Electricity: rates: time-variant pricing.
The bill builds upon existing statutes that already give the CPUC the authority to regulate the rates charged by public utilities, including electric service providers. By mandating that the CPUC include specific details in its legislative report due by May 1, 2021, AB 3306 seeks to enhance transparency regarding how these pricing structures affect consumers and the overall market. The emphasis on time-variant pricing is seen as part of broader efforts to manage electric demand and encourage more efficient usage of resources.
Assembly Bill 3306, introduced by Assembly Member Patterson, pertains to the regulation of electricity rates, specifically focusing on time-variant pricing. The bill aims to require the California Public Utilities Commission (CPUC) to provide a comprehensive summary in its report regarding the implementation and adoption of time-variant pricing by electrical corporations. This report must discuss the benefits and shortcomings of time-variant pricing models, as well as any anticipated refinements that may be necessary in the future.
Notable points of contention may arise regarding the implications of time-variant pricing for residential customers. While proponents argue that such pricing models can lead to cost savings and a reduction in peak demand, opponents may express concerns about the financial burden on certain consumers, particularly low-income households. There may also be debates around how effectively the CPUC can regulate these changes without mandating default time-variant pricing, which has been prohibited except under specific conditions since 2018.