CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 520Introduced by Senator HertzbergFebruary 21, 2019 An act to add Article 13 (commencing with Section 397) to, and to repeal the heading of Article 13 of, Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTSB 520, as introduced, Hertzberg. Electrical service: provider of last resort.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Under existing law, a public utility has a duty to serve, including furnishing and maintaining adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities as are necessary to promote the safety, health, comfort, and convenience of its patrons and the public.This bill would authorize the commission to develop threshold attributes, as specified, for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California. The bill would authorize the commission to establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.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of Article 13 (commencing with Section 397) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code is repealed.13.Fuel Price VolatilitySEC. 2.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. The Obligation to Serve397. (a) The commission may develop threshold attributes for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California that shall include at least the following:(1) Resource adequacy requirements.(2) Requirements for access to carbon-free sources of electricity.(3) Compliance with financial conditions.(4) The ability to provide electrical service to customers without disruption if a load-serving entity fails or denies service to a customer.(b) The commission may establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 520Introduced by Senator HertzbergFebruary 21, 2019 An act to add Article 13 (commencing with Section 397) to, and to repeal the heading of Article 13 of, Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTSB 520, as introduced, Hertzberg. Electrical service: provider of last resort.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Under existing law, a public utility has a duty to serve, including furnishing and maintaining adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities as are necessary to promote the safety, health, comfort, and convenience of its patrons and the public.This bill would authorize the commission to develop threshold attributes, as specified, for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California. The bill would authorize the commission to establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Senate Bill No. 520
Introduced by Senator HertzbergFebruary 21, 2019
Introduced by Senator Hertzberg
February 21, 2019
An act to add Article 13 (commencing with Section 397) to, and to repeal the heading of Article 13 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
SB 520, as introduced, Hertzberg. Electrical service: provider of last resort.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Under existing law, a public utility has a duty to serve, including furnishing and maintaining adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities as are necessary to promote the safety, health, comfort, and convenience of its patrons and the public.This bill would authorize the commission to develop threshold attributes, as specified, for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California. The bill would authorize the commission to establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Under existing law, a public utility has a duty to serve, including furnishing and maintaining adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities as are necessary to promote the safety, health, comfort, and convenience of its patrons and the public.
This bill would authorize the commission to develop threshold attributes, as specified, for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California. The bill would authorize the commission to establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.
## 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.13.Fuel Price VolatilitySEC. 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. The Obligation to Serve397. (a) The commission may develop threshold attributes for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California that shall include at least the following:(1) Resource adequacy requirements.(2) Requirements for access to carbon-free sources of electricity.(3) Compliance with financial conditions.(4) The ability to provide electrical service to customers without disruption if a load-serving entity fails or denies service to a customer.(b) The commission may establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.
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.13.Fuel Price Volatility
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.
13.Fuel Price Volatility
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. The Obligation to Serve397. (a) The commission may develop threshold attributes for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California that shall include at least the following:(1) Resource adequacy requirements.(2) Requirements for access to carbon-free sources of electricity.(3) Compliance with financial conditions.(4) The ability to provide electrical service to customers without disruption if a load-serving entity fails or denies service to a customer.(b) The commission may establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.
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. The Obligation to Serve397. (a) The commission may develop threshold attributes for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California that shall include at least the following:(1) Resource adequacy requirements.(2) Requirements for access to carbon-free sources of electricity.(3) Compliance with financial conditions.(4) The ability to provide electrical service to customers without disruption if a load-serving entity fails or denies service to a customer.(b) The commission may establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.
Article 13. The Obligation to Serve397. (a) The commission may develop threshold attributes for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California that shall include at least the following:(1) Resource adequacy requirements.(2) Requirements for access to carbon-free sources of electricity.(3) Compliance with financial conditions.(4) The ability to provide electrical service to customers without disruption if a load-serving entity fails or denies service to a customer.(b) The commission may establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.
Article 13. The Obligation to Serve
Article 13. The Obligation to Serve
397. (a) The commission may develop threshold attributes for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California that shall include at least the following:(1) Resource adequacy requirements.(2) Requirements for access to carbon-free sources of electricity.(3) Compliance with financial conditions.(4) The ability to provide electrical service to customers without disruption if a load-serving entity fails or denies service to a customer.(b) The commission may establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.
397. (a) The commission may develop threshold attributes for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California that shall include at least the following:
(1) Resource adequacy requirements.
(2) Requirements for access to carbon-free sources of electricity.
(3) Compliance with financial conditions.
(4) The ability to provide electrical service to customers without disruption if a load-serving entity fails or denies service to a customer.
(b) The commission may establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.