity has the same meaning as defined in Section 380.(b) The base interruptible program, as administered by the states three largest electrical corporations in 2018, shall be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The minimum incentive levels shall be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The commission may approve increased incentive levels if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits. |
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| 62 | 62 | | 380.6. (a) For purposes of this section, load-serving entity has the same meaning as defined in Section 380.(b) The base interruptible program, as administered by the states three largest electrical corporations in 2018, shall be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The minimum incentive levels shall be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The commission may approve increased incentive levels if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits. |
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| 66 | 66 | | 380.6. (a) For purposes of this section, load-serving entity has the same meaning as defined in Section 380. |
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| 68 | 68 | | (b) The base interruptible program, as administered by the states three largest electrical corporations in 2018, shall be available to qualifying industrial customers regardless of the load-serving entity that is that customers supplier of electricity. The minimum incentive levels shall be those applicable within the service territory of each electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The commission may approve increased incentive levels if the commission determines that those increased incentives are reasonably warranted to ensure continued participation by eligible industrial customers, within the upper limits established by the commission, and to ensure continued delivery of resource adequacy and expected ratepayer benefits. |
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| 70 | 70 | | SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 72 | 72 | | SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 74 | 74 | | SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 76 | 76 | | ### SEC. 2. |
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