Electricity: demand response.
This bill is significant for state laws concerning energy management and utility regulation. It imposes mandatory requirements on large electrical corporations to offer the demand response programs uniformly to various customer sectors while repealing the older Scheduled Load Reduction Program. By reinforcing the base interruptible program, the bill posits that California can mitigate future rolling blackouts by encouraging demand-side reductions in electricity use. The bill also emphasizes the importance of evaluating demand response resources to ensure they support overarching goals of reducing greenhouse gas emissions.
Senate Bill 839, introduced by Senator Dodd on January 10, 2022, seeks to amend the Public Utilities Code to enhance the reliability of California's electricity supply through improved demand response mechanisms. The bill specifically aims to require large electrical corporations to administer what is termed the 'base interruptible program' to qualifying commercial, agricultural, and industrial customers. This program provides incentives for customers to commit to reducing their electricity consumption during peak load events in exchange for capacity bill credits. The legislation reflects the ongoing challenges stemming from California's rolling blackouts and aims to bolster grid reliability in light of increasing climate impacts.
The sentiment around SB 839 appears to be largely positive among proponents who view it as a proactive measure to address critical reliability issues within California's electricity grid. Supporters, including advocates for energy efficiency and sustainability, praise the bill for its focus on demand response as a solution for peak load management. However, there may be concerns from critics regarding potential costs to customers and the regulatory burden on large electrical corporations to comply with these new mandates.
A notable point of contention is the shift in responsibility it places on large electrical corporations without necessarily providing the framework for how these entities will meet their new obligations. The state-mandated local program aspect may also spark discussions regarding the varied capabilities among different utilities. The lack of reimbursement stipulations for local agencies and school districts could lead to financial implications, further complicating the adoption of the new requirements as these entities prepare for potential cost implications in implementing the demands of this bill.